Chemical Firms Research Articles

Data‐driven control and a prey–predator model for sourcing decisions in the low‐carbon intertwined supply chain

AbstractThis paper addresses the challenges of low‐carbon sourcing in intertwined supply chains by proposing a data‐driven control framework and a prey–predator model for sourcing decisions. The objective is to optimize low‐carbon objectives and reduce environmental impact. Existing static models fail to capture the dynamic nature of supply chain systems and overlook the ripple effects when sourcing decisions propagate throughout the interconnected network. To bridge this gap, our study develops a dynamic model that explicitly captures the bullwhip effect and leverages real‐time and historical data. This model conceptualizes suppliers as prey and manufacturers and consumers as predators, employing an ecological analogy to decipher the intricate interactions and dependencies within the supply chain. Through this approach, we identify strategies to promote sustainable practices and motivate suppliers to adopt low‐carbon measures. We assess two data‐driven algorithms, the nonlinear auto‐regressive exogenous (NARX) network and sparse identification of nonlinear dynamic systems with input variables (SINDYc). The results reveal that SINDYc outperforms prediction accuracy and control, offering significant advantages for rapid decision‐making. The study highlights how shifts in market demands and regulatory pressures critically influence the strategies of chemical firms and fertilizer markets. Moreover, it discusses the economic challenges in transitioning from high carbon footprint suppliers (HCFSs) to low carbon footprint suppliers (LCFSs), exacerbated by a notable cost disparity where HCFSs are approximately 30% cheaper. By advancing beyond conventional static models, this research provides a deeper understanding of the environmental impacts and operational dynamics within supply chains, emphasizing the significant “ripple effect” where decisions at one node profoundly affect others within the chain.

Examining the relationship between environmental management accounting practices and return on equity in the South African chemical industry

Environmental management accounting practices (EMAPs) have become pervasive, and continued efforts to ensure universal implementation across various sectors often represent financial implications for organizations. Despite many studies that examined the relationship between EMAPs and financial performance, the debate is still inconclusive. Therefore, the study paves the way for chemical firms to explore the effectiveness of EMAPs’ implementation for both financial and environmental gain. The study used purposive sampling to gather quantitative secondary data from annual integrated reports of chemical firms to examine the relationship between EMAPs and financial performance in the South African chemical industries during 2016–2022. Following the results from the regression estimations, two of the EMAPs – water and energy usage – have had a positive relationship with financial performance, with the latter being highly significant. Contradictorily, carbon emissions and environmental expenditure adversely and insignificantly influenced financial performance. The results suggest that chemical firms have in place ineffective carbon management strategies that fail to generate sustainable returns. Overall, the results acknowledge the efforts of chemical industries in making substantial contributions to enhance environmental performance and encourage environmentalists and policymakers to reconfigure environmental policies for improved environmental and financial performance. Further research on environmental management accounting (EMA) barriers in chemical industries is imperative to achieving environmental sustainability.

Day‐to‐day organizational life and environmental protection: Evidence from Chinese chemical firms

Day‐to‐day organizational life and environmental protection: Evidence from Chinese chemical firms

Estimating Spillover Effect from International Oil Market to Stock Market: Evidence from Korean Portfolio-Level Analysis

Using a diagonal BEKK model, this paper estimates a spillover effect from the international crude oil market to the Korean stock market. Empirical results suggest that shocks and volatility in Dubai oil prices are significantly transmitted into twenty portfolios of the Korean stock market. Also, it was found that these spillover effects dramatically rose during the year 2020, when the threat of COVID-19 was the most serious. More specifically, oil-oriented portfolios, such as the power and gas firms’ portfolio and chemical firms’ portfolio, had a greater spillover effect from the international crude oil market rather than other portfolios. Further, compared to larger-capitalization firm portfolios, small-capitalization firm portfolios had a relatively greater spillover effect. Several implications and important avenues for further research are identified.

Greenhouse gas neutrality: A qualitative analysis of perceived sustainability tensions in the German chemical industry

The chemical industry plays a critical role in achieving climate neutrality. While several recent studies have concluded that a greenhouse gas-neutral chemical industry is technically feasible, implementation seems to lag behind. This study addresses this issue and contributes to the literature on corporate sustainability by providing a contextual perspective of tensions. Specifically, this study investigates perceived tensions of sustainability managers in their chemical firms' quest to reduce greenhouse gas (GHG) emissions, and how they react to these tensions. The study thereby draws on paradox theory. A qualitative content analysis of interviews with sustainability managers from 22 chemical companies in Germany identifies six tensions, of which four occur very frequently. The responses are grouped into four categories: Business success vs. GHG savings (1), Missing availability (2), GHG savings vs other ecological impact (3) and Desire for sustainability vs. actual behaviour (4). Energy is identified as an overarching topic through which the tensions are linked. Therefore, it is concluded that the response to tensions, as well as the framework conditions around energy, determine if the tensions are either amplified or reduced.

Analyzing energy intensity of Indian Chemical industry: A panel data approach

The chemical industry is directly or indirectly connected with almost every industrial process and holds a crucial place in the economic and social advancement of India. At the same time it is however, the second highest energy intensive industry in the country. Thus, we attempt to look into the factors that affect the energy intensity of Indian chemical industry. We collect a panel dataset including a total of 2613 chemical firms for the period 2010 to 2021 for our analysis. We carry out our empirical testing under both linear and non-linear framework by employing fixed effect regression and panel quantile regression methods respectively.We find that energy intensity for the sample chemical firms increases due to poor labour productivity, huge plant and machinery, outsourcing operations, and more use of IT-enabled services. On the other hand, use of better quality raw material and advanced technology can help optimising the energy intensity. We also discover that profitable firms and firms larger in size are energy efficient. Based on the findings, we suggest professional training programs and vocational skill development programs for enhancing labour productivity. Profitable firms are suggested to invest in technological up-gradation and energy saving technology. We believe the findings of the study can provide a portfolio of variables to the managers and policy makers in order to diversify their attention to find all possible ways to reduce energy intensity of the Indian chemical firms.

العلاقة بين مخاطر السيولة والربحية في البنوك التجارية المدرجة ببورصة عمان

This article demonstrates the impact of sustainability accounting with its dimensions: environmental, economic, and social on the quality of financial reports of ASE-listed pharmaceutical and chemical firms. To achieve the research objectives, the applied approach based on the financial reports and statements of the research sample firms is used as the main source of research data between (2016) and (2021). A sample of (27) firms is selected from the number of firms in the field of various industries that represent the research population of (53) firms, i.e. (51%) of the research population that meets the criteria for selecting the research sample. Statistical methods are also used to test the hypotheses and attain the results. The findings indicate that the environmental, economic, and social dimensions of sustainability accounting activities partially or completely affect the financial reports’ quality through simple and multiple regression models. The results of the statistical analysis also show that increasing the reporting of sustainability dimensions leads to an increase in the financial reports’ quality of the firms under research. From the research perspective, it is a logical result as the firms’ departments and regulatory institutions tend to provide appropriate and complete information to the beneficiaries and stakeholders. The research recommends supporting the ASE-listed firms that adopt initiatives related to reporting on sustainability accounting, including the Fourth Generation Global Reporting Initiative (GRIG4), and reviewing the listing and disclosure instructions on the ASE by including reporting on sustainability accounting as one of the main requirements for disclosure and listing on the stock exchange.

Ohio settles PFAS suit with chemical firms

Ohio settles PFAS suit with chemical firms

Chemical firms are shutting plants

Chemical firms are shutting plants

Chemical firms are shutting plants after tough second quarter

Chemical firms are shutting plants after tough second quarter

Chemical firms warn about quarter

Chemical firms warn about quarter

Changes in environmental performance with firm relocation and its influencing mechanism: An evidence of chemical industry in jiangsu, China

A micro firm relocation perspective plays important roles in deepening the understanding and knowledge on the environmental effects of industrial transfer and related mechanisms, however, such research and cases are currently scarce. Based on the building of both the database of firm relocation information and a conceptual framework of changes in environmental performance with firm relocation (ΔEP), involving factors of firm heterogeneity and changes in both locational conditions and whole-process pollution treatment paths, chemical firms in Jiangsu Province were selected to explore their ΔEP and related influencing mechanisms by the Wilcoxon signed-rank test of two paired samples and a binary logistic regression model in this study, respectively. Results showed that during 1998–2014, chemical firm relocation experienced a fluctuating growth trend with a continuous surge in inter-city relocation, accompanied by a deterioration in the environmental performance (EP) with a significant reduction of pollution removal intensity (p < 0.01) after firm relocation. Most firms relocated from Southern Jiangsu (72.5%) to places adjoining Jiangsu Province (58.5%), along the river and the coast (63.4%), and in the third- and fourth-tier cities (73.5%), respectively. As for these factors, the low development level of transfer-out (DTOR) and transfer-in region (DTIR) both resulted in the downgrading EP with firm relocation, but the inter-city relocation style (RS) and strict environmental regulation (ER) were the opposite. The benefits for upgrading EP after relocation conferred by the promotion of source-process treatment were limited by RS, DTOR, and DTIR. Among firms relocated to low DTIRs, the higher the firm competitiveness in terms of capital, technology, and environmental awareness, the greater the upgrading EP probability. When firms transferred to regions with stricter ER, the likelihood of improving EP increased more for those firms with weak competency. In a word, in order to prevent the pollution haven effect, superior governments should shrink regional differences in ER policies, whereas local governments in transfer-in regions should provide targeted and essential support in funding and technology according to the firm heterogeneity and fully consider actual conditions to make environmental measures in the future.

Lithium prices drive big profits for SQM

Benefiting from high prices and strong demand for lithium chemicals, SQM reported $3.9 billion in net income for 2022, about seven times as much as for the year earlier. The Chilean firm’s lithium revenue was up 771% for the full year. SQM hopes to take advantage of the high prices by adding 30,000 metric tons of lithium hydroxide capacity at a refinery in China this year. Other lithium chemical firms, including Albemarle and Livent, also reported monumental profits for 2022.

Solvay will sell its stake in Russian venture

A year after Russia’s invasion of Ukraine, Solvay has inked a deal to sell its 50% interest in the RusVinyl polyvinyl chloride joint venture to its partner for $450 million. The venture had been one of the most prominent investments in Russia by a Western chemical maker. The partnership, in Kstovo, was completed in 2014 at a cost of $1.6 billion. RusVinyl generated sales of $580 million in 2021 and a hefty $235 million in profits. In the wake of the invasion, many chemical firms announced they were pulling out of Russia . At the time, Solvay pledged to suspend operations in the country, and it halted dividend payments from the joint venture. It announced earlier this year that it was in negotiations to sell the unit to its partner, the Russian chemical maker Sibur. Solvay will register a $185 million loss when the deal is completed. The company at

KNOWLEDGE SPILLOVERS IN A NORTH-SOUTH ANALYSIS OF THE U.S. CHEMICAL INDUSTRY

ABSTRACT We use U.S. patent data to investigate how the growth of chemical manufacturing in South economies affects the number of patents obtained by chemical manufacturers in the U.S., and how it has altered international knowledge spillovers from South manufacturers to their counterparts in the U.S. We find that increased competition from chemical manufacturers in the South has pushed U.S. chemical firms to increase their patenting, but that U.S. manufacturers are not learning more from the innovators in the South. Keywords Patents, Spillovers, Innovation, Chemical.

Chemical firms will standardize digital platforms

The chemical industry has invested heavily in information technology over the past 5 years, implementing a framework on which to convert most if not all of its operations to digital ones. Digitalization , as it’s called, has moved into a new phase of consolidation and standardization that will likely define IT strategies this year. “I think in ’23 we will see chemical companies pushing their digital strategies to scale, by which I mean moving from one-off proof of concepts here and there to enterprise-wide impact,” says Adam Rothman, an analyst at Boston Consulting Group. The effort, he says, will emphasize employee adoption of digital tools. David Yankovitz, a chemical analyst at Deloitte, says companies will capitalize on years of heavy investment in core IT infrastructure—projects that have introduced mobile devices, sales portals, and a shift of enterprise computing to the cloud. Rothman and Yankovitz concur that the next phase of

Cross-border environmental regulation and firm labor demand

In 1994, due to environmental concerns, Germany banned a chemical called ‘Azo-dyes’, a primary input for the leather and textiles firms in India (a key exporter). Exploiting this as a quasi-natural experiment, we examine the effects of this cross-border regulatory change on labor compensation, particularly managerial, for both Indian upstream (dye-producing) and downstream (leather and textile) firms. We find that the regulation increased compensation of managers by 1.3%–18% in dye-producing firms compared to other chemical firms. This is due to the combination of changes such as investing in R&D, product churning, import of high-quality intermediates, due to the ban, which led to this change in within-firm labor composition. This increase in overall compensation is driven only by fixed component (wages), consistent with the effects of a long-run shock. We find no such effects for downstream firms. We believe, our study is one of the first to show that just like tariff, non-tariff barriers (NTBs) can also significantly affect within-firm labor composition.

A new focus for Japanese chemical firms

A new focus for Japanese chemical firms

Revisiting sustainability disclosure theories: Evidence from corporate climate change disclosure in the United States and Japan

Motivated by the novel viewpoint that the two major corporate sustainability disclosure theories – that is, legitimacy theory and voluntary disclosure theory – are not exclusively competing, this study re-evaluates the two theories using our quality-based climate disclosure measures developed based on the 2018 CDP (formerly Carbon Disclosure Project) questionnaire. From Tobit and ordinal logistic regression analyses with the public chemical firms in the United States and Japan, we document that firms with higher greenhouse gas (GHG) emissions are more likely to choose extensive low-quality climate change disclosure rather than high-quality. This finding supports the legitimacy theory that firms tend to utilize low-quality climate change disclosure to obfuscate and legitimize their GHG emissions. However, we do not find evidence supporting the voluntary disclosure theory that superior performers prefer extensive high-quality climate change disclosure rather than low-quality. This paper contributes to the literature by providing new theoretical insights on whether and how firms utilize quality-based climate change disclosure strategies in an attempt to achieve the goals accompanied by the two theories. Furthermore, our findings provide an important practical implication for regulators and policymakers that more concrete and stringent climate disclosure rules could effectively curb inferior performers’ discretionary behavior to engage in low-quality disclosure.

Mediation effect of environmental performance in the relationship between green supply chain management practices, institutional pressures, and financial performance

Pakistan is an agricultural country that uses a huge number of pesticide chemicals and is confronting environmental and economic issues. Firms need to comprehend the integration of green supply chain management (GSCM) practices in their supply chain. The current study intends to analyze the mediation effect of environmental performance (ENP) in the relationship between GSCM practices, institutional pressures (IP), and financial performance (FNP). Therefore, GSCM-IP-ENP-FNP model was developed with the help of an extensive literature review and then proved with the help of data collected from pesticide chemical firms working in Pakistan. Data were collected through a questionnaire from 500 senior-level managers of the pesticide firms of Pakistan. However, 468 responses were retained for analysis keeping in view the limitations of the current study. SPSS version 22 and SmartPLS 3.0 were used for data analysis. Results of the study indicated strong relationships among all variables. It was also concluded that GSCM practices, IP, and ENP have a positive and statistically significant relationship with a firm’s FNP. This study is an important contribution to theory and practice. The study is unique and has significant contributions because it developed and proved the GSCM-IP-ENP-FNP model. The model helped to prove the mediation effect of ENP in the relationship between GSCM practices, IP, and FNP in the pesticide sector of Pakistan, which would be highly beneficial for the managers of pesticide firms as well as for the government to understand the importance of GSCM practices for improving the ENP as well as the FNP of pesticide firms in Pakistan as well as worldwide, especially in developing countries. This study recommends that the management of firms should implement GSCM practices to protect the environment. Government, consumers, and other institutions should exert pressure and the government should provide subsidies, if necessary, to the firms for successful implementation of GSCM practices. Furthermore, it is recommended to conduct further studies in other countries by using the mixed methodology in the pesticide sector as well as in other sectors of the economy to increase the generalizability of the current study.