Comprehensive initiatives designed to preserve and improve the environment are included in virtually all manufacturers’ corporate communications. According to the Sheldon Group, 25% of major brand owners have implemented scorecards to rate suppliers and products on environmental impact, and 30-40% more are being developed. These initiatives have spurred public- and private-sector research to develop natural and sustainable building blocks that are either direct substitutes for existing petrochemicals (such as ethylene) or are new molecules. Out of this effort have emerged new companies and corporate divisions that hope to capitalize on the opportunity through environmentally and economically viable business models.
To achieve commercial success, each needs a viable business plan based on a clear understanding of decision drivers throughout the value chain from brand owners to raw material suppliers. The “build it (or develop it) and they will come” strategy has proven to be a recipe for failure. Unbiased market due diligence to gain a thorough understanding of major customers’ selection criteria for material technology, market drivers and resulting trends, strength of competitive suppliers, products and technologies, and, especially, barriers and pitfalls that could derail successful plan execution is key to building solid business strategy.