Wei Siwei: The chemical industry should reduce its dependence on scarce resources
The global economy's relentless expansion has accelerated the depletion of fossil resources, forcing chemical companies—once reliant on these finite materials—to confront a profound transformation. Hans Wijers, CEO of AkzoNobel, the world’s leading paint company, recently emphasized in an interview with Shanghai Securities News that the industry must reduce its dependency on non-renewable resources, as sustainable development is now the cornerstone of long-term survival.
Resource scarcity has become one of the most pressing challenges for the chemical sector. With many non-renewable resources dwindling and emerging markets driving up demand and prices, the industry is facing unprecedented pressure. Wei Siyi, a prominent industry leader, stated that companies relying on traditional raw materials can only thrive if they shift toward highly sustainable business models.
He stressed that the importance of sustainable growth cannot be overstated. By 2050, global GDP is expected to grow fivefold, creating over a billion middle-class consumers worldwide. This surge will inevitably lead to increased carbon emissions and energy consumption. Moreover, by 2035, the GDP of BRIC nations is projected to surpass that of the G6 countries. These trends will exacerbate the already critical shortage of essential resources such as oil, water, and land.
Chemical products, which are deeply embedded in everyday life, heavily depend on non-renewable inputs. Reducing this reliance could significantly lower manufacturing costs and environmental impact.
Wei noted that the chemical industry is often viewed as part of the problem rather than a solution. However, by using non-renewable resources more efficiently, the sector can seize opportunities arising from global demographic shifts. Companies that minimize resource use while maximizing output will emerge as winners in this evolving landscape.
In his view, some industry leaders have already begun adapting by integrating new risk assessment criteria into their decision-making processes. For instance, investment decisions now require evaluations of life cycle assessments, life cycle costs, and carbon emissions—all given equal weight. A more effective global carbon trading system will play a crucial role in determining corporate success. Furthermore, environmental performance should not be measured solely by carbon emissions but also by factors like water usage, land footprint, energy efficiency, and raw material consumption.
Wei added that the future of the chemical industry will be driven by the development of more sustainable products. Companies that embrace this shift will gain a clear competitive edge. Sustainability is no longer optional—it is the key to survival.
He also called for broader changes from external stakeholders. Governments need to establish robust regulatory frameworks that ensure private companies can achieve returns within 10 to 20 years. Similarly, the investment community must support long-term strategies, even if they temporarily affect short-term profits. Such collaborative efforts are essential for navigating the complex challenges ahead.
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