Business Enquirer Issue 118 | Kraton | October'23

THE INDUSTRY LEADER UNLOCKING POSSIBILITIES IN SUSTAINABLE CHEMICALS KRATON

THE INDUSTRY LEADER UNLOCKING POSSIBILITIES IN SUSTAINABLE CHEMICALS

Kraton, one of the world leaders in innovating and manufacturing polymers and biobased pine chemicals, is on a mission to “unlock the possibilities of sustainable chemicals,” says Kraton CEO Marcello Boldrini, speaking to Business Enquirer.

Originating as a division of Shell, Kraton entered its first significant growth chapter in 2016 by acquiring Arizona Chemicals, then in 2022 by uniting with DL Chemicals, a global petrochemicals company based in South Korea. This strategic partnership expanded its reach and generated synergistic advantages, strategically positioning the business for the future. The transformative impact of this collaboration is poised to propel Kraton to unprecedented levels.

From footwear to diapers, automotive to adhesives, Kraton’s Polymers and Pine Chemicals are integral components in countless everyday products that enhance people’s lives worldwide.

PROJECT

KRATON

DIRECTED BY: REECE PLANE ARTICLE WRITTEN BY: LAURA WATLING

A Holistic Approach to Sustainability

With its vast range of polymers and pine chemicals used in products at every touch point of daily life, Kraton recognises its significant role in promoting sustainability.

Kraton not only evaluates the environmental impact of its business operations but also supports customers by offering innovative, sustainable solutions while assessing how its supply chain impacts these efforts.

“We take a holistic approach to sustainability, ensuring that our entire value chain is implementing sustainable measures,” shared Marcello, highlighting that Kraton is an active member of Together for Sustainability (TfS).

TfS is a global procurement-driven initiative to assess and improve chemical companies’ and suppliers’ sustainability management practices. As part of the programme, Kraton have been involved in the development of the Product Carbon Footprint (PCF) Guideline.

“The PCF Guideline will help Kraton further its supplier engagement programme and improve supplier environmental performance and practices, with product-level emissions transparency for identifying, tracking, and reducing Scope 3 GHG emissions,” Marcello added.

Kraton’s key focus is to develop innovative, customised solutions which enhance the sustainability of its customer’s products and processes.

Recently, the business has launched groundbreaking solutions to support the biobased and circular economies.

“For the construction and roadway sectors we have developed a polymer which is more efficient, offers better performance and has a reduced carbon footprint compared to other alternatives. This means customers can use less, reduce costs and increase sustainability,” shared Marcello.

Additionally, Kraton has introduced an innovative technology known as REvolutionTM. This scalable, nextgeneration solution is specifically designed to enhance colour quality, reduce odour, and ensure stability. These characteristics make it a compelling alternative to fossil-based products in the Adhesives and Road Marking sectors.

“Kraton understands sustainability is not a destination but an ongoing journey. As we continue to develop sustainable solutions, we are firmly committed to leading the way in innovation, transparency, and accountability,” said Marcello.

Kraton has recently been awarded for its sustainability efforts, ranking in the top 1% of businesses in the EcoVadis Platinum Sustainability Rating for the third consecutive year.

Diversity Driving Innovation

Marcello shared with Business Enquirer the importance that diversity plays in both business sustainability, growth, and innovation.

Kraton, which employs 1,854 people globally across its 27 sites (made up of six regional headquarters, eight innovation centres, and 13 manufacturing facilities), reported in its 2022 sustainability report that 55% of new hires were considered diverse.

“Diversity is crucial to innovation, as you need to have a wealth of minds, knowledge, and experience to innovate,” said Marcello, “I have witnessed how diversity fosters improved performance, making a compelling business case for it alongside its ethical significance”.

Over the years, the business has developed robust learning and development programmes and streamlined HR processes. These initiatives empower its colleagues to actively engage with the organisation, grow, and advance through a combination of experiential learning and structured developmental opportunities.

“As a global business we foster inclusion, and ensure that we listen and work closely to the communities we work within,” said Marcello.

With over 30 years’ experience in the chemical industry, Marcello has had the opportunity to travel the world, taking on leadership roles in Asia, Europe, and America.

“When I joined Kraton I ensured they represented my core values such as culture and diversity. There is clear synergy between myself and the business,” Marcello shared, “I’ve been offered a unique opportunity with Kraton which has allowed me to be involved in the shaping and transformation for our culture, on which the business’ success depends”.

A Robust Pipeline of Innovation

As the inventor of the first commercially viable styrenic block copolymer (SBC) more than 65 years ago, and with over 100 years of producing Pine Chemicals, sustainable innovation is an integral part of Kraton’s DNA.

With that in mind, Marcello acknowledges the numerous benefits that modern technologies such as artificial intelligence (AI) can bring to Kraton.

“AI integration not only elevates our job performance and efficiency but also expedites our time-to-market. In light of the continual advancements in AI, it represents a crucial stride towards maintaining competitiveness and fostering innovation,” he shared.

He further emphasised, “AI presents significant potential for data analysis, expediting innovation, and enhancing operational excellence. However, it’s essential to recognise that the skills and talent of our people remain irreplaceable. The key is to integrate AI alongside our human resources, not to replace them.”

Kraton, which invests around $40 million into R&D annually and is supported by

Kraton CEO Marcello Boldrini

over 200 R&D team members, has a robust pipeline of innovative solutions coming to market.

Innovation drives the organisation’s dedication to advancing a biobased and circular economy, where they aim to lead the path to efficient renewable resource utilisation, waste reduction, and sustainable operations. Further, sustainability is key in Kraton’s product designs, making a positive difference in various sectors, including medical solutions, automotive, coatings, road markings, cosmetics, and more.

Looking to the future, Marcello and his team have identified four key areas for the continued growth and business longevity of Kraton.

Firstly, sustainability stands as a cornerstone of Kraton’s success, underlining its commitment to a better future.

“For Kraton, embracing sustainability is paramount because it not only aligns with our ethical responsibility but also fosters innovation, resilience, and longterm viability. By integrating sustainable practices across our operations, we safeguard the environment, engage stakeholders, and ensure enduring prosperity for both our business and the communities we serve,” said Marcelllo.

The importance of organisational excellence cannot be overstated, either. It serves as a key pillar for the organisation’s long-term success and sustainability. By streamlining processes, optimising resource allocation, and fostering a culture of continuous improvement, Kraton aims to bolster its competitive edge and indirectly contribute to sustainability efforts.

“It’s a strategic synergy where operational excellence aligns seamlessly with our commitment to a more sustainable and prosperous future,” added Marcello.

In addition, the business’ will continue with its steadfast commitment to further develop its diversity and inclusion measures. These efforts are aimed at nurturing an environment that fosters collaborative innovation, ensuring all voices are heard and valued in pursuit of excellence.

Finally, and at its heart, Kraton will continue to innovate.

“We firmly believe that innovation is the sole pathway to delivering superior solutions for our customers and maintaining a competitive edge within the industry,” closed Marcello.

www.kraton.com