Archroma-Sustainability-Report-FY2018 - Page 18



OUR COMPANY
THE ARCHROMA WAY
In 2018 we redefined our internal and external approach, communication and behavior to our business.
This ensures that we have a consistent approach to how we operate and communicate our core values to
the markets. It also helps our organization to focus on those aspects of our business, from research and
development, production all the way through to sales, which positively affect our sustainability footprint
and that of our suppliers and customers. In this way we are motivated to identify and address current
deficiencies in the value chains that we serve, resulting in a positive change to challenge the status quo.
This we termed the “The Archroma Way”. It is defined into three elements: safety, efficiency and enhanced
value. We examined how we affect these three elements both from an internal and an indirect external
perspective; what we do and how we do it, how we impact and enable third parties.
As a global manufacturer and supplier of specialty chemicals and colorants to the textiles, paper and
coatings industries, the impacts of Archroma’s products extend far beyond our own operations. The dyes,
auxiliaries, and functional finishes that we supply become the raw materials for a huge volume and variety
of products. Our products have a broad range of impact on our customers and their products, affecting
cost, production time, resource requirements, product quality and overall value. In many cases, Archroma
products can impact the issues that matter most, or the material issues, for our customers, their customers,
and the consumers who use and dispose of their products. As it travels through the supply chain, the impact
of a single kilogram of an Archroma product can grow exponentially as it helps, for example in the textile
industry, transform fiber to yarn to textile to finished product. Throughout our own operations, we strive
to ensure that these indirect impacts are positive, and are always improving the overall value along the
supply chains that we serve.
We believe that sustainability does not have to come at a higher price, and we are committed to demonstrate
this to our partners by using our ONE WAY Process Simulator. The ONE WAY Process Simulator is a calculation
tool designed and used by our textile processing experts to provide our customers and partners with an
accurate estimate of the process costs, resource utilization, effluent discharge quality, and CO2 emissions of
the existing production process and of the newly evaluated system. This is how we validate, quantify and
support the "Efficient pillar" of The Archroma Way. Further details can be found on page 63 of this report.
These indirect impact reductions are not just a nice story for Archroma, they are critical to our ability to
succeed as a manufacturer and supplier. The industries we serve developed and grew without much
regard for safety of key stakeholders or the environment. Many chemical and raw materials that started
as breakthrough innovations have been driven to be cheap commodities. These are bought and sold based
only on the cost per kilogram without regard for their impacts on quality, safety, or the environment. In
addition, the growth of these industries was built on cheap (often free) and easy access to clean fresh
water with no requirements of how that water would be used or returned to the environment. The result
has been that these industries were able to grow and prosper by purchasing in-expensive low quality
materials and chemicals, and make up for that by using and polluting huge volumes of water that was
supplied to them at little or no cost. As we have learned more about the harms and impacts of this
business model and about the scarcity and value of water, it has become obvious that the only way for
these industries to sustain their business will be with raw materials and chemicals that are safe, efficient,
and that add value. At Archroma, we believe that we can make our industry more sustainable, and that
we will do this by providing products that are higher quality, safer, more efficient and that provide resource
savings for our customers all along the value chain.
Innovation at Archroma does not take place in a silo, but is a collaborative effort to get inputs from
multiple stakeholders in order to identify problems to solve, prioritize them and align them with solutions.
Great ideas can come from any part of the organization, and a key part of our management approach to
innovation is to engage with internal expertise and also with our externally facing teams, sales and value
chain interaction teams, in order to get their input on imminent challenges and opportunities facing our
key mill customers and their key brand customers.
These insights enable us to focus on our customers, and to prioritize the projects that will have the greatest
impact to them. Our product stewardship organization provides insights into the dynamic landscape
of public concerns and government regulations pertaining to the chemical industry. This collaboration
ensures that Archroma is leading in our efforts to produce chemicals that are safe to use in a responsible
manner. External collaboration is also an important part of our approach, and we have strong relationships
with leading raw material suppliers and the technology providers who make the machinery necessary for
our customers to use our products. This collaborative and engaging foundation ensures that our approach
to innovation is strategic, intentional, and purposeful.
SAFE – It’s our nature to protect.
Safety comes first. Central to all our activities is our deeply rooted goal to protect people
and our planet – safe to use, safe to wear and safe to release.
This affects not only our internal manufacturing processes, but also encompasses to our
upstream suppliers, our downstream customers and the communities in which we operate.
EFFICIENT – It’s our nature to rethink sustainable manufacturing.
Innovating production processes that minimize resource use and that maximize productivity
that impacts our internal manufacturing, as well as those of the value chains in which
we participate.
ENHANCED – It’s our nature to add another level of value.
Enhancing organizations is critical. Additional effects, functionalities, abilities and aesthetics
give additional value, helping consumers achieve their goals, for a life enhanced.
After all, it’s our nature....
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