An industry coalition urges a focus on technology, supply chain development, and financial innovation to reduce reliance on fossil fuels and accelerate sustainability

Hindustan Unilever has joined forces with the Federation of Indian Chambers of Commerce and Industry (FICCI) to release a knowledge paper to accelerate the material transition in India’s chemical industry. The paper stresses the need for focused technology development and policy interventions to drive sustainable practices in the sector.

As the world’s sixth-largest chemical industry, India plays a crucial role in global supply chains, contributing around 7 per cent to the nation’s GDP. However, the sector is also a significant emitter of greenhouse gases, making it critical for India to focus on reducing emissions to achieve its NetZero targets. HUL’s report identifies two essential transitions for the industry: an energy transition from fossil fuels to renewable sources, and a material transition from fossil-based carbon to renewable carbon sources. While energy transition has garnered attention from the government, the material transition requires an equally strong focus.

The collaboration, which includes major industry players such as Praj Industries, Clariant, Sabic, and Galaxy Surfactants, has outlined five key pillars to drive the material transition. These include supporting bio-based chemicals technology development, fostering industry-academia partnerships, creating incentives to boost innovation, developing efficient biomass supply chains, and introducing innovative financial instruments like green bonds. Additionally, the paper advocates for green public procurement and consumer awareness initiatives to promote sustainable practices across the industry.

Rajat Arora, R and D Home Care Head, HUL and Chair RECEIC Working Group on Material Transition said, “The comprehensive policy framework presented in the knowledge paper aims to address the challenges of material transition and pave the way for a more sustainable future. The timing is perfect because the Government of India has introduced several new initiatives, including the BioE3 policy, and significantly increased funding for research and development through programs like the Anusandhan National Research Foundation (ANRF). By focusing on the five key pillars outlined in the report, HUL is committed to driving positive change within the industry and beyond.”