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    Features

    The Importance of Utilizing Sustainability-Driven Innovation to Meet Customer Demands

    Customers are increasing their selection of products that offer sustainable advantages and incremental improvements in value and performance.

    The Importance of Utilizing Sustainability-Driven Innovation to Meet Customer Demands
    Source: tronixAS/stock.adobe.com
    Peter Votruba-Drzal, PPG Vice President, Global Sustainability04.01.25
    As global consumer awareness of environmental challenges continues to grow, customers are increasing their interest in and selection of products that offer sustainable advantages and incremental improvements in value and performance. This shift represents a unique opportunity for innovation, allowing coatings companies to differentiate products in increasingly competitive markets.

    Sustainability-driven innovation in the paint, coatings and specialty product industry should take a full lifecycle view, focusing on more than just creating new products. Companies need to be able to nimbly react to customer needs by changing the way products are designed, made, applied, reused and recycled.

    Sustainably advantaged products can generate operational efficiencies for both the manufacturer and the customer through reduced energy, waste and water usage. Recycled or bio-sourced raw materials can reduce the carbon intensity of the product as well as reduce the cost of raw materials. New application methods and end-of-life recycling processes are transformational opportunities to reset the cost and carbon intensity of conversion of coatings on surfaces, ultimately enabling recycling of substrates at end-of-life.

    However, in most markets, sustainable advantages alone will not be enough to encourage customers to make the switch. Rather, they must be bundled with the latest performance features and priced according to their value. Incorporation of sustainable advantages must ensure that customers see tangible impacts, the value creation is quantified and that value is captured through pricing.
    In today’s marketplace, prioritizing the following areas will help ensure a future-focused organization that leads with sustainability-driven innovation:
    • Smart coatings: The development of smart coatings—those that are designed to deliver functionality beyond decoration—represents a significant opportunity for innovation. These coatings can offer enhanced functionality, such as self-cleaning properties, anti-corrosion features or temperature regulation. By integrating sustainability into the design of smart coatings, companies can create products that not only beautify but also contribute to energy efficiency and resource conservation, ultimately reducing costs.

    • Recycling and circular economy: Circularity is top of mind for many coatings customers, as they evaluate the use and re-use of substrates at end of life. Companies can innovate by developing coatings that enable substrate recycling or that incorporate recycled or bio-sourced materials. This approach not only reduces waste but also conserves resources and lowers future costs. By collaborating with recycling facilities and new enterprises that are being created to specialize in this area, we can further improve the cost effectiveness of circular economy initiatives with greater volumes.

    • Regulatory chemical management: Chemical regulations continue to increase in complexity and speed of deselection for substances of concern. Companies must have good visibility to which materials and the timing of restricted use so they can incorporate formulation changes into their product lifecycles. Sustainable advantages can be created by utilizing a first-mover advantage in removing substances of concern using a risk-based approach.

    • Life Cycle Assessments (LCA): Further to circularity, implementing life cycle assessments in the product development process allows coatings companies to evaluate the environmental impact of their products from raw material extraction to end-of-life disposal. By identifying areas for improvement, companies can make informed decisions that enhance sustainability throughout the product life cycle and increase the visibility and magnitude of value creation.

    • Product Carbon Footprint (PCF): In addition to regulatory requirements for carbon accounting in some regions, there are also customers that are utilizing PCF as a sustainable attribute marketed directly to consumers. This requires coatings companies to disclose PCF data to their customers, which outlines emissions from all stages of a product’s life cycle delivered to the customer. PCF, like performance and cost, is a factor that can create a competitive advantage for manufacturers.

    Beyond strong customer pull seen across the coatings industry, governments worldwide are implementing stricter sustainability regulations impacting emissions, waste management and chemical safety. By prioritizing sustainable advantages throughout a product’s lifecycle, coatings companies can capitalize on these regional markets where regulatory reporting will further create visibility to create opportunities to capture value.

    By 2030, PPG has a goal to reach 50% of sales from sustainably advantaged products. As of the end of 2024, the company reached 41%. PPG defines sustainably advantaged products using PPG’s internal methodology that validates product attributes and their contribution towards the United Nations Sustainable Development Goals.

    To reach this goal, and for any coatings organization looking to progress against a similar target, we are constantly working to develop new innovations that meet the needs of the marketplace and our customers. Similarly, we have continued to integrate our sustainably advantaged product methodology into our research and development process, reviewing alignment with this process at each stage of a product’s development. Evaluating innovative, differentiated technology helps our researchers develop a sustainably advantaged product portfolio that fits our customers’ needs and aligns with our growth targets.

    As one example, we recently introduced the PPG POWERCRON® 10X™ coating, a high-performing cationic epoxy coating designed to deliver sustainable advantages through improved productivity in the automotive and industrial industries. PPG created this product to deliver improved corrosion performance and multiple substrate capabilities. Sustainable features include lower curing temperatures resulting in reduced CO2 emissions, lower water consumption due to a closed-loop system, higher corrosion resistance, operational cost reductions due to less energy use, and an expanded bake window that enables higher throughput and less material build-up on application racks.

    Beyond ensuring strong leadership buy-in and an accountability culture, it’s important to look outside of the four walls of your organization and seek out partnerships to challenge and further the development pipeline. Collaborating with research institutions, industry associations and other stakeholders can enhance a company’s ability to innovate sustainably. Partnerships can provide access to new technologies, expertise, and resources that accelerate the development of new innovations.

    In summary, sustainability should be the bedrock of innovation for coatings companies, driving the development of sustainably advantaged products and practices that meet the demands of an ever-changing market. By prioritizing sustainability-driven innovation, leveraging chemistry and material advancements, and embracing sustainability as core to business strategy, coatings companies can position themselves for long-term growth with their customers.

    Peter Votruba-Drzal leads PPG’s global sustainability strategy, collaborating cross-functionally to drive the company’s efforts by increasing sales of sustainably advantaged products, creating increased value for customers and shareholders, and reducing the environmental impact of PPG’s and our customers’ operations. Since joining PPG in 2005, he has held various technical and technical management roles of increasing responsibility in six different PPG businesses. Throughout his career, he has demonstrated a strong focus on harnessing innovation to deliver growth. Peter earned a bachelor of science degree from Michigan State University and a master of science degree from the University of Maryland. He holds a Ph.D. in materials science and engineering from Northwestern University and a Kellogg School of Management Executive Scholar Certificate, also from Northwestern University. 
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