Green and Digital Transformations
Sustainable Futures, Smart Operations
The petrochemical and chemical industries are changing fast. Mega-trends such as ESG, the energy transition, digital transformation, artificial intelligence (AI) and Industry 4.0 are growing priorities, driven by efficiency, productivity and risk mitigation, as well as customer and market pressures. Increasingly, sustainability and technology are not seen as parallel investments, but as mutually reinforcing forces, delivering results greater than the sum of their parts.
As Latin America’s industry works to overcome its slump, trends like green and digital transitions are increasingly vital. Competitiveness and resilience depend on impactful investments that establish strong foundations for long-term recovery. Rafael Navazo, regional director of Latin America at SGS, shared his perspective on the importance of these transformations: “Sustainability is a mandatory priority, particularly for high-impact industries such as chemicals and petrochemicals, where we support clients in their environmental transition. Digitalization is seen as equally critical, with SGS helping companies modernize processes and adopt new technologies to remain competitive.”
Priscila Camara, SVP South America at BASF, the world’s biggest chemical producer by revenue, recognized the intertwined nature of technological advancement with moves to sustainable operations: “Our goal is to enable our customers’ green transformation and be a trusted partner that accelerates the journey to a more sustainable future. This commitment translates into investments in advanced technologies, such as AI, and the adoption of sustainable practices.”
Germán Torres, president of Brenntag’s Essentials division in Latin America, put these and other trends at the center of the industry’s journey to recovery: “Despite this longer-than-expected downcycle, we continue to prepare for the eventual rebound by emphasizing efficiency, flexibility, top talent, and advanced digital tools, including AI,” he said.
These trends are shaping real decisions and redefining priorities across the region. Sustainability has shifted from aspiration to business imperative, influencing investment and supply chains. Meanwhile, companies face the challenge of turning broad ambitions into measurable progress – a theme that echoed throughout our conversations with industry leaders.
“Topsoe has many sustainable aviation fuel (SAF) and renewable diesel projects underway, with virtually every country in Latin America having a flagship project in recent times. We have seen great growth in the region.”
Gustavo Cienfuegos, Managing Director Latin America, Topsoe
Everything in moderation
Responding to the question “Could you define ecological transformation for us?”, Pedro Prádanos Zarzosa, CEO of Veolia Brazil, was keen to distinguish ‘transformation’ from ‘transition’, emphasizing the company's focus on “speed, disruption and multifaceted impact” in its work to enhance industry sustainability across resourse recovery, energy efficiency and community impact. "These initiatives, while they may appear at the beginning more complex and costly, maximize environmental value and enable savings in terms of water and energy,” he explained. His commentary cut to the heart of today’s sustainable industrial development debate.
On the one hand, there is a natural desire to solve the problem as rapidly, with next-generation solutions delivering unparalleled emissions savings. In Latin America, progress towards greater sustainability is already well underway, and in some areas, the region leads the world: “Latin America possesses the key assets needed to be highly competitive in the energy transition: abundant, low-cost renewable energy and essential natural resources. The region is already ahead in several areas, with many companies showing a strong willingness to invest,” evaluated Wagner Costa, partner at management consultancy Bain & Company.
The region’s industry continues to drive for yet more progress, too. Luis Felipe Carrillo, SVP for Latin America at Ecolab, which delivers its chemical and digital water purification solutions to virtually all industries, told GBR: “Many clients are targeting up to 70% water-use reduction within five years. Our research makes clear that inaction is costlier than investment – socially, economically, and for long-term business resilience.”
Ecolab surveys have found that 90% of Latin American consumers rank water access as a critical concern, piling pressure on industry to slash consumption. Moreover, sustainability work is going beyond just reductions, generating innovations and even the revival of previously dormant industry segments. “We see rising interest in clean fertilizer production – especially in Argentina with Vaca Muerta’s vast natural gas reserves, Brazil’s plans to revive fertilizer capacity, and Mexico’s ammonia units are being revamped,” highlighted Gustavo Cienfuegos, managing director for Latin America at chemical and catalyst technology firm Topsoe.
On the other hand, in a tightened business environment, short-term survival sometimes must take priority and expensive projects delayed. “The main challenge lies in the cost of investment, especially as stakeholders grow increasingly cautious. Companies must be innovative to make sustainability and decarbonization projects viable,” stressed Bain’s Costa.
Raquel Loanda, managing director for Latin America at supply chain solution provider PSA BDP, put it succinctly: “The complexity of all ESG policies is balancing their cost with the client’s push toward cost reduction.”
That led some executives to caution patience. Francisco Fortunato, president of Brazilian chemical producer Grupo OCQ, highlighted the growth of bio-based products, which are steadily replacing those made with fossil-based feedstocks in his company’s portfolio: “We believe this transformation must be gradual, cost-effective, and supported by a new generation of skilled professionals in the chemical sector,” he said.
Steve Wilkerson, North American sales director for market intelligence firm ResourceWise, argued that the best approach to bio-based products is for them to maximize their marginal value: “The chemical market is still dominated by petro-based products. The key for bio-based products to thrive is diversification – such as when biofuel production also results in a bio-based byproduct.”
Sustainability guides Latin America’s chemical industry, but delivering on ambitions is increasingly urgent. Digitalization and AI are emerging as key enablers – accelerating research, optimizing resources, and reducing risks – showing real potential as the practical engine driving transformation across the sector.
“With today’s available and emerging technologies, the chemical industry is moving toward greater energy efficiency, safer processes, and more connected decision-making. Currently, information often remains siloed, but integration generates immense value for operational insights.”
André Medeiros, Sales Manager – Systems Division, Yokogawa South America
AI: Where are we now?
GBR’s research found AI’s role in Latin America’s chemical sector is not yet fully understood, raising questions about its transformational potential. Since the technology gained popular prominence with ChatGPT’s meteoric rise in 2022, companies have begun exploring applications of AI from customer service to data analytics and process automation, but much remains to be learned about the technology’s impact and long-term value for the industry.
Initial impressions from stakeholders were mostly optimistic, even while acknowledging the unsure nature of AI’s possible benefits: “While its full impact remains unimaginable, AI technology appears to be overwhelmingly positive. Its unprecedented research speed and potential to enhance performance make it a truly disruptive force. The real challenge lies in how we will choose to use it,” stressed Francisco Fienga, SVP Latin America and president for Brazil at nutrition and personal care chemical manufacturer dsm-firmenich.
Similarly, Brenntag’s Torres highlighted the great unknown of this technology’s budding potential: “AI already plays an important role across all sectors and the chemical distribution space is no exception, though its full effects and potential are still emerging.”
Others maintained the need for a human element. “The human role in interpreting data, validating AI suggestions, and making sound decisions remains indispensable,” cautioned Guy Bessant, president of terminal operator Stolthaven.
Even so, there was a broad conviction that AI is nothing short of a must-have for any company seeking to maintain competitive advantage in what is widely seen as a new era for industry. Jesse Tijerina, head of S&P Global’s chemical insights, called for its widespread uptake: “I would strongly recommend companies across Latin America prioritize investments in AI for use across operations, production, strategy and more. Companies that do not embrace AI quickly are at risk of being left behind,” he warned.
For the Argentine Petrochemical Institute’s executive director, Gabriel Rodríguez Garrido, the technology was an immediate priority in the region’s chemical industry’s fight for market space against imports: “The adoption of artificial intelligence is no longer optional – it defines competitiveness,” he put simply.
“Services range from carbon footprint management and environmental monitoring to certifications. That includes ISCC PLUS, assessing processes and supply chain impacts, REACH and TSCA compliance, environmental impact assessments, traceability, and hazardous materials management, as well as traditional ISO certifications.”
Rafael Navazo, Regional Director Latin America, SGS
“Some players are in the early stages of AI adoption, beginning to experiment and recognize its potential to unlock results. Others are already focusing on how to apply the technology to develop integrated solutions that enhance their competitiveness,” assessed Bain’s Costa.
The uses for AI seem endless. “Kemira’s operational monitoring solution, KemConnect, identifies correlations, anticipates issues, and optimizes chemical usage by leveraging AI, which enhances efficiency, prevents problems, and strengthens customer value while driving overall operational performance improvements,” according to Paulo Barbosa, a sales director for the company.
Grupo OCQ’s Fortunato said: “AI accelerates resin development by simulating formulations, cutting testing time from days to hours. Tools like drones, thermographic cameras, and ultrasonic sensors improve safety and maintenance. The integration of IT, engineering, and technical teams drives innovation.”
Offering a view of the state-of-the-art, and a glimpse into the future, was Yokogawa South America’s head of sales for petrochemicals and chemicals, André Medeiros: “AI is already applied in predictive analysis to optimize processes and anticipate failures, while collaborative robotics and drones enable autonomous inspections in hazardous environments. Smart manufacturing connects factories with AI and IIoT to adapt in real time,” he described.
Medeiros further outlined the company’s ‘IA2IA’ vision, utilizing AI to go beyond automation to full-blown industrial autonomy – cutting out errors and waste, improving sustainability. “The integration of AI, robotics and machine learning into industrial control platforms is driving significant transformation across traditional industries like chemicals,” he concluded.
In short, while sustainability defines the “why,” AI is increasingly answering the “how.” Together, they are setting the pace of change across Latin America’s chemical industry. The industry’s focus on these distinct yet interwoven mega-trends seems to be working.