Sustainable development and green product innovation 綠色創新及永續管理

SUSTAINABLE DEVELOPMENT AND GREEN PRODUCT INNOVATION AT SABICMatthew GrayDirector, Consumer Electronics MarketingInnovative Plastics

T.S WuSenior Manager, Industry MarketingInnovative Plastics

No. 2

AGENDA

• SABIC and Innovative Plastics Business

• Sustainability Matters

• Sustainability Solutions and Product Innovation

• Q&A

SABIC AND ITS INNOVATIVE PLASTICS BUSINESS

No. 4

SABIC IN NUMBERS

1976, our beginning38 years of growth

2nd largest global diversified chemical company* 98th largest public company in the world*

90 B$ total assets50 B$ annual revenue6.7 B$ net income

40,000 employees45 countries6 Strategic Business Units

63 world-class plants worldwide19 Technology and Innovation Centers150 new products each year10,000 global patent filings

* Forbes 2014

No. 5

PRODUCTION HAS MULTIPLIED BY 5 IN 20 YEARS

A high rate of growth…

Pro

duct

ion

(mill

ion

tons

)

…reaching 68.5M metric tons in 2013

Metals

5.890

Fertilizers

6.531

Chemicals

42.845

Polymers

11.540

Performance Chemicals

0.441

Innovative Plastics

1.343

0

10

20

30

40

50

60

70

80

1985 1990 1995 2000 2005 2010 2011 2012 2013

22

13

28

47

6970.5

6

67 68.5

No. 6

SABIC INNOVATIVE PLASTICS IN THE SABIC PORTFOLIO

Chemicals PolymersFertilizersMetalsPerformance Chemicals

Innovative Plastics

Olefins, oxygenates and aromatics

Chemical intermediates & industrial gases

Specialtyautomotive

CatalystsRubber chemicals

Specialty polymers

Polymer additives

Engineered thermoplastics:PC, ABS, PBT, PPO, PEI

LNP™ specialty Compounds

Specialty Film & Sheet

EXATEC™ glazing

SABIC® PP compounds and STAMAX ™ long glass fiber-filled resin(PP)

Specialty Additives and Intermediates

Polyolefins

PVC and polyesterrubber chemicals

Specialty polymersand polymer additives

Long steel and flat steel

Aluminum joint ventures

Ammonia

Urea compounds

Phosphate

Liquid fertilizers

SB(IP4

投影片 6投影片 6投影片 6投影片 6

SB(IP4 SB(IP4 SB(IP4 SB(IP4 Please change "SABIC STAMAX(TM) long glass fiber-filled PP" to "STAMAX(TM) long glass fiber-filled compound (PP)" ...if it isn't compound (e.g., if it is better described as a resin) please change to "resin" accordingly.Strauss, Benjamin (SABIC Innovative Plastics), 2014/9/30

No. 7

INNOVATIVE PLASTICS: INDUSTRY-RELEVANT PORTFOLIOS

Consumer Electronics Electrical and Lighting Mass Tra nsportation

Automotive Healthcare Others

SUSTAINABILITY MATTERS

No. 9

GLOBAL ENVIRONMENTAL ACTIVITIES

Non-GovernmentOrganizations †

Voluntary Eco Labels †

Legislation, Regulation &

Industry Standards †

To Address Issues of:

•Climate Change

•Resource Depletion

•Food and Water Shortage

•Toxicity Health Risk

•Energy Demand

•Ecological Destruction

Social, Environmental and Economic Pressures Drive Sustainability

Global Corporate Citizens

No. 10

SABIC’S SUSTAINABILITY AMBITIONS

• Minimize our own environmental impact

• Provide solutions that help enable our customers to meet their sustainability goals

• Focus community investments where they will make the greatest positive impact on local economies and communities

• SABIC’S focus on sustainability is central to its business strategy

• Assessments improve insights to the sustainability impacts in our value chain

• Assessments improve our value proposition with quantified sustainability benefits

No. 11

CHG EMISSION

S INTENSITY

3%

ENERGY INTENSITY

4%

WATER INTENSITY

2%

MATERIALLOSS

INTENSITY

9%

• Renewables• Local sourcing

• New processes• Down gauging• Green chemistry

• Light weighting• Enhanced life• Energy efficiency

• (Chemical)recycling

• Energy recovery

END OF LIFE

FEEDSTOCK MANUFACTURINGPROCESSES

APPLICATIONUSE

INNOVATING VIA SUSTAINABILITY ACROSS THE LIFE CYCLE

Some stages of the lifecycle offer more sustainability opportunities than others

No. 12

SUSTAINABILITY + INNOVATIONS DECISIONS

SUSTAINABILITY ASSESSMENT

Competitiveness

Sus

tain

abili

ty

I. Nomination:

SBU/PRODUCT OWNERProposes candidates

Corp

Sustain.

Dept.

LCA /

Green

chem

SBU

EXPERT TEAMSupports quantification

Ext.

insight

Others

(as

needed)

Prod stew.

/ green

chem

LCA

experts

Corp

Sust.

Dept.

SBU

II. Quantification of benefits :

ADVISORY PANELAdvises the SBU

External

Insight

LegalCS&P

BusinessBranding

Corp

Sustainability

III. Approve:

PRODUCT QUALIFICATION PROCESS

SABIC evaluates every innovation project to substantiate the sustainability benefits

No. 13

EXPANDED RELATIONSHIPS † & ENGAGEMENT FOR SUSTAINABILITY

We advance sustainability through relationships with global business organizations…

…and innovation partnerships with universities and scientific institutes.

No. 14

SHARING OUR JOURNEY

Goals, Life Cycle

2011 2012 2013

Value CreationTransparency,Performance Metrics

SUSTAINABILITY SOLUTIONS AND PRODUCT INNOVATION

HELPING CUSTOMERS ACHIEVE THEIR SUSTAINABILITY GOALS

No. 16

DESIGN FOR SUSTAINABILITY FRAMEWORK

IMPROVE MATERIALS

MAKE THINGS MORE EFFICIENTLY

USE THINGS MORE EFFICIENTLY

MAKE THINGS LAST LONGER

RECYCLE MORE

Adapted from the UNEP D4S Manual and the IDSA Okala Design Guide

DESIGN FOR SUSTAINABILITY FRAMEWORK

IMPROVING MATERIALSHALOGEN FREE FLAME RETARDANT MATERIALS


IMPROVE MATERIALS

•Recycled resin•Bio-based resins•Halogen Free FR resins

No. 18

HALOGEN FREE FR SOLUTION: NON-CL, NON-BR FR

VALOX™ENH resin series

• Heat resistant• Impact Modulus balance• Wide range of products

Flexible NORYL™ resin series

• Insulation & jacketing• Non halogenated FR• Alternative to PVC• Range of products

LEXAN™ FR resin series

• Thin wall FR• Excellent flow• Low temp. impact

Wide range of new products for diverse applications

MAKING THINGS MORE EFFICIENTLY


MAKE THINGS MORE EFFICIENTLY•Thin-wall design•Yield improvement•Process elimination

No. 20

A family of Electro Magnetic Interference (EMI) Sol utions. Uses stainless steel fiber.

Key Value Proposition vs. Die Cast Aluminum:•Improved productivity

•Weight saving

•Lower environmental footprint

FARADEX resin Enclosure Custom colors

LCA RESULTS:

FARADEXTM RESIN EMI SHIELDING AND ELECTROSTATICDISSIPATING COMPOUNDS

Cost-effective, environmentally sensitive EMI solutions

No. 21

LEXAN™ HFD RESINS: ENABLES THIN WALL MOLDING

LEXAN HFD resin may enable 30-50% thinner walls over traditional polycarbonate.

-40

-30

-20

-10

0

10

5 10 15 20 25 30 35 40 45

MFR (g/10min, 300C/1.2kg)

D/

B t

rans

ition

tem

p (

C)

Standard PC

LEXAN HFD resin

Same impact w/ higher flow

Same flow w/ higher impact

30-50% wall thickness reductions

30% thickness reductions = at least 30% reduction in

environmental impact.

Thinner walls equal less material, cost-savings potential and overall lower environmental impact

USE THINGS MORE EFFICIENTLYMAKE THINGS LAST LONGER



•Durability•Upgradeability•Reusability


•Fuel economy•Energy efficiency•Solar, LED, EV

No. 23

ENABLE PV AND EV APPLICATIONS WITH HIGH DURABILITY

PV Junction Boxes- NORYLTM resins

PV Connectors- LEXANTM EXL resins

Charging System- LEXAN EXL resins

Coupler- VALOX™ Resins

RECYCLESUSTAINABILITY SOLUTIONS AND PRODUCT INNOVATION

RECYCLE MORE

•Close the loop•Design for Recycle•Fewer materials

IMPROVE MATERIALS

•Recycled resin•Bio-based resins•Halogen Free FR resins

No. 25

POST CONSUMER RECYCLE DRIVING FORCES

Comply with regulation & voluntary eco label

Pursue internal sustainability goals

Adopt PCR as product differentiated strategy

Acquire green image along with cost saving

opportunity

“Do the right things” with innovative ways

Fulfill customer green requirements

• Sustainability as differentiators:

• Respective sustainability ambitions

• Product differentiations

• New WEEE target cannot be met without

plastic recycling:

• New WEEE Directive: From 2018, 80% shall be

recycled.

• PCR usage shifts from “nice to have” to

“must to have:”

• EPEAT new standard lists PCR as one of

“required” criteria

• Closed loop concept prevails:

• EPEAT plans to require manufacturers shall

declare the % of PCR content derived from

WEEE

No. 26

OUR VISION

A global supplier of choice for recycled products and services

No. 27

VALUE CHAIN COLLABORATIONS

Customer

CLOSED/CONTROLLED LOOP

(NORYL™, CYCOLOY™ resins)

OPEN LOOP

(VALOX iQ™, XENOY iQ™LEXAN™, CYCOLOY™ &

NORYL™ resins)

RecyclingPartners Use

Customer

Customer

SABIC

No. 28

CHEMICAL UP-CYCLING RECYCLE

VALOX iQTM & XENOY iQTM Resins based on Open source Post Consumer Recycles

Post-consumer PET

CompoundRe-Polymerization

PBT

PET waste is chemically converted , or up-cycled , into a higher

performance engineering resin.

Award Winning Technology:2006 SAE Environmental Excellence in Transportation (E2T) Award

2007 Society of Plastics Engineers (SPE) Environmental Award

2009 Responsible Care Award by Association of Dutch Chemical Industry (VNCI)

2012 PLASTPOL Best Material Ingenuity award

2012 Plastics Technology (China) Green Material Innovative Application Award

EcoMark certified by the Japan Environmental Association

Cradle to Cradle certification from MBDC for Valox iQ8280SF resin

40% fossil derived input upgrades

PET to PBT

Chemical up-cycle…virgin resin properties

No. 29

VALOX iQ™ & XENOY iQ™ RESINS

PCR PETBottle

Re-Synthesis

(PET->PBT)

CompoundingInto:

VALOX iQXENOY iQ

End-useApplications

Value PropositionsChemical Up-cycling Process

• Up-cycle from Post Consumer PET Bottles to PBT Resin (Valox iQ) & PC/PBT blends (XenoyiQ)

– 0.87 kg of PCR PET � 1kg of iQ-PBT

– Up to 60% of PCR% (in iQ-PBT base resin)

• Virgin-like properties including colors

• CO2 & energy reduction vs. common engineering plastics:

– CO2: up to 30-70% reduction

– Energy: up to 30-65% reduction

0,

50,

100,

150,

200,

250,

300,

350,

400,

Valox 195 ValoxiQ 195

mP

t

Fossil fuelsMineralsLand useAcidif ication/ EutrophicationEcotoxicityOzone layerRadiation

Std PBT iQ PBT

No. 30

MECHANICAL RECYCLING

Virgin NORYL resins

• Up to > 35% post-consumer recycle contents

• Meeting EPEAT, RoHS guide lines• Non-chlorinated, non-brominated FR

systems for flame retardant product grades• Drop-in solution for existing tools• Property performance close to virgin

product grades

Example: NORYLTM Resin (PPE/PS) based on Open source Post-Consumer Recycles

Post-Consumer Polystyrene is Mechanically recycled

ISO Certified Sources & Processes

3rd party certifications on select products

No. 31

LIFE CYCLE ANALYSES OF PCR NORYL™ RESINS

Preliminary results

CO2 foot print= Green house gas (GHG)Energy foot print = Cumulative energy demand (CED)

Significant environmental benefits for PCR-based NORYL resin vs. virgin equivalents

No. 32

10 20 30 40 50

RCM6123 resinPC/ABS+MF; PCR 30%V0 @1.2mm, FM=4 GPa

Potential Applications

iQNH4550 resiniQ PBT+GF; PCR 31%; V0@ 0.8mm, HDT 190C; FM=9 GPa, NII 49

iQ1103U resinPC/iQ PBT; PCR 22%

HB@ 1.5mm, HDT 75CFM=2 GPa, MI=13

iQNH 2900 resinPC/iQ PBT; PCR 12%

V0@ 1.6mm, HDT ~78C

iQ420 resiniQ PBT+GF; PCR 42%HB@ 0.84mm, HDT 203CFM=9 GPa, NII 82

PCR Content (%)

Enclosures for Laptops, Business

equipment, TV

Cooling Fans forPC & Laptops

PC Accessories:

Decorative parts, Chargers &

Adaptors

RCM6134 resinPC/ABS+MF; PCR 35%V0 @1.0mm, MI=10;FM=3 GPa

RCY6214 resinPC/ABS; PCR 35%V0 @1.5mm, HDT 88C; MI=20

RCY6113 resinPC/ABS; PCR 30%

V0@ 1.5mm & 5VB @2mm; HDT=80C; MI=20

RCY6013 resinPC/ABS; PCR 30%

V0@ 1.5 mm; MI=35

RN0206 resinPPE/PS; PCR 10%V0@ 0.8mm, HDT 120C

R9453 resinPC; PCR 30%V0@ 1.1mm; HDT 126C

RCY6713 resinPC/ABS; PCR 30%V0 @1.5mm; HDT 115C

RN0712 resinPPE/PS; PCR 38%V1 @1.5mm, HDT 120C

EXAMPLES OF PCR PRODUCT OFFERING - COMPUTING

No. 33

CLOSED LOOP OPPORTUNITY

• > 10 years of track record on various customer programs• Design-for-recycling & Cradle-to-cradle possible• Recycling collaboration assisting customers to meet recycle needs

Prime resin

PCR Feed StocksClosed

Loop Customers

PCR containing Compounds

Customer engagement and collaboration for success

No. 34

• Sustainability is a growth initiative at SABIC

• Our sustainability solutions provide benefits across the value chain

• Partnerships and innovating with customers will make us all successful!

SUMMARY

RECYCLE MORE



IMPROVE MATERIALS

MAKE THINGS MORE EFFICIENTLY

No. 35

CONTACT

T.S. WuSenior Business ManagerConsumer ElectronicInnovative Plastics, SABICT: +886 2 2183 1899E: [email protected]

Matthew Gray DirectorConsumer Electronic MarketingInnovative Plastic, SABICT: +65 6210 4195E: [email protected]

Thank You!

No. 36

SABIC GLOBAL DISCLAIMER

DISCLAIMER: THE MATERIALS, PRODUCTS AND SERVICES OF SAUDI BASIC INDUSTRIES CORPORATION(SABIC) OR ITS SUBSIDIARIES OR AFFILIATES (“SELLER”) ARE SOLD SUBJECT TO SELLER’S STANDARDCONDITIONS OF SALE, WHICH ARE AVAILABLE UPON REQUEST. INFORMATION AND RECOMMENDATIONSCONTAINED IN THIS DOCUMENT ARE GIVEN IN GOOD FAITH. HOWEVER, SELLER MAKES NO EXPRESS ORIMPLIED REPRESENTATION, WARRANTY OR GUARANTEE (i) THAT ANY RESULTS DESCRIBED IN THISDOCUMENT WILL BE OBTAINED UNDER END-USE CONDITIONS, OR (ii) AS TO THE EFFECTIVENESS OR SAFETYOF ANY DESIGN OR APPLICATION INCORPORATING SELLER’S MATERIALS, PRODUCTS, SERVICES ORRECOMMENDATIONS. UNLESS OTHERWISE PROVIDED IN SELLER’S STANDARD CONDITIONS OF SALE,SELLER SHALL NOT BE RESPONSIBLE FOR ANY LOSS RESULTING FROM ANY USE OF ITS MATERIALS,PRODUCTS, SERVICES OR RECOMMENDATIONS DESCRIBED IN THIS DOCUMENT. Each user is responsible formaking its own determination as to the suitability of Seller’s materials, products, services or recommendations for the user’sparticular use through appropriate end-use and other testing and analysis. Nothing in any document or oral statement shallbe deemed to alter or waive any provision of Seller’s Standard Conditions of Sale or this Disclaimer, unless it is specificallyagreed to in a writing signed by Seller. Statements by Seller concerning a possible use of any material, product, service ordesign do not, are not intended to, and should not be construed to grant any license under any patent or other intellectualproperty right of Seller or as a recommendation for the use of any material, product, service or design in a manner thatinfringes any patent or other intellectual property right.

SABIC and brands marked with ™ are trademarks of SABIC or its subsidiaries or affiliates.© 2014 Saudi Basic Industries Corporation (SABIC). All Rights Reserved.

† Any brands, products or services of other companies referenced in this document are the trademarks, service marks and/or trade names of their respective holders.