Reinventing chemistry
Dr. Ilham Kadri, CEO, Syensqo, speaks to GPCA Insight about the company’s spin-off from Solvay and explains why a fair and inclusive culture is good for business and society
It’s been almost a year since Syensqo was spun from Solvay. Can you tell us more about the rationale behind the spin off and how has the company performed over the last year?
Indeed, Syensqo is born out of a story of the transformation of the Solvay Group, a 160-year old iconic Belgian company. When I took the reins of Solvay in 2019, I was entrusted with the mission of unleashing the company’s potential. Culture, structure, strategy… we reinvented it all. We deleveraged the balance sheet, funded our people’s pensions, became financially fit…. and raised the bar in terms of Environment, Social and Governance goals. As we accelerated reforms, two types of activities emerged within Solvay: one manufacturing essential products with process innovation at its heart, such as the 160 years old Soda Ash technology, and the other manufacturing specialty products, with innovation at its heart to respond to unmet societal needs. These two activities demanded different strategies and business approaches.
A demerger with a committed stable shareholder base appeared to us to be the ideal solution. It is therefore for strategic reasons that we decided to split the group into two independent companies. The strategy was based on the conviction that the two entities would be more prosperous independently.
The materials transition is having significant implications on chemical companies. How is Syensqo taking on this trend and how is it affecting your product and growth strategy?
We have a unique portfolio of market leading solutions addressing environmental and social challenges, through electrification, lightweighting, connectivity, and better quality of life. We are an innovation company focused on developing the right materials our customers need. We work hand in hand with our customers in our application labs to develop the materials with the exact requirements needed for the final application. In that, we develop advanced, durable materials that contribute to continued progress, help drive the circular economy, and help make products more sustainable with benefits for the end customer.
Can you tell us more about the sectors you’re serving and how does that shape your product development and innovation strategy?
Syensqo is a science company developing groundbreaking solutions that change the way we live, work, travel and play. In fact, we are a technology maker, yet we are agnostic to technology. We take raw material and we make highly differentiated solutions to cater to customers’ demanding needs. And we do so in high-growth markets. From water, we create green hydrogen through electrolysis. With our separators we enable the creation of your electric vehicle battery, be it in your smartphone, or in your car. With our bio-technologies we enable your bio beauty.
To be very concrete: our products and solutions are in almost every vehicle that flies, in one out of two electric vehicles, in 80% of medicine packaging, about 90% of advanced chips have Syensqo inside, we have solutions for 80% of green hydrogen technologies on the market, one out of two dialysis patients in the world use Syensqo products and we are in 25% of all haircare products.
What is your view on targets to achieve net-zero by 2050? What role can the chemical industry play in the drive toward net-zero? What are the limitations and the enablers?
At Syensqo, we are committed to reaching carbon neutrality by 2040 and aim for 18% of circular sales by 2030. Our sustainability strategy is completely integrated into the company’s growth strategy, with a top-line growth driven by bringing more circular solutions to customers, making them more sustainable. Currently, over 80% of Syensqo’s innovation pipeline is dedicated to crafting sustainable solutions.
As the mother of all industries, the chemical industry is a strong partner in the fight against climate change. Our industry allows the net-zero target to happen – it reinvents electric vehicle batteries, enables clean mobility, and makes green hydrogen a reality. Syensqo products help drive these changes and increase the rate of transition.
What is the role of investing in diversity, equity and inclusion in securing the future of the industry? How does a strong DE&I strategy support a company’s bottom line and growth?
Diversity, equity and inclusion have always been the most challenging thing to do in any company, in any transformation I have been through in my 30 years of experience. But I have always believed in it. There’s a real business case for having a DE&I company. It’s not charity, DE&I is about profitability. Demographics in an organization need to represent the company’s customers, operation locations, consumers and final clients’ needs. In our industry, in the Science, Technology, Engineering and Maths field of studies, the representation of women is still very sobering. Syensqo is a young company but I am so proud that we showcase a very unique governance profile with two women at the helm, the Chair of the Board and the CEO, and six out of 10 board members are women. It’s very unique in our industry. We’ve made our Syensqo One Dignity roadmap an integral part of our business strategy because in an inclusive, diverse and fair environment, people perform better; they innovate, they are more creative and this is good for the business.
