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ARLANXEO and Covestro Bolster Sustainable Rubber Production Using ISCC PLUS Certified Materials, Advancing Climate Neutrality Goals

MarketScreener Germany
Overview
ARLANXEO and Covestro are intensifying their collaboration to promote sustainable rubber production by utilizing ISCC PLUS certified mass-balanced raw materials. This partnership aims to reduce reliance on fossil resources and accelerate the transition towards a circular economy. Covestro views this as a critical step towards achieving its ambitious goal of complete circularity and climate neutrality for its Scope 1 and 2 emissions by 2035, setting a new industry benchmark for sustainable practices.
In Depth

Key Findings

ARLANXEO and Covestro have announced an enhanced collaboration to significantly advance sustainable rubber production through the utilization of ISCC PLUS certified (International Sustainability and Carbon Certification PLUS) materials. This partnership is based on a mass balance approach, aiming to reduce the environmental footprint across the entire value chain by replacing conventional fossil-based raw materials with bio-based or recycled alternatives.

Technical / Clinical Details

Under this extended partnership, ARLANXEO will incorporate ISCC PLUS certified, mass-balanced raw materials supplied by Covestro into its synthetic rubber production processes. The mass balance approach is a system that allows for the ‘allocation’ of sustainable raw materials to specific products, even when fossil and sustainable feedstocks are mixed during production, without requiring extensive changes to existing manufacturing infrastructure. This method enables the provision of sustainable products while maintaining current production efficiencies. Covestro positions this initiative as a crucial step towards its ambitious target of achieving full circularity and climate neutrality for its Scope 1 and 2 emissions by 2035. ARLANXEO will supply this sustainable rubber to a wide range of sectors, including the automotive and tire industries, helping customers meet their own environmental targets.

Background & Context

The rubber industry, with its diverse applications in automotive tires, industrial goods, and medical devices, has seen a rapid increase in demand for sustainability in recent years. The automotive sector, in particular, is pushing for supply chain-wide emissions reductions, driving strong expectations for material manufacturers to transition to bio-based and recycled materials. ISCC PLUS certification is an internationally recognized scheme that ensures the use of sustainable raw materials and transparency throughout the supply chain, providing an objective indicator of a company’s environmental commitment. The collaboration between major players like ARLANXEO and Covestro, leveraging this certification, serves as a significant model for the entire industry to reduce its reliance on fossil resources and move towards a more circular production model.

Strategic Significance & Outlook

This strategic partnership is expected to accelerate the market introduction of sustainable rubber products and significantly contribute to reducing carbon emissions in the synthetic rubber industry. Both companies plan to continue diversifying raw materials and implementing recycling technologies, aiming for improved environmental performance across the entire product lifecycle. For customer companies, adopting ISCC PLUS certified products will contribute to their sustainability goals and enhance their brand value. This initiative demonstrates the chemical industry’s crucial direction in responding to environmental regulations and increasing consumer awareness, fostering innovation for a sustainable future.

Source: https://www.marketscreener.com/news/covestro-arlanxeo-and-covestro-advance-more-sustainable-rubber-production-with-iscc-plus-certified-ce7f5cdad18ff020

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