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#Anniversary Edition: “Circular economy can only succeed if all participants along the value chain cooperate”

Mahesh Aloni, Director Operations and Projects – India, Henkel Adhesive Technologies on circular economy and sustainability

Henkel Adhesive Technologies is one of the three business units of Henkel AG & Co. KGaA and is a global leader in tailor-made solutions for adhesives, sealants and functional coatings. Mahesh Aloni, Director Operations and Projects – India, Henkel Adhesives Technologies, says they view challenges as opportunities at Henkel. He shared that some of the topics of importance include the need to increase automation and integrate new technologies such as AI, robotics and IoT to improve efficiency and productivity.

  • Reduce costs and improve competitiveness in the global marketplace.
  • Increase supply chain resilience and flexibility in the face of economic volatility and uncertainty
  • Comply with new regulations and standards related to environmental sustainability, data privacy, and product safety
  • Address the ongoing skills gap and attract and retain a skilled workforce
  • Limit the emissions of carbon dioxide and other greenhouse gases that are responsible for climate change and global warming
  • Protect against cyber threats and data breaches
  • Adapt to shifting consumer preferences and changing market dynamics
  • Adapt to the trade tensions and increasing tariffs due to the geopolitical situation in the world.

“Besides these developments, customers are increasingly transitioning to sustainable, reusable and recyclable products. This is another trend for manufacturers to focus on,” stresses Mahesh. When questioned about the circular manufacturing model and its practicability for industries, he said, “The potential to transition from linear to circular production in the manufacturing industry is great. According to the New Plastics Economy, which brings together businesses, government and other actors to rethink and redesign the future of plastic, we should look to reduce the amount of plastic we use, reuse it wherever possible, and ensure it is recycled properly so that it stays within the plastic value chain – a concept known as the circular economy. Information is key in steering organisations and customers towards circular behaviour patterns. Therefore, organisations need to communicate the recyclability of their products on labels. Another option to close the loop is to reuse packaging and explore refill solutions in relevant markets. Refillable packaging enables consumers to reuse the original bottle.” A circular economy can only succeed if all participants along the value chain cooperate – especially with clear definitions and consistent evaluations.

 “At Henkel, we are committed to sustainability and have been taking steps to adopt circular principles in our operations, says Mahesh. He shares steps that companies should consider while embracing sustainability and circular economy:

  • Assess the current state of operations, products and supply chain to identify areas where changes need to be incorporated
  • Develop a clear strategy that outlines the goals, targets and initiatives.
  • Form a team comprising representatives from different departments and levels to implement the strategy
  • Implement energy efficiency, water conservation, and waste reduction.
  • Develop and promote sustainable and circular products and services that address the needs of customers and the environment.
  • Work with suppliers and partners to implement sustainable practices.
  • Implement a system to measure and report the company’s sustainability and circular economy performance.
  • Continuously review and improve by setting new targets, implementing new initiatives and monitoring progress.

He cautions, “It is important to note that adopting sustainability and circular economy practices is a continuous process. The roadmap and plan should be developed keeping the company’s specific needs and the context in mind.

Mahesh believes that the 4th industrial revolution is expected to significantly impact the chemical industry. He says, “At Henkel, we have been reaping the benefits of adopting IoT in manufacturing. At some of our production sites, we have been leveraging Industry 4.0 to improve supply chain resource efficiency on production by 5%-6%. This will help Henkel become 30% more efficient by 2030. With more than 3,500 sensors in more than 180 factories, Henkel computers can gather information on sustainability, efficiency, quality and safety in real-time and allow for cloud-based analytics for diagnostics, predictions and prescriptions. This has enhanced our production capability and productivity while reducing cost, waste and energy consumption, thereby making our plants environmentally friendly.”

He concludes that if appropriately managed, implementing Industry 4.0 can produce positive results over the long term. Pioneers in implementing Industry 4.0 are already witnessing benefits from this change.