Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Occupational Health and Safety
• Resource Efficiency
• Waste Reduction
• Diversity and Inclusion

Environmental Achievements

• Reduced CO² emissions from 193,085 tons in 2018 to 181,924 tons in 2019 (-6%)
• Improved water consumption key performance indicators
• Reduced hazardous waste from 18,800 tons to 18,100 tons (-4%)
• Reduced non-hazardous waste from 11,400 tons to 9,600 tons (-16%)

Social Achievements

• Reduced number of occupational accidents with lost work time (WAI 1, WAI 2, WAI 3)
• Implemented various safety measures and training programs
• Supported educational coaching project for elementary schoolchildren
• Supported junior researchers and youth startups

Governance Achievements

• Complied with the vast majority of the applicable recommendations of the German Corporate Governance Code
• Established a Compliance Management System

Climate Goals & Targets

Environmental Challenges

• Weakening demand in important industrial sectors, particularly the automotive industry
• Overall economic downturn, particularly in China
• Limited availability of certain raw materials
• Substantial raw materials price increases

Mitigation Strategies

• Stringent cost management
• Targeted acquisitions
• Continuous analysis of raw materials markets
• Flexible price mechanisms and price lockup periods

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, International Integrated Reporting Council’s (IIRC) reporting framework, UN Global Compact

Certifications: ISO 14001 (89% of production sites), ISO 50001 (10 sites), ISO 45001 (ACTEGA Artística)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (unqualified audit opinion for financial statements, no assurance for GRI KPIs)

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation, and infrastructure
• SDG 13: Climate action

Initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Water-based coatings and printing inks
• Additives with reduced formaldehyde and VOC emissions
• Solvent-free automotive coatings
• Emission-free impregnating resin for transformers
• Plant-based resin for labels
• Surface additive from 100% renewable raw materials
• LED-cured printing varnishes

Awards & Recognition

• BEST RECRUITERS awards for online recruiting
• Potentialpark study awards for online recruiting
• MINT-Minded Company award

Environmental Metrics

ESG Focus Areas

• Climate Protection
• Occupational Health and Safety
• Sustainable Economic Growth and Decent Work
• Innovation
• Gender Equality

Environmental Achievements

• Switched entire electricity procurement worldwide to renewable energies
• Reduced total CO² equivalents (Scope 1 + Scope 2) by 49% to 92,553 t
• Reduced specific CO² equivalents (Scope 1 + Scope 2) by 49% to 0.18 kg/kg finished goods
• Reduced hazardous waste by 4.74 g/kg finished goods
• Reduced non-hazardous waste by 16.37 g/kg finished goods
• Reduced drinking water consumption to 2.19 m³/t finished goods

Social Achievements

• Significantly reduced the number of reported occupational accidents
• Achieved ambitious safety targets
• Supported numerous coronavirus aid projects
• Maintained delivery capabilities and efficiency despite the pandemic
• Successfully continued strategy of growing by means of acquisitions

Governance Achievements

• ALTANA complied with the vast majority of the applicable recommendations and suggestions of the German Corporate Governance Code
• Established a Compliance Management System
• ALTANA joined the UN Global Compact initiative

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic and associated economic uncertainties
• Significant demand decline in some months due to the pandemic
• Weak demand in the automotive industry and the exploration sector
• Pandemic-related decline in demand in the automotive and cosmetics industries
• Global impact of the pandemic on demand in ELANTAS’ major business areas

Mitigation Strategies

• Implemented stringent cost management and pandemic-related savings
• Maintained supply and performance capabilities
• Implemented cost containment measures
• Took temporary short-time working measures
• Focused investments on strategically and operationally most important projects

Supply Chain Management

Responsible Procurement

• Search for suppliers
• Supplier agreements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Comprehensive), IIRC

Certifications: ISO 14001 (92% of production sites), ISO 50001 (10 sites)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 9
• SDG 13

ALTANA supports the UN Sustainable Development Goals through various initiatives described in the report.

Sustainable Products & Innovation

• TPE compounds
• EcoLeaf technology
• YUNICO® technology
• ACTGreen® Sustainable Coatings
• RECYCLOBYK® additives

Awards & Recognition

• EcoVadis Gold status (twice)
• BEST RECRUITERS
• Potentialpark
• MINT Minded Company 2020
• TOP 30 employers (Azubi-Comm Study 2020)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced specific greenhouse gas emissions (Scope 1 and 2) by 61% compared to 2007. Scope 1 increased by 20%, while Scope 2 decreased by 99% due to a switch to renewable energy.
• Reduced specific energy consumption by 2% compared to the previous year.
• Increased hazardous waste for recycling/reuse to 8.49 g/kg of finished goods.

Social Achievements

• Implemented a global, system-supported Talent Cycle for employee development and performance reviews.
• Offered further training opportunities and promoted professional development for employees.
• Maintained a low work accident indicator (WAI).

Governance Achievements

• Implemented a compliance management system, including anti-corruption training.
• Conducted sustainability checks with suppliers using the EcoVadis system.
• Participated in the UN Global Compact and Responsible Care Global Charter initiatives.

Climate Goals & Targets

Environmental Challenges

• Reduced availability and rising prices of raw materials and energy.
• Marketing limitations due to chemical law requirements.
• Increased risk of weather phenomena due to climate change.
• Potential risks of disadvantages to applicants and discrimination against staff.
• Risk of child labor.

Mitigation Strategies

• Longer-term supply contracts and qualifying multiple suppliers for each raw material.
• Prospective analyses of chemicals legislation to identify and develop alternatives.
• Offset projects to reduce CO2 impact from natural gas combustion.
• Use of renewable energy sources (biogas, green electricity, green hydrogen).
• Guarantees of Origin and Power Purchase Agreements (PPAs) for renewable electricity.
• Expansion of own renewable energy sources (photovoltaics).
• Implementation of a global, system-supported Talent Cycle.
• Regular training programs and health initiatives for employees.
• Compliance management system and regular audits.

Supply Chain Management

Supplier Audits: 314 scorecards of raw material suppliers (64% coverage); 24 scorecards of logistics service providers (52% coverage); 12 scorecards of IT service providers (approx. 20% coverage)

Responsible Procurement

• Supplier qualification process
• Code of conduct for suppliers (including UN Global Compact principles)
• EcoVadis assessments
• Risk management system for human and environmental issues (LkSG)

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rain, storms, prolonged drought

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001 (at some sites)

Third-party Assurance: TÜV Rheinland (for selected EPDs)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products that improve end-product functions, increase shelf life, optimize value chain, reduce critical substances.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Safety
• Human Resources
• Governance
• Social Responsibility
• Supply Chain Management
• Compliance

Environmental Achievements

• Reduced total greenhouse gas emissions (Scope 1 + Scope 2) by 16% compared to 2022 (77,769 tCO2e in 2023 vs 92,629 tCO2e in 2022)
• Global transition to electricity from renewable sources in 2020
• Reduced specific energy demand by 2% compared to 2022 (1.18 kWh/kg in 2023 vs 1.20 kWh/kg in 2022)
• Reduced hazardous waste by 15% compared to 2022 (16,988 tons in 2023 vs 19,923 tons in 2022)

Social Achievements

• Implemented a global, system-supported Talent Cycle for employee development
• Increased willingness of staff to switch between divisions
• Offered further training opportunities and supported employee health with preventive measures
• Implemented a learning platform with global e-learning and a digital training library

Governance Achievements

• Established an initial climate risk management system
• Formulating a comprehensive Group policy outlining procedures for documenting and reporting climate-related impacts, risks, and opportunities
• Implemented a robust risk management system to mitigate human rights and environmental risks within operations and with suppliers
• Implemented a Compliance Management System (CMS) with a Compliance Committee

Climate Goals & Targets

Environmental Challenges

• Water scarcity impacting specific ALTANA sites, particularly in Asia
• Increased frequency and intensity of extreme weather events (North America and Asia)
• Potential increase in raw material costs due to global adoption of carbon pricing mechanisms
• Risks related to the interpretation of tax law or other agreements

Mitigation Strategies

• Reducing water consumption through technical measures (closed-loop cooling systems, avoiding water-intensive processes, leak detection and repair)
• Site-specific analysis of physical risks, leveraging various data sources
• Utilization of macroeconomic and company-specific data to analyze the potential impact of political, economic, social, technological, environmental, and legal factors on the company
• Longer-term supply contracts for raw materials
• Qualifying several suppliers for one raw material
• Prospective analyses of chemicals legislation
• Actively seeking external advice for complex tax risks
• Fostering a spirit of cooperative compliance with tax authorities

Supply Chain Management

Supplier Audits: 662 scorecards for raw material suppliers (71% coverage), 57 for logistics (53%), 50 for IT (77%), 11 for energy (25%)

Responsible Procurement

• Supplier selection based on defined process and specifications
• Supplier adherence to code of conduct (avoidance of corruption, gender neutrality, equal opportunity)
• Sustainability checks using EcoVadis system
• Risk management system for human rights and environmental issues (LkSG)

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather events

Transition Risks

• Carbon pricing mechanisms

Opportunities

• Development of new sustainable products

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: TÜV Rheinland

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products that improve end product functions, increase shelf life, optimize customers' value chains, reduce critical substances

Awards & Recognition

• Not disclosed