The Finnish chemical industry needed a strategic foresight approach to identify opportunities, reduce risks and boost sustainability for a future twin transition pathway. To support this, VTT conducted horizon scanning analyses for The Chemical Industry Federation of Finland reaching all the way to 2045.
Key facts
A comprehensive outlook on the chemical industry's future trends, considering sustainability, business, technology and society perspectives
Detailed trend descriptions of 60 signals with quantitative indicators, case examples and industry implications
Guidance on using the foresight information and continuing the foresight journey
The Chemical Industry Federation of Finland is a trade association for the chemical industry and its closely related sectors, covering various fields in the basic and production chemical industry. The Chemical Industry Federation of Finland has nearly 400 member companies and 14 member, cooperation and agreement associations.
Multiple factors call for more clarity in the chemicals sector
The chemical industry is a significant business sector in Finland, accounting for 20 percent of the country's industrial manufacturing and exports. It employs around 100,000 people and invests 450 million euros in R&D annually. The steps taken by the chemical industry, such as carbon neutrality goals and technological development, are critical for the sustainability transition of many sectors. For the Finnish chemical industry to remain at the forefront globally, there are various developments that need to be identified and considered:
There is an increasing demand to reduce environmental impact and shift towards a more sustainable future.
Rapid technological advancements disrupt traditional business models and create new opportunities.
The chemical industry needs more skilled workers in the future.
Geopolitical tensions and trade disputes impact global supply chains and create business uncertainty.
In recent years, the unstable business environment has highlighted the significance of companies having a holistic and systematic approach to strategic foresight. To discover a future twin transition pathway for the Finnish chemical industry, it is crucial to
develop a forward-looking mindset
identify new opportunities
reduce risks
improve sustainability practices
enhance cross-sectoral cooperation within the industry.
To successfully prepare for and tackle these challenges, The Chemical Industry Federation of Finland turned to VTT to conduct horizon scanning analyses that reach up to 2045.
It was good that we didn't look at future opportunities and risks only from a technology perspective.
VTT Future Radar prepares the organisation for twin transition
To get a holistic view of the client's industry, we utilised the Future Radar method, which systematically identifies and prioritises emerging technologies, trends and business opportunities. The method provides a visual representation of these findings to help companies proactively adapt and innovate. Trend cards for each signal include detailed descriptions, fostering a deeper understanding of future opportunities and risks.
The foresight study provided a comprehensive outlook on the industry's future in terms of sustainability, business, technology and society. In the study, we examined the chemical industry as a single entity but also considered the perspectives of energy-intensive chemistry, reaction chemistry, inorganic chemistry, formulators and converters.
To ensure that the findings were actionable, we employed a participatory and networked strategic foresight process. The process involved engaging with member companies of The Chemical Industry Federation of Finland through workshops and surveys throughout the research process. The companies had the possibility to get together to prioritise and comment on the project while it was ongoing.
“The Future Radar process worked well. It was good that we didn't just look at future opportunities and risks from a technology perspective,” says Alexandra Peth, Senior Advisor of Innovation from The Chemical Industry Federation of Finland.
VTT’s foresight study helps Finnish chemical industry companies better understand their challenges and opportunities while supporting their strategy processes for a sustainable future.
Significant business potential for member companies
Companies are understandably often focused on everyday operation and fiscal quarters instead of looking far ahead. The key benefit of the foresight project, then, was the strategic, long-term visibility provided by the Future Radar. The Future Radar method helped the member companies to
understand and anticipate trends
discover new business opportunities
make informed decisions that align with their long-term goals
identify, assess and proactively mitigate potential risks that could impact the companies’ business in the future.
The project also supported the member companies in facilitating internal discussions on foresight matters. Using the radar, the companies now have the tools to engage in collaborative conversations with stakeholders, enabling them to work together for a better future.
“VTT’s foresight study helps Finnish chemical industry companies better understand their challenges and opportunities while supporting their strategy processes for a sustainable future,” describes Peth and continues: “I particularly valued the trend cards that accompany each Future Radar signal. The cards provide a more detailed description with numerical indicators and case examples, making signals more concrete.”
“Working with The Chemical Industry Federation of Finland and their member companies showcased the power of the participatory foresight process,” says Tiina Apilo, Senior Scientist at VTT. “It was inspiring to collaborate both to prioritise the impact of known signals and to specifically explore the significance of signals that were not yet on the agenda or in the risk assessments of companies.”
Want to learn more about how you can benefit from having a future-ready business strategy? Read our white paper on organising corporate foresight here.
