In an increasingly eco-conscious global market, sustainability certifications have become crucial for India’s chemical exporters to secure market access, meet international regulatory requirements, and enhance brand value. As the Indian chemical industry scales rapidly, expected to triple demand by 2040 and contribute nearly 10% to the manufacturing sector’s gross value added, it is embracing sustainability certifications as strategic enablers for export competitiveness.
Importance of Sustainability Certifications
These certifications serve as verified proof that chemical manufacturing processes align with global environmental, social, and governance (ESG) standards. They address:
• Environmental management: Mitigating emissions, waste, and raw material usage through frameworks like ISO 14001.
• Social responsibility: Upholding labour rights and community safety
• Traceability and transparency: Full supply chain assessments to reassure international buyers on sustainable sourcing and green chemistry principles.
With global buyers increasingly demanding certified supply chains and ESG disclosures, certification acts as a passport to lucrative export markets, helping Indian companies avoid exclusion, regulatory penalties, and reputational risks.
Leading Certification Standards for Indian Chemical Exporters
• ISCC PLUS (International Sustainability and Carbon Certification PLUS): This global standard is gaining traction among Indian specialty chemical exporters like Himadri Speciality Chemical Ltd, which recently received ISCC PLUS certification after rigorous audits verifying GHG emissions reduction, ecosystem protection, and responsible sourcing for its facilities.
Along with Himadri Chemicals, companies such as Aarti Industries, SRF Ltd, and DCM Shriram Chemicals are also embedding globally recognised environmental management systems to strengthen export readiness and sustainable value‑chain credibility.
DCM Shriram Chemicals earned ISCC PLUS certification for renewable-feedstock traceability, underscoring the sector’s alignment with international sustainability standards.
• Responsible Care: Widely adopted via the Indian Chemical Council (ICC), it emphasises continuous improvement in environmental, health, safety, and security performance, complementing regulatory compliance with voluntary commitments. Aarti Industries secured Responsible Care recertification and committed to SBTi, while SRF maintained its Responsible Care certification with new GHG and renewable energy targets.
• ISO 14001: The globally recognised environmental management system certification, helping exporters systematically track and reduce their ecological footprint while complying with diverse international regulatory mandates.
Government Initiatives and Industry Support
India’s Department of Chemicals and Petrochemicals and the Indian Chemical Council (ICC) actively promote sustainability roadmaps and facilitate capacity building for MSMEs to achieve certification compliance. Dedicated centres in chemical clusters provide technical support for audits, documentation, and laboratory testing essential for certification adherence.
Policy incentives like green bonds and tax benefits encourage adoption, while industry-government collaborations foster innovation in green chemistry, carbon capture, renewable energy use, and circular economy models integral to these certifications.
Economic and Export Trade Impact
Certified sustainable chemical exports are unlocking higher-value contracts in sensitive markets such as Europe, the USA, Japan, and South Korea, which prioritise climate-aligned supply chains. As per DGCI&S (June 2025), chemical exports to the US now stand at ~$5.3 billion, with specialty and green-certified products accounting for 18–20% of that value.
Sustainability certifications are more than compliance checkboxes. They are strategic business imperatives shaping India’s chemical sector’s global trade trajectory. By investing in protocols like ISCC PLUS, Responsible Care, and ISO 14001, Indian exporters boost credibility, reduce regulatory risks, and future-proof their market presence in an era where sustainability defines competitive advantage.
Adopting sustainability management frameworks enhances operational efficiency through energy savings, waste reduction, and resource optimisation, directly lowering costs and improving EBITDA margins. While obtaining certifications and implementing green technologies require upfront capex, these measures help ensure compliance with global ESG norms, reducing risks of market exclusion, penalties, and financing constraints. In addition to this, certified exporters have reported higher EBITDA margins due to lower input costs and easier ESG financing access
Over time, the resulting operational efficiencies, regulatory assurance, and access to green capital instruments, such as sustainability-linked loans and bonds, strengthen financial stability, investor confidence, and brand equity, creating long-term value beyond compliance.
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