From the Sector

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

The Hygiene Fibers Group of Indorama Ventures (IVL) came together at the Index Show to present an all-inclusive range of recycled and biodegradable solutions for Hygiene Fiber and Nonwoven applications.

The combination of polymers, technologies, processes and global reach supported by the Hygiene Fibers Group – one of three business segments that make up Indorama Ventures – positions it within the Hygiene industry to meet increasingly challenging market demand for innovative sustainable solutions within the hygiene sector. Across the six brands and companies that make up Hygiene Fibers Group – Auriga, Avgol, FiberVisions, Indorama Asia, Trevira and Wellman International – sustainability and supporting customers to achieve circular objectives is integral to all efforts and fundamental to the ethos of the Hygiene business segment.

At the Index Show, the Hygiene Fibers Group launched CiCLO®, a textile technology which allows polyester and other synthetic materials to biodegrade like natural materials do in wastewater treatment plant sludge, sea water and landfill conditions, reducing synthetic microfiber pollution generated during washing, and minimizing plastic accumulation in landfills caused by discarded textiles.

In line with the company’s commitment to support customers with high performance products, while also reducing the impact on the environment, several of the  Hygiene Fibers brands, including Wellman International, Trevira GMBH and Auriga, have been working closely over the last 12 months with the IAM team and the CiCLO® technology. Developments have focused on PET and rPET staple fiber and filament sustainable solutions for applications where recycling is particularly challenging, such as Hygiene, Home Textiles and Automotive applications.

Strengthening the profile of biodegradable offerings within the Hygiene Fibers Group’s sustainability portfolio, Trevira introduced a new range of bicomponent fibres based on PLA and PBS (polybutylene succinate) at the Index show. Both biopolymers offer an exceptional technological opportunity in terms of environmental care and sustainability, while delivering optimum performance. Equally to PLA, PBS is recyclable and up to 100% biodegradable under industrial conditions.

Efforts towards supporting customers to achieve circular objectives are a priority within the Hygiene Fibers Group. This is reflected in the recycled fibers expertise deployed across the segment. Four Hygiene Fibers Group brands, IVL Asia, Auriga, Trevira and Wellman International offer an extensive range of 100% recycled, accredited PET fibers, across a multitude of fiber and nonwovens applications.

The development and evolution of sustainable technologies is central to activity across IVL’s Hygiene Fibers Group, with particular focus on sustainable polyolefin solutions. FiberVisions and ES-FIBERVISIONS, leading Polyolefin mono and bico fiber brands and sister company Avgol, have partnered with UK-based Polymateria to commercially harness the innovative ‘biotransformation’ technology pioneered by Polymateria. The patented technology alters the properties of polyolefins to make them biodegradable in a natural process.  Other polyolefin sustainable innovations within the Hygiene Fibers Group were featured at Index include biosurfactant and biocolourant developments being undertaken by the Avgol team with FiberVisons progressing sustainable design solutions, including lightweight, high performance, reduced carbon solutions.

Archroma celebrates 8 years of leading the way to a sustainable world, with innovations and solutions aimed at creating added value sustainable for its partners, consumers and the planet.

Archroma came to life on 1st October 2013 from textile, paper and emulsions businesses acquired from Clariant by SK Capital Partners.
Building on decades of commitment to developing safer eco-friendlier chemistry, Archroma has become in the past 8 years a prominent name for more sustainable colors and performance, collaborating with leading brands such as Primark, G-Star, Patagonia, Esprit and more.

Archroma has introduced innovations, such as the EarthColors® made from non-edible plant waste from the food and herbal industry, Denisol® Pure, an indigo for aniline-free* denim, aniline being a category 2 carcinogen substance, and Smartrepel®, a PFC-free* water repellent solution. The company is also about to launch a new plant-based softener.

The company started to develop holistic solutions designed to bring innovation and performance, whilst reducing the impacts on water, energy and other natural resources. The savings generated by these 70+ system solutions are demonstrated by Archroma's proprietary ONE WAY Impact Calculator, a tool launched in 2012 and continuously upgraded to simulate and optimize the footprint of application processes.

Archroma also recently launched CASUAL X SMART, a sulfur dyeing system for trendy wash-down effects to make clothes that look smart at home and at work. The colors won't fade in the washing cycle, and the application process allows resource savings of up to 33% water, 21% energy and 35% chemical usage compared to a benchmark reactive & pigment garment dyeing.

With ONE WAY, a brand can calculate how much impact their current production and the Archroma Way collection will have on water, energy, chemical, raw material or CO2 footprint.

Kornit Digital Ltd., a worldwide market leader in digital textile production technologies, released its 2020 Impact and Environmental, Social, and Governance (“ESG”) Report. This inaugural report affirms Kornit’s commitment to achieving specific ESG goals. This includes the way Kornit conducts business, creates meaningful impact in local communities, and achieves environmental sustainability, in addition to how Kornit will continue to build a diverse and inclusive company culture, foster employee growth and development, and empower fair and safe labor practices globally.
 
In addition to enabling eco-friendly production processes with technology and consumables that use less water, reduce waste, and minimize the carbon footprint, Kornit technology solutions enable sustainable production on demand, which eliminates overproduction of apparel and other textile goods. A 2021 Life Cycle Assessment conducted on two flagship products, the Kornit Atlas MAX and Kornit Presto S, demonstrated that relative to traditional analog processes, Kornit’s digital production systems used up to 95% less water and 94% less energy, and produced up to 83% less greenhouse gas (GHG) emissions for the Presto S system and up to 93% less water and 66% less energy, and produced up to 82% less greenhouse gas (GHG) emissions for the Atlas MAX system.

Based on this study, in addition to past sustainability performance results and strategic projections for business growth and market expansion, by 2026 Kornit Digital’s sustainable on-demand solutions are expected to enable the production of approximately 2.5 billion apparel items in a responsible manner to deliver:

• Zero overproduction: By moving the industry to on-demand manufacturing, Kornit will help eliminate the estimated 1.1 billion apparel items overproduced using traditional production methods, based on an industry average of 30% overproduction. This is about 1 apparel item for each and every person living in Europe and North America – saved.
• Zero water waste: In addition to eliminating overstocks, Kornit-enabled production on demand will support saving an estimated 4.3 trillion liters (1.1 trillion gallons) of water. This is the estimated amount of drinking water needed for the entire U.S. population for 11 years.
• Reduced CO2 emissions: By enabling sustainable on-demand production, consuming less energy, and generating less waste, Kornit will prevent an estimated 17.2 billion kilograms (37.9 billion pounds) of greenhouse gas emissions, compared to traditional manufacturing methods. This is equivalent to the estimated amount of carbon dioxide emitted from circumnavigating the entire planet with a car nearly 2,400 times.

Furthermore, the report outlines Kornit’s commitment to achieving KPIs that address waste, chemicals, GHG emissions, energy, product development, employee training, diversity and inclusion, and the company’s supply chain.

Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, and SABIC, a global leader in the chemical industry, announced a collaboration to create recycled-based Dyneema®. Through a joint pilot with multiple CirculariTeam® members, the manufacturing and usage of Dyneema® using mixed plastic waste as feedstock (via mass balance approach) will be successfully demonstrated. It is an important step toward the future goal of fully closing the loop by delivering Dyneema® made from ultra-high molecular weight polyethylene (UHMwPE) waste. This collaboration underlines DSM’s and SABIC’s efforts to accelerate a circular economy for materials.

By working together with members of CirculariTeam®, DSM will produce recycled-based Dyneema® made using SABIC’s certified circular ethylene as a pilot project in both a sailing rope and a pelagic trawl net application. The circular ethylene, from SABIC’s TRUCIRCLE™ portfolio, uses mixed plastic waste as feedstock (mass balance approach), which not only contributes to preventing valuable plastic from becoming waste and the avoidance of carbon emissions compared to incineration, but it will also help preserve fossil resources. These pilots are an important early-stage milestone in the journey toward making fully circular Dyneema® from HMPE post-production and post-consumer waste.

Jon Mitchell, Managing Director at Marlow Ropes: “We’re proud to be one of the first manufacturers to integrate recycled-based Dyneema® within our products and demonstrate the material’s feasibility. By collaborating with materials science pioneers such as DSM and SABIC, we are able to create products that not only deliver superlative functional performance but also have a lower environmental impact. Our products are trialed and tested by professional offshore sailing teams including 11th Hour Racing Team, a proud partner of ours at Marlow, with whom we share a progressive approach to seeking sustainable solutions: no more business as usual."

Klaus Walther, Managing Director at Gleistein: “Warm congratulations to DSM and SABIC for pushing the boundaries of science to deliver a truly unique product. We’re proud that our ropes can be produced from what once was typical household plastic waste. This is an important stepping stone towards becoming circular. It will enable our customer Maritiem BV to further develop high-tech fishing gear whilst contributing to the circular economy. Not to forget Cornelis Vrolijk Fishing Company, who again illustrate their commitment to Corporate Social Responsibility by introducing this concept in fishery.”

• Achievement Ahead of Schedule

All of Sateri’s five viscose mills in China are now fully compliant with the emission limits set out in the European Union Best Available Techniques Reference Document (EU-BAT BREF) on Polymers, following recent verification of Sateri Jiangsu and Sateri China mills.

Verified by independent consultant Sustainable Textile Solutions (STS), a division of BluWin Limited (UK), the parameters assessed included resource utility efficiency, wastewater discharge and air emission.

Allen Zhang, President of Sateri said, “Sateri Jiangsu was established in 2019 following an acquisition while Sateri China was built in the same year. We had aimed to have both mills meet EU-BAT’s recommended emission levels by 2023. To achieve this two years ahead of schedule underscores our continuous efforts in process improvement and control of pollutant emissions, and resource utilization efficiency. We will continue to pursue manufacturing excellence and invest in best-in-class technologies for all our mills – existing, acquired, and newly constructed ones – as part of our Vision 2030 commitment towards closed-loop and cleaner production.”

Chen Xinwei, Chairman of China Chemical Fiber Industry Association, said, "China's regenerated cellulose fibre industry has been progressing steadily in recent years. As a major viscose manufacturer, Sateri has demonstrated leadership in benchmarking itself against advanced domestic and international standards, focusing on low-carbon development, energy-saving and emission-reduction technology, and cleaner production to advance sustainable development, as well as enhance the company’s competitiveness. All other players in the industry should be encouraged to follow suit."

Sateri is a member of the RGE group of companies; Sateri’s other three mills - Sateri Fujian, Sateri Jiujiang and Sateri China (Jiangxi) - had attained EU-BAT compliance in 2020.

• Goal: Creating a unique portfolio in high-value surfactants

Indorama Ventures Public Company Limited (IVL), a global chemicals producer, today announced it agreed to acquire Brazil-based Oxiteno S.A. Indústria e Comércio, a subsidiary of Ultrapar Participações S.A. The acquisition gives IVL a unique portfolio in high-value surfactants and significantly extends its existing Integrated Oxides and Derivatives (IOD) business.

IVL will purchase Oxiteno for US$1.3 billion (subject to adjustments at closing), with a deferred payment of $150 million in 2024. The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities. The transaction is expected to close in Q1 2022 and will be earnings accretive immediately. Financing is secured through deferred payment, using existing extra cash on our balance sheet, free cash flow generated from existing businesses, short term loans against working capital and the balance as long-term debt.

Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM. The acquisition brings an excellent management team, world-class expertise in green chemistry innovation, strong customer relationships in Brazil, Uruguay and Mexico, and substantial growth potential in attractive end markets, including the U.S. through a new facility in Pasadena, Texas. Oxiteno has a strong commitment to environmental governance, and its focus on lowering greenhouse gas emissions will also enhance IVL’s ESG credentials.

ISKO, a global, leading premium denim ingredient brand, announced its participation in The Jeans Redesign – a project, established by the Ellen MacArthur Foundation’s Make Fashion Circular initiative, to encourage and guide the denim industry to transform the way jeans are made and move towards a circular economy for fashion.

ISKO meets the requirements for participation set by The Jeans Redesign guidelines and has made a commitment that 85% of its entire fabric production will consist of recycled material content made from pre-consumer and post-consumer recycled materials. This production will be independently verified by Textile Exchange audit bodies.

This achievement is made possible using ISKO’s R-TWO™ technology which is created through a patented and exclusive yarn spinning technique that retains the unique properties and benefits found in ISKO’s statement fabrics. ISKO’s R-TWO™ is the embodiment of its Responsible Innovation™ mindset and aligns with the principles of a circular economy espoused by the Ellen MacArthur Foundation – to ensure durability, material health, recyclability and traceability. R-TWO™ positions ISKO as a sustainability leader and enables it to exceed the project guidelines to create denim that is designed to be used more, made to be made again and made from safe and recycled or renewable inputs.

Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, confirmed the introduction of the first seamless trail running shoe made with bio-based Dyneema® fiber by norda™, a Canadian shoe brand.

Designed for runners by runners, norda™ was founded under the mission to empower athletes to unlock their peak potential through innovation and cutting-edge technology. The brand’s flagship product, norda™001, utilizes bio-based Dyneema® fiber to enhance performance and sustainability in a lightweight construction.

The shoe upper is seamlessly constructed with Dyneema® fabric, which benefits from the intrinsic properties of Dyneema®, the world’s strongest fiber™. Dyneema® fiber is engineered at the molecular level to provide high strength, low weight, waterproof and breathable properties – fusing the technical performance of ultra-light materials with aesthetic design that does not sacrifice strength or durability.

In addition to the increased foot stability and wearer comfort of the upper, Dyneema® fibers are also used to increase abrasion resistance and stretch in the shoe laces – providing four times the level of strength when compared to standard lace materials like nylon and polyester.

“When we set out to create the norda™ 001, our mission was to design an ultra-strong and durable high performance trail running shoe, and do it as sustainably as possible,” states Willamina and Nick Martire, Co-Founders, norda™. “To achieve our goal, we had to look outside of the standard materials used by the footwear industry. We realized the properties of bio-based Dyneema® beat everything available today.”

In line with DSM’s commitment to protect people and the environment they live in, bio-based Dyneema® boasts the same exact performance as conventional Dyneema® with a carbon footprint that is 90 percent lower than generic HMPE. Sourced from renewable, bio-based feedstock, DSM’s latest advancement in fiber technology uses the mass balance approach to further reduce the reliance on fossil fuel based resources, while still contributing to a more circular economy.

Marabu is one of the first ink manufacturers to achieve climate neutrality. All Marabu Business Units will, where possible, make a specific contribution to achieve the 17 United Nations Sustainable Development Goals (SDGs) with PROJECT GREEN and therefore participate in the Green Deal.

"We are safeguarding the future of the next generations and are proud that we have managed to be a climate neutral company from July 2021 with the Tamm and Bietigheim sites. All our products, whether printing inks or creative colours, are climate neutral, too," explains York Boeder, CEO Executive Committee. "Our so-called PROJECT GREEN combines all measures that are taking us on our journey to climate neutrality. Climate protection is a particular concern for us, to which we have made a binding commitment within the scope of an extensive sustainability strategy. In accordance with our Marabu Green Deal, we avoid and reduce emissions wherever possible, e. g. by using green electricity, energy-saving schemes, mobility concepts or environmentally friendly materials. We offset all unavoidable CO2 emissions by supporting internationally certified climate protection projects. We are continually implementing measures to improve our carbon footprint and update them annually to make their success measurable. We have therefore set ourselves the active goal of reducing our CO2 emissions by another 25 % by 2030."

For decades, Marabu has invested in the research and development of safe production processes, environmentally friendly products, and clean technologies with the aim of preserving the natural environment. Marabu has worked with Climate Partner to analyse all the CO2 emissions from the sites in Tamm and Bietigheim and determine its carbon footprint. Including all product-related factors such as raw materials and logistics, Marabu currently generates approx. 18,500 tons of unavoidable CO2 emissions. This value is the positive result of a number of climate-friendly measures pursued by Marabu, such as the early switch to green electricity in 2007.

Marabu's main activities to avoid and reduce CO2 emissions:

• Energy - Switching to green electricity from hydropower
• Mobility - Migration of the company's vehicles to electric and hybrid cars as well as in e-charging stations
• Production - Use of renewable energies and resource-efficient production processes
• Raw materials - Replacing critical substances with environmentally friendly alternatives for new and existing products
• Transporting - Climate-neutral freight carriers and lower-emission transport methods like shipping or road transport replace air freight wherever possible
• Product technology - Modern, low-emission products