Transcript CIA Responsible Care programme

TWO QUESTIONS:
DOES THE UK WANT A CHEMICAL INDUSTRY?
AND IS IF SO
IS THE UK A PLACE FOR THE INDUSTRY TO
INVEST AND GROW?
Dr Diana Montgomery
Deputy Chief Executive,
Chemical Industries Association
The UK Chemical Industry
•
•
•
•
£60 bn turn over
£30m a day to the UK’s balance of payments
Half a million jobs depend on the sector
Products essential to everyday life and are needed to
supply the rest of manufacturing
• Integrated supply chains
• Foreign headquartered so UK sites competing for
investment
• 80% of UK chemical production is exported – much to
EU and US
Creating Value:
Summed up by Bob Lutz in his book “The Car Guy”
....... Economic value is created in 1 of 3 ways:
• Mining materials from the Bowels of the earth
• Growing food and wood from the surface of the earth
• Manufacturing and distributing the products of the
first 2.
Energy intensive but environmentally
efficient
• Energy large part of chemical companies’ costs
• UK chemical industry is 35 % more efficient since
1990
• McKinsey report shows industry overall climate
change solution provider
• Chemical industry products save at least twice as
much CO2 emissions over their lifecycle as it costs to
make them,
• This could improve to 1:4.7 with the right policy
framework
Environmentally efficient
Acidification
Oxygen demand
Environmental Burden in
2000
Environmental Burden
in 2009
Photochemical ozone formation
0
Eutrophication
2010 goals
Global warming
Human health
CIA Sustainable Development
Programme
• Sustainabiltiy programme across whole UK sector since 2004
• Publically reported indicators of performance annually
• Committed to CIA Sustainable Development Principles.
– Safe products and operations,
– resource efficiency,
– Innovation,
– fairness,
– respect for people and communities,
– going beyond compliance,
– openness
– and leadership
CIA Sustainable Development
Programme Key Elements
• Verification of Responsible Care
• Implementation of the Global Product Strategy
• Development of leading indicators in the areas of Health, Safety,
Environment, Transport and Climate Change
• Agreement of the methodology and data for carbon foot printing
• Development meaningful economic indicators and tracking
progress
• Ensuring our workforce has the skills and ethical standards to
deliver for their companies, customers and stakeholders
• Public reporting of progress
• Continuing to build our reputation for constructive, fact-based
representation
My evidence for why the UK needs
a chemical industry
• to deliver real financial value in the short and longer
term
• To create jobs both directly and through the supply
chain.
• To foster innovation in delivering solutions to global
problems
• And to do so with as little direct impact on the
environment as possible......
How does the UK attract investment
• A long term manufacturing strategy which provides
certainty of government policy
• Competitive and stable energy prices with security of
supply
• Proportionate and predictable regulatory framework
pragmatically enforced
• Competitive and stable tax regime
• Solid skills base with flexible labour market
• A Government that can package itself to the outside
world as one who will welcome and facilitate new
investment
Conclusion
• There are many reasons to be optimistic about the
chemical industry in the UK.
• We have innovative companies, great talents and
increasingly a culture that once again respects
people who make things.
• There is evidence in our sector of UK companies
being globally competitive
• We are the industry that will produce answers to the
environmental challenges we face.
• If the Government can provide the right framework,
the UK chemical industry will continue to lead the
way through new industrial revolutions