UK chemical and pharmaceutical industry: key to a sustainable future

The chemical and pharmaceutical sector is a £60 billion industry.

Proud to be judged on our performance Never has the sustainability of a business been challenged more than in these current economic times, with their inevitable focus on short-term financial performance. It is against that backdrop therefore that I am particularly proud to announce the next phase of the CIA’s long-established commitment to building a sustainable UK chemical industry for the benefit of society at large. Back in 2004 the CIA and its member companies took their first collective steps in addressing the sustainability of the UK chemical industry. Guiding principles were established and economic, social and environmental goals were published

with a commitment to report annually. Six years on I am delighted to confirm not only that we will continue to publish our annual performance data but that we are also taking that collective commitment to another level. There will be a strengthened focus on best-practice sharing, technical advice and support together with a more robust verification of Responsible Care – giving additional confidence to our stakeholders. The overall goal is, of course, continuous improvement in our economic, social and environmental performance and related contribution. With that in mind, I thank our member companies for their leadership.

I also thank our stakeholders for their supporting words of encouragement and I invite them to scrutinise our activities and behaviours over the coming years, monitor our progress and, most importantly, work with us to determine how best we meet society’s future needs and expectations.

Steve Elliott, Chief Executive, Chemical Industries Association November 2010

The jobs of over 600,000 people depend on the chemical industry.

What stakeholders say: “Innovation is critical to the future of the UK. The CIA strategy coupled with the Chemistry Innovation Strategy sets a framework for innovation in the chemistryusing industries.” Carol Boyer-Spooner, Chief Executive, Chemistry Innovation Knowledge Transfer Network “The Environment Agency welcomes this next phase of the CIA’s Sustainable Development programme and related commitments. We look forward to this programme and its use of lead indicators delivering real and consistent improvements in environmental performance over the coming years. The chemicals sector are clearly leaders in this type of approach.” Dr Paul Leinster CBE, Chief Executive, Environment Agency “The Health and Safety Executive welcomes the CIA’s continued commitment to sustainability and commends the leadership being demonstrated in resetting the

direction to take account of changes which have taken place and lessons learned. We are pleased to see the focus on process safety leadership and Responsible Care verification, using use of leading indicators to measure progress. High standards of performance driven by a focus on process safety in the chemical and pharmaceutical sector are key to the safety of employees and the communities in which the industry operates and fundamental to delivering sustainable solutions.” Judith Hackitt CBE FREng, Chair, Health and Safety Executive “The chemical and pharmaceutical sector is one of this country’s most important employers, with a strong, positive record on relations between businesses and their workforces. This strategy will help it to remain that way.”

“The CIA‘s nation wide sustainability strategy is critical to Scotland and places environment issues at the heart of a successful sector. We welcome the leadership CIA is showing in delivering a sustainable sector.” Campbell Gemmell, Chief Executive, Scottish Environment Protection Agency “This strategy meets standards that are recognised as delivering good business behaviour.” Simon Deakin, Professor of Law and Corporate Governance, University of Cambridge

Nita Clarke, Director, Involvement and Participation Association and joint author of Engaging for Success – a Government report on employee engagement

Our industry showing leadership “The all-embracing CIA strategy on sustainability is vital reference for our sector. It will strengthen our commitment to the UK, making it the place to do business.”

“The UK is well placed to lead the world in sustainability. This strategy on behalf of our sector will play an important part in making this happen.”

John Saul, Senior Vice President, GlaxoSmithKline

Neil Carson, Chief Executive, Johnson Matthey

“The CIA’s sustainability strategy is an important step on the route for us all to gain stakeholder support.”

“Companies of all sizes need to think about all areas of sustainability. As the leader of an SME I think it is critical. The CIA’s industry-wide strategy will enable all of us to be part of a successful sector.”

Paul Booth, European Director for Government Policy and Public Affairs, SABIC

Harry Swan, Managing Director, Thomas Swan & Co. Ltd

“An all-encompassing sustainable approach is critical for the chemical and pharmaceutical sector in the UK. The CIA strategy will help to deliver that and I look forward to full implementation.” Mike Humphrey, Group Chief Executive, Croda “CIA’s sustainability programme showcases the importance of the sector in developing and implementing technology.” Will Barton, Senior Consultant, Oxford Catalysts and Contractor, UK Technology Strategy Board

Our guiding principles

• Securing a competitive and economically sustainable industry • Adopting innovative, environmentally responsible solutions that help satisfy society’s needs • Optimising the use of resources to deliver a low carbon future • Demonstrating leadership in all areas of safety • Delivering good practice in ethical behaviour

Innovative solutions: modern fertilizers.

• Adopting the highest standards of corporate governance and accountability • Respecting the culture and rights of individuals

Best practices are key to our industry.

• Ensuring all reasonable steps are taken to prevent harm to human health and the environment Greener solutions: the production of biofuels using ethanol from sustainable sources.

The UK has a global reputation up and down the chemical value chain.

Our vision • The sector is recognised as being of strategic importance as it underpins many others including agriculture, aviation, automotive, construction, electronics and healthcare • The UK has a global reputation as a place to do business up and down the chemical value chain •C  ompanies and sites operating in the UK are recognised for their performance in terms of profitability, resource efficiency, innovation delivery, business ethics, social responsibility and HS&E through Responsible Care • Skilled people are attracted to work in the industry – and are then staying in it. Leadership is a key factor in this

Our themes • Evolution not revolution • Recognising sustainability has become mainstream and inclusive • Building a framework of support for our members • Recognising that international competitiveness is paramount • Delivering accountability and setting leading indicators • Earning stakeholder support

Our commitments • Verification of Responsible Care

Every working day our sector adds £30 million to the UK’s balance of trade.

• 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 of meaningful economic indicators and tracking progress • Ensuring our workforce has the skills and ethical standards to deliver for their companies, customers and stakeholders • Delivering business value to members • Public reporting of progress •C  ontinuing to build our reputation for constructive, fact-based representation and lobbying

Delivering 2:1 savings on greenhouse gases.

Chemical businesses in the UK are a £60 billion industry. Every working day, our sector adds £30 million to our country’s balance of trade. The jobs of 600,000 workers in the UK depend on chemical businesses. Workers in chemical businesses earn on average 40% more than other parts of manufacturing. We deliver 2 tonnes of greenhouse gas savings for every 1 tonne that we emit in our production processes. This could rise to 4 tonnes of savings for every 1 tonne we emit, with the right policy framework.

Kings Buildings Smith Square London SW1P 3JJ United Kingdom Telephone +44 (0)20 7834 3399 www.cia.org.uk

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