The Drive to Net-Zero, Sustainability, and Digital Technologies Creates Many New Opportunities and Challenges for the Lubricants Industry
By Milind Phadke, Vice President, Kline Energy
Sustainability is a megatrend of our time. Between 2020 and 2021, there has been a rush of corporates and governments declaring their intention to become carbon neutral by a given date, anywhere from 20 to 40 years into the future. The requirements of environment, social, and governance (ESG) standards are expected to have a profound impact on the operational and business practices of enterprises worldwide. Coupled with increasing customer demands, companies will need to make full disclosures to investors and financial and credit rating agencies, making carbon neutrality the centerpiece of boardroom agendas going forward. To achieve their sustainability goals, companies not only within the lubricants industry will adopt a variety of operational measures and decarbonization technologies. As these technologies jostle for leadership in different countries and regions, the role that lubricants play will change.
The interaction between the drive to sustainability and the lubricants industry can be classified into three themes. This article will discuss these themes and what opportunities and challenges they present to lubricants industry participants.
Theme 1: Reducing the carbon footprint of finished lubricants.
Like all other industries, the lubricants industry is under pressure from governments, its supply chain partners, and consumers to reduce the carbon footprint of its products. Increasingly,a carbon footprint isan important criterion for procurement decisions made by automotive and industrial OEMs, government agencies, industrial endusers, and consumers. This focus on the reduction of carbon footprints will only increase with time...
To read the full article, submit the form below.