Sustainability as a business model in the coatings industry

Sustainability is no longer a buzzword, but a new business model, as statistics show. A leading paint manufacturer explains why sustainability and environmentally friendly and sustainable products pay off.

In the past, sustainability was a buzzword that was used in annual reports and gave shareholders the feeling that the company in which they had a stake was making a positive difference. Sustainability was not always in line with corporate strategy and tended to be seen as a side issue. However, those days are long gone. Today, sustainability is seen as a robust new business model that is at the heart of operations, fully aligned with strategy and provides differentiation in the marketplace. If there are still doubts about this change, the statistics speak for themselves.

In a study conducted in 2022, 59% of C-level executives at large companies worldwide reported that their companies were using more sustainable materials. A further 59% stated that their companies were increasing their energy efficiency. [ 1 ] According to a study by McKinsey, brands with a more sustainable product portfolio enjoy greater customer loyalty than brands with a less sustainable offering. [ 2 ] A study conducted by PwC in 2022 came to the conclusion that 77% of people are influenced by a company's environmental footprint when making purchasing decisions. [ 3 ] Another study found that products marketed as sustainable grew 2.7 times faster than those without such marketing. [4]

Unsurprisingly, 96% of the world's leading companies produced sustainability reports in 2022 [5], including Axalta. Fabien Boschetti, Sales Vice President for Axalta Refinish in the Europe, Middle East and Africa region, explains: "There is convincing evidence, if any were needed, that sustainability is no longer a vague buzzword thrown in at presentations just to create a positive impression. It is a tangible, meaningful and frankly crucial element of a successful business strategy. In our role as a global coatings manufacturer, we at Axalta have always taken our commitment to sustainability very seriously. We were recently named one of America's Greenest Companies 2024 by Newsweek magazine. But our ongoing commitment does not end with innovative products and technologies, responsible manufacturing and ethical business practices. We also and above all look at what we can do to help our customers achieve their sustainability goals."

Axalta Refinish has a large portfolio of environmentally friendly and sustainable products, tools and resources under the motto BELEAF. They aim to strengthen its customers' businesses for a better future.

"We are consistently working to reduce our own impact on the environment. This includes the commitment to achieve CO2 neutrality by 2040. A smarter approach to who we are and what we create is embedded in everything we do. 80 percent of our new technologies and innovations will have a sustainability advantage by 2030. This includes, for example, our patented Fast Cure Low Energy technology, which uses both ambient temperature and humidity to speed up the drying process. Crucially, this will increase customer confidence that they have made the right and sustainable choice in partnering with Axalta Refinish," emphasizes Fabien Boschetti.

Body and paint stores in the Europe, Middle East and Africa (EMEA) region are facing increasingly complex challenges: improving their cost efficiency, reducing their impact on the environment and optimizing their use of resources.

"Axalta Refinish firmly believes that sustainability is not only a goal, but also a responsibility. We see it as our responsibility to our customers to provide solutions to these complex challenges through the broad portfolio of sustainable options under the BELEAF umbrella," explains Fabien Boschetti.

Products

Axalta develops high-performance products with a focus on sustainability. Axalta's Fast Cure Low Energy system reduces emissions and energy consumption - electricity by up to 49 percent and gas by up to 57 percent - and material consumption by up to 25 percent. The system is offered by the three premium refinish brands Cromax, Spies Hecker and Standox. Its patented technology uses the ambient temperature and humidity to accelerate the drying process. This reduces process times by 50 percent - without compromising on quality.

Aids

The company has invested in state-of-the-art tools and sustainable processes and is always looking for ways to improve its own environmental footprint. Fabien Boschetti explains: "From optimizing tools to product design, we always see innovation as our partner in the pursuit of sustainability. Axalta Irus is an excellent example. It's the world-class, end-to-end, cloud-based digital color management process that we launched in 2023. It's as simple as scan, search and mix."

Resources

Customer focus is the foundation of Axalta's Refinish division. "With industry-leading consulting and training services, such as the newly launched Axalta Academy and our successful Axalta Drivus business services offering, we provide our customers with the resources to optimize processes and increase efficiency every day," emphasizes Fabien Boschetti.

"Sustainability is no longer just another task to tick off. It requires commitment, time and dedication - as Axalta has done with its BELEAF portfolio. Although it is often easy to get distracted by all the negative aspects, the global initiatives launched in recent years have achieved positive results. The Carbon Neutral Cities Alliance [6], for example, has brought together more than 20 cities that have set themselves the goal of reducing greenhouse gas emissions by 80 percent by 2025. So if you as a company take just small steps towards sustainability, this is a positive change towards a better and more sustainable business model," concludes Fabien Boschetti. (OM-3/24)