Sustainability in the polyolefins market

An explanation was given about how Europe leads in sustainability with a “stick” approach, while the US uses a “carrot” approach, with distributors acting as incubators for sustainable solutions and prioritizing risk mitigation for polyolefins.

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At FlexPO+ 2023 (now incorporated into the ADI Forum), Thomas Marthinsen, Head of North America Alliance Office, Borealis, and Nathan Wiker, GM & VP, Nexeo Plastics, discussed how sustainability, circular economy, and recycling were driving sustainability in the polyolefins market. Europe, with its “stick” approach, led in sustainability, characterized by stricter legislation, a strong cultural emphasis on waste separation, and significant investments in mechanical and chemical recycling facilities. In contrast, the U.S. employed a “carrot” approach, showing less urgency and a fragmented regulatory landscape, which created challenges in securing recycling feedstock and slowed infrastructure development.

Distributors played a crucial role as “incubators” for new, niche sustainable solutions, especially in the nascent US market, offering a broad portfolio of options and helping scale new technologies from suppliers. Beyond sustainability, the highest demand for distributor services was in risk mitigation, achieved through dedicated warehouses and private fleets that ensure supply proximity and reliability, particularly in response to past disruptions like the “freeze” event in the Gulf Coast.

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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.

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