As global resource use increases, resource scarcity and the high costs of adapting to environmental pressures can pose significant challenges for companies. Businesses are also under growing societal and regulatory pressure to identify alternatives to hazardous substances and improve transparency and environmental performance.
Clariant’s Dynamic Portfolio Value Program (PVP) is helping to drive the company’s transition toward products with reduced human health and environmental risk. Clariant’s initial portfolio value assessment program evaluated all the company’s products, spanning environmental impacts, safety, social value, and performance metrics, using manual re-screening to address regulatory changes.
The new Dynamic PVP updates Clariant’s process for assessing and improving product sustainability profiles, by working through an internally coded program that enables real-time analysis and assessment of changes across a range of sustainability criteria.
The Dynamic PVP addresses three challenges:
- Evolving Sustainability Standards and Time Pressure: The chemical industry faces unique timing constraints—replacing products through substitution or innovation can take up to 3 to 5 years. Thus, traditional, static portfolio assessments cannot keep up with rapidly changing requirements.
- Portfolio Assessment Complexity and Resource Management: A company with a large portfolio of products can have difficulty capturing changes from new benchmarks and regulatory requirements. The traditional product-by-product assessment approach is time-consuming and resource-intensive, so there is a need to efficiently prioritize innovations based on business impact.
- Strategic Decision-Making and Implementation Challenges: Additionally, quantifying potential business impacts of sustainability changes can be difficult. The need for clear communication and developing an action plan is important.
The Dynamic PVP addresses these challenges in several ways, by:
- Replacing manual work with an automated system that evaluates sustainability performance across Clariant’s full product portfolio.
- Simulating future scenarios to understand how evolving regulations may impact products.
- Delivering real-time insights to support smarter, faster, and more strategic decisions.
- Connecting sustainability and business goals with integrated sales impact analysis.
- Using expert-verified data for accuracy and reliability.
The Dynamic PVP helps Clariant maintain business viability while proactively addressing potential environmental and health impacts of their products.
