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ESG Investing in the Specialty Chemicals Industry: A Growing Trend
Environmental, social and governance (ESG) portfolio strategies have become paramount for specialty chemicals manufacturers. An increased emphasis on sustainability could open avenues of organic growth to serve as a foundation for strong financial performance. With specialty chemicals witnessing bullish demand across industry verticals, the challenges and opportunities have become more pronounced pertaining to sustainability, health & safety and governance policies. These trends have made ESG a top priority for boards, venture capitalists, investors and other stakeholders.
Chemical companies are well-positioned to inject funds into sustainability initiatives, including hydrogen production and advanced recycling. Companies have also shown traction for near-zero emissions, net-zero emissions and carbon neutrality by 2050. With chemical companies being held accountable for sourcing raw materials sustainably, investments in bullish ESG practices will gain ground. Moreover, the prevalence of stringent environmental regulation has furthered the prominence of sustainability. For instance, specialty chemicals produced from waste materials, including furfural from biomass and polyols from waste gas could gain ground to recycle waste into products.
Financial and non-financial performances pertaining to ESG have become pronounced. Prominently, specialty chemical companies are gearing up to boost health & safety and environmental stewardship. Corporate players are overcoming challenges on the back of diversity and sound corporate governance. ESG strategies adopted by leading companies are elucidated below:
Environmental Perspective
Global push to minimize emissions, waste management, water management and underpin biodiversity has ramped up investments in the environmental strategy. Specialty chemicals companies grapple with waste, toxicity and pollution, compelling them to face litigation or liabilities. Chemical producers have exhibited increased traction to be in line with the objectives of the Task Force on Climate-related Financial Disclosures (TCFD).
Climate reporting has become pronounced with the growing adoption of TCFD. Furthermore, well-established players have set a bullish target to combat climate change. For instance, Evonik aims to reduce absolute scope 1 and 2 emissions by 50% by 2025 (compared to the 2008 level). It also vies to minimize scope 3 emissions from the upstream value chain by 15% by 2025 (compared with 2020 base). The Germany-headquartered company has also earmarked sites that would be most affected by water stress in the next two decades. It contemplates 5% reduction of absolute energy consumption and energy consumption relative to production by 2025.
Is your business one of participants to the Specialty Chemicals Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices
Social Perspective
Companies that are working towards the development and well-being of people and emphasize an inclusive working environment are expected to stay ahead of their competitors. A robust ESG practice also demands hiring and engagement practices that complement employee diversity. Nova Chemicals is gearing up to rev up the representation of women across all levels of the organization to 30% by 2030. The Canada-based company is vying for a 10% surge in diversity across all levels and a 5% rise in representation of people of color in leadership by 2030 (from 2020 baseline).
Notably, the development of a strong talent pipeline and emphasis on training can underscore the social pillar. Chemical companies have also shown a bullish approach to safety through the establishment of a safety culture, promotion of safety awareness, interaction and implementation of hazard recognition training and learning policies. For instance, Nova asserts its employees recorded over 57,000 safety interactions while working from home or at the workplace. Safety programs and vision to achieve zero injuries are expected to reinforce the core values of ESG.
Governance Perspective
A company’s corporate behavior, board diversity, anti-competitive practices, transparency and business ethics are the precursor to sound and effective governance. Strong corporate governance practices have become instrumental to underscore the value of the company and ensure efficient use of resources. In essence, the Supervisory Board at BASF has at least 50% members from various professional experiences and educational backgrounds. Furthermore, the company is on course to propel the representation of women in leadership positions to 30% by 2030 with disciplinary responsibility.  It has also furthered its approach to anti-money laundering to foster transparent business relationships. Besides, concerted efforts to protect sensitive information, including Know-how and prevent misuse or unauthorized disclosure have also gained ground across the business vertical.
The integration of sustainability into strategic management and the inclusion of social and environmental aspects in the portfolio will reshape the global landscape. These dynamics are expected to encourage key players to ramp up their ESG efforts. To illustrate, in August 2021, Evonik issued €500 million (USD 543 million) to bolster its sustainability portfolio. It reportedly published Green Finance Framework and is striving to minimize its ecological footprint. Prevailing trends suggest the specialty chemicals market size garnered USD 586.5 billion in 2020 and could witness around 4.3% CAGR from 2021 through 2028. Grand View Research expects promising growth opportunities for companies with an emphasis on sustainability.
About Astra – ESG Solutions by Grand View Research
Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. – a global market research publishing & management consulting firm.
Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.
For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research
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tamanna31 · 2 years
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Specialty Chemicals Industry Players Seek ESG to Create Sustainable Solutions
Environmental, social and governance (ESG) portfolio strategies have become paramount for specialty chemicals manufacturers. An increased emphasis on sustainability could open avenues of organic growth to serve as a foundation for strong financial performance. With specialty chemicals witnessing bullish demand across industry verticals, the challenges and opportunities have become more pronounced pertaining to sustainability, health & safety and governance policies. These trends have made ESG a top priority for boards, venture capitalists, investors and other stakeholders.
Chemical companies are well-positioned to inject funds into sustainability initiatives, including hydrogen production and advanced recycling. Companies have also shown traction for near-zero emissions, net-zero emissions and carbon neutrality by 2050. With chemical companies being held accountable for sourcing raw materials sustainably, investments in bullish ESG practices will gain ground. Moreover, the prevalence of stringent environmental regulation has furthered the prominence of sustainability. For instance, specialty chemicals produced from waste materials, including furfural from biomass and polyols from waste gas could gain ground to recycle waste into products.
Discover more regarding the practices and strategies being implemented by industry participants form the Specialty Chemicals Industry ESG Thematic Report, 2023, published by Astra ESG Solutions
Financial and non-financial performances pertaining to ESG have become pronounced. Prominently, specialty chemical companies are gearing up to boost health & safety and environmental stewardship. Corporate players are overcoming challenges on the back of diversity and sound corporate governance. ESG strategies adopted by leading companies are elucidated below:
Environmental Perspective
Global push to minimize emissions, waste management, water management and underpin biodiversity has ramped up investments in the environmental strategy. Specialty chemicals companies grapple with waste, toxicity and pollution, compelling them to face litigation or liabilities. Chemical producers have exhibited increased traction to be in line with the objectives of the Task Force on Climate-related Financial Disclosures (TCFD).
Climate reporting has become pronounced with the growing adoption of TCFD. Furthermore, well-established players have set a bullish target to combat climate change. For instance, Evonik aims to reduce absolute scope 1 and 2 emissions by 50% by 2025 (compared to the 2008 level). It also vies to minimize scope 3 emissions from the upstream value chain by 15% by 2025 (compared with 2020 base). The Germany-headquartered company has also earmarked sites that would be most affected by water stress in the next two decades. It contemplates 5% reduction of absolute energy consumption and energy consumption relative to production by 2025.
Social Perspective
Companies that are working towards the development and well-being of people and emphasize an inclusive working environment are expected to stay ahead of their competitors. A robust ESG practice also demands hiring and engagement practices that complement employee diversity. Nova Chemicals is gearing up to rev up the representation of women across all levels of the organization to 30% by 2030. The Canada-based company is vying for a 10% surge in diversity across all levels and a 5% rise in representation of people of color in leadership by 2030 (from 2020 baseline).
Notably, the development of a strong talent pipeline and emphasis on training can underscore the social pillar. Chemical companies have also shown a bullish approach to safety through the establishment of a safety culture, promotion of safety awareness, interaction and implementation of hazard recognition training and learning policies. For instance, Nova asserts its employees recorded over 57,000 safety interactions while working from home or at the workplace. Safety programs and vision to achieve zero injuries are expected to reinforce the core values of ESG.
Is your business one of participants to the Global Specialty Chemicals Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices
Governance Perspective
A company’s corporate behavior, board diversity, anti-competitive practices, transparency and business ethics are the precursor to sound and effective governance. Strong corporate governance practices have become instrumental to underscore the value of the company and ensure efficient use of resources. In essence, the Supervisory Board at BASF has at least 50% members from various professional experiences and educational backgrounds. Furthermore, the company is on course to propel the representation of women in leadership positions to 30% by 2030 with disciplinary responsibility.  It has also furthered its approach to anti-money laundering to foster transparent business relationships. Besides, concerted efforts to protect sensitive information, including Know-how and prevent misuse or unauthorized disclosure have also gained ground across the business vertical.
The integration of sustainability into strategic management and the inclusion of social and environmental aspects in the portfolio will reshape the global landscape. These dynamics are expected to encourage key players to ramp up their ESG efforts. To illustrate, in August 2021, Evonik issued €500 million (USD 543 million) to bolster its sustainability portfolio. It reportedly published Green Finance Framework and is striving to minimize its ecological footprint. Prevailing trends suggest the specialty chemicals market size garnered USD 586.5 billion in 2020 and could witness around 4.3% CAGR from 2021 through 2028. Grand View Research expects promising growth opportunities for companies with an emphasis on sustainability.
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Middle Market Investment Bank: Through The Transaction
Sabadell says in an announcement that it might think about extending its effectivity and transformation programme in Spain and will analyse strategic alternate options for creating worth with regard to the group’s worldwide property, including TSB. Both Granules India and Carlyle didn't touch upon the deal when contacted by middle market investment bank.
agrees to acquirean ~eighty% stake in proxy advisory agency Institutional Shareholder Services, valuing ISS at ~$2.28B, a transfer that may strengthen Deutsche Börse's presence in ESG knowledge. Following the acquisition of both Tech Elevator and MedCerts, K12 expects net impact on FY21 income to be $12-15M.
The terms "demerger", "spin-off" and "spin-out" are generally used to point a scenario the place one firm splits into two, producing a second firm which can or could not become individually listed on a stock exchange. A merger of equals is when two corporations of a similar dimension merge to type a single, bigger company.
The transaction is anticipated to complete by the tip of this 12 months and be accretive to the overall financial outcomes of the Company on pro forma basis, excluding deferred revenue write-down. The transaction to be funded from HNI's cash readily available; will not have a material influence on 2020 gross sales or profit, and is predicted to close at 12 months-end. HNI (HNI +1.8%) has entered into a definitive settlement to acquire Design Public Group, a number one e-commerce distributor of high-design furniture and accessories for the workplace and residential. Crestor, which brought in revenue of over $5B for AstraZeneca in 2015, was among its best-selling medicines and used to contribute to ~20% of the corporate's whole income.
Using a complete cash circulate engine, the solutions enable banking professionals to forecast and stress test their stability sheets by analyzing data patterns, modeling positions, buying and selling securities, and shopping for and promoting loans. "The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our latest acquisition of CVC Thermoset Specialties," says Scott Wright, President of Huntsman's Advanced Materials division. Gabriel's 2019 revenues totaled $106M, representing an adjusted EBITDA a number of of ~11x; the corporate has three manufacturing amenities located in Ohio, Pennsylvania and South Carolina. agrees to acquire specialty chemical compounds manufacturer Gabriel Performance Products from funds owned by Audax Private Equity for $250M.
<h2>Advantages Of Mergers And Acquisitions</h2>
"Divesting non-core assets will allow us to refocus on our key priorities, specifically the repositioning of our Harborside workplace campus and paying down corporate debt," commented MaryAnne Gilmartin, Board Chair and Interim CEO. The acquisition will be financed with a brand new debt facility, the terms and supply of which stay undetermined. The Federal Antimonopoly Service of Russia has permitted the acquisition and completion is anticipated to happen by the top of January 2021, topic to customary closing conditions. Metromile plans to operate in 21 states by the tip of 2021 and forty nine states by the tip of 2022; targets $1B of insurance premium run-rate by year-end 2024. The transaction will add 89 additional DC quick and L2 charging stations to the increasing Blink network. That means that it is near a deal as a reported Thanksgiving deadline for bids inches closer. And Bertelsmann's Penguin Random House is set to edge out rival suitor HarperCollins (NWS +1.eight%, NWSA +1.6%) in the deal, as well as reported curiosity from Vivendi (VIVHY +0.5%).
Each specialist must be steeped within the M&A authorized concerns relevant to your deal and apply their specialty full time. Moreover, a authorized specialist M&A staff that has worked collectively on many prior offers doubtless shall be extra environment friendly than a few attorneys who collectively declare to be professional in the many specialty areas that are critical to an M&A deal. Sophisticated strategic and private fairness patrons often observe strict due diligence procedures that may entail an intensive and thorough investigation of the promoting firm by a number of buyer worker and advisory groups. A lead negotiator for the vendor, who is skilled in M&A offers and might make quick decisions on behalf of the corporate, should be appointed. The firm’s CFO should be ready to answer any monetary questions and to defend the underlying assumptions of the monetary projections. The firm’s CEO must be ready to elucidate the value-add that the promoting firm will present to the customer.
<h3>The Fantastic World Of Mergers</h3>
That would add on to Carlyle's pharmaceutical trade investments after just lately buying Sequent Scientific and a minority stake in Piramal Pharma. Carlyle Group (CG +0.5%) is in advanced talks to buy Granules India, a pharmaceuticals maker, for ~$1B, India's CNBC-TV18 stories, citing three sources with direct information of the deal.
M&A is a development strategy firms often use to shortly enhance its measurement, service space, talent pool, customer base, and resources in a single fell swoop. The course of is costly, nevertheless, so the companies have to be sure the advantage to be gained is substantial.
Smartsheet is an enterprise work execution platform that's essentially altering the way in which companies and teams work. Over 78,000 brands and tens of millions of knowledge workers belief Smartsheet to help them accelerate business execution and handle the volume and velocity of right now's collaborative work. Once you progress to the mixing part, make sure to carry out periodic reviews on personnel, products, and operations. Successful integration relies on continually paying attention to what is and isn’t working and discovering ways to compromise rather than set exhausting and fast rules for how the enterprise will continue as one entity. Throughout the process, points are bound to arise on both the buy and sell sides. Both events should resist the urge to get too emotional or latch onto highs and lows — as a substitute, solicit help if you want it, and keep communication open and sincere. Develop belief between the middleman and seller (if you’re utilizing a third-get together consultant or authorized group).
<h2>Examples Of Mergers</h2>
Involve few folks in analyzing and finishing up the acquisition, but attempt to contain those who will work with the enterprise later. Be clear and agency about key aims and procedures, but stay versatile about nonessentials. If time or other factors forestall putting operating managers on the negotiating group, an organization might use different strategies to make sure consideration of organizational match. Our research uncovered two attention-grabbing approaches by which corporations inspired completely mergers and acquisitions advisory different sets of advisers to work collectively. Another approach to handle the problem of integrating views is to incorporate working managers on the negotiating group. This step can present extra give attention to issues of organizational match, stability monetary and operational issues, and guarantee managerial continuity if the settlement goes by way of. Within a given specialty, people tend to collect related knowledge and produce comparable analyses.
The transaction will close in 1H21 and proceeds shall be used primarily to scale back debt. Founded in September 1996, RAVE Sports consists of several consumer and industrial water sports activities product classes that complement the unique mission of the company.
The portfolio is 99% leased to a top quality tenant base together with Fortune 500 firms as properly al the General Service Administration, with rents estimated to be ~6.zero% under current market rates. Founded in 2009, Stem’s energy storage methods handle a $1.2T market alternative and offer investors a unique ESG opportunity to spend money on a pure-play clear energy company serving to to revolutionize the electric grid. As a result of the transactions, Syros expects to have adequate funds for planned operating bills and capital expenditure requirements into H2 2022. "We sit up for working with IMImobile to assist create a comprehensive CXaaS resolution for the market—one that provides businesses a platform to provide pleasant experiences throughout the whole customer lifecycle journey." SPX FLOW will gain control of greater than ninety% of the issued and outstanding shares and votes in UTG on a fully diluted basis and the obtaining of all necessary regulatory approvals.
<h3>The Money Paradox</h3>
National United reported complete belongings of $748.6M, whole loans of $450.6M, and total deposits of $672.5M, as of Sept. 30, 2020. introduced that 97% of the unique money rent due for Q4 has been acquired as of Dec.02, including 98% of the rent due from the United Kingdom and ninety nine% from the the remainder of Europe. INSPRO has been offering business insurance, employee benefits, and private traces insurance services to people, households, and small and midsize businesses all through the region.
<ul><li>This costs the transaction to ~$6.6M, nearly eighty% of the corporate's current market capitalisation of $eight.21M.</li><li>Interlapse will problem 22.4M shares to LQWD shareholders at a deemed price of $0.25/share.</li><li>The key to sustaining the optimistic benefits of any merger or acquisition pursuit is guaranteeing the post-merger integration is profitable.</li><li>If so, then profitable progress can follow, and the deal valuation is achieved.</li><li>Some mergers or acquisitions are targeted simply on obtaining a expertise.</li></ul>
And the company plans a comprehensive refinancing earlier than the May call date of its senior secured notes. Design Public’s belongings embody client-dealing with e-commerce websites and , and a platform and capabilities serving the commercial office and architectural and design channels.
<h2>Mergers And Acquisitions Can Take A Very Long Time To Market, Negotiate, And Shut</h2>
Bids had been due by Thanksgiving, and News Corp. unit HarperCollins has been one of many bidders, anticipating that a Viacom-Bertelsmann deal could have bother gaining antitrust approval. But any deal is sure to return at some premium and worth Slack over $17B - to not point out going through an antitrust look. The incoming administration plans to offer the deal a thorough evaluate, given Oracle's links to President Trump, based on the report.
The deal is seen as accretive to earnings within the second full year after closing, with annual run-fee price synergies anticipated to be about $480M, and also $350M of revenue synergies. S&P Global CEO Douglas Peterson shall be CEO of the combined company, while IHS CEO Lance Uggla will stay as a special advisor for one yr. The transaction is anticipated to close Dec. 31, 2020, and the efficient date of the transaction will be Aug. 1, 2020. Unlevered payback interval on these property estimated to be 2.7 years at 11/27/20 strip. Scheme of Arrangement and is subject to the satisfaction of customary closing circumstances. Jacobs will acquire a 65% stake in the form of preferred and customary equity, with PA employee rollover constituting the remaining 35% possession stake at closing. A candy equity incentive pool of 25% of the common fairness is on the market for issuance to current and future companions and employees of PA.
"This acquisition represents a strong commitment to growing the distribution of certainly one of our core brands, our Patent pending CaniSun suncare line," acknowledged, Brian John CEO of Jupiter Wellness. SRM's administration has further incentives whereby it will obtain 2% of product sales of the Company's merchandise if gross sales of the Company's merchandise exceed $12M in 2021. Previously, New Jersey on line casino board gave inexperienced flag to Landcadia's Golden Nugget acquisition. “Easterly continues on its development trajectory with the acquisition of HRSA Baton Rouge,” stated William C. Trimble, III, Easterly’s CEO. has agreed to accumulate InsuraMatch, LLC, a digital impartial insurance coverage company, from the Plymouth Rock Group of Companies. This acquisition will instantly add depth and breadth to Stantec’s environmental providers group, particularly within the US Midwest. indicators a letter of intent to acquire Wenck, a US-based environmental engineering agency founded in 1985.
5-D might be a company within the Kratos Unmanned Systems Division and will function as the Systems Engineering hub for the division. In addition to creating techniques for the DoD and different major customers, 5-D has been a subcontractor/teammate of Kratos on many of its systems and programs together with the XQ-58A and aerial target systems. With this acquisition, NexTech gains tiered pricing options and self-service know-how for each stay and digital events. Map Dynamics provides a consolidated set of self-service event management instruments by way of its Event Home Base technology, coupled with dedicated assist groups to create versatile, virtual, in-particular person or hybrid events.
Altura entered receivership in October following extended weak spot in the uncooked battery materials market that was worsened by the impression of the pandemic. The acquisition also provides experience throughout a number of excessive-progress business verticals, including expertise, not-for-revenue, life sciences & healthcare, manufacturing and construction.
The JV is NewRez's nineteenth partnership under the portfolio of Shelter Mortgage Company, the NewRez business division centered on JV lending. NewRez national mortgage lender and servicer unit partners with The Menkiti Group, a D.C.-based minority-owned built-in real property services company, to form a new three way partnership mortgage company, Mission Mortgage. While the deal ought to be about break-even to non-GAAP earnings for the complete 12 months, it'll doubtless be dilutive in the first half - and then accretive to revenue development and non-GAAP earnings in 2022. Truist Insurance expects to shut a transaction with Fidelis Group Holdings, a Covington, LA-based mostly provider of specialty insurance merchandise for the marine and cargo industries, by yr-end.
The closing of the acquisition is expected to be on or around December 31, 2020. This acquisition will broaden Blue Hats interactive gaming portfolio and allow them to increase gross sales further through the expansion of accessible distribution platforms. There is a efficiency guarantee the place the phrases of the settlement might be amended if Csfctech does not achieve certain audited internet profit for the calendar year ending December 31.
Landsea's plans to merge with LF Capital Acquisition would make the homebuilder a public company by the tip of the year. The transaction is topic to regulatory review and approval by the Surface Transportation Board. The transaction is predicted to broaden CSX's reach in Connecticut, New York and Massachusetts whereas adding Vermont, New Hampshire and Maine to its existing 23-state network. The acquisition is predicted to close in 1Q21 and estimated $50M run-rate cost synergies.
<h3>What Are The Variations Between Mergers And Acquisitions?</h3>
acquired QrumPharma, a privately held pharma company creating inhalation therapies for severe continual and recurrent pulmonary infections, including Nontuberculous Mycobacterial lung illness. Mercury will fund the purchase via cash on hand and its present revolving credit score facility. , that transaction appears to be in limbo, probably withering from a scarcity of curiosity. The authorities argued that via the Commerce Dept. it was solely trying to control business transactions, however Nichols agreed with TikTok's argument that the government was indirectly regulating private communication and the exchange of knowledge. U.S. District Judge Carl Nichols on Sept. 27 granted TikTok's motion for emergency aid from an Aug. 6 order barring transactions with TikTok parent ByteDance .
The acquisition is predicted to shut before the tip of the calendar yr. Of the 27 places, 15 will be firm-owned and operated and 12 will be VIOC franchise-owned and operated. has signed an agreement with Car Wash Partners to buy 27 Mister Oil Change Express areas in seven states which shall be rebranded as Valvoline Instant Oil Change facilities. OMERS, the pension plan for Ontario's municipal employees, additionally agreed to promote its interests in RiverStone Europe as a part of the transaction. to shut on or about Jan. 4, 2021, if it gets all insurance regulatory approvals by the tip of December, the corporate stated in an SEC submitting.
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esglatestmarketnews · 2 years
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Specialty Chemicals Industry ESG Thematic Report, 2023
The current trend of investments is impacted by the introduction of policies in areas of Environment, Social and Governance and the intense implementation of such policies.The specialty chemicals industry is one of the highly demanded markets, the products have high applicability across various ranging from automotive to food and beverage and personal beauty care markets. Unlike the chemicals, the specialty chemicals have only specific use to the industry which they are used in, which impacts the market in the terms of ESG. There is positive impact in the social sphere of the ESG, while negative impact in the environmental aspect of ESG of the market.
Why is it important to have ESG?
The abbreviation ESG stands for environmental, social and corporate governance. It is a measurement that takes into account a company's social and environmental impact on the global community. It brings awareness to the different climate issues that are occurring and encourages businesses to adopt practices and policies that are better for the environment. ESG not only helps businesses by attracting a more diverse workforce to bring in new ideas, but it also helps businesses have a greater positive impact on our world.
Read More @ https://astra.grandviewresearch.com/specialty-chemicals-industry-esg-outlook
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