Despite some difficulties, DyStar is on track to hit its 2025 ESG targets.
The group, which manufactures dyes and colorants, released its 14th annual sustainability report earlier this week, detailing its efforts to “stay on course” despite the “persistent uncertainties and complex challenges” the global economy faced last year, which forced the industry to strategize and capitalize where possible.
“The market remains volatile with numerous factors impacting operating conditions,” DyStar’s chief commercial officer, Eric Hopmann, said in the report. “Higher energy costs, geographical disruptive logistics schedules and high interest rates and inflation have continued to erode market confidence and demand.”
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While difficult choices were made in light of these instabilities—including leadership restructuring, the shuttering of a 125-year-old indigo production plant in Germany and selling the group’s Africa outpost—the chemical firm is “on track” to meet its 2025 targets.
“Despite all these changes, DyStar remains committed to operate sustainably, balancing economic growth with environmental stewardship and social progress,” managing director and president Xu Yalin said. “We are pleased to report, DyStar is on track to meet our 2025 targets.”
The 96-page report highlights the century-old Singapore-based company’s wins and losses.
Revenue dipped by 18.2 percent year over year, delivering $735.29 million for 2023 and closing with a “smaller economic value” retained of $83.82 million. Hopmann attributed the drop to economic conditions, market demand and strategic reorganization. Global operating costs dropped 16.55 percent as DyStar prioritized reducing energy consumption by way of implementing “regular monitoring systems” to improve energy efficiency.
DyStar’s sustainability efforts, however, were on the upswing.
Compared to the baseline year 2011, the chemical firm’s GHG emission intensity was lowered by 41 percent, exceeding the 2025 target of reducing its environmental footprint by 30 percent for every ton of production against 2011. Energy intensity went up 4 percent—as did waste production intensity by 15 percent—but water and wastewater intensity dropped 43 percent and 56 percent, respectively. Water and waste were hot topics for the group, as peer benchmarkers disclosed that the company’s performance in these areas needed some TLC from a fiscally motivated perspective.
“We consumed less water for [fiscal year] 2023 due to lower production and achieved a decreased water consumption of 32.9 percent from the previous year,” Hopmann said. “Our water efficiency programs and improved operational procedures are taking effect at our manufacturing sites in Gabus, Indonesia, and Ankleshwar, India.”
Those peer benchmarkers also called out DyStar’s limited Scope 3 disclosure and the “absence” of a Science Based Targets Initiative (SBTi) commitment. The analysis of chemical sector peers suggested aligning Scope 1 and 2 targets with SBTi to “enhance credibility” as well as expanding Scope 3 emission measurement to assist supply chain ESG assessment.
The dyes and chemicals manufacturer’s Scope 1 and Scope 2 emissions totaled just over 42,000 tCO2e, a 67 percent decrease from 2011’s baseline and a 26 percent decrease year over year. Scope 3 emissions account for 8.2 percent of DyStar’s “total emission profile,” with over 80 percent derived from transporting goods and services.
Renewable energy efforts jumped 20 percent as the specialty dye and chemical company implemented several energy conservation initiatives as part of a concerted effort to reduce energy consumption globally. This included replacing existing lights with LED lighting at the Raunheim and Karachi production sites, promoting “behavioral changes” like turning off the lights when on lunch and using motion sensors to curtail excessive lighting.
Also highlighted was DyStar’s participation in the Textile and Garment Technology Exhibition (ITMA) in Milan over the summer, a move that took “nearly two years” of preparation. During the annual conference, the group showcased a range of biobased DyStar products, dyes and auxiliaries containing renewable feedstock. The Eco-Advanced Indigo Dyeing process—which aims to reduce water usage by up to 90 percent and energy consumption by up to 30 percent during production—was also on display.
“The international event garnered strong interest, leading several conversations with our direct consumers, manufacturers, distributors, brands and retailers,” Hopmann wrote in the report. “This exemplifies how DyStar consistently invests in innovations, adopting cutting-edge technologies and operational enhancements to reduce environmental impact.”
Beijing’s Institute of Public & Environmental Affairs (IPE) recognized DyStar, bestowing the company second place on its Green Supply Chain Corporation Information Transparency Index (CITI) for the second consecutive year.
“We will continue to enhance our environmental performance and seek innovative solutions to address environmental changes,” Yalin said. “By embracing sustainability as a core value, we aim to create long-term value for our stakeholders and contribute to a more sustainable and prosperous future for all.”
