The challenge: Validating alignment with current and future sustainability standards and regulations
Clariant is one of the world’s leading specialty chemical companies, aspiring to be at the forefront of sustainable change. In 2012, Clariant launched their Portfolio Value Program (PVP), a strategic assessment tool used to evaluate and steer product and project portfolios throughout their life cycle towards increased sustainability, whilst considering future regulations and customer needs. To stay ahead in a rapidly evolving market, the methodology is continuously refined to proactively anticipate and address external sustainability and circular economy standards and requirements, while aligning with Clariant’s sustainability objectives.
To ensure the PVP remains consistent with global sectoral standards and stays future fit with respect to upcoming product sustainability regulation, Clariant reached out to ERM for its global sustainability expertise, hands-on knowledge with portfolio steering, proven success on regulatory advisory and in helping companies thrive under top-tier sustainability frameworks. Firstly, ERM helped align and verify their PVP program with the recently updated Portfolio Sustainability Assessment (PSA) 2.0 framework by the World Business Council for Sustainable Development (WBCSD); and second, supported the alignment of the PVP with requirements for the EU Green Claims directive, The EU Eco-design Regulation (ESPR).
What we did: Technical verification, alignment and regulatory fitness recommendations for Clariant’s PVP 2.0
ERM conducted a comprehensive high-level review of Clariant’s PVP 2.0 program, evaluating the methodology against the structure, terminology, and quality criteria defined by the PSA 2.0. This technical verification and alignment process involved identifying deviations and providing recommendations to enhance Clariant’s understanding of the methodology accuracy in relation to assessing and categorizing specific products. Through this work, ERM’s independent verification process helped Clariant demonstrate the credibility of their PVP program methodology whilst also providing recommendations for areas of improvement.
Looking ahead, ERM evaluated the PVP program on its regulatory fitness for forthcoming standards and future value creation. Creating a robust system and optimizing methodologies is essential for meeting future standards, especially as the Green Claims Directive is soon to be enacted. ERM also conducted an in-depth analysis to explore the readiness of the PVP to respond to upcoming sustainability and circularity requirements in the Eco-design for Sustainable Products regulation, which came into force in July 2024.
ERM provided a set of recommendations for Clariant’s PVP program to ensure their system is both optimized for present requirements and proactively prepared to integrate upcoming sustainability standards.
"Partnering with ERM has enabled Clariant to strengthen the credibility and transparency of our Portfolio Value Program, ensuring alignment with WBCSD portfolio sustainability assessment (PSA). Their expertise has been crucial, to optimize our methodology and proactively preparing for upcoming EU regulations."
The impact: Strengthened transparency and communication of Clariant’s PVP 2.0
Through this partnership, ERM has supported the strengthening of Clariant’s existing Portfolio Value Program (PVP) through a better understanding of how Clariant could align the PVP with WBCSD’s PSA 2.0. This alignment has boosted transparency, performance, and industry leadership, creating a powerful collaboration. Moreover, this collaboration has supported Clariant’s PVP program team to make sure the system is ready to respond to the latest sustainability standards and future regulatory requirements.
Furthermore, ERM’s work has supported Clariant’s communication about the tool, providing greater evidence on how it can steer product portfolios towards increased sustainability. In addition to improving the structure of communication materials used by Clariant to share about the PVP internally and externally. ERM’s technical expertise has also helped to break down some of the complexities faced by Clariant, thereby increasing the transparency of their PVP program to internal and external stakeholders.
Finally, the recommendations from the partnership with ERM have laid a solid foundation for Clariant to continue improving their methodology. This underscores their unwavering commitment to sustainable business practices, characterized by robust and trustworthy assessment methods.
