Insights from Sodexo Community of Practice 

BASF & Flue2Chem: How Cross-Value Chain Collaboration Can Accelerates UK's Net-Zero Transition

🧠 In this blog article...

You will discover the power of collaboration and community in driving sustainability, and other insights to bring into your work. These are insights from a cross value chain collaboration within the value chain of BASF — one of the world's largest chemical companies. 


The project featured here focused on business model, manufacturing innovation and value chain collaboration to explore the reduction of carbon dioxide emissions (CO₂).

✨ You will discover

• ✅ Insights shared here are from the Sodexo Community of Practice
• ✅ Why does it matter to you and your impact work
• ✅ Water-use as a context-based reporting example
• ✅ How to kickstart your context-based reporting journey
• ✅ ...and where to receive more guidance
  
  

The insights here were shared in the Sodexo Community of Practice where we bring together sustainability focused professionals to authentically share insights from across industries. Collaboration in this space is often inspiring each other to act and helping each other save time and have confidence in their decisions. 

Flue2Chem

Foundational industries joined forces to accelerate decarbonisation and circular solutions

During our recent session, Tony Heslop, EMEA Regional Lead Sustainability from BASF shared about Flue2Chem, a collaborative initiative that brought businesses, universities and NGOs together to turn industrial waste into sustainable materials for consumer products. (Check out the graphics to see who's involved and how it works.)

Over two years, Flue2Chem aimed to:

• Create an alternative carbon source for manufacturing—which could demonstrate how UK could cut 15-20 million tonnes of CO₂ emissions annually. A crucial step towards the country's net zero targets by 2050, and;
  
  
• Lay the foundation of a new business model that rethinks how supply chains can work together to accelerate decarbonisation and circular solutions across industries.
  
  

Insights about Flue2Chem from BASF perspective

Key learnings you can take to your work and collaborations

1.   Building an industry-wide community 

“We didn’t know each other… We rarely spoke to these guys, and these guys were our customers. But right across the piece, we’ve built this community, and there’s real power in that.”

Traditionally, innovation within these industries has been siloed, which limits broader progress needed to tackle global environmental and social challenges. A major success of Flue2Chem has been bringing together competitors, suppliers, and customers to innovate and work together on a shared goal

2.   Adoption of new vs established technologies 

“People weren’t really willing to go with established technology… They wanted to show their new, sexy low-TRL stuff, and that brings additional risk to the project.”

The plan was to use proven technology to capture CO₂, but companies pushed for showcasing new, lower TRL (Technology Readiness Level) solutions. While it introduced added risks, the team identified gaps early, worked through challenges together and turned uncertainties into valuable learning opportunities.

3.   Reimagining the entire value chain 

"This is done at millions and millions of tons every year… So when you start coming back to the small-scale stuff, you’ve got to rebuild it.”

Flue2Chem set out to repurpose CO₂ emissions from the paper industry, but small-scale testing infrastructure was no longer in place. Over time, the industry shifted toward large-scale production. This meant that for this project parts of the value chain had to be rebuilt from the ground up, requiring additional investments. When planning for that, this is a challenge that needs to be thought through.

4.   Reimagining the entire value chain 

"The tools just aren’t there, and the assumptions they make within those tools are so woolly that you have to start questioning the outcomes.”

Even widely used tools like Life Cycle Assessment (LCA) and Techno-Economic Analysis (TEA) have limitations. Despite uncertainties, the team relied on the fundamental belief that replacing fossil-based materials is a step in the right direction, and Flue2Chem’s work will help improve how impact is measured in the future.

5.   Success is what we learn in the journey 

“How do you define success and failure in relative terms? We were hoping to produce tons of material and have this go out to supermarkets. We haven’t achieved that, but we haven’t failed either because we learned so much along the way.”

Along the way, Flue2Chem uncovered technical and strategic insights that will make future breakthroughs easier. The project tested assumptions, identified roadblocks, and provided a clearer path for what comes next.

6.   Managing intellectual property and competition

Bringing together competitors like JM and Croda required careful structuring. Compartmentalised workstreams and IP agreements ensured open collaboration while protecting sensitive information. When legal frameworks are designed to support shared goals, collaboration is possible even in competitive industries.




👉🏽 Related resource: Together with Bates Well, we co-created a post and video series to give you clarity of what you need to consider and to help you navigate those first steps of exploring successful collaborative partnerships

Click here to start exploring this free resource (link). 

More things to think about cross-value chain collaboration

Other learnings we received from BASF's share are...

• Startups often struggle to work with large companies due to long decision cycles and extended payment terms. New pathways were created for startups to engage with industry leaders on more sustainable terms.
  

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• The two-year UKRI funding cycle was a challenge for an industrial project that needed a longer runway. But it also accelerated collaboration and showed that structured funding is a catalyst for faster, more focused industry-wide cooperation.
  

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• Chemical manufacturing could shift from centralized production to more distributed, smaller-scale systems at the point of CO₂ capture. This project represents an important step toward this potential future of flexible, efficient and scalable carbon solutions.
  

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• Net Zero commitments are strong, but long-term certainty depends on government and corporate policies. Some major U.S. banks have withdrawn from Net Zero funding alliances. This has raised concerns that investment in fossil-based alternatives may continue. Despite this, BASF remains committed to their Net Zero 2050 targets that include eliminating fossil-based materials from their supply chain.
  
  

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