Forging a Sustainable Future for Chemical Manufacturing through Innovation & Partnership

Ute Schick heads Evonik's Care Solutions business unit, which encompasses B2B products for home care, fabric care, and cosmetics. With long-standing experience in Food, Pharma, and Cosmetics, she is an expert in innovation, acquisitions, integrations, and growth, profitability, and high-performance global teams.

In an insightful interaction with Global Woman Leader Magazine, Ute shares her insights on the evolving intersection of innovation and sustainability in chemical manufacturing, highlighting untapped opportunities, risk management in high-stakes investments, and the power of cross-sector partnerships in driving shared success.

In today’s fast-evolving global market, how is the intersection of innovation and sustainability evolving? How can leaders in chemical manufacturing align themselves with these growing trends?

Innovation and sustainability are increasingly being intertwined, especially in Food, Pharma, and Cosmetics. The majority of companies now devote a >90 percent of their innovation efforts to sustainability goals. While CO₂ reduction remains a top area of interest, the agenda also covers biodegradability, deforestation impact, and other critical environmental parameters. The ever-evolving nature of sustainability metrics requires chemical production leaders to define industry-specific KPIs to measure innovation correctly. R&D activities being aligned with the evolving standards guarantees that nearly every project contributes to sustainability initiatives. In the years to come, companies must embed sustainability into core strategy, ensuring not only business expansion through innovation but also compliance with regulations and environmental needs.

With the increasing complexity of consumer needs, what untapped opportunities do you see for chemical manufacturers in driving value through disruptive innovation?

Innovation has fueled growth in the food, pharma, and cosmetics markets, but rising inflation and supply chain challenges have placed extreme pressure on B2C players and consumers. Across markets, the premium price of goods has increased the need for solutions that balance performance and affordability. Chemical manufacturers must remain competitive and prioritize high-efficiency formulations that optimize sustainability without sacrificing cost or concentration. B2C players must reformulate, and B2B players must self-disrupt to drive industry-wide innovation. By linking technological progress to economic imperative, chemical manufacturers can unlock new potential and drive value through disruptive solutions that meet evolving consumer and market needs.

How do you approach risk management in high-stakes investments and acquisitions, especially when trying to integrate diverse, high-performing businesses?

In navigating risk on high-stakes investment and acquisition in the face of global economic uncertainty and changing regulations, there has to be a long-term, mid-term, and collaborative strategy. The solution is building strong partnerships throughout the value chain—working with suppliers, customers, and industry members. Trust, cooperation, and collaborative innovation will be the hallmarks of success in the future. When great ideas are brought forth by suppliers, their implementation throughout the value chain drives mutual growth. And working with policymakers is also important to creating regulatory environments that foster progress. The business environment has changed dramatically, and those who are adopting strategic partnerships and active regulatory engagement will be best equipped to manage risks and unlock sustainable value.

Maybe adding the aspect of cooperation with politicians to make them understand the implications of regulations

What new or less conventional performance metrics should chemical manufacturing leaders adopt to better track long-term growth and sustainability, while ensuring operational excellence?

In today's competitive chemical manufacturing environment, leaders must balance long-term strategic consistency with operational excellence. Scalability and efficiency are key, but sustainable growth requires keeping a steady focus on innovation. One of the dangers is frequently shifting strategies, which leads to momentum loss. Rather, firms should remain committed to long-term innovation objectives, allowing disruptive and sustainable technologies time to demonstrate market applicability. Most firms abandon projects too early, not allowing innovations to reach their full potential. To succeed in the long term, leaders must adopt performance metrics that value sustained innovation, resilience, and adaptation to markets over short-term results. By holding firm and allowing new technologies time to mature, firms can achieve both financial performance and sustainability results.

What advice would you offer to leaders in chemical manufacturing on building partnerships with companies outside their core sector? How can these partnerships drive shared success?

To successfully implement cross-sector partnerships in chemical production, leaders must take a holistic approach, particularly in emerging sectors like biotechnology, which is pivotal to the bioeconomy and sustainability. Value chain partnerships are required—ranging from raw material supply, e.g., plant or sugar-based raw materials, to involving biotech players in processing and downstream conversion. Such collaboration is feasible with B2C markets, with shared risk and long-term involvement. The key is to move close to reliable partners, establish trust, and keep agreements simple instead of over-engineering contracts. Through repeated collaboration, innovation and efficiency are assured, ultimately resulting in shared success in today's globalized world. Putting trust and long-term synergy above rigid contractual forms allows for more flexible and efficient industry development.

LAST WORD

In many parts of the world, women’s participation in the workforce is already the norm. However, in certain countries and cultures, young women still face significant barriers in breaking through the glass ceiling. I urge female senior leaders to actively support and mentor the next generation, fostering their growth and success. In regions where gender gaps persist, it’s crucial that we, as women, stand together to drive meaningful change.