Lubricant, base stock and additive companies are doing a good job of communicating their sustainability efforts to employees, according to a new survey by Lubes’n’Greases.
Public companies have faced mounting pressure from investors such as Blackrock, the world’s largest asset management company, to minimize environmental impact, implement social responsibility projects and improve corporate governance standards. These companies are in turn asking their suppliers to improve operational sustainability.
The first Lubes’n’Greases survey on perceptions of sustainability asked more than 700 people whether they thought their company and the industry as a whole were actively engaged in sustainable business practices in three main areas: the environment, social wellbeing and corporate governance. Overall, most respondents perceived their company outperformed the industry in these three areas.
Companies have challenges and advantages when it comes to reducing their overall carbon footprint. On one hand, mineral base oils – which are hydrocarbons – are by far the largest raw material in the industry. On the other hand, about 30% of global energy production is lost each year to friction, wear and corrosion, meaning lubrication makes a substantial contribution to reducing energy demand and fuel consumption for users – known as the carbon handprint – by reducing friction, wear and corrosion and increasing the lifespan of machinery.
The survey was conducted in tandem with the launch of a new web-based resource called Sustainability InSite. Sustainability InSite is an in-depth look at how environmental, social and corporate governance sustainability are affecting the lubricants industry. It also offers insights into what companies need to do to respond to this seismic shift in business.