Customers and investors are driving low-carbon footprint demand, says SABIC executive
Customer demand for low-carbon products is one of the key challenges facing the chemical industry, according to a top executive at Saudi Basic Industries Corporation.
Fahad Al Sherehy, vice president of energy efficiency and carbon management at SABIC, included the shift in attitudes from consumers among a list of issues his firm has to tackle.
Al Sherehy made the comments during a discussion at the Future Minerals Forum in Riyadh on Thursday.
“Our industry, with minerals not an exception. is facing five key challenges.
“One is related to the government and the regional compliance requirements.
“Second, our customer expectation and demand for low carbon footprint products.
“Third, the investors and financial institutions that are demanding the same.
“(Fourth) transparency and reporting required by key stakeholders.
“Finally, disruptive innovation.”
Al Sherehy’s comments were made during a debate focused on how mining could be reinvented in light of a drive towards a circular economy in the region.
This means that every form of debris is the raw material for a fresh product or energy source — a key part of Saudi Arabia’s sustainability drive.
Reflecting on this, Al Sherehy said: “In SABIC, we see the circular carbon economy, which Saudi Arabia during the G20 last year got approval for as a framework to address climate change, as a real enabler to achieve our carbon neutrality strategy.”
“It takes into consideration different options around the four Rs: reuse, reduce, recycle, remove.”
The Future Minerals Forum is a special event bringing together ministers, organisations and mining leaders from more than 30 countries.
Hosted by the Saudi Ministry of Industry and Mineral Resources, is aimed at highlighting the role of mining in Saudi Vision 2030, after the government identified it as the third pillar of the Kingdom’s economy.