The ����AV U.S. sites Channelview, Texas, South Deerfield, Massachusetts, New Martinsville, West Virginia and Pittsburgh, Pennsylvania, have achieved net-zero Scope 2 emissions for electricity. The sites in South Deerfield, New Martinsville, and Pittsburgh have now even achieved complete net-zero Scope 2 emissions. The remaining certificates have been applied to ����AV's Baytown, Texas facility.

"Even in a persistently challenging market environment, we are working towards our goal of climate-neutral production by 2035 and are consistently implementing our strategy of fully aligning ourselves with the circular economy," said Thorsten Dreier, CTO of ����AV. "By leveraging renewable energy, we're not just reducing our carbon footprint �C we're actively shaping a brighter future for our industry."

The agreement with ?rsted, which provides ����AV with 90 MW of renewable energy capacity, will reduce approximately 90,000 tons of CO₂ emissions annually. This represents a significant step towards ����AV's goal of climate neutral production by 2035.

"Our partnership with ?rsted is a prime example of how collaboration and innovation can drive meaningful change in our industry," says Samir Hifri, chairman and president of ����AV LLC. "We're proud to be at the forefront of sustainable practices in the chemical sector and look forward to continuing to execute our strategy to grow sustainably in the U.S."

This announcement follows ����AV's recent low triple digit million Euro investments across multiple U.S. sites, further solidifying the company's commitment to growth and sustainability in the North American market.

Hanno Bruemmer, Head of Supply Chain and Logistics EMLA at ����AV, stated: ��The entire value chain must be involved to achieve our joint goal of climate neutrality by 2050. Reliable, efficient and sustainable logistics for our ever more sustainable products are integral to this effort. We collaborate with our customers and transport companies to optimize the supply chain. This includes improving load capacity, selecting the best transport modes and routes, and introducing using sustainable and future-oriented energy sources like green electricity or HVO to replace fossil fuels.��

As part of the collaboration, DB Cargo BTT provides ����AV with an end-to-end transport solution that combines several sustainable approaches: First, the chemicals are transported in tank containers from the production sites of ����AV in Germany to a nearby railway terminal using bio-fuel (HVO 100)-driven trucks. The tank containers are then transported to a distribution center in Poland via rail, keeping trucks off the road and saving respective emissions. From there, bio-fuel (HVO 100)-driven trucks are again deployed to distribute the chemicals to end customers in Poland to ensure on-time delivery. This particular bio-fuel is one of the most sustainable alternatives to fossil diesel. Altogether, the combination of these modes of transport saves at least 70% of CO₂ emissions compared to conventional road transport methods.

Torsten L��ders, Managing Director of DB Cargo BTT GmbH, points out: ��At DB Cargo BTT, we also rely on working with external partners across all modes of transport in order to arrange traction or first and last mile services as efficiently as possible for our customers. For ����AV, we have recently transported essential chemical products to Poland and we��re now happy to combine our rail expertise with bio-fuel-driven trucks for the first and last mile. This collaboration exemplifies our commitment to enabling more sustainable supply chains and supporting the transformation of the chemical industry. Projects like these demonstrate how we, as part of the DB Cargo group, offer our customers a significant degree of added value and are an essential part of European supply chains.��

The collaboration is designed to be flexibly scaled in the future to accommodate growing business needs. It also sends an important signal to customers of ����AV, such as the Polish Selena Group, a global manufacturer of construction chemicals and materials, who benefit from the delivery of MDI with a lower carbon footprint, as it helps to reduce their Scope 3 emissions.

Bernd Hennig, Head of Trading Cluster MDI at ����AV remarked: ��Together with Selena Group, we are committed to advancing sustainable solutions across the entire value chain, offering our valued customers not only more sustainable materials but also sustainable transportation solutions.�� Michal Specjalski, Member of the Management Board of Product and Innovation at Selena Group added: ��Today, sustainable business no longer means having to compromise between efficiency and quality. In Selena Group we are constantly increasing our commitment to the development of sustainable construction. We carefully follow trends and changes in the world around us. We are constantly working on minimizing our environmental impact and rational resource management. That��s why we are delighted to have ����AV and DB Cargo BTT at our side as strong partners who share our commitment to reducing emissions and achieving climate neutrality targets in Europe and worldwide.��

Selena Group and ����AV are already collaborating in multiple ways to advance the circular economy. For instance, they are developing polyurethane (PU) foams for improved thermal insulation in buildings which are based on MDI of the Desmodur^? CQ product range. It is ISCC Plus-certified, using plant-based raw materials through mass balancing. As a result, these products have a lower carbon footprint compared to those derived from fossil raw materials��and now, thanks to the transport solution, they will also be delivered to Selena in a more sustainable way.

¹ _{The reduction in CO? emissions is based on a comparison between the use of HVO100 renewable diesel and conventional fossil diesel}

For the highly competitive construction sector, the product sold by Selena offers clear advantages: It can be used with various types of blocks (ceramic, silicate, ACC) with high accuracy and allows for a higher yield compared to traditional cement mortars. The product also improves construction efficiency by curing twice as fast as traditional cement mortars. Additionally, it can be used in a wide range of operating temperatures from -5 degrees Celsius to +30 degrees Celsius, which helps reduce temperature-induced work stoppages.

��Materials play a decisive role for an ever more climate neutral and circular economy��, said Bernd Hennig, Head of Trading Cluster MDI EMEA at ����AV. ��If materials providers early in the value chain join forces for climate neutrality, the impact on end products will be significant. In this spirit, we are therefore very happy to deepen our collaboration with our like-minded partner Selena to help the construction sector bring down emissions and meet its climate neutrality targets in Europe and worldwide.��

Buildings are responsible for over one third of greenhouse gas emissions in the EU alone. As about 75% of the buildings in Europe do not meet energy efficiency requirements, the building sector faces a wave of renovations over the coming years. In fact, the EU has just recently updated the Energy Performance of Buildings Directive (EPBD). It states that by 2050, all buildings in the EU should be net-zero emission buildings².

More sustainable adhesive instead of cement

��With existing and upcoming climate neutrality regulations for the construction sector, we expect a steeply rising demand for sustainable building materials��, said Miroslaw Truchan, Senior Category Development Manager, Selena Group. ��With a great partner like ����AV, we jointly drive innovation in the construction materials industry. We both believe that innovative products can play a vital role in achieving climate neutrality targets and put us ahead of the curve.��

The Tytan Professional^? Adhesive for Bricklaying uses Desmodur^? CQ MB of ����AV, a bio-based MDI (methylene diphenyl diisocyanate), of which the plant-based feedstock is mathematically attributed to the final product via the mass balance approach certified by the ISCC Plus standard.

Tytan Professional^? Adhesive for Bricklaying is the third product launched from the collaboration between Selena and ����AV. The partnership was deepened in 2023, aimed at collaborating to craft a more sustainable range of polyurethane (PU) foams for enhancing thermal insulation of buildings. Bio-attributed methylene diphenyl diisocyanate (MDI) of the Desmodur^? CQ MB-series of ����AV is already being used in an enhanced version of Selena��s Ultra Fast 70 one-component foam, primarily applied in the . Also, this product is ISSC Plus certified to include plant-based feedstocks through mass balancing and allows for an up to 45% reduced carbon footprint compared to fossil-based products.

_{¹Comparison of 1 can of Tytan Adhesive for Bricklaying (750ml) with the data for generic cement mortar for 1,5 x 25 kg bags.
²}

Sucheta Govil, CCO at ����AV: ��Our investments in R&D are integral to our strategy of creating value for our customers. They are enabling us to expand and maintain our innovation pipeline at a high level. By this, we are the go-to partner for more sustainable solutions which help to meet the climate-neutrality targets of our customers. Thanks to this global innovation booster, we come even closer to our joint goal to become fully circular.��

Digitalization leads the way to the laboratory of the future

One of the key examples of the R&D investments and cooperation across different business segments is the globally available expertise for In-Mold-Coating (i.e., Direct Coating), with the facilities in Leverkusen and other main R&D sites that were enhanced recently. To support further developments in process technology, end-to-end digitalization was implemented to record all process-relevant data. In the highly competitive automotive industry, innovation in In-Mold-Coating technologies enables high quality surfaces for a modern design of cars. This directly feeds the demand for a more efficient automotive production.

Another important investment milestone: High-performance computers (HPCII) mark the next expansion stage of technological evolution in Leverkusen towards an innovation incubator for the circular economy. By enabling simulation of chemical processes, the high-performance computers enable faster and more sustainable research processes. Amongst others they are used for example in foam processing simulations for refrigerators and enable energy efficiency and improved cool chains in end products.

��Simulations of chemical processes are a key element in the development of recycling technologies and research on new molecule classifications,�� said Torsten Heinemann, Head of Group Innovation & Sustainability at ����AV. ��Moreover, laboratory digitalization enables test data to be recorded in higher quality and to a greater extent than is usual in analogue ways. Both help us to find the most possible and more sustainable solutions for our customers more quickly. Many developments in the field of recycling would be like looking for a needle in a haystack without digital R&D and simulations. ��

Chemical recycling is a promising approach especially for plastics that cannot be mechanically recycled or can only be recycled with considerable effort. With chemical recycling, large quantities of the original material can be recovered. One example is the Evocycle^? CQ mattress project: Together with partners, ����AV has developed an innovative technology for the chemolysis of flexible polyurethane foams from used mattresses, in which the main components �Cpolyol and the precursor to the isocyanate TDI �C can be recovered. In this way, used mattress foams are directly converted back into renewed polyurethane building blocks.

Infrastructure and global sites benefit from ongoing investment

A functioning infrastructure is the basis for innovative research. ����AV��s investments therefore include modernization measures in its laboratories in Leverkusen. These laboratories drive among others application technology for coatings and adhesives in core industries like automotive and construction, but also special areas such as light guiding applications as well as medical applications.

Also in the U.S., ����AV is investing in a series of modernization and technical upgrades across its Pittsburgh campus. ����AV views the U.S. market as innovative and high potential. By improving the R&D facilities it signals strong commitment to the customers.

In the innovation center in Shanghai, China, distinct investments into infrastructure and digitalization over the past months echoed the leading solutions developments for automotive and electronics industries.

Founded in Aachen in 2007, the CAT Catalytic Centre has extensive expertise in the fields of catalysis, reaction technology, polymer chemistry and chemical recycling. All research projects are focused on contributing to climate targets and lead to a reduction of Scope 3 emissions along the value chain. The development of innovative polymers with a lower carbon footprint, recycling solutions for ����AV materials, and the use of alternative raw materials such as biomass further benefit climate action. An example is the EU-funded Circular Foam research project, where ����AV and RWTH Aachen University cooperated with the CAT Catalytic Centre and 22 other partners to close the material cycle for rigid polyurethane (PU) foams.

As an example of a successful partnership between industry and academia, the CAT Catalytic Centre contributes to a comprehensive EU strategy to promote the circular economy and the development of sustainable materials, such as bio-based plastics, recyclable composites and greener chemicals. In its latest Science, Research, and Innovation Performance¹ (SRIP, June 2024) report, the European Commission once again emphasised the essential role of these areas in the European industrial agenda. Corresponding investments and the transfer of research results into marketable innovations by companies play a decisive role in this regard.

��Industry and the chemical sector in particular are increasingly being called upon to develop alternative sources of raw materials and reduce the use of fossil fuels. Together with RWTH Aachen University, we are continuing to lead the way as pioneers in this area, even in an economically challenging environment,�� says ����AV CEO Markus Steilemann. ��Long-standing partnerships like our cooperation with RWTH Aachen University help to conserve resources and realise the circular economy. However, the framework conditions in Germany and Europe are also crucial for reaching this goal. Cutting-edge research needs a good climate for innovation so that science and industry can work together even more closely.��

Reducing CO₂: Bio-based aniline developed from sustainable sources

Several projects involving the CAT Catalytic Centre have already taken major steps towards market maturity. One example is bio-based aniline, which can be produced entirely from sustainable sources instead of crude oil using an innovative process. The world's first pilot plant for bio-based aniline was inaugurated in Leverkusen at the beginning of the year. The raw material is used in the plastics industry, in particular for the production of MDI for rigid polyurethane foam. The use of bio-based aniline can help to promote the circular economy in the future and to reduce the CO₂ footprint in buildings through energy-efficient insulating foam.

��A technology transfer between research and industry is a decisive factor for progress in catalysis and an important step in chemical process development towards sustainable chemistry. The collaboration with ����AV enables us to further intensify our expertise in the fundamental field of catalysis,�� says Prof. Dr Ulrich R��diger, Rector of RWTH Aachen University.

At the joint research centre in Aachen, headed by Professor J��rgen Klankermayer from the Chair of Translational Molecular Catalysis, scientists work after completing their doctorates. Projects benefit from the latest innovations of scientific research coupled with findings from industry and modern laboratories with an adjoining technical centre on the university campus.

¹ _{https://research-and-innovation.ec.europa.eu/knowledge-publications-tools-and-data/publications/all-publications/science-research-and-innovation-performance-eu-2024-report_en}

This milestone is a testament to ����AV��s commitment to becoming fully circular. The TDI CQ mass-balanced product, also known as  Desmodur? CQ, integrates bio-feedstocks into its production process, significantly reducing CO2 emissions by up to 65% compared to fossil-based products. This innovative solution also supports the transition to a circular economy. 

Far East Foam Vietnam, a Malaysian private company with over 50 years of history, is a leader in producing high-quality foam for mattresses and furniture. The company��s ISCC certification underscores its dedication to Environmental, Social, and Governance (ESG) principles, positioning it as a pioneer in integrating bio-feedstocks into its production processes among foam producers in the region. 

Mr. Chris Loo, Managing Director of Far East Foam, emphasizes the company��s commitment to raising awareness about sustainability among Vietnamese consumers. ��With a keen interest in promoting mass-balanced materials and ISCC certification, Far East Foam is dedicated to educating Vietnamese consumers about sustainable practices and the importance of a circular economy. We aim to foster industry transformation and set new standards for environmental stewardship,�� said Mr. Loo. 

The mass balance approach allows manufacturers to incorporate bio-feedstocks into their products without modifying their production infrastructure, significantly reducing manufacturing costs compared to traditional methods. This innovative method is relatively new in the local market but holds great potential for advancing sustainable practices. 

A Collaborative Effort for a Greener Future 

Mr. Dang Hoang Giang, Managing Director of ����AV Vietnam, proudly states, ������AV Vietnam��s introduction of the mass balance concept into the foam industry marks a crucial step in advancing sustainable product offerings in Vietnam and elevating ����AV Vietnam��s profile in the broader market. This deal is expected to inspire other companies along the related industries�� value chain to explore ways in which they can contribute to a more sustainable and brighter future. Through collaborative efforts, we will progress towards a circular economy.�� 

����AV will supply Carlisle with methylene diphenyl diisocyanate (MDI) that is based on ISCC PLUS certified mass balanced bio-circular raw materials and features up to a 99%¹ lower product carbon footprint than fossil-based MDI. It specifically has a CO₂ reduction potential of 2.4 KG per KG of MDI produced.² This will enable Carlisle to produce its high-performance polyiso insulation boards with lower embodied carbon.

The collaboration between ����AV and Carlisle extends a legacy of joint innovation in the construction industry that spans decades. As sustainability targets for the built environment stand to increase, the two companies are prepared to develop and introduce the next generation of insulation materials.

������AV��s vision to become fully circular requires R&D advancements that directly support the scope 3 goals of our customers, like Carlisle,�� said Hermann-Josef Doerholt, global head of the segment Performance Materials at ����AV. ������AV has some of the most aggressive sustainability and climate targets in the chemical industry, and the further we progress in developing solutions to achieve them, the more the effects resonate along the supply chain.��

����AV will supply its Mondur^? CQ 489 MS isocyanate to Carlisle. The CQ, or ��Circular Intelligence�� designation represents a broad family of ����AV��s circular products with an attribution of at least 25 percent alternative raw materials derived from biomass or recycled plastics.

Carlisle Construction Materials, a global leader in building envelope solutions, aims to be net zero by 2050. Carlisle will produce its bio-based rigid foam insulation, which contains 5% bio-circular content, for the SynTec, Versico, Hunter Panels and WeatherBond brands. This state-of-the-art bio-based insulation is the latest addition to Carlisle Construction Materials' portfolio of sustainable building products.

"Carlisle Construction Materials has always been at the forefront of developing high-performance construction products that lead the way in sustainability," said Steve Schwar, President of Carlisle Construction Materials. "With our new bio-based rigid foam insulation, we are demonstrating our unwavering commitment to environmental responsibility while ensuring that our customers have access to the most advanced building materials available. Our partners play a pivotal role in the realization of our bio-based isolation," added Steve. "Together, we're not only pushing the boundaries of material science, but also supporting the construction industry's transition to a more sustainable future."

��At ����AV, we have long understood the unparalleled performance attributes of polyurethane insulation,�� said Julia Rubino, head of sales for Performance Materials at ����AV North America. ��The ability to provide an innovative, bio-circular raw material solution to a long-time partner and a leader in the construction industry, like Carlisle, shows that future-focused sustainable solutions are available today.��

����AV has ISCC PLUS certified facilities in every major global market, including its manufacturing facility in Baytown, Texas. In support of its vision to be fully circular, ����AV aims to be operationally climate neutral (scope 1 and scope 2) by 2035 and climate neutral for scope 3 by 2050. The company currently has hundreds of circular CQ products and is continuously expanding its product portfolio.

_{¹ Exact percentage depends on the amount of allocated raw material. 
² Bio-circular attributed MDI contains ~60% ISCC PLUS certified feedstock. The calculation is based on ����AV-specific production and supply chain data, replacing fossil raw material with ISCC PLUS certified renewable feedstock via the mass balance approach.}

Although less associated with the chemical industry or the circular economy, design plays a key role in enabling circularity through various means. It offers a huge opportunity for providers of sustainable and high-performance materials like ����AV to bring in their expertise.

��The design phase determines a large part of a product��s environmental impact: From the choice of materials to repairability, from a long and useful product life to recyclability. We therefore can��t understate the topic of design when we want to become fully circular,�� explains Dr. Christopher Stillings, Head of Color & Design at the Business Entity Engineering Plastics within ����AV. ��As materials experts early in the value chain, we at ����AV sit in the sweet spot to consult our customers and partners on how to use circular design principles when conceiving a product. We want to systematically collaborate with designers to make use of that.��

Gaining momentum

And while product design is not new, a shift is indeed happening - also due to regulators placing increasing emphasis on the topic. For example, the EU is tightening its requirements for , and to make products sold in the EU more reusable, repairable, upgradeable and recyclable. There is also a proposal for a DIN ��Method to achieve circular design of products�� on its way. In the USA, the Department of Energy is pursuing its ����, which also includes the factor of ��Recyclability by design��. Other regulatory bodies are discussing similar initiatives.

To use that momentum, ����AV offers solutions in several main areas:

• Dematerialization, e.g. by digitalizing sampling processes. ����AV recently announced its new digital sampling tool for that purpose.
• Design for longevity. This is bread and butter for a high-performance materials manufacturer that provides materials e.g. for products for cars, buildings or the cold chain that have a lifetime of several decades.
• Modular design makes it easier to disassemble products and recycle the parts.
• The use of circular raw materials with a low emission footprint make products made of such material more circular to begin with.

The push for circular design is getting stronger and ����AV is addressing the topic on various fronts. In fact, it has been addressing the topic for decades already and can build on that expertise. The K67, a car entirely made of plastics made for the K-fair back in 1967, is just one example.

Andrea Firenze, General Manager at ����AV Spain, said: "Commitment to sustainability is a non-negotiable part of everything we do, and this agreement allows us to take a further step in our mission to make energy use as efficient and sustainable as possible throughout our value chain. In the same way, through this alliance with bp, we will continue to promote the strategic positioning of our Tarragona site through a more stable, more predictable and, above all, more sustainable long-term energy supply." 

Jason Tate, head of European power trading and origination at bp, said: ��This agreement highlights not just bp��s commitment to Spain. It��s an example of how bp is continuing to invest in developing our expertise and capability to support European commercial and industrial customers to help meet their decarbonization goals.�� 

Under the terms of the power purchase agreement, bp has agreed to supply ����AV with a high double-digit GWh volume of renewable electricity for a period of 10 years, backed by an equivalent volume of Guarantees of Origin (GoO). The current plan is to source the renewable power from an already operational solar photovoltaic (PV) farm, in Teruel, in the Aragon region of eastern Spain, with which bp has an offtake agreement in place. 

����AV aims to convert its production to 100 percent renewable energy as part of its climate goals until the end of 2035. At the end of 2023, ����AV fulfilled approximately 16 percent of its global electricity needs from renewable sources. 

bp has been active in the Spanish natural gas market for more than 20 years, through management of their LNG portfolio, and supply to C&I customers. In the power and renewables space, bp manages a portfolio of solar offtake and also supplies renewable power, a key growth area for the bp trading business in Europe. 

*Estimate based on a calculation of Scope 2 market-based CO₂ emissions user may have had to report if buying the same amount of grey electricity from their current local supplier.

The Breakthrough Energy Catalyst foundation set up by Bill Gates and the European Investment Bank (EIB) are supporting this installation of the Rondo RHB100 heat battery, which is scheduled to begin operation at ����AV��s Brunsb��ttel site at the end of 2026. The project will then produce ten percent of the steam required at the site, saving up to 13,000 tons of CO₂ emissions per year.

Rondo Heat Batteries combine century-old materials and cutting-edge automation to capture electricity and deliver high-temperature heat and power. Electrical energy is stored as heat, using bricks that have been used for heat storage at steel mills for centuries. The heat powers an ordinary boiler to deliver zero-emission steam. Renewable electricity can be intermittently stored when there is an excess available and a constant amount of steam can still be generated continuously.

"As an innovation company, we are always excited when we can further develop and test promising ideas that can bring us closer to our goals of a circular economy and climate-neutral production," says Dr. Thorsten Dreier, CTO of ����AV. ��The heat battery is such an idea: a new technology that allows us to go one step further on our way to a sustainable future.��

��Rondo Heat Batteries deliver deep decarbonization by changing the fuel, not the factory,�� said Eric Trusiewicz, CEO of Rondo Energy. ��We��re honored to be working with ����AV to prove our safety, reliability, and efficiency under real conditions on a large scale over a long period of time. And we��re excited to be deploying in Brunsb��ttel, where large flexible electricity loads are particularly valuable to the electricity grid.��

For ����AV, steam generation is an important part of the production process and accounts for a large proportion of energy consumption. The learnings from this first heat battery installation will provide experience and insights for ����AV to be able to assess whether larger-scale deployments are possible.

Bayhydur^? CQ ultra 701-90 is a partially bio-based waterborne crosslinker used in the new hairdryers. It contains approximately 61 percent bio-based content and achieves a 35 percent reduction in carbon footprint compared to traditional fossil-based counterpart. Additionally, it offers better chemical resistance, improved resin compatibility for easy integration with various resins, and clearer film transparency, which enhances the presentation of customized colors in coatings.

��This collaboration not only showcases ����AV��s strong R&D capabilities but also reflects the proactive efforts of various players in the industrial chain towards commercializing bio-based coatings raw materials,�� said Anand Khot, Head of Coatings and Adhesives in the Asia-Pacific region at ����AV. ��The Tonney hairdryers mark the first commercial application of ����AV��s bio-based waterborne crosslinker in the electronics and appliances sector, providing a strong impetus for ����AV to expand the reach of bio-based coatings in broader markets.��

Both models also use Makrolon^? 205 R50 for their housings. This polycarbonate resin incorporates 50 percent post-consumer recycled content, contributing to landfill waste reduction. Its carbon footprint is 36 percent lower than that of a comparable fossil-based virgin plastic. Makrolon^? 205 R50 holds the Environmental Claim Validation (ECV) certificate from Underwriters Laboratories. Additionally, this polycarbonate grade offers flexibility in wall thickness design, ensuring product safety and design diversity.

��At Tonney, we are exploring ways to leverage material technology to reduce the carbon footprint of our products, while maintaining product stability and appearance to enhance the consumer experience,�� said Zhang Hongbin, Chairman of Shanghai Tonney. ��The integrated sustainable material solutions from ����AV are helping us drive Environmental, Social and Governance (ESG) development in the hospitality industry and promote a low-carbon travel lifestyle for consumers.��

In addition to incorporating low-carbon materials, ����AV provided the new hairdryers with customized CMF (Color, Material, Finish) solutions to enhance their coatings effects with sustainable concepts. Both companies plan to collaborate on applying polycarbonate aesthetic solutions to Tonney��s future products. Leveraging its CMF expertise, ����AV integrates aesthetic design into the development of sustainable materials, ensuring a balance between aesthetics and circularity considerations, and enabling designers to explore greater possibilities in product design.

To learn more about ����AV��s CMF and Circular Design solutions at Design Shanghai, visit booth 4C33 at the Shanghai World Expo Exhibition and Convention Center from June 19-22, 2024.

��Circularity requires cooperation, and this cooperation with our partners Neste and Borealis is testament to the possibilities at our disposal,�� says Guido Naberfeld, Senior Vice President, Head of Sales and Market Development Mobility at ����AV. ��We are creating options to turn old tires into new car parts again. With that, we are supporting our automotive customers and addressing an increasingly prominent question discussed across the value chain: How to match high-performance materials with recycled content? Projects like this can be the answer.��

As part of the collaboration, Neste turns liquefied discarded tires into a high-quality raw material for polymers and chemicals manufacturing and supplies it to Borealis. Borealis will then process the Neste-produced raw material into base chemicals phenol and acetone, which are supplied to ����AV. ����AV can use these materials to make polycarbonates. The share of recycled content is attributed via the mass balancing approach all the way to the final products using ISCC Plus certification.

The first products based on the collaboration are already available as each party has manufactured the first batch of their respective contribution to the project. Aside from polycarbonates, the project partners may also consider polyurethanes as a possible end product, which could also find its way into parts of the interior of a car. The companies emphasize that the potential to scale-up these types of developments should be considered when setting ambitious targets for future EU regulations, such as the End of Life Vehicles Regulation.

��We are demonstrating the importance of value chain cooperation to give new value to waste,�� says Thomas Van De Velde, Senior Vice President Base Chemicals at Borealis. ��We are proud that Borealis, in collaboration with Neste, is able to play a role in this project, providing more sustainable solutions for polymer applications for ����AV and its customers.��

��This project can serve as a blueprint when it comes to establishing circularity in the field of plastics in cars,�� says Jeroen Verhoeven, Vice President Value Chain Development for polymers and chemicals at Neste. ��It shows how low-quality waste materials can be turned into very high-quality plastics. This is good news for the polymers and automotive industries as well as for the environment.��

The collaboration will be presented during the PIAE in Mannheim on June 19-20, 2024.

����AV is investing a mid-single-digit million Euro amount in the scale-up from the Netherlands. In addition to ����AV, the financial investors Invest-NL and Infinity Recycling are also involved in the project. Once operational, the demonstration plant will convert 20 kilotons of mixed plastic waste per year. Following successful upscaling of the technology over the past years, the demonstration plant is a crucial intermediate step for the technology to be implemented on an industrial scale.

"Our vision is to fully align with the circular economy and climate neutrality, and we are pursuing all innovative solutions that bring us closer to this goal," says Thorsten Dreier, CTO of ����AV. "Chemical recycling can make a significant contribution to closing the loop and the BioBTX ICCP technology is a promising way of using waste to recover raw materials that we use in production." Unlike other recycling technologies, this technology also makes mixed waste from different source materials suitable for the process.

The investment in BioBTX is part of ����AV's venture capital program, in which the company invests in young start-ups and scale-ups with innovative products, solutions or business models and thus promotes entrepreneurial activities in and alongside its core business. The partnership with BioBTX also includes two joint development agreements. In the development projects, ����AV is researching further possibilities for recycling its own products and contributing know-how in the field of digitalization to improve plant performance.

����AV has been cooperating with BioBTX for more than four years and, together with the company, has launched the EU-funded Circular Foam project, which is working on the recycling of rigid polyurethane foam using pyrolysis.

"We are pleased that we can contribute our expertise in the areas of application development, digital research and development and chemical recycling to the project and thus provide impetus for a new, Europe-wide circular ecosystem for plastic waste," explains Torsten Heinemann, Head of Group Innovation and Sustainability at ����AV.

"With its participation in BioBTX and the construction of the demonstration plant, ����AV is enabling an important step towards a sustainable chemical industry," says Ton Vries, CEO of BioBTX. "The production of renewable aromatics from plastic waste and biomass is a prerequisite for circular chemistry."

The demonstration plant is scheduled to go into operation by early 2027. Further information on the project can be found .

The aim of the partners is to recycle the sorted polyurethane foams as efficiently as possible by combining mechanical and chemical technologies after careful sorting by foam type in the mattress cutting plants.

Collaborations leveraging own expertises with like-minded partners are key: In addition to Ecomaison and ����AV, the French dismantling company Secondly and Federal Eco Foam, a Belgian specialist in the mechanical recycling of flexible foams, are involved as partners in the project, which is planned to run for a maximum of 24 months. The project is called Foam Recycling Ecosystem Evolution (FREE) and coordinated by ����AV and half-funded by Ecomaison.

For the FREE consortium, the motivation lies in the added value of the material that can be recovered from the used foams and the opportunity to enter a more sustainable circular economy. The partners want to explore all possibilities in a future-oriented foam recycling ecosystem and are convinced that chemical and mechanical recycling will complement each other in a meaningful way. As dismantler and sorting actor, Secondly is interested in empowering its sorting processes to be able to supply to recyclers a specified quality of foam.

At the same time, the project will provide a good picture of how the foam recycling market in the coming years may look like. The partners truly believe that chemical and mechanical recycling can be complementary given different specifications of inlet materials being sorted already at dismantlers. To provide added value to the PU foam material, the consortium will investigate all possibilities in a future oriented eco-system of foam recycling.

The research and development project includes the foam sorting at the dismantling step, as well as a comparative feasibility study for two recycling processes for the sorted foams covering economic and ecologic value co-creation.

A few years ago, ����AV and its partners developed a chemical recycling process that is the only one of its kind capable of ultimately recovering both main raw materials of flexible PU foams in high purity. The company also operates a pilot plant at the Leverkusen site for this purpose. Together with the waste management industry, the company wants to drive the process forward to industrial use.

To make its vision of a fully circular economy a reality, ����AV is making the development of innovative recycling technologies a priority and calls the evolution of recycling . The chemolysis of PU mattress foam is the first initiative of ����AV of its kind and is called Evocycle^? CQ Mattress.

"A paradigm shift and intensive cooperation along the value chain are needed for the transition to a circular economy to succeed. The chemical and waste management industries in particular must continue to grow together in the future in order to create synergies and develop solutions together," says CEO Dr. Markus Steilemann. "With innovative recycling technologies and now also as an authorized waste dealer, ����AV is well equipped for this. We can now actively shape partnerships for waste management and a recyclate portfolio in the EU ourselves."

"IFAT brings together many established players in waste management. In addition to making new contacts, we also want to position chemical recycling, which is often still viewed skeptically, as an integral part of a modern circular economy. By participating in IFAT, ����AV is demonstrating to many stakeholders the contributions our company wants to make to circular integration," says Tara Nitz, Manager Global Circular Economy and responsible for IFAT cooperation at ����AV.

Broad portfolio of recycling technologies

In addition to various exhibits showing current examples of recycling solutions and partnerships, ����AV uses the world's leading trade fair for the waste management industry to explain mechanical and chemical recycling technologies in order to create transparency and strengthen confidence in the efficiency of such developments. The company has many years of experience in the mechanical recycling of polycarbonates and thermoplastic polyurethanes (TPU) and only last year significantly expanded its capacities for the processing of mechanically recycled products in China and Thailand.

For ����AV, chemical processes include chemolysis as a method for recovering raw materials under the influence of chemicals, smart pyrolysis at elevated temperatures and enzymatic recycling, in which microorganisms break down the chemical bonds. What they have in common is that the polymer molecules are converted back into the original raw materials, from which new products of the same quality as new goods can be created. The processes will be clearly explained at the ����AV stand on the "Recycling Wheel".

At IFAT, ����AV will also show how circular solutions in its product portfolio are becoming even more recognizable for customers. With the ��CQ�� concept, ����AV emphasizes the alternative raw material base for its products if it is at least 25 percent. ��CQ�� stands for Circular Intelligence. With the new recycling technologies, the CQ portfolio is now growing even further. This includes the reuse of polyurethane mattress foam components �C the first chemical recycling initiative marketed by ����AV under the name Evocycle^? CQ.

Initial market engagement with automotive brand owners for a serial application of a high-purity polycarbonate is promising, it would represent having a transparent polycarbonate attributed with chemically recycled raw materials.

"We are very excited to expand our existing portfolio of more sustainable polycarbonates with this new product range, which marks another milestone in building the circular economy," explains Lily Wang, Global Head of the Engineering Plastics Business Entity at ����AV. "Together with our partners, we are already helping to conserve fossil resources and to give a second life to existing waste streams. We also support our customers in achieving their sustainability goals by providing materials that meet the highest purity standards."

Recycled raw materials in trend

More and more industries are asking for products with a specific proportion of recycled raw materials, also in the expectation of upcoming regulatory requirements or voluntary programs, such as the European End-of-Life Vehicle Directive under review (ELV) and the U.S. Electronic Product Environmental Assessment Tool (EPEAT) for electronics products. The RP series offers identical quality as incumbent fossil grades and belong to ����AV's CQ family. The company uses this suffix to identify products that contain at least 25 percent alternative raw materials. At certain sites, such as Krefeld-Uerdingen in Germany, the plastics in the new range are also produced exclusively using renewable electricity.

The input for Makrolon^? RP is provided by Neste and Borealis: Neste provides high-quality recycled feedstock for new polymers, which is then turned into phenol and acetone by Borealis before it finds its way to ����AV��s site to produce Makrolon^? RP.

"Through chemical recycling, we can enable recycled content even for the most demanding applications," says Jeroen Verhoeven, Vice President Value Chain Development for Neste��s polymers and chemicals business. "Therewith, we can help companies across various sectors to achieve their recycling-related targets �C and we are excited to see ����AV put it into motion."

"Borealis is very happy to support ����AV in this important initiative �C helping to provide credible sustainable solutions and demonstrating the importance of value chain cooperation to give new value to waste," says Thomas Van De Velde, Borealis Senior Vice President Base Chemicals.

In addition to applications in the automotive industry, ����AV also wants to address other key industries such as the electrical & electronics and the healthcare industry. The aim is to manufacture high-quality and durable products with chemically recycled attributed feedstocks. At the end of a long usage phase, the plastics can still achieve a "third product life" through mechanical recycling and the further development of chemical recycling technologies.

The new series complements ����AV's existing portfolio of more sustainable polycarbonates �C the mechanically recycled Makrolon^? R products and certified mass-balanced grades of the Makrolon^? RE series, which are produced using biowaste and bio-residues. The RE series are now also available with 25 percent renewable attributed sustainable share.

����AV previously published ambitious targets for scope 1 and scope 2 emissions in 2022, which included achieving operational climate neutrality by 2035. Scope 1 emissions come from ����AV's own production processes, while scope 2 emissions result from purchased energy sources. Scope 3 emissions include all other greenhouse gases produced in the upstream and downstream supply chains. These make up around 80 percent of the company's total greenhouse gas emissions. Raw materials purchased by ����AV are responsible for the greatest share of scope 3 emissions.

Reducing scope 3 emissions will require a transformation of the entire supply chain. A variety of factors influence one another �C including the availability of alternative raw materials, renewable energies, technological advancements and new processes, as well as market transformations �C and play a key role in this process. To achieve net zero emissions, ����AV expects to make targeted investments amounting to several hundred million euros over the next 10 years.

��Our Scope 3 targets are both ambitious and realistic supported with a concrete implementation plan. This is an essential building block of our climate strategy. Completing our climate neutrality targets is another major milestone in aligning all of our activities with our vision of becoming fully circular. In this way, we are demonstrating once again that we take a leading role in transforming the chemical industry�� says Dr. Markus Steilemann, CEO of ����AV.

Four levers for achieving our target and reducing scope 3 greenhouse gases

In its climate strategy, ����AV is concentrating on four scope 3 categories in the short to medium term¹. By managing these four categories, which together make up 21.3 million tons of greenhouse gases per year (as of 2021), ����AV will be able to reduce scope 3 emissions by 10 million metric tons by 2035. To do so, ����AV has identified four key levers. Projects related to these are already ongoing, with additional concrete implementation measures to follow.

��Calculating scope 3 emissions is challenging for us as a chemical company. This is because such emissions are generated both upstream, when we purchase raw materials and downstream, after we sell our products. Because of this, measures to reduce scope 3 emissions impact our suppliers as well as our customers and will require a transformation of the entire supply chain,�� explains Dr. Torsten Heinemann, Head of Innovation and Sustainability at ����AV. �� Through innovation, cooperation with our partners along the supply chain, and a detailed plan of action involving all four levers, we will achieve our scope 3 targets��, Heinemann continues.

• The first lever requires suppliers to reduce their scope 1 and scope 2 emissions. Many of ����AV's raw material suppliers have already defined their own scope 1 and scope 2 targets, which in turn can count towards ����AV's scope 3 targets. ����AV is continuing its discussions with its suppliers on this issue, for example during a scope 3 supplier event the company will hold on March 4, 2024. Additionally, the company recently executed a long-term supplier agreement for chemically recycled raw materials with Encina. The January 2024 agreement covers the supply of raw materials produced from end-of-life plastics, which reduce ����AV's scope 3 emissions. Other important short-term changes include, for instance, electrification, improving efficiency, and carbon capture and storage (CCS) in supplier production processes.
• The second lever is the profitable sale of products made from alternative raw materials. ����AV already has circular solutions in its product portfolio under the CQ (circular intelligence) label. CQ products are made of at least 25 percent alternative, non fossil-based raw materials.
• ����AV's third lever to reduce scope 3 emissions are its MAKE projects. These are investment projects in which ����AV manufactures alternative raw materials with a smaller carbon footprint. These projects include, for instance, manufacturing bio-based aniline or using proprietary recycling technologies to make it possible to use recycled raw materials. Another example of a MAKE project is ����AV's Evocycle CQ technology, which is used to recycle mattresses.
• The fourth lever encompasses a large number of different factors that help to reduce scope 3 emissions. These include, for instance, increasing recycling rates to reduce emissions from waste incineration, and changes to logistics and primary energy extraction. In addition, ����AV will accelerate innovation processes through digital research and development and artificial intelligence.

Climate neutrality can only succeed through close cooperation along the entire supply chain. ����AV��s scope 3 climate neutrality targets are an important part of this and will be implemented alongside customers and suppliers.

^{1 Raw materials (part of category 3.1); end-of-life (EoL) handling (category 3.12); fuel and energy-related (category 3.3); upstream transportation (category 3.4)}

In attendance at the opening ceremony were North-Rhine Westphalia��s Deputy Minister President Mona Neubaur as well as Professor Walter Leitner, Managing Director of the Max Planck Institute for Chemical Energy Conversion in M��lheim an der Ruhr. Together with Dr. Thorsten Dreier, Chief Technology Officer of ����AV, they discussed the significance of bio-based raw materials for a sustainable chemicals industry of the future.

��Among other things, aniline is a key raw material for foams used to insulate buildings and refrigerators,�� explained Dreier, on the significance of the base chemical. ��Until now, aniline has been produced from fossil raw materials such as petroleum, which releases CO₂ and fuels climate change. With our new process, we are contributing to building up a circular, bio-based economy, and I am very proud that we have now succeeded in making the jump to the next technological level.��

����AV developed the process, which has already won several awards, together with partners in the scientific community. Compared to conventional technology, the process leads to a greatly improved CO₂ footprint of aniline. ����AV has made a seven-digit investment in the pilot plant at the Chempark Leverkusen.

"Sustainable innovations from North Rhine-Westphalia are making a decisive contribution to the transformation of Germany as a chemical location. The world's first pilot plant for bio-based aniline is an impressive example of this," emphasized Neubaur, who is also the State Minister for Economic Affairs, Industry, Climate Protection and Energy. "In order for the industry to continue on its path towards a circular economy and climate neutrality, it needs planning and investment security above all. As the state government, we are therefore working hard to ensure that North Rhine-Westphalia remains an attractive business location and becomes the first climate-neutral industrial region in Europe."

Professor Leitner also underlined the importance of partnerships. ��The project illustrates the cooperation between research-based industry and application-oriented science. There are many intersecting partnerships like these, especially in NRW. Germany needs more of this in order to assert itself as a research and technology location.��

Use of biotechnology

The project also clearly showcases the potential contribution of the industrial (��white��) biotechnology to plastics production: in the new process, a customized microorganism helps convert an industrial sugar extracted from plants into an intermediate product through fermentation. This takes place under milder and thus more environmentally compatible conditions than in conventional processes. In a second step, chemical catalysis of the intermediate product then creates the aniline with one hundred percent plant-based carbon.

The research on bio-based aniline will also continue to be funded by the German government. The German Ministry for Food and Agriculture is funding a follow-up project (Bio4PURDemo) from ����AV and partners, which started in March 2022 and runs until 2025. 
The RWTH Aachen with the CAT Catalytic Center and the University of Stuttgart, as well as the technology transfer initiative located there, are also participating in the project.

Around six million tons of aniline are currently produced worldwide, with the volume growing by approximately three to five percent per year on average. With a production capacity of more than one million tons per year, ����AV is one of the leading aniline producers.

The Panelists

Background texts:

Building upon previous sustainable sourcing efforts, this marks the first major procurement agreement involving chemically recycled, circular-based raw materials for ����AV, a major step in the company��s journey towards full circularity. It also helps reduce scope 3 emissions for ����AV and its customers.

"The ability to source raw materials from used plastics for the manufacture of our products makes a decisive contribution to realizing our vision of a circular economy," said Thorsten Dreier, Chief Technology Officer at ����AV. "This is because such raw materials not only enable the reuse of used plastics, but also have a lower carbon footprint, which leads to more sustainable end products."

Benzene and toluene are important raw materials in ����AV��s manufacturing processes used for the production of methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), respectively. MDI and TDI are critical raw materials used to produce rigid and flexible polyurethane foams, which are used in applications such as household appliance and building insulation as well as furniture and car seats.

Benzene can also be used for the synthesis of phenol and acetone �C raw materials for making polycarbonate plastics such as Makrolon^?, which are used in high-quality applications for the automotive, electronics, IT and other industries.

Encina��s proven proprietary catalytic technology produces circular feedstock with a lower carbon footprint when compared to those based on fossil fuels and an exceptionally high yield.

"Encina is proud to be working with ����AV, a company with a long track record of innovation and commitment to sustainability. This agreement represents the beginning of what we hope to be a long-standing partnership between our companies as we work to create a truly circular economy and realize a future in which nothing is wasted," said David Roesser, Chief Executive Officer of Encina.

����AV��s vision to become fully circular is predicated on four key drivers: the use of alternative raw materials, innovative recycling and renewable energy, as well as engaging in joint solutions. The agreement with Encina represents a pioneering milestone for incorporating innovative recycling technologies, in this case chemical recycling of end-of-life plastic, into ����AV��s production.

The joint lab will mainly focus on the commercialization of low-carbon material solutions in future EV models and the establishment of relevant standards, as well as the development of next-generation smart surface technologies and battery solutions. This initiative builds upon a cooperation agreement signed between the two companies at the CIIE last year.

"We��re delighted to deepen our collaboration with HiPhi," said Dr. Markus Steilemann, CEO of ����AV, during the unveiling ceremony at ����AV��s booth at the CIIE. "We set out to address the key challenges of future mobility with the launch of the joint lab. With our common commitment to pioneering low-carbon smart mobility and by combining our strengths and resources, we believe the lab will accelerate the automotive industry��s transformation towards a smarter and climate-neutral future."

"HiPhi aims to redefine the luxury brand in the new era. We are accelerating the adoption of intelligent and low-carbon technology in smart EVs to provide global users with a safe, efficient and sustainable travel experience, thereby changing the future of mobility and contributing to society," said David Ding, Founder and CEO of HiPhi. ������AV��s advanced material expertise is key to helping us achieve this vision. The establishment of our joint laboratory stems from ����AV��s recognition of the innovative strength represented by HiPhi and other Chinese companies. We also aspire to empower our global partners and foster mutually beneficial relations through the CIIE.��

On display at ����AV��s booth at the CIIE is the HiPhi Y, the latest luxury SUV that incorporates advanced polycarbonate solutions from ����AV, most notably in the headlamp and LiDAR lenses. As EV becomes increasingly smarter, the headlamp presents new opportunities in digital communication beyond lighting. On the HiPhi Y, the headlamp lenses are turned into a projector to display signs and patterns in front of the vehicle, creating an interactive interface with pedestrians and other vehicles. ����AV��s high optical performance Makrolon^? AL solutions offer the needed dimensional stability, UV resistance and high transparency required for this application. In the LiDAR lenses, the Makrolon^? AX portfolio demonstrates superior performance compared to glass, including excellent infrared transmittance, shaping curved surfaces and impact resistance against stone chips. They can also endure the working environment of LiDAR at temperatures from 110 to 115 degrees Celsius for extended periods.

"As the mobility industry embarks on a journey towards carbon neutrality, the demand for circular, low-carbon footprint materials is growing rapidly and will only accelerate in the near future," said Lily Wang, President of the Engineering Plastics segment at ����AV. "We hope to collaborate with more like-minded companies, like HiPhi, to accelerate the decarbonization trend and pioneer smart technology development at the same time."

HiPhi has been a long-term partner of ����AV since 2018. ����AV��s material solutions have been applied to HiPhi��s flagship models, such as the polycarbonate solutions that enable a "smart" B-pillar equipped with complex functions in the all-electric SUV HiPhi X. HiPhi Z, a smart sports sedan, employs polycarbonate grades for the touchpad switch on its steering wheel �C enabling a futuristic interactive design �C as well as high performance waterborne polyurethane adhesives for auto interiors.

For a closer look at ����AV��s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

Building on a history of success

Huafon has been a long-term customer of ����AV, and their partnership has strengthened, particularly in the field of advancing a circular economy, since ����AV��s inaugural participation in the CIIE in 2021��an annual event dedicated to promoting imports into China and fostering international trade and cooperation.

In 2021, during the CIIE, ����AV announced its first commercial order in the Asia Pacific region for its renewable attributed MDI with Huafon Group. Such MDI is made more sustainable through the utilization of alternative raw materials allocated to products via certified mass balancing according to ISCC PLUS. In 2022, Huafon Microfibre joined ����AV and other value chain partners at the CIIE in two collaborative efforts. These aimed to promote the use of low-carbon PU solutions across industries and accelerate the commercialization of circular material solutions in the furniture industry, setting the stage for even deeper cooperation.

For a closer look at ����AV��s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

¹ Source: , published by United Daily News, June 19, 2023.
 

"As a manufacturer of plastics such as polycarbonate, we naturally have a responsibility in dealing with these important materials, including at the end of their product life. Our advantage is: we know how our products are designed and can therefore conduct targeted research into recycling solutions," says Dr. Thorsten Dreier, ����AV's Chief Technology Officer. "The chemical recycling of polycarbonate is another example with which our colleagues in development show that closed cycles are possible in the future. We need to use end-of-life plastics as a resource and reuse them as alternative raw materials to close the loop."

The return of plastics through recycling replaces primary fossil raw materials in production. Comprehensive recycling thus contributes to climate neutrality and the protection of natural resources and the environment. Mechanical recycling of polycarbonate is already an important component of ����AV's recycling strategy. The mechanical recycling process is used whenever waste streams are sufficiently pure and the recycled polycarbonate meets the requirements profile of the future application.

Chemical recycling works in a complementary way to mechanical recycling - it converts plastic building blocks back into monomers, i.e. their individual building blocks. These can be separated and serve as raw materials for future plastic. Chemical recycling can therefore make larger waste streams that are unsuitable for mechanical processes in particular accessible for recycling; it allows the production of plastics that meet the highest quality requirements. ����AV is therefore actively developing chemical recycling.

Chemolysis can directly close the polycarbonate cycle

The newly developed process, which was driven by an international team, is a specific chemolysis process adapted to polycarbonate. "Pre-sorted waste streams containing a product content of more than 50 percent polycarbonate can be recycled this way. This has been successfully demonstrated with various polycarbonate-containing plastic waste streams," explains Markus Dugal, Head of Process Technology at ����AV. "With the help of this chemolysis, the cycle can be closed to a direct precursor of polycarbonate. This makes the recycling process very sustainable."

Direct use of recycled product as raw material possible

The recycled product, a precursor of polycarbonate, can be mass-balanced and reused as a raw material for the production of polycarbonate without further processing. "Such high-quality recycled raw materials are needed for applications that require top quality. These include, for example, applications in the automotive sector with special requirements in terms of safety, optical transparency or aesthetics, and products in our everyday lives such as consumer electronics," says Lily Wang, Head of the Engineering Plastics Business Entity.

Millions of euros will be invested

Following successful development in the laboratory, the next stage of development, the technical implementation of a continuous process, has already started. A pilot plant, which is currently in the planning stage, will be used to gather the experience needed for further expansion to industrial scale. Millions of euros will be invested in this over the next few years. The pilot plant will be built in Leverkusen, Germany.

At the same time, ����AV is driving forward further processes for innovative recycling of polycarbonate in its research laboratories. These include chemolytic alternatives, recycling with enzymes that break down the plastic, and smart pyrolysis. Promising alternatives can also be tested with the pilot plant.

Plastics are key to sustainable growth and a green future. To ensure that plastic products do not become waste at the end of their life, they must be reused as alternative raw materials. Innovative recycling is one of the four fields ����AV is actively driving forward on the road to a circular economy. ����AV is therefore stepping up its research into recycling methods, with an open approach to technology, and promoting innovative approaches such as chemical recycling.

����AV��s climate impact in the manufacture of its products can be assessed using the product carbon footprint from cradle to gate, which can be calculated automatically for about 50,000 intermediate and finished products. At the moment, the results are being validated in order to make them available to customers gradually in 2024. In the meantime, ����AV continues to deliver data from a manual process using a life cycle assessment tool and a method that was certified according to ISO 14040/44 and ISO 14067 last year by T?V Rheinland Energy GmbH. The automation of the calculation will enable ����AV to determine the specific carbon footprints for products in its entire product portfolio and identify potential for reducing greenhouse gas emissions. Additionally, ����AV plans to provide its customers in future with data on the products for sale, thereby contributing to an emissions assessment and a potential subsequent emissions reduction on the customer��s side. In addition to the carbon footprint, the digital solution also enables the calculation of other environmental impact categories, such as the acidification- or photochemical ozone creation potential. 

The calculation considers emissions of raw materials used, energy consumed, direct emissions generated, and waste streams generated during the manufacture of a product. The calculation is based on ����AV��s internal plant- and site-specific data as well as external databases for e.g., raw material data and, if available, specific raw material data from suppliers. The data that is calculated includes intermediate and finished products, meaning that the entire value chain for the products all the way to the ����AV gate is taken into account.

��We all want and need to reduce emissions along the value chain �C this applies to us at ����AV just as much as it does to our suppliers and customers. Our customers�� requirements are clear: to provide data for all our products and to identify opportunities to reduce emissions,�� explains Lynette Chung, Chief Sustainability Officer at ����AV.

Digitalization as a core component for generating sustainability data

����AV has now taken a major step forward in automated calculation. Information on material and energy consumption is pulled from existing data sources and systems, such as enterprise resource planning (ERP), and merged with data from databases in the cloud. ����AV uses the Product Sustainability Platform from AllocNow GmbH for this purpose. The software company specializes in the automated calculation of life cycle assessments for chemical products. In the future, further supplier data could be reflected in the calculation. ��In 2022, our portfolio had about 50,000 intermediates and finished products. The manual calculation of life cycle assessment data for just one of these products took several days,�� explains Michaela Lentz, IT & Digital Transformation Partner for Sustainability at ����AV and IT lead for the project. ��By combining and using the data, we can now calculate greenhouse gas emissions in production for a single product. Annual recalculations and future process changes can be retrieved at the push of a button, so to speak. Our software solution has been developed directly in the cloud,�� Lentz continues. ����AV does not need to maintain server capacity for the annual recalculation of LCA data, but can scale up computing capacity as needed. The company is thus very resource-conscious in its use of server services and is making a further contribution to its sustainability goals.

������AV��s manual life cycle assessment calculation process was already reviewed against ISO 14040/44 and 14067 and certified by T?V Rheinland Energy GmbH last year. Now we are seeking additional certification according to the relevant ISO-standards and in alignment with the Together for Sustainability (TfS)-guideline for the automated method,�� says Dr. Catherine L?venich, the project manager who works at Group Innovation. ��The method is very complex. Take MDI, for example, a typical precursor for insulation foams. ����AV purchases the raw material benzene, which is then converted into the finished product MDI via several intermediates using energy and other raw materials,�� L?venich explains. ��All these steps and the use of the raw materials employed are included in the calculation of the carbon footprint for a particular MDI type.�� Since both the quality of the methodology and of the data are important to ����AV, the results are being validated at ����AV. Validation of the data should be completed by the end of 2024. In the meantime the current manual approach will keep supporting with customer requests.

Digitalization is a major driver to improve sustainability and achieve the circular economy. ����AV is focusing on more data-centric business management to achieve digital transformation. Production, Research and Development, and Supply Chain Management are the three divisions that are currently the main focus.

Kaynemaile��s new RE8 Architectural Mesh will deliver an ISCC PLUS certified sustainable share of up to 88 percent of its architectural product. Moving Kaynemaile��s production away from traditional fossil-based materials to a bio-circular attributed material will offer a reduction of the carbon footprint of the polymer material by up to 80 percent, cradle-to-gate, including biogenic uptake, enabling circular economy efforts while maintaining proven functionality, ISCC PLUS certified and LEED-enabled.

"RE8 is a major milestone in Kaynemaile��s 20-year commitment to circular economy practices," says Kayne Horsham, Founder of Kaynemaile. "From the start we have sought a high-performance sustainable feed-stock material solution that exceeds building compliance standards yet has a lighter environmental footprint. ����AV��s bio-circular attributed polycarbonate portfolio is now able to deliver on this ambition."

"Makrolon^? RE polycarbonate from ����AV offers designers a sustainable material solution, while still maintaining the key benefits of traditional polycarbonate," says Joel Matsco, Senior Marketing Manager, ����AV. "The polycarbonate material enables an unencumbered design experience and provides a second life to upstream waste and residues. We look forward to seeing RE8 from Kaynemaile on buildings and in spaces around the world."

With Kaynemaile��s origins in the Armory department of The Lord of the Rings film trilogy some 20 years ago, the company has evolved into an international business built on its innovative nil-waste liquid-state manufacturing process coupled with a compelling design aesthetic and a team focused on providing bespoke functional design solutions at scale. Kaynemaile��s manufacturing facility is ISCC PLUS certified and the introduction of its RE8 bio-circular material helps position architects, planners, and builders to meet regulated carbon reduction targets.

"RE8 is the most significant initiative by the company since its founding," says Kayne Horsham. "We are proud to be at the forefront of this future proofing circular economy technology."

With various agreements in place, ����AV fosters the growth of renewable energy projects around the world. This newest 15-year agreement secures a portion of power from the Mockingbird Solar Center in Lamar County, Texas, marking ����AV��s first renewable energy agreement in the U.S. The vPPA is estimated to offset 70,000 tons of CO₂ emissions annually and will reduce the scope 2 emissions from ����AV��s third largest production site, located in Baytown, Texas.

��This important new announcement builds upon ����AV��s existing agreement with ?rsted and clearly signals our commitment to the use of renewable energy,�� said Markus Steilemann, CEO of ����AV. ��The inclusion of renewable energy to help power our facilities is a critical component to reducing our scope 2 emissions and becoming operationally climate neutral by 2035.��

����AV set itself ambitious climate neutrality goals in 2022. One major lever to reach these goals is energy from renewable sources, such as wind and solar power.

��The vPPA with ?rsted comes on the heels of our recent announcement of ISCC PLUS certification for our production site in Baytown, Texas,�� explains Haakan Jonsson, chairman and president of ����AV LLC. ��These two initiatives represent our focus on sustainability and the strategic path we have set to minimize our carbon footprint across ����AV��s operations in the United States. Cumulatively, projects like this help us realize our path to becoming fully circular.��

One concrete measure on this path is climate neutrality, which includes the switch to power from renewable sources. ����AV relies on agreements with power suppliers to facilitate this transition.

��We are thrilled to help facilitate ����AV��s entry into the U.S. renewable energy market with this newly signed virtual power purchase agreement,�� said Monica Testa, Head of Origination at ?rsted. ��The Mockingbird Solar Center is a unique project that represents both preservation and progress. The clean energy produced by the solar center will help ����AV to decarbonize its operations, while the habitat supports plant and wildlife biodiversity in the region. We��re proud of the important outcomes this project achieves and look forward to our continued partnership with ����AV.��

Edison Energy worked with ����AV to broker the agreement for the vPPA. ?rsted��s Mockingbird Solar Center will produce enough clean energy to power roughly 80,000 homes and is expected to begin operation in late 2024. At that time, ����AV will start executing on the vPPA, which represents nearly 20% of the Mockingbird Solar Center��s capacity.

In December 2019, ����AV concluded a supply agreement for electricity from offshore wind turbines with energy supplier ?rsted. Starting in 2025, ?rsted will provide green electricity for ten years to supply ����AV��s production sites in Germany, generated in a newly built wind farm off the island of Borkum, Germany. At the end of 2022, ����AV had already covered 12 percent of its global energy requirements with electricity from renewable sources. That figure is expected to rise to 16 to 18 percent in 2023.

Aerodynamics, a low weight and minimal energy losses were high on the agenda when designing the hyper-efficient city vehicle. ����AV supported the developments with its transparent and lightweight Makrolon^? AG RE polycarbonate. With its use in the front and side windows, the plastic helps the electric car weigh just 65 kilograms in total, making it lighter than its driver.

"I am very pleased with the ambition and courage of this young team, which is pursuing the same goal as our company: to commit to the most efficient and sustainable mobility possible," says Sucheta Govil, Chief Commercial Officer at ����AV. "Similar to the 'Sonnenwagen' solar car project, we also support these students in exploring what is possible. In addition, we want to attract young people at leading universities to work with us on solutions for future mobility."

Makrolon^? AG �C the abbreviation stands for "automotive glazing" �C was developed for glazing vehicles and is characterized by transparency and light weight. "With the RE variant, we can further increase sustainability by making greater use of alternative mass-balanced raw materials from biowaste and residual materials, as well as renewable electricity for the production of the plastic," says Dr. Fabian Grote, Head of Global Technical Marketing Mobility in the Engineering Plastics segment. "In this way, we want to help make the circular economy a reality." The company's plastics have long been used in the automotive industry, enabling functional and more sustainable solutions with plenty of design freedom.

Less weight, improved aerodynamics

The results of the vehicle development are impressive: While muc023 traveled 242 kilometers on one kilowatt hour, today's electric vehicles can only cover a distance of 5 to 10 kilometers with this amount of energy. "In the new prototype, we have once again significantly reduced the weight of the chassis and suspension," explains Gleb Lialine, head of the TUfast team. "We also improved the aerodynamics, achieving a drag coefficient of just 0.13, and finally installed a more powerful motor and optimized the electrical control system."

To challenge itself, the team takes part in international motorsport competitions, most recently the Shell Eco-marathon in Nogaro in southwestern France. At the Paul Armagnac race track, the Munich team competed against university teams from all over the world and came in 2nd place. In addition to the car's very good efficiency, a newly developed system for autonomous driving was also put to the test, which is operated with cameras and LiDARs as well as various sensors. For LiDAR system requirements, ����AV offers polycarbonate plastics from the Makrolon^? ST (Sensor Transparent) product range that are transparent to the corresponding infrared wavelengths and allow sensors to be installed.

This is a small part of a bigger commitment to raise awareness about responsible waste management and engagement of everybody to address plastic pollution, and to inspire year-long action to live more sustainably.

����AV Australia supporting the ����AV Global Commitment as ��individuals and as a company, we need to care for our Planet��, Clean Up Day is putting this into action and making positive change.

From our CEO Markus Steilemann : ��Resource consumption is increasing, mountains of waste are growing �C with negative consequences for the environment and climate. There is an urgent need to take countermeasures and fundamentally change consumer habits and production patterns. We need to make the circular economy a reality, and the recycling of plastics is crucial for this. ����AV can and wants to play a central role in this��.

Full speed ahead with sustainability | ����AV

The latest innovation from ����AV provides a solution to meet these growing needs: a partially bio-based barrier coating resin, Decovery^? CQ 6010, which helps ��close the loop�� for recyclable paper packaging.

Reducing waste by replacing PE and aluminum layers

Many packaged food products are sensitive to moisture, so controlling the moisture vapor transmission rate (MVTR) is critical to maintaining the quality of the food. To protect the product inside a package, paper and board food packaging is often laminated with polyethylene (PE) or aluminum. These materials limit the packaging��s recyclability, meaning it often ends up going to landfill or being incinerated. ����AV��s innovative barrier coating resin reduces waste by replacing these PE or aluminum layers in paper food packaging to make it recyclable.

By enabling low MVTR values, Decovery^? CQ 6010 provides a moisture barrier to protect the food, as well as delivering good oil and grease resistance. This makes it suitable for use in packaging for a wide range of food, from dry high-fat products such as chocolate bars to ice cream, frozen food, and fresh fruit. The resin is made with 37 percent plant-based and transparently sourced ingredients, such as bark, castor beans, and corn. This substantially reduces its carbon footprint in comparison to virgin PE and standard fossil-based coatings.

Davide Reverdito Bove, Sector Marketing Manager Printing & Packaging at ����AV: "While PE laminates do a good job of protecting food contents, they make food packaging virtually impossible to recycle. As a result, a lot of them go to landfill or are incinerated. Our new resin is a game-changer in addressing this issue. It gives food producers and packaging makers an excellent opportunity to deliver the protection that packaging requires while having less impact on the environment. That��s just one reason why we are so proud of this new coating, and so excited to be telling the world about it."

To learn more about Decovery^? CQ 6010, visit its dedicated landing page: 

"We are very proud of this breakthrough solution as it will enable our customers to achieve their sustainability goals faster. This is especially true for industries such as consumer electronics and audio and networking equipment manufacturers, which have ambitious sustainability goals of their own," said Lily Wang, Global Head of the Engineering Plastics segment at ����AV. "This is another step toward our vision of becoming fully circular, and an important contribution to accelerating the transformation of industries toward a recyclable and carbon-neutral future."

This type of plastic can achieve exceptional whiteness and highly saturated colors, which is typically a challenge for PCR plastics with high recycled content. This is made possible by selecting high-quality recyclates and optimizing the material composition during the compounding process. The PCR grade is manufactured with halogen-free flame retardants that meet performance requirements without increasing environmental impact. It also meets the highest V-0 rating of Underwriters Laboratories' UL 94 flammability standards.

Partnership with Jabra

����AV's Bayblend^? FR3010 R75 polycarbonate blend is used, for example, in the ear cups of Danish brand Jabra's latest Evolve2 headset series for audio equipment and video conferencing systems. This type is made of 75 percent recycled material and has a 50 percent lower carbon footprint² compared to its conventional fossil-based counterpart, but still meets performance requirements well.

To meet rising demand, ����AV is currently building a dedicated compounding plant for PCR polycarbonates at its integrated site in Shanghai. Once commissioned, which is scheduled for later this year, it will be able to supply more than 25,000 metric tons of high-quality PCR polycarbonates annually.

Climate-neutral¹ solutions through mass balancing

In addition to PCR grades produced through mechanical recycling, ����AV is also making progress with polycarbonates attributed with raw materials produced using a mass balance approach derived from bio waste and residual materials and certified to the internationally recognized ISCC PLUS standard.

The company now regularly supplies Makrolon^? RE polycarbonates with a renewable attributed raw material content of up to 89 percent³. Selected products, including climate-neutral¹ polycarbonates, are supplied with 100 percent renewable electricity under a T?V-certified system⁴. Already at the end of 2021, ����AV supplied customers in Europe with the world's first climate-neutral¹ polycarbonates. Also the RE series is part of the CQ portfolio of circular solutions at ����AV.

The mass-balanced products demonstrate an identical good quality and performance as fossil-based polycarbonates and offer an out-of-the-box solution for customers with a significantly lower carbon footprint.

^{1 Climate neutral according to a verified life cycle assessment based on ISO standards 14040/14044. Climate neutrality is demonstrated by assessing a partial product life cycle from resource extraction (cradle) to factory gate, also known as cradle-to-gate assessment. The calculation takes into account biogenic carbon sequestration rather than first "life" pollution. It is based on preliminary data from the supply chain and replaces the electricity grid mix with renewable electricity used in the ����AV manufacturing process. No compensation measures were applied. The LCA methodology developed by ����AV is scientifically sound and corresponds to the state of the art. ID no. 0000083440:}

^{2 According to an internal calculation by ����AV based on the T?V reviewed EcoPAss LCA method (ID No. 0000083440: )}

^{3 According to the newly published ISCC PLUS system document V3.4, oxygen atoms from ambient air that react with ISCC-certified raw materials are counted towards the sustainable fraction. ISCC PLUS ()}

^{4 Certified management system: ID no. 0000084999:}

"Thanks to this new milestone, ����AV will soon be able to serve even more customers around the world with an easily accessible, more sustainable product portfolio," says Sucheta Govil, Chief Commercial Officer of ����AV. "Customers in North America can now reduce their carbon footprint and Scope 3 emissions with drop-in, mass-balanced materials derived from recycled and bio-attributed products."

Learn more about ����AV��s ISCC PLUS certification in the US: /en/company/covestro-worldwide/united-states/covestro-in-the-united-states/sustainability-and-innovation/iscc-plus-certification

����AV is the first manufacturer of polyurethane and polycarbonate raw materials to receive this certification in the United States. The certification is an important milestone for both ����AV and the industries it serves, including the automotive, construction, comfort, electronics and appliance industries, which will now have access to ISCC PLUS-certified products made from more sustainable raw materials in North America.

To underscore how the products support both the company��s vision to become fully circular and its customers' journey to greater sustainability, ����AV has introduced a specially branded product line with the suffix "CQ". CQ, which stands for ?Circular Intelligence?, is a portfolio of products with attribution of at least 25 percent alternative raw materials derived from biomass or recycled plastics. 

����AV is also introducing the name Evocycle^? CQ for all evolutionary recycling processes. The first project of this kind is called Evocycle^? CQ Mattress and denotes an innovative chemical recycling technology for polyurethane mattress foam. ����AV currently has more than hundreds of CQ products and is continuously expanding this portfolio.

The ISCC PLUS certified products produced at ����AV��s Baytown facilities will include: 
? Methylene diphenyl diisocyanate (MDI) �C used primarily in the production of rigid polyurethane foam for efficient insulation of refrigeration equipment and buildings
? Toluene diisocyanate (TDI) �C used in the production of flexible foam for the automotive and furniture industries
? Makrolon^? RE �C polycarbonate, a high-grade plastic used in the automotive, electronics and medical industries, among others
? Hexamethylene diisocyanate (HDI), isophorone diisocyanate (IPDI), Desmodur^? W and Desmodur^? Z �C used in various coatings and adhesive applications

����AV expects to begin supplying select ISCC PLUS-certified products from its Baytown facility in the second half of 2023.

The products will be produced using a mass-balance approach. Sustainable raw materials will be accounted for throughout both the value chain and production process, allowing for an accurate attribution in the end products. The existing production infrastructure will be utilized while reducing the carbon footprint of the final products.

ISCC is an internationally recognized sustainability certification for biomass and bioenergy. The standard applies to all stages of the value chain and is recognized worldwide.

The research project, called NALYSES, started in October 2022, is designed to last three years and is funded by the German Federal Ministry of Education and Research (BMBF)¹. Miele is also involved in the project as an associated partner in order to evaluate the transferability of the results to the production of household appliances.

Modern materials such as the plastic polycarbonate fulfill important requirements in the development and design of today's headlights, including the transparent cover of such lighting systems. However, they also play an important role when it comes to their reuse, remanufacturing or end-of-life material recycling. Current developments are also aimed at a more sustainable raw material base.

"The focus of our involvement in this pioneering project is the design of a materials and recycling strategy. We have extensive expertise in this area," explains Jan Helmig, Global Technical Marketing Manager Lighting and Project Manager for NALYSES at ����AV. "As part of the new project, we want to work with partners to develop a near-series solution that incorporates the entire product cycle."

Simplified recycling by focusing on one plastic

A few years ago, ����AV already presented a visionary for the vehicle lighting of the future. The modular approach is based on different types of polycarbonate and reduces assembly steps, space requirements, costs �C and CO₂ emissions, as the weight of the prototype can be reduced by up to 1.5 kilograms compared to conventional solutions. The key, however, is focusing on one plastic, as this can reduce the labor required to separate, sort and store it in recycling streams without sacrificing performance.

����AV also offers more sustainable polycarbonate grades. These Makrolon^? RE products are climate neutral² from cradle to ����AV?s factory gate, thanks to the use of renewable electricity for its own production processes and the introduction of raw materials derived from mass-balanced biowaste and residues.

In the future, lighting systems are to be designed in such a way that they can be recycled at the highest possible value-added level. This also includes the reuse of entire assemblies. As part of the NALYSES project, ����AV is supporting these developments, including the evaluation of technologies for materials recycling. The company is also responsible for characterizing and optimizing material properties and is working to extend the service life of headlights with the help of suitable materials.

Digital twin

The new project looks at the entire value chain from raw materials to design and overall system requirements, as defined by car manufacturers such as BMW. The development and analysis of a digital twin ensures the assessment of recyclability and carbon footprint at any stage of the development process. In this way, less sustainable developments can be avoided even before design and production.

_{¹ Funding measure on "Towards sustainable mobility through circular value creation (MobilKreis)", funding code: 02J21E105. The abbreviation NALYSES stands for the German translation of "Sustainability-Optimized Life Cycle Assessment of Technologically Highly Complex Products Using the Example of Automotive Lighting".}

_{² The "climate neutral" rating is the result of an assessment of a subsection of the entire product life cycle. The section from resource extraction (cradle) to ����AV's factory gate, including biogenic carbon uptake, was considered. The assessment is based on ISO standard 14040 and was critically reviewed for plausibility by T?V Rheinland.}

��This CSR project is part of ����AV��s wider ambition to create additional value for the society. With the learning center the company aims to contribute to supporting Thailand on its journey towards the circular economy in full alignment with the company��s commitment to environmentally-friendly production.��

��Young generation is one of a crucial driver to transform our world to become more sustainable in the future. Therefore, we really need to seed the sustainability and circularity mindset to the children and ����AV is committed to support this in everyway we can as our company��s purpose is ��To make the world a brighter place��, said Dr.Timo Slawinski, Managing Director of ����AV (Thailand) Co., Ltd.

Sustainability is a core element of ����AV��s mission and an integral part of its strategy. As a company which lives and breathes innovation and wants to grow with products and technologies that benefit society and reduce the impact on environment, ����AV sets sustainability targets which extend beyond its immediate operations , for example, the company aims to become climate neutral by 2035 and want to become fully circular along the value chain. This commitment to sustainability goes beyond declarations and has been confirmed in many projects in which ����AV has been able to realize trailblazing ideas.

The company is promoting its commitment by expanding the basis of raw materials, continuously optimizing the production process in all the plants, and enabling its customers to design their production processes in a more efficient and sustainable manner. Almost all innovations by ����AV follow the aim of bringing together the economy and environmental aspects to benefit the environment and support customer��s business success.

In its operations in Thailand, ����AV also adheres to sustainable production and demonstrates its sustainability stance. Its Map Ta Phut site fully supports the global sustainability agenda with multiple initiatives. For example, the company is now using biodiesel instead of gasoline in its on-site logistical operations. By switching to this clean-burning alternative fuel generated from renewable resources, the company reduced its carbon footprint along the value chain. The production site can now apply mass-balanced approach which is certified by international organization - ISCC PLUS to produce the products for almost entire site. The company is also currently planning to apply renewable energy in manufacturing processes with the expected benefits of reducing water and air pollution.

The DPP of the venture is a universal and interoperable platform that provides ingredient transparency about a product for all stakeholders across industries and across Europe. It provides factual, objective, measurable information on product ingredients, components, provenance, and attributes like CO₂ footprint, recycled content and recyclability.

Sascha Bloemhoff, Marketing Director at Niaga^? and responsible for the DPP: ��Most systems today are linear, tracing only high-level data. Such systems lack crucial pieces of ingredient information needed to close the loop. Detailed ingredient knowledge is a must, if we want to avoid downcycling of valuable materials during recycling, whatever the product or industry: electronics, clothing or the building sector.��

Martin Snijder, Circular Economy Orchestrator at EIT Climate-KIC: ��The DPP radiates circularity in every aspect, as do Niaga?��s core activities. The DPP is under development and managed by an experienced and convincing team. The jury hopes the minimum transparency level of the Niaga^? DPP will become the standard in Europe.�� 

Winning the prestigious prize is the recognition of the Niaga^? DPP as a key enabler for circularity and underlines the importance of material stewardship, transparency and traceability in achieving a truly circular economy. Lynette Chung, Chief Sustainability Officer at ����AV: ��In order to achieve a fully circular economy, we need to connect stakeholders and transport knowledge along the value chain, and support consumer trust and demand for more sustainable product offerings. It��s why we��re particularly proud of our innovation venture��s DPP being recognized as a key enabler for a no-waste, circular economy. The DPP provides essential infrastructure for a sustainable future and is a viable solution that also protects users�� IP sensitive information.��

Sascha Bloemhoff adds: ��It is our mission to design out waste. Our key learning in our journey has been that to make return, and with it, reuse, repair, refurbishment, and recycling possible we need the full disclosure of a product��s ingredient, material, and component information. Moving from theory to practice, pointed us in the direction of our universal and interoperable product passport. Because our DPP revolves around ingredient transparency �C not just traceability �C it��s a solution that helps to put valuable materials centre stage. Because in a true circular economy what is a polyester sweater today, could become a car seat tomorrow and a mattress in the future.��

About Niaga^?: 
We are on a mission to design out waste completely. We are passionate about transitioning to a circular economy, bringing reuse, repair, refurbishment and recyclability, from theory to practice. In our view, a product is only fully circular if it contains clean and infinite materials, reversible connections, and if it is returned for material reuse. That��s why return is key.

Together with our partners we (re)design with the end in mind. We design to use again. The scannable Niaga^? tag enables users to see what a product is made of and how to return it after each use-cycle. Behind the tag there is a brand neutral DPP. This helps all parties in the value chain to keep valuable materials in the loop for future generations. Niaga^? is part of ����AV.

Contact
Sascha Bloemhoff, Marketing Director Niaga^?
sascha.bloemhoff@covestro.com
Tel. +31 6 200 150 64

Circularise��s blockchain-based digital system was tested with the ISCC PLUS certification to make auditing of certified parties more efficient, and to strengthen the integrity of certified data. Participants used a public blockchain enabling authentication, accessibility, decentralization, and encryption of data verifying material flows and related sustainability attributes. "We are excited to bring our knowledge in supply chain traceability and data management to project partners to test a public decentralised blockchain with the ISCC PLUS certification," said Mesbah Sabur, Founder of Circularise.

Material traceability and verification of data at individual sites and across the value chain are guaranteed by ISCC PLUS certification of each site of the operators, requiring site-specific audits, certification, and company-specific mass balance calculations to provide reassurance about the sustainable content. The data was uploaded to the Circularise software system to improve mass balance bookkeeping and reporting along the value chain through several companies.

"Certification will become more digital in the future. It will allow certification schemes to simplify the auditing process of supply chain actors and reduce the risk of mistakes. Companies will have an easier way to show compliance and adhere to auditing rules," says Jan Henke from ISCC. "We are excited to have tested Circularise��s traceability software on ISCC procedures."

Digitized ISCC certification for ����AV downstream customers

����AV joined the ISCC pilot to understand how they can more efficiently communicate their sustainability information to their downstream partners.

"With other Circularise pilot projects, for example with Porsche, we were able to communicate raw sustainability data without a problem, but we had not yet addressed sustainability certifications. In the ISCC pilot we have shown now how we can easily attach certifications that can be digitally carried all the way through the value chain from ����AV to our downstream partners and finally to OEMs and beyond," explains John Fox from the Digital R&D area at ����AV. The company is seeing increasing demand from customers and partners for a digital certification system that can validate material sustainability claims via a system like ISCC.

Mass balancing is an emerging concept, not yet fully understood on the consumer side. So, in order to help ISCC and the entire mass balancing approach to reach out further down the value chain, the delivery of digital certified information through a simple and compatible system can give downstream partners an easier and more recognized tool to communicate and share sustainability attributes externally, all the way down to the consumer.

��Biotechnology has enormous potential to produce plastics in a more environmentally friendly and efficient way,�� says Dr. Markus Steilemann, CEO of ����AV. ��As an innovation-oriented company, we want to expand our capabilities in this area. In particular, we expect this to provide further stimulus for the circular economy, to which we are completely gearing our company.��

Recycling with enzymes

In order to better tap the potential of industrial (��white��) biotechnology for plastics production, the junior research group enzyme catalysis, or NEnzy for short, has now been established at ����AV. It will receive a total of 2.5 million Euros in funding from the German Federal Ministry of Education and Research for five years and is cooperating closely with RWTH Aachen University in Germany.

The new group is working to recycle end-of-life products and plastic waste through enzymatic recycling. The researchers also want to use enzymes to treat wastewater in plastics production. Another focus is the targeted and complete decomposition of used plastic in nature.

New laboratory

The experts now also have more space and even better equipment �C in a new laboratory that ����AV has built at its headquarters in Leverkusen. Here, biotechnological processes can be represented in a particularly realistic way in a wide range of sizes, from one milliliter to soon 100 liters of reaction volume.

��We are taking nature as our model, which has created sensational processes and has practiced closed-loop recycling for millions of years,�� says Dr. Gernot J?ger, who heads ����AV's Biotechnology Competence Center. ��With the help of enzymes and microorganisms, we can efficiently use alternative raw materials and thus replace fossil resources. At the same time, unwanted byproducts can be avoided or at least reduced significantly.��

Chemicals from plants

Specifically, ����AV is already using biotechnology to research and develop new ways to sustainably produce aniline. This basic chemical plays an important role in plastics production worldwide. Until now, it has been obtained almost exclusively from fossil raw materials such as petroleum, which releases CO₂. ����AV needs aniline to produce a precursor (MDI) that is used to make insulating foam for buildings and refrigeration equipment.

Together with partners from industry and science, ����AV has developed a pioneering process to produce aniline from plant-based raw materials such as straw or sugar beet plants in an environmentally compatible way using microorganisms. Fully biobased aniline has already been obtained in this way and successfully processed into test products. Now the process, which has already won several awards, is to be further developed on a larger scale. The project is funded with public funds from the German Federal Ministry of Food and Agriculture.

Another precursor for coatings and adhesives (HMDA) can already be produced on a larger scale from plants and with the aid of biotechnology. ����AV and the U.S.-based biotech company Genomatica have succeeded in doing this through a partnership.

In biotechnology, there are several major areas that are identified by colors.

White or industrial biotechnology is used in industrial production processes, especially in the chemical industry.

Green biotechnology helps in agriculture, for example, to make plants more resistant to climate change.

Red biotechnology advances medicine �C for example, to produce vaccines like those used to protect against Corona.

Such achievement serves as a clear proof point of the company?s commitment towards circularity, leading the transition within the different segments served by ����AV not only in Brazil, but also in important countries such as Chile, Uruguay, Colombia, Argentina and Costa Rica, among others.

"This is an extremely important step for us as it makes the transformation towards the circular economy tangible, supporting our customers in achieving their sustainability goals and accelerating the substitution of fossil raw materials", says Andreas Stumpf, Managing Director of ����AV Brazil.

ISCC PLUS certification contributes to more sustainable production processes and markets, increasingly encouraging the participation of supply chain entities. At a local level, the certification can make fairer work relationships, more efficient processes and promote the reduction of greenhouse gas emissions and the use of fossil resources, while expanding the possibilities for the international market, mainly the European one.

"The Brazilian certification project of ����AV shows that it is possible to contribute to more sustainable production even in complex production chains with materials of different origins and destinations. It is another important step in promoting genuinely sustainable production chains", states Felipe Bottini, founding partner at Green Domus, ISCC recognized certification body in Brazil.

Customer focus: driving mindset change in Brazil

ISCC PLUS certification enables ����AV to supply attributed MDI and TDI, attributable to bio-based as well as bio-circular raw materials, to a variety of industries, for example for composites, flexible foams for mattresses and rigid foams for refrigerators, thus expanding ����AV's supply of more sustainable raw materials, which has a direct impact on reducing greenhouse gas emissions.

"For us, it is of utmost importance to be at the side of our customers and enhance their awareness about climate neutrality. Now, with such products, we can effectively contribute to their sustainability goals and reduction in carbon footprint", says Andr�� Borba, Marketing and Sales Manager for the Performance Materials segment in the Latin America region.

In order to reflect this commitment, and to make it even clearer how these products support its circular vision as well as the customers? path towards sustainability, ����AV created a distinctive branding for products driving circularity.

Products carrying the CQ suffix are produced using partially alternative raw materials today �C such as feedstocks from waste, biomass or renewable energy. These material solutions can be implemented via segregated or mass-balanced chains of custody. By activating multiple circular production pathways, we enable clients to increase their use of renewable resources, and lowering their overall environmental impact.

The range of solutions carrying CQ will constantly grow. The first products available are the climate neutral³ products Desmodur^? CQ 44V70L MS and Desmodur^? CQ 44V20L MS from ����AV, as well its Desmodur^? CQ 44V70L MB, Desmodur^? CQ 44V20L MB and Desmodur^? CQ T80 with a significantly improved carbon footprint. The abbreviation ��CQ�� stands for circular intelligence. Together, C and Q underline how essential thought-leading, innovative solutions can drive circularity forward.

¹ ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for sustainability certification of biomass and bioenergy, among others. The standard covers all stages of the value chain and is widely used worldwide. ISCC PLUS includes further certification options for technical-chemical applications, among others, including plastics from biomass.   
² Biological and bio-circular attributed MDI and TDI are assigned biological raw materials as well as wastes and residues of biological origin based on a mathematical algorithm using the mass balance method.   
³ Carbon neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (����AV gate), also known as cradle-to-gate assessment. The methodology of our life cycle assessment is based on ISO standards 14040 and 14044.

The strategic cooperation will focus on the United Nations 17 Sustainable Development Goals (UN SDGs). ����AV will further work with WOSL to help young people develop a sustainability mindset and become advocates and leaders for a sustainable future through the Orator and Illustrator Contest, part of the UN Junior Ambassadors for Sustainable Development and SE4All program (#SDGAction42242). 

The first 2022 ����AV Cup ��I speak, I act, I impact�� China Student Orator and Illustrator Contest, hosted by the WOSL and organized by Wo Sou Education Science and Technology (Shanghai) in May, 2022,  was concluded successfully. While the first competition highlighted the theme ��Quality Education��, the 2023 competition will focus on ��Climate Action��, aiming to encourage young people to fully unleash their creativity to imagine the future of sustainability. ��Quality Education�� and ��Climate Action�� are both part of the UN SDGs.

Dr. Paul C. Bogaardt, CEO of WOSL, said: ��Our vision is one where humanity lives in harmony with our mother planet. We believe brilliant young minds are the key to achieving this sustainable future. These future leaders must be nurtured, cultivated and inspired to speak, act, and eventually impact this trajectory. In collaboration with ����AV, we look forward to fulfilling our mutual vision.��

����AV has made sustainability its key strategic pillar and set a number of ambitious sustainability objectives. By 2025, ����AV aims to align 80 percent of its research and development expenditure towards meeting the UN SDGs. Additionally, the company aims for operational climate neutrality and net zero emissions by 2035.

������AV participated in the CIIE this year with the theme of ��Together for a climate-neutral future.�� In addition to working together with our customers and value chain partners, our ��circle of friends�� also includes organizations like WOSL and youth. Through this strategic cooperation, we expect to encourage young people to explore new solutions for climate change and other global issues, and inspire them to play an active role to jointly shape a sustainable future,�� said Holly Lei, President of ����AV China. ��We look forward to fulfilling our social responsibility through more programs like this as we help bring a profound and lasting experience for future leaders of sustainability.��

The 2023 ����AV Cup ��I Speak, I Act, I Impact�� China Student Orator and Illustrator Contest is open to students in two categories: Youth diplomats (first grade to eighth grade) and Junior diplomats (ninth grade to university undergraduates). The contest will feature both illustrations and speech competitions in English. To participate in the contest, please complete the registration process and upload your works through WOSL��s official WeChat account between January 31 and March 31, 2023 (further details will be announced later) to join in the global selection. The winners are expected to be announced on May 31, 2023.

According to a memorandum of understanding (MoU) signed at ����AV��s booth at the China International Import Expo, the company will work with customers like Sherwin-Williams and Changzhou Changtu Chemical Co. Ltd, logistics solution and infrastructure partners such as Sinotrans Chemical International Logistics and Harbour New Energy Technology Shenzhen, as well as industry organizations such as Smart Freight Center China to devise new green logistics solutions to further reduce greenhouse gas (GHG) emissions across the industry ecosystem.

Truck transport in focus

In the Asia-Pacific region, around 70 percent of ����AV's goods are transported by truck, while in Europe and North America only around one-third is transported by road in each case, with inland waterways and railroads otherwise being used more frequently.

As such, the new partnership will focus on designing more sustainable means of road transportation by truck, and evaluate the viability of certain solutions under specific scenarios.

This includes the experiment of using electric trucks, which are prohibited for the road transport of dangerous goods under Chinese and European laws, for the short-distance shuttling of non-dangerous chemicals �C free of limitations regarding the range. The team is also trying biodiesel, whose prices are subsidized in Shanghai, in long-haul transport of dangerous goods. Other solutions the program is looking at include hydrogen fuel cell-powered trucks. Some of the experiments will be adopted in real cases with cost and benefit estimation in the first half of 2023 under the partnership.

"The idea is to pilot, adopt and scale up low-emission fuels, vehicles and more sustainable logistics solutions with optimal costs and even financial benefits through an open platform," says Samir Hifri, Senior Vice President, Supply Chain & Logistics Asia Pacific, ����AV. "We believe the supply chain could be an essential part for the chemical industry to achieve climate neutrality, and it��s crucial for us to find a balance between economics and emission reductions through such collaboration."

Under the partnership, efforts will also be made to standardize calculations and reporting of GHG emissions. Through these efforts, ����AV and its partners hope to create a transparent and reliable certification mechanism that promotes green logistics as a widely applicable business model in the industry.

Jason You, Senior Supply Chain Director of Sherwin-Williams Asia, said: "Sherwin-Williams is committed to satisfying customer needs through quality products, excellent service and a highly trained and professional workforce and is constantly seeking ways to become more sustainable. We are excited to work with ����AV and other leading partners on this challenge. We look forward to continuing to innovate and introduce more sustainably advantaged product solutions to our customers in China and across the globe."

Key to scope 3 emissions target

Earlier this year, ����AV announced that it is aiming to become operationally climate neutral �C this includes reducing both direct emissions from its own operations (scope 1) as well as indirect emissions from purchased energy (scope 2) to net zero �C by 2035. The company will be reporting its scope 3 emissions target next year.

"The MoU marks an essential step in ����AV��s planned announcement of the scope 3 emission target in 2023," says Zhong Xiaobin, Senior Vice President of the Coatings and Adhesives segment of ����AV in Asia Pacific. "We expect to provide an integrated offering that combines more sustainable products and logistics services, thus supporting our customers to meet their sustainability and climate-neutrality targets and moving towards a circular economy."

The signing ceremony was endorsed by the China Polyurethane Industry Association (CPUIA). The association also signed the MOU together with Xtep Group, Sinomax Group, Huafon Microfiber, Silan Group and Delida. The companies are either customers or distributors of ����AV��s PU products in the sectors ranging from sportswear and sleeping goods to leather products and construction.

Jianbo Li, Deputy Secretary-General of China Polyurethane Industry Association, said, ��We are very glad that ����AV is leading the innovative, strategic cooperation with downstream frontrunners to reduce dependency on fossil-based raw materials, to support China��s efforts in achieving its carbon neutrality targets for the future.��

"Developing joint solutions to advance the circular economy with partners is a key focus area of ����AV. We are delighted to initiate this new partnership with key players in the PU industry in China to lower carbon footprint, and we see huge market potential for low-carbon PU solutions,�� said Holly Lei, President of ����AV China. 

More sustainable polyurethanes

Polyurethane, which was invented by ����AV��s predecessor company more than 80 years ago, has become one of the most versatile plastics today. With a vision on the circular economy, ����AV has been making PU more sustainable. 

For example, the Desmodur^? CQ low-carbon-footprint TDI and Desmodur^? CQ climate-neutral MDI are offered by ����AV via mass balance. Both are the key components for the production of PU foams. Under the mass balance method, bio-based or recycled raw materials are fed in at an early stage of extraction and mathematically assigned to purchasers of downstream products without the need to change their production procedures.

The latest collaboration will explore new applications of ����AV��s mass-balanced portfolio of MDI, TDI and TPU solutions, which are featured at this year��s CIIE booth in applications such as building insulation, upholstered furniture, leather goods, high-performance shoes, among others. With a significant proportion of non-fossil-based raw materials �C including plant waste, used cooking oil, and vegetables oils �C these mass-balanced portfolios, certified to the internationally recognized ISCC PLUS standard, can help manufacturers reduce carbon emissions. 

����AV's collaboration with cross-industry partners will focus on three aspects: developing low-carbon solutions to accelerate industry upgrades in downstream sectors toward a circular economy; strengthening cooperation across the value chain in support of carbon neutrality; and jointly promoting solutions to the market through publicity and marketing campaigns �C for example by participating in the CIIE and other high-level events.

In the future, ����AV hopes to expand cross-industry cooperation up and down the value chain by inviting more partners to join and work on new solutions toward a more sustainable and circular future.

The cooperation is led by ����AV and Sunon Research Center. They have identified industry chain partners to expand collaboration on sustainable materials in office furniture, especially the application and commercialization of bio-based waterborne coatings, biomass foams, microfiber materials, furniture adhesives, as well as post-recycled polycarbonate materials.

������AV is actively supporting different value chains to reduce emissions and accelerate the transition to a circular economy by increasing the use of alternative raw materials,�� said Holly Lei, President of ����AV China. ��We are very pleased to work with Sunon and other partners to advance sustainable development for the office furniture industry. We look forward to accelerating commercialization of more innovative solutions by expanding the local production capacity and scale of circular materials. Together, we will contribute to the high-quality and sustainable development of China's economy as well as its carbon neutral ambitions.��

Chen Yuanfang, Vice President of Sunon Group Co., Ltd., said, ��Sunon has always been committed to providing solutions for safe, environmentally-friendly, comfortable and intelligent office and commercial spaces. We have created better places to work by weaving workplace wellbeing into the fabric of our company��s mission and the entire lifecycle of furniture manufacturing, led by our pursuit of high-tech, natural and healthy products. This perfectly aligns with ����AV��s aim to usher in the circular economy. In order to create healthy workspaces for customers, we continue to promote environmental protection upgrades and innovative applications of sustainable materials to meet the market��s demand for low-carbon and environmentally-friendly office furniture. By working with ����AV and other partners in the industry chain to create new sustainable solutions, we expect to accelerate our industry��s green transformation.��

New low-carbon and high-efficiency materials for office furniture

Consumers are increasingly concerned about the material safety and sustainability of the products in their home and work environments. Although bio-based waxes and oils for treating furniture surface have been around for a long time, they often do not provide the same protection as fossil-based coatings, especially for office furniture with higher performance requirements. ����AV��s bio-based waterborne UV technology, Bayhydrol^? CQ and Recovery^? CQ, contains approximately 35 percent bio-based contents, which can reduce the carbon footprint of furniture coatings, while offering the same chemical resistance and mechanical properties, compared to conventional fossil-based products. The technology has been tested in the modern waterborne UV five-axis spraying line at Sunon��s Intelligent Manufacturing Base in Qiantang, Zhejiang, and the appearance and performance of the coated products have reached the expected goals. CQ stands for Circular Intelligence and is dedicated to ����AV products with at least 25 percent alternative raw material content.

����AV also supplies the furniture industry with mass-balanced materials containing a share of biomass raw materials. For example, certified by ISCC PLUS, its high-performance microfiber artificial leather solutions, high-density foam solutions, and formaldehyde-free furniture adhesive solutions are based on Desmodur^? CQ isocyanate. Their biomass content can reach 60 percent, 50 percent, and 60 percent, respectively. The carbon footprint can be reduced by more than 50 percent, 30 percent, and 50 percent, respectively (from cradle to ����AV gate). In the mass-balanced approach, raw materials derived from biomass or waste are fed in at an early stage of raw material extraction and mathematically attributed to the finished products. This saves fossil raw materials and reduces greenhouse gas emissions.

In addition, ����AV is actively extending the possibilities of post-consumer recycled (PCR) polycarbonate materials in the furniture industry. With a high degree of quality and traceability, the PCR portfolio has been widely applied in electronics and electrical industries to help reduce carbon emissions. Furthermore, ����AV��s comprehensive capability of CMF (Color, Material, Finish) design for polycarbonate can bring more inspiration into furniture design.

The largest import themed expo in the world, the CIIE gathers a myriad of companies from across industries every year. This is ����AV��s second appearance following its debut in 2021.

"The world is increasingly facing enormous challenges. It is in our hands to meet them and set the course for a green, smart and safe future. Many ideas, concepts and technologies are there, they now need to be realized with determination," says Dr. Markus Steilemann, CEO of ����AV. "At CIIE, we want to raise awareness for building a circular economy and for climate neutrality by presenting particularly innovative and sustainable material solutions. At the same time, we want to strengthen relationships with our partners in China and around the world."

A leading example of ����AV��s successful partnerships comes from Hong Kong-based , a manufacturer of polyurethane-based comfort products, which will make the global debut of its first low-carbon mattress at the ����AV booth.

"We are honored to stage the world debut of our new low-carbon sleep system products together with ����AV at the CIIE," says Sinomax President Eric Cheung. "This marks a major step towards sustainable development at Sinomax Group, amid growing market demand for low-carbon products in China and around the globe. We look forward to further cooperating with ����AV on a global scale for more sustainable products."

The mattress uses bio-attributed mass-balanced TDI (toluylene diisocyanate), a key component for the production of flexible foams, purchased from ����AV. This can reduce CO₂ equivalent emissions by about 10 kilograms for a single mattress.

Materials with lower carbon footprint

����AV offers renewable TDI, among other materials, using the mass-balanced method, under which alternative raw materials are allocated to the products as certified by ISCC PLUS. They uphold the same high quality as their fossil-based counterparts without customers having to change their processing operations, while enabling them to reduce CO₂ emissions.

Other solutions featuring the mass-balanced method at CIIE include low-carbon coatings applied to the wood structure on ����AV��s booth. The coatings, made by Chinese company Baichuan, are based on the Desmodur^? CQ hardener from ����AV. The hardener contains more than 30 percent of biomass according to ISCC PLUS and reduces CO₂ emissions by more than 20 percent from cradle to ����AV��s factory gate.

"We believe mass-balanced solutions, among other low-carbon materials, are crucial to support the sustainable development and climate-neutral future of various industries and society. But to broaden this impact, we rely on the strength of more partnerships, and that��s why we are here at the CIIE," says ����AV China President Holly Lei.

In another example, ����AV and Chinese premium smart EV brand are deepening their partnership to create next-generation solutions to make mobility smarter and greener. Under a new agreement to be inked during the CIIE, an array of ����AV��s CO₂-reduced polycarbonates, coating and adhesive solutions are expected to be applied in HiPhi��s future models, enabling new functions while reducing their carbon footprint.

Broad portfolio to promote circular economy

����AV will showcase its cutting-edge materials, solutions, technologies and collaborative ties at several exhibition areas: Future Mobility, Clean Energy, Green Building and Sustainable Living, on top of a Branding & Culture corner designed to improve visitor engagement.

"We look forward to further advancing our sustainable development agenda in China through advocacy and collaboration with our customers, partners and other key stakeholders here," Lei adds.

To learn more about ����AV��s solutions for a climate-neutral future at the CIIE, visit its booth, 3C3-01, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2022.

¹ Renewable TDI is produced using the mass balance approach using renewable feedstocks �C from virgin biomass as well as biowaste and residuals �C which are mathematically assigned to the product.

• Chemical industry as a key factor against climate change �C with strong partners 
• Together against climate change �C with circular plastics
• ����AV collaboration with SABIC unlocks improved recyclability for mono-material flexible plastic pouches
• The world?s first wallbox with Makrolon^? RE
• Ultrathin and homogeneous
• New concept for circular solutions with alternative raw materials
• Photopolymer film for next generation AR displays
• ����AV simulations help optimize polyurethane foaming processes
• Cooperations for creative and sustainable solutions
• Innovative technology makes flexible packaging recyclable
• Improved sustainability in combination with freedom of design and functionality

����AV and Arcesso Dynamics cooperate in solid surface manufacturing

• ����AV and Arcesso Dynamics launch breakthrough in solid surface manufacturing
• Breakthrough technology from ����AV and Arcesso Dynamics used to create design chair
• ����AV and Arcesso Dynamics use breakthrough technology to create non-slip shower plate
• ����AV and Arcesso Dynamics achieve breakthrough in washbasin design

Videos:

Circular Economy @ ����AV:

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����AV at a glance:

Looking for more information? On this page you will find interesting facts about ����AV.

"Plastics are a must to drive the shared global vision of the circular economy and achieve climate neutrality. At K 2022, we want to highlight the huge potential of these advanced materials to solve global challenges and showcase promising developments," says CEO Dr. Markus Steilemann. "The show will also play an important role in bringing together partners in the value chains and from other sectors. The task now is to move forward together with rapid, major steps toward implementation."

Sucheta Govil, Chief Commercial Officer, adds: "We have set ourselves ambitious targets and want to become carbon neutral by 2035 for CO₂ emissions from our operations and renewable energy supply, so that our customers can achieve their climate and sustainability goals. To achieve this, we are relying on close cooperations with them and many other partners," says Govil. "At the show, we will be showcasing innovative products and solutions from the fields of alternative raw materials, innovative recycling and renewable energies that pave the way to full circularity at ����AV."

����AV will use K 2022 from October 19-26 for a multimedia appearance to network: At the booth, an exciting program of talks will be streamed live throughout in the "Talk Arena" with prominent guests. The Backstage area is a multifunctional space for hybrid events and interactive formats. An extensive digital platform �C called "" �C provides a lot of background information about the developments shown. Innovators and their developments for the circular economy are presented as part of the video series "".

Crafting Circular Economy

In this important area, ����AV shows how it is driving the transformation to a circular economy and aims to achieve climate neutrality in its own production and in its supply of renewable energy. With the introduction of the "CQ" label for products based on alternative raw materials, ����AV aims to create greater transparency and make it easier for customers to distinguish them from conventional, fossil-based products.

Another focus is on innovative recycling technologies. The "Recycling Technology Wheel" provides information on current developments. Chemolysis in particular holds great potential for the quantitative recovery of raw materials. ����AV is now introducing the name "Evocycle^? CQ" for all evolutionary recycling processes as an extension.

Crafting Electrification

The shift from fossil to renewable energy sources is also linked to electrification of the important sectors of transport and buildings: The mobile and stationary future is electric. Plastics from ����AV will play an important role in all of these in the future �C from power generation and storage to use in vehicles and at home.

Renewable energy also plays a role in a special exhibit: The "Photon," a prototype solar race car, is on display in the outdoor area of Hall 7A. This "" was designed and built by a dedicated team of students from Aachen, Germany, who have set themselves the task of developing and racing high-tech vehicles for a particularly sustainable form of mobility. ����AV is the main sponsor of the project.

Crafting Smart Designs

This exhibition area is dedicated to the possibilities of digitalization and open innovation approaches to work in a more connected and sustainable way along the entire value chain.

At K 2022, ����AV will present, among other things, new charging stations and wall charging stations (wallboxes) for future mobility, including the first wallbox produced by partner EVBox using more sustainable polycarbonates. These plastics from the Makrolon^? RE range are produced proportionately from biowaste and residual materials, in part using renewable electricity, and therefore have a very low carbon footprint.

Crafting Sustainable Living

How can urban spaces be made more sustainable without compromising on consumer preferences? ����AV provides answers to this question in this exhibition area. The aims of the developments presented are greater comfort and design freedom, enhanced functionality, more sustainable and circular solutions, and energy-efficient living.

����AV and Arcesso Dynamics, a custom polyurethane parts manufacturer, will introduce Arfinio^? at K 2022, a breakthrough manufacturing solution for furniture, bathroom fixtures, electronic parts, housings and other applications based on reaction injection molding (RIM) of aliphatic polyurethanes.

All journalists are cordially invited to visit ����AV's booth A 75 in Hall 6. There you will have the opportunity to talk about the innovations and topics on display, and you can obtain the ����AV press kit for K 2022. If you wish, we will also be happy to give you a tour of the booth or arrange interviews.

Therefore, ����AV is turning K 2022 in D��sseldorf from October 19^th to 26^th into a workshop. Under the motto Crafting Connections With You, ����AV is inviting partners, customers, and multipliers to work together on concepts: How can the principle of the circular economy be advanced as a shared, global vision? How can new resources, less energy-intensive processes and integrated supply chains be used?

��A truly sustainable future must not remain a utopia. Now is the time for all partners in the value chain to pull together. Solutions emerge through exchange. At K 2022, we want to showcase the huge potential of plastics. After all, climate neutrality targets and a circular economy cannot be achieved without plastics,�� says Dr. Markus Steilemann, CEO of ����AV. ��But the conditions for the entire industry have to change. Above all, we definitely need cheap green power in very large quantities. That��s why we��re coming together in D��sseldorf �C to take a big step forward together.��  

Panel discussion on October 19^th with business and society

����AV is underscoring this ambition with a panel discussion on ��Pioneering a Fully Circular Future �C with climate-neutral plastics�� broadcast publicly on October 19^th starting at 10:45 a.m. on the and social media channels. In addition to Markus Steilemann, Dr. Markus Krebber, CEO of RWE, Sophie Herrmann, partner at the SYSTEMIQ think tank, and Teresa Oberhauser, representing youth organizations in the United Nations Environment Programme, will take part in the panel. One thing the participants have in common is that they are demonstrating promising solutions in the fight against climate change and advancing them with partners �C whether they are industry, think tanks, or leaders in social and political discourse. 

Four core areas for a climate-neutral company

At K 2022, ����AV invites visitors to discover solutions on the path to a climate-neutral chemical industry committed to the circular economy.

��We are on the journey to becoming a fully circular company and rely on close interaction with our customers and partners. To enable our customers to achieve their climate neutrality and sustainability goals, we have set ourselves an ambitious target. We want to become climate neutral by 2035 from our operations and energy supply, �� says Sucheta Govil, Chief Commercial Officer of ����AV. ��At K 2022, we will be showcasing key highlights from this journey: innovative products and solutions developed with alternative raw materials, innovative recycling, and renewable energies. This allows customers to see for themselves how hydrogen, biomass, end-of-life products and waste can be used as promising alternatives to fossil raw materials. At ����AV, these solutions are already paving the way to a fully circular economy��.

The ����AV booth will focus on four topics of the future:

• ��Crafting Electrification�� demonstrates how the company is working with partners to advance green energies �C for example, with plastics solutions for wind turbines or electric cars.
• ��Crafting Sustainable Living�� presents modern, climate-neutral plastics for buildings or refrigerators, for example, which help to reduce the CO₂ and energy footprint.
• ��Crafting Smart Designs�� provides an insight into how ����AV is using the opportunities offered by digitalization to work in a more connected and sustainable way along the entire value chain.
• ��Crafting Circular Economy�� illustrates how a systematic transition to a circular economy can be the key to climate neutrality and resource conservation.

"All our solutions under the umbrella CQ prove that we are continuing to work on making our vision of the circular economy a reality, to help customers and partners achieve their sustainability and climate goals. In this way, we also aim to meet consumer demands for more sustainable products," says Sucheta Govil, Chief Commercial Officer of ����AV. "And this is just the beginning. In the long term, ����AV also wants to offer every one of its products in a climate-neutral? version."

Evocycle^? CQ: a new name for all innovative recycling technologies and cycle designs of ����AV

Plastic waste is a valuable raw material and should not simply be disposed of. Therefore, ����AV is taking pride in proving that the path to circularity is possible for all stakeholders �C and makes innovative recycling a priority. For the continuous evolution of recycling, the company now introduces the name "Evocycle^? CQ". It is an extension to the CQ label and stands for recycling technologies which enable the use of recycled plastics and recycled raw materials from the ����AV portfolio within a streamlined closed-loop system.

What��s more, the company is not active here alone, rather collaborating with partners from all fields of recycling and reuse to unlock its potential across the entire value chain. That��s how it transforms the industry turning waste into valuable resources, reducing the use of fossil fuels and significantly reducing CO₂ emissions.

The first initiative is called Evocycle^? CQ Mattress: ����AV, together with partners, has developed an innovative technology for the chemolysis of polyurethane flexible foams from used mattresses, in which both main components �C the polyol and the precursor to the isocyanate TDI �C can be recovered. With this, end of life mattress foams are directly transformed back into renewed polyurethane building blocks.

Since last year the company is operating a pilot plant at its Leverkusen site confirming the positive lab test results. And the journey continues: ����AV is working with recycling specialists such as Interzero and Eco-mobilier², as well as other partners along the value chain, to ultimately close the material cycle for polyurethane mattresses completely and on an industrial scale.

From mass-balanced raw materials to green hydrogen

Raw materials produced from biomass and, in particular, from biowaste and residual materials are also becoming increasingly important. ����AV relies primarily on the latter raw materials because they are available in large quantities and can be used to manufacture a wide range of plastics. Through mass balancing, they are offered in the same good quality as their fossil-based counterparts without customers having to change their processing operations. ����AV works with a number of suppliers who offer the raw materials using a mass-balance approach certified to the internationally recognized ISCC PLUS standard. The starting point also includes fossil raw materials, with the biological portions being allocated to the products by a third party audited allocation method.

����AV is thus converting its production to the use of alternative and, above all, mass-balanced raw materials, in some cases also using renewable energy from wind and solar power. Many of the company's sites are now also ISCC PLUS certified, including Leverkusen, Dormagen, Krefeld-Uerdingen, Antwerp, Filago, Shanghai, Map Ta Phut and Changhua.

Green hydrogen generated with the help of wind or solar energy also plays an important role for the chemical industry �C both as an alternative raw material and as a source of clean energy. ����AV, together with partners, is committed to the urgently needed market ramp-up. The company uses hydrogen and its derivatives to produce high-performance plastics.

? Climate neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to ����AV's factory gate, also known as cradle-to-gate assessment.
² The company "Eco-mobilier" has changed its name to "ecomaison" at the beginning of October 2022.

The mangrove ecosystem, once a protective barrier against natural disasters, has been left fragile and vulnerable due to years of urbanization. Navi Mumbai, where the waste collection drive took place, is a city built largely on reclaimed land of seven islands. The humble mangrove not only supports indigenous bird and aquatic life but is also instrumental in preserving the integrity of shorelines- and thus the integrity of the city itself.

Clean4Change

Clean4Change is a global movement initiated last year by the Alliance to End Plastic Waste (AEPW) to manage plastic waste through clean-up initiatives. Clean4Change has engaged with diverse audiences around the world and motivated them to pick up litter and clean up their surroundings. The movement has already been instrumental in picking up over 1.5 million pieces of litter.

Alliance to End Plastic Waste

����AV��s commitment to cleaning plastic from the mangroves and its efforts towards Clean4Change is but part of its larger commitment to sustainability and a circular economy.

����AV is a founding member of the Alliance to End Plastic Waste (AEPW), a collective effort by global leaders across the plastics value chain to facilitate plastic clean-up efforts, as well as inspire people to explore and deliberate the most effective interventions to incorporate it into a circular economy.

����AV strongly believes that plastic waste is also a resource- and strives to innovate waste-to-value concepts into economically viable and sustainable solutions.

����AV is also supporting AEPW��s All Together Global Cleanup campaign, a global initiative to remove litter from the environment, one piece at a time, on World Cleanup Day 2022.

��We have set ourselves the goal to become fully circular. To this end, we want to convert our raw material base to 100% renewable sources. We are very pleased to have found a partner in SOL Kohlens?ure who will support us in this transformation with a pioneering spirit,�� explains Daniel Koch, Head of NRW Plants at ����AV.

��We at SOL Kohlens?ure are advancing the shift to more sustainable CO₂ sources. In this way, we are increasing security of supply, becoming independent of fossil raw materials, and reducing our environmental footprint at the same time,�� emphasizes Falko Probst, Sales Manager at SOL Kohlens?ure.

From waste product to raw material

The CO₂ used is obtained by SOL Kohlens?ure from various sources, such as bioethanol and biogas plants. In these plants, CO₂ is produced as a by-product during the treatment of various biomasses, such as plant residues.  This is separated by SOL Carbon Dioxide, purified and then made available to ����AV production as a raw material. 

In this way, the supply partnership supports the circular concept and contributes to reducing emissions. 

����AV��s Lower Rhine sites in Leverkusen, Dormagen and Krefeld-Uerdingen are ISCC PLUS certified and can supply their customers with more sustainable products made from renewable raw materials.

Goal of climate neutrality by 2035

����AV has set itself the goal of becoming fully circular. This also includes using alternative raw materials. Biomass, CO₂, as well as end-of-life materials and waste replace fossil raw materials such as crude oil or natural gas. Carbon is managed in a circular way. In realizing these ambitions, both companies are relying on long-term supply partnerships.

In addition to biogenic CO₂, ����AV is investigating the use of other technical gases from renewable sources. The materials manufacturer is already offering its customers its first sustainable products, such as climate-neutral?  MDI. With the expansion of its alternative raw material base, this portfolio is set to grow further in the coming years.

ISCC (��International Sustainability and Carbon Certification��) is an internationally recognized system for the sustainability certification of biomass and bioenergy, among others. The standard applies to all stages of the value chain and is recognized worldwide. ISCC Plus also encompasses other certification options for instance for technical-chemical applications, such as plastics from biomass.

? _{Climate neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (����AV gate), also known as cradle-to-gate assessment. The methodology of our life cycle assessment, which has been critically reviewed by T?V Rheinland, is based on ISO standards 14040 and 14044. The calculation takes into account biogenic carbon sequestration based on compensation measures.}

PU rigid foams with MDI provide very efficient thermal insulation in buildings and refrigeration equipment. The soft foams using TDI provide a lot of comfort in mattresses and upholstered furniture, as well as in car seats and shoes. And with these polyols, ����AV is now able to offer selective prepolymers for various adhesive applications. The introduced mass balance approach enables the gradual substitution of fossil-based raw materials by bio-circular alternatives, which further improves the sustainability in these applications.

����AV produces the polyether polyols in Dormagen, Germany, using the mass-balanced precursor propylene oxide from the shared site with in Maasvlakte, The Netherlands. There, the two partners produce propylene oxide and styrene monomer as part of a joint venture. Both of the above-mentioned sites are certified according to the internationally recognized ISCC PLUS standard.

"With the introduction of both main components for polyurethanes based on alternative raw materials, we have reached another important milestone on the road to climate neutrality," says Sucheta Govil, Chief Commercial Officer of ����AV. "We can now help customers in a variety of industries meet their climate goals and drive the transition to a circular economy. At the same time, we are reducing the CO₂ footprint in various value chains."

Customers can use the more sustainable polyether polyols and isocyanates as a drop-in solution, meaning the raw materials can be quickly and easily integrated into existing production processes without the need for technical modifications. The products offer the same good quality as their fossil-based counterparts and meet the demands from various industries looking for alternative raw materials. They can be easily distinguished from their fossil counterparts through the CQ suffix in the product name. CQ stands for Circular Intelligence and highlights ����AV?s products and initiatives around circularity.

 ? _{The more sustainable polyether polyol as well as the renewable TDI are produced with the help of the mass balance approach using renewable raw materials �C from biowaste and plant residues �C which are mathematically attributed to the product.}

? _{Climate neutrality is the result of an internal assessment of a partial product life-cycle from raw material extraction (cradle) to ����AV��s factory (gate), also known as the cradle-to-gate assessment. The methodology of our life cycle assessment, which has been critically reviewed by T?V Rheinland, is based on ISO standards 14040 and 14044. The calculation takes into account the uptake of biogenic carbon. The calculation was based on preliminary data from the supply chain. No compensatory measures were applied.}