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The AIChE Sustainability Index provides practical benchmarks along a number of well-defined metrics.
Sustainability has become a driver for innovation in the chemical industry. Innovations such as lightweight plastics for transportation, affordable waterfiltration technology for the developing world, and products and technologies for CO2 capture exemplify the contributions of the chemical industry to sustainability.
The AIChE Sustainability Index (SI) uses publicly available data to assess the sustainability performance of representative companies in the chemical industry with respect to strategic commitment, sustainability innovation, environmental performance, safety performance, product stewardship, social responsibility, and value chain management. The development of the AIChE SI was discussed in the November 2007 issue of CEP (p. 13). Other issues covered the impact of company size on the index (Jan. 2008, p. 20) and the strategic commitment factor (Feb. 2008, p. 18), but those elements are summarized here for the reader's convenience.
This article discusses the seven factors that make up the AIChE Sustainability Index. Figures 1-7 illustrate the performance of the 11 major chemical companies* included in the inaugural analysis of AIChE SI with respect to each of the factors. The bars indicate the ranges of the companies' scores, and the asterisks represent their average scores. The assessment criteria included in each factor are scored on a scale of 0 to 7, with 7 representing the "ideal" or best practice. An overall score is also shown for each factor, representing the weighted average of the criteria sub-scores.
Strategic Commitment to Sustainability
Strategic commitment (Figure 1) includes the following assessment criteria:
* Stated Commitment - public commitment to excellence in environmental and social performance throughout a company's value chain
* Commitment to Voluntary Codes - public commitment to voluntary codes and standards, including Responsible Care, Global Compact, and others
* Sustainability Reporting - timely and comprehensive public reporting of sustainability performance
* Sustainability Goals and Programs - a comprehensive set of goals and programs that are specific and challenging
* Third-Party Ratings - respected agencies' ratings on company-wide sustainability management and reporting.
On average, the companies received high marks on stated commitment and commitment to voluntary codes, and lower scores on sustainability reporting and sustainability goals and programs. They also scored somewhat poorly on third-party ratings (such as the Dow Jones...