Development of sustainable portfolio management for a global chemical company
Chemicals

The client asked Arthur D. Little to develop a new methodology to assess the sustainability of its portfolio.


Challenge

The sustainability of a portfolio is dependent on both the environmental footprint of the products and the market perception of the products and associated applications.

Challenge was to develop a new methodology that would include market perception of sustainability and indicate associated risks and opportunities.

Approach

  • A novel methodology for sustainable portfolio management (SPM) has been developed based on both a) the environmental footprint of the product and b) the market perception of the product and application
  • The methodology has been developed in cooperation with Dutch organization for technological research TNO, and has been is fine-tuned over several years in close cooperation with the client
  • The SPM method helps to identify risks and opportunities within the client’s company, based on market perception of its portfolios’ sustainability
  • Arthur D. Little annually provides a peer review of the company's SPM assessment

Value

  • The SPM methodology has received various awards and external recognition over the years.
  • The client integrated the SPM methodology into its business processes, including M&A and research & innovation.

Further information: http://www.solvay.com/en/binaries/SPM_Brochure_EN-219984.pdf