Meeting China’s climate goals

Covestro forges pioneering agreements with Chinese developers to advance more sustainable building solutions

  • Buildings account for over half of nation’s emissions as government promotes more stringent energy targets
  • Polyurethane-based solutions from Covestro support construction sector’s transition to more sustainability
  • Collaborations with property developers PDG and Lujiazui Group aim for widespread adoption of innovative solutions

In a strategic move to support China’s ambitious climate objectives, Covestro has forged partnerships with major Chinese property developers, including Shanghai Pudong Development (Group) Co., Ltd. (PDG Group) and Shanghai Lujiazui (Group) Co., Ltd., as well as key industry collaborators. Their shared objective is to advance more sustainable, energy-efficient solutions in construction, capitalizing on Covestro’s material expertise, especially in polyurethanes. These endeavors closely align with China’s stringent energy goals in the construction sector, addressing the urgent challenge of buildings contributing to over half of the nation’s carbon emissions.

Thanks to its long history in polyurethanes chemistry, Covestro boasts a portfolio of insulation material solutions renowned for exceptional thermal and weather resistance. Initially used in refrigeration, they have great potential to enhance energy efficiency in construction.

“Covestro is devoted to becoming fully circular. At the same time, we help our customers and major industries to achieve climate neutrality through our material innovations.1 The construction industry, particularly in China, is central to this mission. With our new partnerships we will expedite the adoption of more sustainable construction practices in China and jointly play a vital role in mitigating climate change,” said Dr. Markus Steilemann, CEO of Covestro, during the signing of agreements with named companies at the China International Import Expo (CIIE), an event dedicated to promoting imports and international trade.

One key collaboration involves PDG Group and insulation integration specialist Collodin, working on an innovative polyurethane exterior wall insulation system designed to be thinner and lighter than conventional alternatives. This system, named the ‘carbon-optimized composite wall insulation structural integration system’, combines polyurethane insulation with low thermal conductivity and a lightweight non-combustible layer, further reinforced by composite tie bars, ensuring superior insulation. A comprehensive study will evaluate its energy efficiency, safety, and economic viability before implementation on the developer’s future projects, provided it meets all compliance conditions.

“We look forward to partnering with sustainable material expert Covestro in promoting this innovative solution, which could also set new standards in the industry. We believe this collaboration will facilitate the transformation and upgrade of the construction sector, promoting low-carbon, high-quality development in line with China’s dual carbon goals,” emphasized Li Junlan, Chairman of PDG Group.

Another groundbreaking partnership involves Lujiazui Group and Chinese composite profile maker Deyilong. Together, they are developing a low-carbon, energy-efficient window and door system tailored to meet Shanghai’s requirements on ultra-low energy buildings. This system will leverage Covestro’s Baydur® Pultrusion, a composite material with exceptional thermal insulation, mechanical strength, and durability. The whole window system thereby can be made thinner for better aesthetics.

“We look forward to working with partners including Covestro, which has a proven track record in the field of efficient insulation in windows and doors. We aim to leverage Lujiazui Group’s property development strengths in Pudong, Shanghai to promote these excellent window and door systems and help elevate the industry’s energy efficiency level,” said Xu Erjin, Chairman of Lujiazui Group.

“We are excited to be connected by the CIIE with Chinese property developers, which provides us with new opportunities that will last long. We intend to promote more sustainable and low-carbon solutions for the construction industry, enhance market penetration of energy-saving building solutions, and make efforts towards China’s infrastructure development and dual carbon goals,” said Holly Lei, President of Covestro China.

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

1 Carbon neutrality of Covestro products is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The methodology of our LCA, for which an external audit and certification will soon be available, is based on the ISO 14040 and 14044 standards. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.


About Covestro:

Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, cosmetics and health, as well as in the chemical industry itself.

The company is committed to becoming fully circular and is striving to become climate neutral by 2035 (scope 1 and 2). Covestro generated sales of EUR 18 billion in fiscal 2022. At the end of 2022, the company had 50 production sites worldwide and employed approximately 18,000 people (calculated as full-time equivalents).

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.