Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Commitment
• Sustainability

Environmental Achievements

• Received the Federation of German Industry’s Environmental Award for its biotech-engineered production of cysteine.
• Developed a process to recycle pyrogenic silica at its Nünchritz site, recycling 1,000 metric tons annually.
• Produced 161,619 metric tons of waste in 2008, with 46% used as material and energy.

Social Achievements

• Supported scientific, social and cultural projects, primarily through regional and local outreach programs.
• Sponsored the Bavarian state’s “Young Scientist” competition and the regional competition in Dresden.
• Supported the German religious charity, “Die Arche,” with a €100,000 donation.
• Donated €100,000 to rebuild a school in the Sichuan region after the earthquake.

Governance Achievements

• Implemented an integrated management system (IMS) regulating workflows and responsibilities, considering productivity, quality, and environment, health & safety.
• Maintained a strong equity base despite high investment levels.
• Remained almost debt-free.

Climate Goals & Targets

Environmental Challenges

• High energy and raw material costs.
• Exchange rate fluctuations.
• Global economic crisis impacting demand in various sectors (semiconductors, construction).
• Weak construction sector performance.
• Lower demand for electronic consumer goods and price pressure on 300 mm wafers.

Mitigation Strategies

• Implemented crisis-alleviating measures such as short-time work, temporary plant shutdowns, budget cuts, investment plan modifications, and sound operational financing.
• Raised prices for many products.
• Hedging against negative exchange-rate effects.
• Expanding supply chain outside the eurozone.
• Sold monocrystals and other silicon by-products to the solar industry to compensate for lower semiconductor sector sales.
• Introduced various productivity-boosting and cost-cutting measures.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers’ adherence to UN Global Compact principles.

Responsible Procurement

• Reorganized raw materials procurement in 2008 to bolster procurement reliability, optimize purchase terms, and improve supplier relations.
• Long-term supply agreements with creditworthy partners.
• Centrally negotiated procurement agreements.
• Multiple suppliers for each product.

Climate-Related Risks & Opportunities

Physical Risks

• Storms (addressed by SAFE storm research project)

Transition Risks

• EU emissions trading

Opportunities

• Production of polysilicon for solar industry.
• Thermal insulation products.

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001 (quality), ISO 14001 (environmental protection), OHRIS/OHSAS (occupational health & safety and plant safety), ISO/TS 16949 (quality), HACCP (food hygiene)

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Biotech-engineered production of cysteine.
• VINNAPAS® dispersible polymer powder for thermal insulation.
• Hyperpure polycrystalline silicon for solar industry.
• Recycled pyrogenic silica.

Awards & Recognition

• Federation of German Industry’s Environmental Award (2008)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Resource Management
• Environmental Protection
• Workplace Safety
• Employee Well-being
• Responsible Care
• UN Global Compact

Environmental Achievements

• Reduced carbon dioxide emissions to 1,236,000 metric tons in 2013 (from 1,294,000 in 2012)
• Reduced water consumption at Burghausen due to lower temperatures
• Lowered chemical oxygen demand and emissions of halogenated organic compounds due to acetaldehyde plant closure
• Improved power plant operations
• Increased recycling of filter cake from wastewater treatment at Burghausen

Social Achievements

• Launched preventive-care project for shift workers in partnership with Deutsche Rentenversicherung Süd
• Conducted survey on mental and social stress among managerial employees
• Reduced employee turnover rate to 3.4% (from 7.9% in 2012)
• Implemented WACKER Safety Plus program to improve workplace safety
• Reduced workplace accidents with missed workdays by 19%
• Supported 'Die Arche' charity with a €100,000 donation
• Collected €152,000 in donations for flood victims

Governance Achievements

• Expanded Group certification to include Jincheon site (ISO 9001 and ISO 14001) and other sales regions (ISO 9001)
• Published Sustainability Report for 2011/2012 meeting GRI G3 guidelines and receiving an 'A' rating
• Implemented new IT system for sustainability reporting (SPIRIT)
• Maintained a network of 22 compliance officers worldwide

Climate Goals & Targets

Environmental Challenges

• Low polysilicon prices and persistent price pressure in the semiconductor segment
• Weak economy in Europe and slowdown in emerging markets
• Overcapacity in the photovoltaic market and price pressure throughout the supply chain
• Anti-dumping proceedings by the European Union against Chinese solar companies and by the Chinese Ministry of Commerce against European polysilicon manufacturers
• Demographic change and lack of qualified employees

Mitigation Strategies

• Implemented cost-saving measures resulting in €225 million in savings
• Focused on improving profitability and posting positive net cash flow
• Shifted investment focus toward facilities for manufacturing downstream products
• Expanded market share for high-end products
• Aligned production with demand and performed quantity controls
• Implemented structured price management, process optimization, and development of growth markets
• Extended the timeline for the new polysilicon site in Tennessee
• Implemented a new Talent Management Process
• Offered a wide variety of training programs and performance-oriented compensation

Supply Chain Management

Supplier Audits: 358 suppliers reviewed in 2013

Responsible Procurement

• UN Global Compact principles
• Responsible Care initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• VINNAPAS® dispersions with reduced VOCs
• VINNEX® binder system for bioplastics

Awards & Recognition

• Responsible Care® Chairman’s Award (WACKER Greater China)
• Alexander Wacker Innovation Award (Siltronic AG)
• Siltronic Inventor Award

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health and Safety
• Employee Well-being
• Responsible Procurement
• Community Investment
• Diversity and Inclusion

Environmental Achievements

• Reduced specific energy consumption for polysilicon production by 29%
• Reduced the number of empty containers transported by 20%, thereby cutting CO2 emissions
• Reduced organic burden within the effluent feed to the biological wastewater treatment plant at Burghausen
• Reduced NOX emissions by around 4%
• Reduced NMVOC emissions at Eddyville site by 33% since 2012
• Reduced dust emissions from silicon-metal production in Holla by 20%

Social Achievements

• Built a new health center at the Burghausen site with €4 million investment
• Developed the WACKER INSTITUTE in partnership with Chattanooga State Community College, training around 200 students
• Won the Bellwether Award for the best worker training program in the USA for WACKER INSTITUTE
• Accommodated four unaccompanied adolescent refugees from Afghanistan at Burghausen Vocational Training Center
• Donated €100,000 to Die Arche, a Munich-based charity for children and adolescents

Governance Achievements

• Published Sustainability Report for 2013/2014 meeting GRI G3 guidelines with an A rating
• Joined the German Diversity Charter initiative
• Implemented a quota for women in management

Climate Goals & Targets

Environmental Challenges

• Lower polysilicon prices
• Strong dollar
• Slow economic growth in China
• Geopolitical tensions
• Anti-dumping proceedings against the solar industry
• Overcapacity in the polysilicon and semiconductor markets
• Supply chain disruptions
• Back problems as leading cause of sick days

Mitigation Strategies

• Cost savings of €160 million
• Currency hedging
• Focus on high-value products
• Capacity adjustments
• Cost reduction measures
• Productivity improvements
• Collaboration with customers and suppliers
• Back health initiative and Fit for Your Shift project
• Health Culture 2020 program

Supply Chain Management

Supplier Audits: 366 suppliers reviewed in 2015

Responsible Procurement

• UN Global Compact principles
• Responsible Care® initiative
• Together for Sustainability procurement initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 22716

Sustainable Products & Innovation

• ESETEC® 2.0 (antibiotic-free process for pharmaceutical proteins)
• GENIOPLAST® PP (production aid for wood-plastic composites)
• Various new silicone and polymer products

Awards & Recognition

• ICIS Chemical Business Company of the Year
• VCI Responsible Care® Award
• Bellwether Award for best worker training program
• AICM Responsible Care® Chairman Award
• GreenFleet award

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Protection
• Safety
• Employee Well-being
• Responsible Procurement

Environmental Achievements

• Reduced emissions, consumption, and energy input by 41 percent in the last ten years at the Burghausen site.
• Developed water-based dispersions for fire-retardant coatings, meeting stricter environmental protection requirements in South Korea.
• Developed ETONIS® concrete admixture for pervious concrete, reducing urban heat island effect and improving rainwater drainage.

Social Achievements

• Opened new technical competence centers in Jakarta (Indonesia) and Istanbul (Turkey).
• Celebrated the 40th anniversary of its South American headquarters in Brazil.
• Intensified cooperation with innovative company founders by becoming involved in Germany’s HTGF III fund.
• Increased employee count by 2.7% to 13,811.

Governance Achievements

• Divested majority stake in Siltronic AG, focusing on chemicals and polysilicon business.
• Renewed contracts of president and CEO Dr. Rudolf Staudigl and Executive Board member Dr. Christian Hartel.
• Implemented a digitalization program covering all core business processes.

Climate Goals & Targets

Environmental Challenges

• Higher raw material prices (especially methanol, ethylene, and vinyl acetate monomer).
• Hydrogen explosion at the Charleston, Tennessee (USA) production site.
• Price pressure in the polysilicon market due to overcapacity.
• Exchange rate fluctuations.

Mitigation Strategies

• Hedging against exchange rate fluctuations.
• Implementing cost-cutting measures (Wacker Operating System).
• Focusing on high-margin specialty products.
• Expanding production capacities in growth markets.
• Insurance coverage for the Charleston incident.

Supply Chain Management

Responsible Procurement

• Long-term supply contracts with partners
• Structured procurement policy involving multiple suppliers

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Water-based dispersions for fire-retardant coatings
• ETONIS® concrete admixture for pervious concrete
• Functionalized polymer dispersions, dispersible polymer powders, and polymer resins for enhanced dispersion paints, adhesives, and cementitious building materials

Awards & Recognition

• Alexander Wacker Innovation Award

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Water withdrawal
• Energy consumption
• Sustainable supply chain
• Safety
• Diversity

Environmental Achievements

• 86% reduction in absolute CO2e emissions (Scope 1+2) vs. 2020 baseline; targeting 50% reduction by 2030
• 104% reduction in specific water withdrawal vs. 2020 baseline; targeting 15% reduction by 2030
• 103% reduction in specific energy consumption vs. 2020 baseline; targeting 15% reduction by 2030
• 79% of key suppliers meet defined TfS criteria; targeting 100% by 2030
• 94% of products meet defined sustainability criteria; targeting 100% by 2030

Social Achievements

• 21% of management positions held by women; targeting 33% by 2030
• 32% of management positions outside Germany; targeting 50% by 2030
• Reduction in chemical accidents with missed workdays from 14 in 2022 to 2 in 2023; targeting 0 by 2030
• Zero severe process safety incidents in 2023; targeting 0 by 2030

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 79% in 2023

Responsible Procurement

• TfS criteria

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed