Climate Change Data

Clariant Ltd

Climate Impact & Sustainability Data (2017, 2023)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:0.97 million tCO2e
Total Energy Consumption:3245 million kWh
Water Consumption:49 million m3
Waste Generated:198 thousand tons

ESG Focus Areas

  • Performance
  • People
  • Planet

Environmental Achievements

  • Reduced greenhouse gas emissions (scope 1 & 2) by 3.2% in 2017
  • Reduced energy consumption by 1.8% in 2017
  • Reduced water consumption (per ton of production) by 9.1% in 2017

Social Achievements

  • Filled more than 85% of Group Management positions with internal talents in 2017
  • Stabilized the Lost Time Accident Rate (LTAR) at 0.2 days lost per 200,000 work hours in 2017
  • Improved employee engagement score compared to 2014

Governance Achievements

  • Implemented a structured competency evaluation process for innovation leaders
  • Launched the "License to Hire" training for efficient recruiting
  • Launched the "Frontline Leadership Training"

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve an EBITDA margin before exceptional items of 16-19%
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Weak oil price and volatile economic environment impacting business performance
  • Ongoing consolidation in the chemical industry
  • Opposition to the merger with Huntsman by activist investor White Tale Holdings
  • Pricing pressure in some businesses and a slight initial delay in passing on raw material price increases
Mitigation Strategies
  • Restructured business with a new regional governance model, especially in China
  • Joint decision with Huntsman to terminate the merger agreement
  • Secured SABIC as a strategic investor
  • Implemented Clariant Excellence projects resulting in net benefits of CHF 162 million in 2017
  • Implemented measures to improve net working capital management

Supply Chain Management

Supplier Audits: 65% of raw material spend covered by TfS assessments in 2017

Responsible Procurement
  • Sustainability Supplier program
  • Supplier Code of Conduct
  • Together for Sustainability (TfS) initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, IIRC

Certifications: ISO 50001 (in more than 40% of production plants)

Third-party Assurance: PwC

Sustainable Products & Innovation

  • EcoTain® labeled products
  • Renewable-based waxes (Licocare® RBW)
  • Phthalate- and lead-free pigment preparations (TelasperseTM PVC)
  • Non-halogenated flame retardants
  • Bluemidin™
  • Eosidin™
  • EnviCat® VOC catalyst

Awards & Recognition

  • ICIS Surfactants Award 2017
  • Innovation Award of the Institute of Technology and Studies for Cosmetics, Toiletries and Fragrances (ITEHPEC)
  • Sustainable Product & Service Award at Goldenbee CSR China Honor Roll
  • Chairman’s Award from the Association of International Chemical Manufacturers (AICM)
  • Sustainability Best Practice Award and Sustainability Influencer Award
  • Best CSR Practice Award by the China Association of Enterprises with Foreign Investment
  • EIPM Award for Sustainability Leadership in Supply Chain
  • Highest EcoVadis assessment score (78 points) across the entire chemical industry

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2.81 m t CO2e (excluding biogenic CO2 emissions)
Scope 1 Emissions:0.29 m t CO2e
Scope 2 Emissions:0.25 m t CO2e
Scope 3 Emissions:2.28 m t CO2e
Renewable Energy Share:60% of total energy use
Total Energy Consumption:2389.7 m kWh
Water Consumption:8.4 m m³
Waste Generated:129.2 thousand tons
Carbon Intensity:Not explicitly stated as a single figure, but data is available to calculate.

ESG Focus Areas

  • Climate Change
  • Circularity
  • Sustainable Bio-economy
  • Waste and Pollution Reduction
  • Social Value Creation

Environmental Achievements

  • Scope 1 and 2 greenhouse gas emissions decreased by 13%, exceeding volume declines in Care Chemicals and Adsorbents & Additives, and more than offsetting the volume increase in Catalysts.
  • Scope 3 emissions for purchased goods and services decreased by 12% from 2022.
  • Bonthapally site in India achieved net-zero scope 1 and 2 emissions.

Social Achievements

  • Days Away, Restricted, or Transferred (DART) decreased by over 46%.
  • Overall Customer Net Promoter Score improved from 42 to 45.
  • Employee Net Promoter Score increased by more than 20 points.

Governance Achievements

  • Implemented a new operating model, improving key metrics like safety, customer satisfaction, and employee engagement.
  • Completed divestment of Quats business and sale of North American Land Oil business.
  • Agreed to acquire Lucas Meyer Cosmetics.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions for scope 1 and 2 by 2050.
Medium-term Goals:
  • Achieve 4-6% compound annual growth rate (CAGR) and increase EBITDA margin to 19-21%.
  • Reduce scope 1 and 2 emissions by 40% and scope 3 (cat. 1) emissions by 14% from a 2019 baseline.
  • Achieve top quartile in employee engagement.
Short-term Goals:
  • Reduce water intake by 20% and wastewater generation by 25% by 2030.
  • Reduce landfilled nonhazardous waste by 40% and hazardous waste by 25% by 2030.
  • Reduce nitrogen oxide emissions by 30% by 2030.

Environmental Challenges

  • Volatile raw material costs, supply chain issues, inflationary pressures, soaring interest rates, destocking across many industries, and shrinking consumer demand.
  • Geopolitical tensions and a slowing global economy.
  • Weak demand from customers.
  • Operational losses and costs related to sunliquid®.
Mitigation Strategies
  • Implemented performance improvement programs (CHF 135 million savings out of CHF 170 million commitment).
  • Divestment of non-core businesses.
  • Acquisition of Lucas Meyer Cosmetics.
  • Investments in growth projects and expansion in China.
  • Closure of sunliquid® bioethanol plant in Podari, Romania and downsizing related activities in Germany.

Supply Chain Management

Supplier Audits: Over 90% of direct spend for raw materials came from suppliers covered by shared sustainability ratings.

Responsible Procurement
  • Sustainability evaluations covering 91% of raw material spend.
  • Membership in Together for Sustainability (TfS).

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, water stress, damage to infrastructure.
Transition Risks
  • Increased energy and raw material prices, changing regulations, stakeholder pressure.
Opportunities
  • Development and expansion of low-emission goods and services, expansion of renewable energies, use of more efficient production processes.

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, Art. 964b of the Swiss Code of Obligations

Certifications: ISO 14001:2015, ISO 50001

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • SDG 2, SDG 3, SDG 6, SDG 7, SDG 9, SDG 12, SDG 13, SDG 15, SDG 17

Clariant's initiatives contribute to these SDGs through sustainable products, responsible operations, and stakeholder engagement.

Sustainable Products & Innovation

  • Aristoflex® Eco T, Rootness® Mood+, TexCare® Gemini SG Terra, Ceridust® 8170 M, Phasetreat™ Wet, Desi Pak® ECO, AmoMax®-Casale, MegaMax®.

Awards & Recognition

  • Dow Jones Sustainability Indices (DJSI), S&P Sustainability Yearbook, in-cosmetics Green Ingredients Awards, PCHi Fountain award, BSB Innovation Awards, Ringier Innovation Award, CITE Japan award, SAP Innovation Awards, EcoVadis Sustainable Procurement Leadership Awards, Responsible Care Award.