Climate Change Data

Archroma Management GmbH

Climate Impact & Sustainability Data (2017-10 to 2018-09, 2018-10 to 2019-09, 2020-10 to 2021-09, 2021-10 to 2022-09, 2022-10 to 2023-09, 2024-10-01 to 2024-09-30)

Reporting Period: 2017-10 to 2018-09

Environmental Metrics

Total Carbon Emissions:99,576 tCO2e/year
Scope 1 Emissions:51,285 tCO2e/year
Scope 2 Emissions:48,291 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,345 TJ/year
Water Consumption:8,828,644 m3/year
Waste Generated:17,475 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety
  • Efficiency
  • Enhanced Value
  • Climate Change
  • Water Stewardship
  • Waste Management
  • Biodiversity
  • Sustainable Sourcing
  • Fair Labor Practices
  • Diversity
  • Talent Management
  • Community Engagement
  • Compliance
  • Human Rights

Environmental Achievements

  • Introduced Denisol Pure Indigo, a breakthrough indigo dyestuff free of aniline.
  • Implemented water recycling to reuse 70% of water at Jamshoro plant, Pakistan.
  • Installed ozone effluent treatment in Tianjin, China.
  • Installed additional air scrubbers in Jamshoro, Pakistan, and El Prat de Llobregat, Spain.
  • Implemented effluent reduction measures in Salvatierra, Mexico, and Zarate, Argentina.
  • Switched to 100% renewable electricity supply for Resende, Brazil.

Social Achievements

  • All employees trained on Archroma Code of Conduct.
  • Launched Archroma Academy training modules for commercial excellence and operational expertise.
  • Implemented “myHR” online management system for improved HR data management and performance reviews.

Governance Achievements

  • Established a dedicated Head of Risk Management & Internal Audit.
  • Implemented a risk management platform to centralize risk identification and management.
  • Engaged Ecovadis to screen and certify suppliers on sustainability practices.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce energy intensity by 15% by 2023.
  • Reduce water intensity by 10% by 2023.
  • Reduce solid waste intensity by 25% by 2023.
  • 40% women in management by 2023.
  • 90% of employees attend Archroma Academy modules by 2023.
Short-term Goals:
  • Total reportable incident rate < 0.2 incidents per 200,000 hours worked by 2023.
  • All sales products compliant with Archroma MRSL by 2023.
  • Carbon neutral for scope 1 and scope 2 emissions by 2023.

Environmental Challenges

  • Supply chain disruptions due to raw material shortages.
  • Need to reduce water withdrawal in water-stressed areas.
  • Need to reduce GHG emissions.
  • Need to improve risk management processes.
Mitigation Strategies
  • Developed alternative sourcing strategies for raw materials.
  • Implemented water recycling and reduction initiatives.
  • Set targets for carbon neutrality and GHG emission intensity reduction.
  • Assigned responsibility for risk management to a dedicated Head of Risk Management & Internal Audit and implemented a risk management platform.

Supply Chain Management

Supplier Audits: Engaged Ecovadis to screen and certify suppliers in India and China.

Responsible Procurement
  • Supplier Code of Conduct
  • Ecovadis assessment
  • Monitoring of supplier performance

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Referenced Standards: Core option

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Denisol Pure Indigo
  • STAMP IT SAFE system
  • DEEP DIVE system
  • CLASSIC INDIGO FLOW system

Awards & Recognition

  • Not disclosed

Reporting Period: 2018-10 to 2019-09

Environmental Metrics

Total Carbon Emissions:88,985 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:41,602 tCO2e/year
Scope 2 Emissions:47,383 tCO2e/year
Total Energy Consumption:1,146 TJ/year
Water Consumption:8,765,957 m3/year
Waste Generated:17,714 tons/year
Carbon Intensity:0.199 tCO2e/ton of production (FY2019)

ESG Focus Areas

  • Safety
  • Efficiency
  • Enhanced Value

Environmental Achievements

  • Reduced scope 1 and scope 2 GHG emissions by 4.2% compared to FY2018
  • Reduced total water withdrawal by 1% compared to FY2018
  • Reduced total energy consumption by 15% compared to FY2018

Social Achievements

  • Launched several innovations focused on safety and sustainability
  • Improved total reportable incident rate to 0.23 incidents per 200,000 hours worked (significant improvement over 0.47 in FY2018)
  • Maintained a diverse workforce with 57 nationalities represented

Governance Achievements

  • Implemented a new risk management platform
  • Maintained compliance with all relevant laws and regulations
  • Established a Compliance Committee and a Compliance Officer

Climate Goals & Targets

Medium-term Goals:
  • Reduce water intensity to 16.6 m3 per ton of production by 2023
  • Reduce waste intensity to 28 kg per ton of production by 2023
  • 35% sales from “Sustainable Collections” by 2023
Short-term Goals:
  • Achieve carbon neutrality for scope 1 and scope 2 emissions by 2023
  • Reduce water withdrawal by 40% in water-stressed areas by 2023
  • Reduce energy intensity to 2.39 GJ per ton of production by 2023

Environmental Challenges

  • Supply chain disruptions due to raw material shortages
  • Managing hazardous waste disposal
  • Reducing water withdrawal in water-stressed areas
Mitigation Strategies
  • Closely monitoring vendors to secure supply and develop alternative sourcing strategies
  • Analyzing waste for recovery, reuse, and recycling; minimizing hazardous waste to landfill
  • Implementing water recycling initiatives and reducing water withdrawal by 40% in water-stressed areas by 2023

Supply Chain Management

Supplier Audits: 40% of material spend covered by EcoVadis certificates

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessment

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity

Reporting Standards

Frameworks Used: GRI: Core option

Certifications: ISO 9001:2015, ISO 14001:2015

Sustainable Products & Innovation

  • Appretan® NTR
  • Leucophor® AFCN
  • Denisol® Pure Indigo

Reporting Period: 2020-10 to 2021-09

Environmental Metrics

Total Carbon Emissions:86694 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:42545 tCO2e/year
Scope 2 Emissions:44150 tCO2e/year
Total Energy Consumption:1214 TJ/year
Water Consumption:7.48 million m3/year
Waste Generated:17600 tons/year

ESG Focus Areas

  • Biodiversity
  • Circularity
  • Climate change
  • Compliance
  • Consumer product safety
  • Culture
  • Digitalization & data protection
  • Diversity & inclusion
  • Economic performance
  • Environmental safety
  • Fair labor practices
  • Local communities
  • Occupational safety
  • Product stewardship & related communication
  • Resource optimization
  • Sustainable sourcing
  • Talent management
  • Waste (solid)
  • Wastewater management

Environmental Achievements

  • Reduced Scope 1 and Scope 2 GHG emissions by 5% compared to FY2020 (86,694 tCO2e)
  • Reduced water withdrawal by 7% compared to FY2020 (7.48 million m3)
  • Reduced water intensity by 22% compared to the previous reporting period (16.24 m3 per ton of finished good produced)
  • Reduced energy intensity by 11% compared to the previous reporting period (2.62 GJ per ton of production)
  • Reduced waste intensity by 19% compared to the previous reporting period (37.7 kg per ton of finished good produced)
  • Increased the portion of reused, recovered, or recycled waste by 7% compared to the previous period
  • Reduced landfilling of hazardous waste by 8 percentage points compared to the previous period

Social Achievements

  • Launched the “Safe Edge” online regulatory & compliance platform
  • Organized the first Sustainability Awards, recognizing projects supporting sustainable growth
  • Continued to support local communities with donations and initiatives (e.g., Earth Day activities, charity programs)
  • Increased the overall ratio of women in the workforce by 0.73% compared to the previous reporting period (21%)
  • Increased the ratio of women in management by 0.1% compared to the previous period (31%)
  • Implemented a 50/50 rule in the hiring policy to ensure diverse candidate shortlists
  • Introduced a bi-annual evaluation cycle for performance management

Governance Achievements

  • Improved compliance process by establishing a 3-month timeframe for compliance investigations
  • Joined the Science Based Targets initiative (SBTi) in October 2021
  • Maintained EcoVadis Platinum rating, placing Archroma in the top 1% of its industry
  • Ranked #1 in the “industrial chemicals” list by the Institute of Public & Environmental Affairs (China) for supply chain transparency

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (target to be reviewed in 2022)
Short-term Goals:
  • Reduce water withdrawal in water-stressed areas by 40% by 2023 (to 0.13 million m3)
  • Reduce water intensity to 16.4 m3 per ton of production by 2023
  • Reduce energy intensity to 2.42 GJ per ton of finished good produced by 2023
  • Reduce waste intensity to 28.5 kg per ton of finished product by 2023
  • Increase women in management to 33% by 2023
  • Achieve TRR less than 0.2 per 200,000 hours worked by 2023

Environmental Challenges

  • COVID-19 pandemic impacting supply chains and costs
  • Ongoing challenges with raw materials and finished goods
  • Complexity of Scope 3 emissions calculation
  • Need to further reduce GHG emissions, water and energy consumption, and waste generation
Mitigation Strategies
  • Implemented measures to protect cash position (price management, efficiency improvements)
  • Proactively worked with customers on sustainable solutions
  • Initiated steps to include non-production sites in future emissions reporting
  • Joined SBTi to ensure robust net-zero targets and reporting
  • Launched focused initiatives to accelerate reduction of energy intensity and waste intensity

Supply Chain Management

Supplier Audits: 598 suppliers assessed by EcoVadis since FY2018, 11 audited on-site by TfS in FY2021; 89% of material spend with valid ratings

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability assessments for new suppliers
  • Monitoring of supplier performance
  • Corrective action plans for improvement areas
  • Membership in Together for Sustainability (TfS)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Sustainable Products & Innovation

  • EarthColors®
  • RAIN AWAY
  • DEEP SOUL
  • DIGITALLY CLEAN
  • CLEAN FELT
  • BOXING CLEVER

Awards & Recognition

  • EcoVadis Platinum Medal
  • IPE ranking #1 in industrial chemicals for supply chain transparency

Reporting Period: 2021-10 to 2022-09

Environmental Metrics

Total Carbon Emissions:79,192 tCO2e/year
Scope 1 Emissions:39,232 tCO2e/year
Scope 2 Emissions:39,960 tCO2e/year
Total Energy Consumption:1,135 TJ/year
Water Consumption:6,939,212 m3/year
Waste Generated:17,840 tons/year
Carbon Intensity:0.189 tCO2e/ton produced

ESG Focus Areas

  • Health & safety
  • Greenhouse gas emissions
  • Resource optimization
  • Sustainable sourcing
  • Diversity & inclusion
  • Green innovation

Environmental Achievements

  • Reduced Scope 1 & 2 GHG emissions by 9% compared to FY2021 and 24% compared to FY2018 baseline.
  • Reduced total water intake by 7% compared to FY2021.
  • Introduced two PFC-free innovations: Smartrepel® Hydro SR and Cartaseal® VWAF.
  • Introduced DOWN TO EARTH coloration system for compostable paper.

Social Achievements

  • Total Recordable Injury Rate (TRR) decreased to <0.2 per 200,000 hours worked.
  • Increased percentage of women in the workforce to 22% and in management to 31.9%.
  • Launched a new culture framework based on four pillars: Achieving, Adaptable, Customer-centric, and Collaborative.
  • Organized various community support programs globally.

Governance Achievements

  • Successfully completed a limited assurance audit by KPMG on several core ESG indicators.
  • Achieved EcoVadis Platinum rating (top 1% in industry).
  • Maintained #1 position in IPE’s “industrial chemicals” list.
  • Launched Safe Edge digital product safety platform.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions ambition (targets to be set and submitted to SBTi).
Medium-term Goals:
  • Reduce waste intensity to 28.5 kg/ton by 2023.
Short-term Goals:
  • Reduce water withdrawal in water-stressed areas by 40% by 2023 (vs. 2018 baseline).
  • Reduce incoming water intensity to 16.4 m3/ton by 2023.
  • Reduce energy intensity to 2.42 GJ/ton by 2023.

Environmental Challenges

  • Raw material cost increases.
  • Energy supply tensions.
  • Recessionary environment with reduced demand.
  • Changes in market trends and potential adverse regulatory changes.
Mitigation Strategies
  • Price management.
  • Organizational efficiency and process simplification.
  • Development of systems to reduce resource consumption and improve efficiency (e.g., CONSCIOUSLY DEEP, DEEP TRAIL).
  • Proactive adaptation of product portfolio to meet future market expectations and regulations.

Supply Chain Management

Supplier Audits: 15 on-site audits by TfS in 2022; 805 suppliers assessed by EcoVadis since 2018.

Responsible Procurement
  • Supplier Code of Conduct.
  • EcoVadis and TfS assessments.
  • Sustainability criteria in vendor selection.

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
Transition Risks
  • Changes in market trends and regulations.
Opportunities
  • Development of energy-efficient products and systems.

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Archroma's initiatives contribute to these goals through resource efficiency, sustainable innovation, fair labor practices, and community engagement.

Sustainable Products & Innovation

  • Smartrepel® Hydro SR
  • Cartaseal® VWAF
  • Siligen® EH1
  • Appretan® NTR
  • CONSCIOUSLY DEEP
  • ONE DENIM
  • DOWN TO EARTH

Awards & Recognition

  • EcoVadis Platinum rating.
  • EQA award for Safe Edge platform.

Reporting Period: 2022-10 to 2023-09

Environmental Metrics

Total Carbon Emissions:120,376 tCO2e/year
Scope 1 Emissions:56,675 tCO2e/year
Scope 2 Emissions:63,700 tCO2e/year
Renewable Energy Share:7%
Total Energy Consumption:1,562 TJ/year
Water Consumption:7,474,931 m3/year
Waste Generated:26,478 tons/year
Carbon Intensity:0.262 tCO2e per ton of product produced

ESG Focus Areas

  • Climate change
  • Circularity
  • Resource efficiency
  • Health & Safety
  • Fair and attractive employer
  • Sustainable supply chain
  • Business ethics & compliance
  • Biodiversity

Environmental Achievements

  • 50% of sales stemmed from the Sustainable Systems portfolio (9% increase compared to FY2022)
  • Development of FiberColors® technology, creating dyes from textile waste (minimum 50% waste-based raw material)
  • Development of Cartaseal® SCR, a PFC-free barrier for drinking cups
  • Development of DIRESUL® NATURAL BROWN P, biosynthetic brown dyes derived from rosemary waste
  • DIRESUL® EVOLUTION BLACK LIQ delivers an overall impact reduction of 57% compared to standard sulfur black

Social Achievements

  • EcoVadis Platinum rating for the second consecutive year
  • Archroma won four top accolades at the Just Style 2023 Excellence Awards
  • Launched a Diversity and Inclusion Project to reduce the gender equality gap

Governance Achievements

  • Established a new ESG council in September 2023
  • Improved compliance process to conclude all compliance investigations within a 3-month period
  • Updated Risk Management Policy

Climate Goals & Targets

Environmental Challenges

  • Supply chain disruptions due to global megatrends (ageing population, climate change)
  • Increased Scope 1 and 2 emissions, energy consumption, and waste due to Huntsman acquisition
  • Label confusion regarding eco-labels
  • Challenges in ramping up electrification technologies and processes
  • Gap between renewable energy demand and supply
Mitigation Strategies
  • Revising and aligning ESG approaches, scopes, and methodologies for FY2024 onwards
  • Working with customers and partners to address global megatrends
  • Improving energy efficiency and promoting renewable energy use
  • Developing a methodology to calculate Scope 3 emissions
  • Establishing Product Carbon Footprints (PCFs)
  • Encouraging suppliers to commit to tCO2e reduction targets

Supply Chain Management

Supplier Audits: 95% of suppliers monitored through Archroma Sustainable Supplier Rating (ASSR)

Responsible Procurement
  • Supplier Code of Conduct
  • EcoVadis assessments
  • TfS audits
  • ISO certificates

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Natural resource scarcity
  • Physical security risk due to natural disasters
Transition Risks
  • Changes in regulations
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Shift towards a more sustainable product portfolio

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • Not disclosed

Sustainable Products & Innovation

  • FiberColors®
  • Cartaseal® SCR
  • DIRESUL® NATURAL BROWN P
  • DIRESUL® EVOLUTION BLACK LIQ
  • Appretan® NTR range

Awards & Recognition

  • EcoVadis Platinum rating (2022, 2023)
  • Four Just Style 2023 Excellence Awards

Reporting Period: 2024-10-01 to 2024-09-30

Environmental Metrics

Total Carbon Emissions:119,944 tCO2e/year
Scope 1 Emissions:63,214 tCO2e/year
Scope 2 Emissions:56,731 tCO2e/year
Scope 3 Emissions:1,232,519 tCO2e/year (Scope 3.1 only)
Renewable Energy Share:10.3%
Total Energy Consumption:1,707 TJ/year
Water Consumption:8,004,029 m3/year
Waste Generated:30,423 tons/year
Carbon Intensity:0.233 tCO2e per ton of product produced

ESG Focus Areas

  • Sustainable Materials
  • Climate & Energy
  • Waste & Circularity
  • Water & Land
  • Health & Safety
  • Fair & Attractive Employer
  • Business Ethics & Compliance
  • Sustainable Supply Chain

Environmental Achievements

  • Reduced CO2e intensity to 0.233 tCO2e per ton of product produced (a decrease from 0.262 in FY2023)
  • Reduced water intensity to 15.55 m3/t of finished product (a 5% decrease from FY2023)
  • Reduced waste intensity to 56.2 kg/t of finished product (a decrease from 56.5 in FY2023)
  • Increased renewable energy share to 10.3% of total energy consumption
  • Implemented a Zero Liquid Discharge (ZLD) system at Mahachai, Thailand, reclaiming 90-95% of wastewater

Social Achievements

  • Launched a new series of Health and Wellbeing Sessions for employees
  • Launched the Women’s Initiative Network (W.I.N.) with four pillars: social events, manager training, policy review, and career opportunities
  • Won the Social Excellence award at the 2024 Just Style Excellence Awards for community engagement in Baroda, India

Governance Achievements

  • Revamped Archroma's Code of Conduct
  • Achieved a Code of Conduct training completion rate above 90%
  • Implemented a new governance model with a dedicated ESG council
  • Improved the Archroma Sustainable Supplier Rating (ASSR) to 95% of direct supplier spend

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 emissions by -20% tCO2e by 2030
  • Reduce Scope 2 emissions by -40% tCO2e by 2030
  • Reduce energy intensity by -15% GJ/t of finished product by 2030
  • Reduce waste intensity by -10% kg/t of finished product by 2030
  • Achieve zero hazardous waste to landfill by 2030
  • Reduce water intensity by -40% m3/t of finished product by 2030
  • Increase percentage of revenues from Innovation projects with Sustainability+ focus to >75% by 2030
  • Increase percentage from Sustainable+ collection to 40% by 2030
  • Increase percentage from certified products to >95% by 2030
  • Achieve 40% women in governance bodies by 2030
  • Achieve 40% women in management by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Integrating the Huntsman Textile Effects business, requiring alignment of data collection scopes and reporting methodologies
  • Data gaps in Scope 3 emissions calculations
  • Water stress in several operating regions
  • Increasing ESG reporting requirements
  • Potential risks related to climate change (extreme weather, resource scarcity)
Mitigation Strategies
  • Developed a new sustainability framework and targets for FY2024-2028
  • Developed a methodology to calculate Scope 3.1 GHG emissions
  • Implemented water efficiency projects and ZLD technology
  • Engaged external advisors to support ESG reporting
  • Developed natural disaster risk assessments and back-up plans, water efficiency projects, and energy efficiency projects

Supply Chain Management

Supplier Audits: 95% of direct supplier spend assessed through ASSR in FY2024

Responsible Procurement
  • Supplier Code of Conduct, Archroma Sustainable Supplier Rating (ASSR), TfS audits, EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, natural disasters, water supply stress, energy supply stress
Transition Risks
  • Green taxation, increased ESG requirements, inability to meet reduction targets
Opportunities
  • Development of sustainable products and processes, increased demand for sustainable solutions

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001 (at select sites), ISO 22716 (at Gersthofen)

Third-party Assurance: KPMG (limited assurance on selected metrics)

UN Sustainable Development Goals

  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Archroma's initiatives contribute to these goals through sustainable product development, resource efficiency, community engagement, and responsible supply chain management.

Sustainable Products & Innovation

  • AVITERA®, AVITERA® SE GENERATION NEXT, ALBAFIX®E3-RUB, INKPRESSO® RK, DENIM HALO, DIRESUL® EVOLUTION BLACK, NOVACRON® ADVANCE INKS, LANASET® XKS, NYLOFIXAN® HFS LIQ C, IMEROL® MF2E, CARTASEAL® OGB F10, CARTABOND® FCI, CARTASPERS® PLH

Awards & Recognition

  • EcoVadis Gold rating, adidas adiFormulator Award (Champion), WestRock Sustainability Partner Award, Just Style Excellence Award (Social Excellence)