Charlie Tan, CEO of the Global Impact Coalition, explains how the organisation is shaping the future of the chemical industry by addressing systemic barriers and advancing innovative solutions.
Founded by seven leading chemical companies within the framework of the World Economic Forum (WEF), the Global Impact Coalition (GIC) has evolved into a powerful platform for transformative collaboration. Established in November 2023 as an independent entity, GIC brings together industry leaders and stakeholders to tackle the pressing challenges of achieving net zero emissions and promoting circularity within the chemical sector. Since spin-off one year ago, the GIC has expanded globally and across the chemical value chain, with industry leading members including BASF, SABIC, Mitsubishi Chemical Group, SUEZ and LyondellBasell, among others.
The vision behind the Global Impact Coalition
The chemical industry, responsible for approximately two billion tonnes of greenhouse gas emissions annually (roughly 5% of global emissions), faces mounting pressure to adopt sustainable practices. This emissions figure, poised to rise with increasing global demand for chemical products, means that, without intervention, the sector may exceed its carbon budget by 2029. Against this backdrop, the founders of the Global Impact Coalition recognise that meaningful progress toward net zero emissions requires a collaborative platform.
GIC’s primary mission is to accelerate the chemical industry’s transition by enabling co-operation among companies that might otherwise operate in silos. If emissions continue at the current pace, reaching global targets will be impossible. Immediate action is crucial.
Since its spin-off from the WEF in late 2023, the Global Impact Coalition has brought together companies across geographies and the chemical value chain to develop joint solutions that meet both environmental and business needs.
The power of collaboration: A structured model
The Global Impact Coalition’s collaborative model is a cornerstone of its success. Working with stakeholders across the value chain, GIC pools resources and insights to facilitate rapid innovation. Through quarterly ideation sessions and bi-monthly in-person project sprint meetings, the GIC sustains momentum in project development. The GIC’s Advisory Board, composed of CEOs and other C-level leaders from member companies, drives top-down support, ensuring that GIC’s initiatives receive the resources and strategic focus they need.
The GIC’s approach also extends beyond ideation. GIC brings in financial, technical, and regulatory partners who aid in de-risking projects and scaling innovations. This structured collaboration model fosters trust among members. GIC provides a safe space where member companies can co-develop projects, share knowledge, and advance groundbreaking solutions.
Major projects: Leading the way
At the heart of GIC’s mission lies its commitment to turning ideas into action. One of the GIC’s successful spin-offs is the R&D Hub for Plastic Waste Processing, co-funded by seven GIC member companies. This hub explores advanced recycling technologies designed to tackle one of the industry’s largest environmental concerns: plastic waste. With less than 10% of the 400 million tons of plastic produced each year being recycled, the need for more effective waste management solutions is critical. By developing technologies like advanced sorting, solvolysis for composite recycling, and polymer separation, the R&D Hub is making significant strides toward improving plastic recycling rates and reducing waste.
Addressing chemical industry challenges: Collaboration, innovation, and financing
While GIC has achieved several successes, significant challenges remain for the chemical sector. Chief among these is the sector’s high carbon emissions as well as its reliance on fossil fuels, not only for energy but also as feedstock for production. The chemical sector’s primary goal is defossilisation rather than decarbonisation, given that carbon is integral to many chemical products.
Overcoming these challenges requires innovative solutions as well as robust partnerships with financing communities. GIC leverages its connections with global stakeholders to create an enabling environment that supports sustainable business models and reduces risk for investors. This comprehensive approach helps bridge the financing gap that often limits progress on emissions-reducing technologies and projects.
Measuring impact and building a sustainable future
GIC’s impact-driven model centres on tangible results. By partnering with universities, research institutes, and advisory firms, GIC monitors and evaluates the potential impact of its initiatives. Additionally, its collaborative projects attract increased support from the financial sector, which plays a crucial role in scaling clean technology. As it sits at the base of nearly every product’s value chain, the chemical industry is uniquely positioned to help drive down emissions across various industries. However, financial resources are needed to make these projects viable.
The GIC’s recent success in building partnerships and delivering key milestones has also set a strong foundation for future expansion. The GIC’s ongoing success hinges on its ability to foster mutual trust within an industry that has traditionally been more competitive than collaborative. Through trust and transparency, the GIC has created an environment where companies feel secure in pooling resources and sharing expertise.
Looking ahead: The road to net zero
In the coming years, GIC aims to expand both geographically and within the chemical value chain. The GIC’s new members, including Siemens Energy, Turkish conglomerate Sabanci Holding and global waste management leader SUEZ, illustrate its commitment to broadening its reach and impact. GIC’s expansion efforts are grounded in a vision of global industry transformation – one that acknowledges the urgency of the climate crisis.
For the chemical industry, GIC envisions a future marked by increased circularity, low emission processes, and strong collaboration across sectors. The chemical industry must leverage collective expertise and form partnerships across sectors to meet net zero targets. GIC is here to provide the platform for these partnerships, driving both innovation and tangible action.
As global pressure to address climate change intensifies, GIC remains focused on its core mission: to accelerate the deployment of sustainable, economically viable technologies and scale-up innovative new business models to advance sustainability in the chemical sector. With a portfolio of five active projects and a growing network of partners, the Global Impact Coalition exemplifies the power of collaboration in tackling one of the world’s most pressing environmental challenges. Through its efforts, GIC is helping to pave the way for a net zero future in which the chemical industry plays a leading role in the transition to a more sustainable world.
Please note, this article will also appear in the 20th edition of our quarterly publication.
