Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Water management
• Biodiversity
• Natural resource management
• Health and safety
• Employee well-being
• Community relations
• Responsible supply chain
• Product stewardship
• Risk management
• Governance
• Human rights

Environmental Achievements

• Reduced greenhouse gas emissions (direct and indirect) by 11% between 2005 and 2007
• Reduced total energy consumption (stable despite production growth)
• Significant reductions in emissions of ozone-depleting substances
• Developed and implemented the Epicerol process, reducing chlorinated residues eightfold and water consumption tenfold
• PVC production in Brazil using ethanol from sugarcane, avoiding large quantities of CO2 emissions
• Construction of a power station fueled by non-recyclable waste materials in Bernburg (Germany), reducing CO2 emissions
• Development of a process for treating contaminated sediments (NOVOSOL®)

Social Achievements

• Strengthened employee commitment (≥75% satisfaction in Solvay People Surveys)
• Reduced accident frequency rate involving stopping work to 2.4 per million hours worked (2007)
• Implemented the Youth Employment Scheme program
• Improved safety for subcontractor employees
• Implemented the “Living the Values” training program
• Updated Code of Conduct
• Developed the Shelt’Easy emergency shelters

Governance Achievements

• Formal endorsement of sustainable development policy by the Executive Committee (March 2007)
• Inclusion of sustainability criteria in strategic decision-making and investment plans
• Updated Responsible Care® Global Charter
• Revised Corporate Governance Rules and Code of Conduct (2007)
• Implementation of the “One Group, One Code, One Path” plan for Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• Climate change and energy supply
• Access to drinking water
• Biodiversity loss
• Management of natural resources
• Demographic changes
• Economic globalization
• Supply chain risks
• Regulatory changes
• Risk of accidents and environmental incidents
• Managing historic soil contamination
• Ensuring long-term competitiveness
• Meeting evolving stakeholder expectations

Mitigation Strategies

• Investing in energy efficiency and renewable energy sources
• Developing eco-efficient products and processes
• Optimizing transport of products
• Implementing risk management strategies
• Improving environmental management systems
• Strengthening dialogue with stakeholders
• Developing recycling processes
• Implementing safety management systems
• Investing in employee training and development
• Supporting community initiatives

Supply Chain Management

Supplier Audits: 100% of providers of logistical services for dangerous products by 2012

Responsible Procurement

• SQAS audits for logistics service providers
• Inclusion of safety and environmental requirements in contracts with subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in sustainable energy markets

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 9001, ISO 14001, OHSAS 18001, EMAS

Sustainable Products & Innovation

• Fuel cell membranes
• Water-based anti-corrosion paints
• Biomaterials for implantable medical devices
• High-performance polymers
• Hydrogen peroxide for water treatment
• HFCs for refrigeration
• Printed electronics
• OLED lighting components
• Shelt’Easy emergency shelters
• DUODOPA® for Parkinson's disease

Awards & Recognition

• Solvay Innovation Trophies
• Silver medal for INFLUVAC® packaging (2007)
• Environmental awards for Epicerol technology

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Management
• Waste Reduction
• People Safety
• Employee Well-being
• Responsible Sourcing
• Supplier Sustainability
• Human Rights
• Governance
• Product Stewardship
• Biodiversity

Environmental Achievements

• Reduced greenhouse gas emissions by 12% since 2009 (at constant activity perimeter)
• Reduced energy intensity by 4% since 2009
• Reduced withdrawal of groundwater and drinking water by 8.8%
• Reduced air emissions of substances with acidification potential by 10.5%
• Reduced air emissions of substances with photochemical oxidant formation by 10%
• Reduced water emissions of substances with eutrophication potential by 8.3%
• Over 400,000 tons of PVC recycled in Europe through VinylPlus
• 100,000 tons/year recovery capacity for waste incinerator residues (SOLVAir®)

Social Achievements

• Launched Solvay Way, a global sustainable development approach, with initial self-assessments completed at all sites
• Signed a global agreement on social and environmental responsibility with IndustriALL Global Union
• Improved Medical Treatment Accident Rate (MTAR) to 1.1
• Reduced Lost Time Accident Rate (LTAR) to 0.8 for employees and contractors
• Increased average training hours per employee to 36.2

Governance Achievements

• Integrated ESG criteria into strategic planning, M&A, investment, and R&I processes
• Linked 10% of the annual variable bonus of 7,500 managers and the CEO to CSR criteria
• Improved transparency and stakeholder engagement through increased meetings and roadshows

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions while maintaining production
• Managing water resources sustainably, especially in water-stressed regions
• Reducing hazardous waste going to landfill
• Integrating sustainability into all aspects of the business
• Maintaining high safety standards across all sites

Mitigation Strategies

• Implementing energy efficiency programs (Solwatt)
• Developing sustainable water management plans for sites under water stress
• Promoting waste reduction and recycling initiatives
• Deploying Solvay Way and Sustainable Portfolio Management (SPM) methodologies
• Implementing safety leadership practices and human and organizational safety factors programs

Supply Chain Management

Supplier Audits: 2,000 assessments and audits in 2013 through Together for Sustainability (TfS)

Responsible Procurement

• Integration of Solvay Way CSR framework into the Solvay Purchasing Process (SPP)
• Use of EcoVadis and TfS for supplier sustainability assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Epicerol process for bio-sourced epichlorohydrin
• Technyl Eco recycled polyamide
• Technyl eXten bio-sourced polyamide
• Kalix HPPA halogen-free flame retardant polyamides
• Fluorinated polymers for lithium batteries
• Silica for green tires
• SOLVAir for waste incinerator residue recovery

Awards & Recognition

• Award for Best Belgian Sustainability Report 2012
• Responsible Care first prize for Rare Earth Recycling
• Award for Best Innovation for Sustainability
• Numerous other awards and recognitions at GBU and site levels

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Social
• Governance
• Supply Chain
• Climate Change
• Biodiversity
• Water Management
• Raw Materials
• Energy
• Community Development
• Human Rights
• Employee Engagement
• Anti-corruption
• Anti-competitive behavior

Environmental Achievements

• Move4earth™ innovation, reducing carbon footprint by 26%, non-renewable resources by 48%, and water consumption by 69% compared to standard process.
• Significant reduction in greenhouse gas emissions (specific figures available in the report but not consistently formatted for easy extraction).
• Increased use of renewable energy sources (specific figures available but not consistently formatted).

Social Achievements

• Launched Solvay Way program, engaging 50% of employees in HSE, social, and community projects.
• Implemented Supplier Code of Conduct, aligned with UN Global Compact and Responsible Care® practices.
• Launched Purchasing and Supply Chain Academies to develop employee skills.
• Improved employee engagement index (specific figures available in the report but not consistently formatted).

Governance Achievements

• Renewed global agreement for social and environmental responsibility with IndustriALL Global Union.
• Implemented enhanced focus on anti-bribery and anti-corruption, appointing Compliance Liaisons in each GBU and Function.
• Implemented a Competition Law Compliance Program with a zero-tolerance approach towards competition law infringements.

Climate Goals & Targets

Environmental Challenges

• Water scarcity in certain operational areas.
• Soil contamination from historical activities.
• Supply chain disruptions (not explicitly stated, but implied through discussion of supply chain management).
• Youth unemployment in Europe.

Mitigation Strategies

• Developed alternative water sourcing strategies (e.g., using treated groundwater, water recycling projects).
• Implemented innovative soil remediation technologies (e.g., Soil Venting Thermal Extraction).
• Implemented Supplier Code of Conduct and CSR assessment and audit programs to improve supplier sustainability practices.
• Engaged with the European Pact for Youth to address youth unemployment.

Supply Chain Management

Supplier Audits: 1,096 suppliers evaluated via internal survey; 314 suppliers invited to participate in TfS assessments or audits.

Responsible Procurement

• Supplier Code of Conduct
• CSR prerequisites included in supplier selection process
• Third-party CSR assessments for critical suppliers
• Responsible Purchasing and Sustainable Supply Chain Statement

Climate-Related Risks & Opportunities

Physical Risks

• Drought periods affecting production units

Transition Risks

• Emerging regulations in non-EU countries

Opportunities

• Development of energy-efficient products and processes; lightweighting materials reducing fuel consumption and CO2 emissions.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16

Solvay focuses on seven SDGs directly linked to its five sustainable objectives by 2025 (details in report).

Sustainable Products & Innovation

• Move4earth™ technology; lightweighting materials; enhanced efficiency fertilizers.

Awards & Recognition

• Pierre Potier Prize for Move4earth™; various local awards (details in report).

Environmental Metrics

ESG Focus Areas

• Sustainable mobility
• Resource efficiency
• Greenhouse gas emissions reduction
• Circular Economy
• Employee well-being

Environmental Achievements

• Reduced greenhouse gas intensity by 0.02 kg CO2 eq. per euro of EBITDA.
• Reduced nitrogen oxide emissions intensity by 47% since 2015.
• Reduced sulfur oxide emissions intensity by 49% since 2015.
• Reduced NMVOC emissions intensity by 31% since 2015.
• Reduced freshwater withdrawal intensity by 46% since 2015.
• Reduced Chemical Oxygen Demand emissions intensity by 32% since 2015.
• Reduced intensity of Industrial Hazardous Waste not treated in a sustainable way by 38% since 2015.
• Commissioned the Solvay Jasper County Solar Farm in the USA.
• Contracted wind power in India.
• Expanded use of biomass energy in several locations.

Social Achievements

• Launched a pilot program on entrepreneurial leadership for Solvay’s “Leaders of the Future”.
• Maintained high employee engagement index at 76%.
• Increased employee involvement in societal actions to 33%.
• Launched Solvay Cares, a universal benefits package.
• Deployed a new initiative (the Net Promoter System®) to change the work habits of the Group’s entire frontline population.

Governance Achievements

• Completed a rigorous CEO succession process.
• Increased disclosure practices regarding short-term and long-term incentives.
• Simplified organization and processes to make Solvay more agile and customer-focused.
• Implemented Solvay Way 3.0 to integrate sustainability into operations.

Climate Goals & Targets

Environmental Challenges

• Slowdown in certain markets, including electronics and oil and gas.
• Higher raw materials and energy prices.
• Tougher than foreseen phase-out of fluorinated insulation blowing agents.
• Shift from diesel to gasoline in automotive catalysts.
• Climate transition risks (regulatory changes, technology failures, market shifts, reputational damage).
• Cyber risk (service continuity, data protection).
• Chemical product usage (third-party injuries, litigation).
• Supply chain and manufacturing reliability risks.
• Regulatory, political, and legal risks (including Brexit uncertainties).
• Financial risks (liquidity, foreign exchange, interest rate, counterparty, pension obligations, tax litigation).

Mitigation Strategies

• Ongoing deleveraging and optimization of debt structure.
• Strong liquidity reserves and access to credit facilities.
• Currency and interest rate hedging policies.
• Energy hedging policy.
• Monitoring of Group counterparties’ ratings.
• Pension governance and pension plan optimization.
• Control processes for tax regulation compliance and transfer pricing policies.
• Systematic and formal analysis of markets and marketing challenges.
• Development of GDP+ growth markets.
• Development of customized solutions with key accounts.
• Investment Committee oversight of capex allocation.
• Capex Excellence methodology for project portfolio.
• Sustainability assessment of major investments.
• Balanced global presence to reduce regulatory and political impact.
• Government and Public Affairs department engagement.
• Financial provisions for legal risk.
• Brexit task force.
• Geographic distribution of production units.
• Maintenance and property loss prevention programs.
• Third-party CSR assessment and adherence to the Solvay Supplier Code.
• Programs to reduce energy consumption.
• Solvay Safety Data Sheets (SDS) and recall procedures.
• Insurance to reduce financial impact of risks.
• Cyber security program, ISO certifications, and employee training.
• Global pandemic preparedness plan.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Solvay Supplier Code
• Third-party CSR assessment

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Technology failures
• Market shifts
• Reputational damage

Opportunities

• Development of energy-efficient products and processes
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, UN Global Compact, IIRC Integrated Reporting Framework, SASB Materiality Map™

Certifications: ISO 9001:2015, ISO 27001:2013

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 4
• SDG 17

Solvay's initiatives contribute to these goals through various programs and actions related to health and safety, energy efficiency, employee well-being, sustainable business solutions, greenhouse gas emissions reduction, societal actions, and partnerships.

Sustainable Products & Innovation

• High-performance polymers and composite technologies for sustainable mobility.
• Specialty formulations for resource efficiency.
• Natural vanillin products.

Awards & Recognition

• LinkedIn Talent Awards 2018 - Best Employer Brand
• Integrated Thinking Award from the Institut du Capitalisme Responsable

Environmental Metrics

ESG Focus Areas

• Climate
• Resources
• Better Life

Environmental Achievements

• Reduced greenhouse gas emissions by 5% compared to 2018 at constant scope
• Reduced pressure on biodiversity by 30%
• Diminished impact on freshwater withdrawal by reducing freshwater intake by 25%
• Reduced non-recoverable industrial waste by a third
• Increased sustainable solutions to 65% of Group sales

Social Achievements

• Launched Solvay ONE Planet, a new sustainability program with ten measurable commitments
• Achieved a 30% reduction in workplace injuries over two years and no fatalities for the past two years
• Increased employees involved in societal actions to 47% of employees
• Extended maternity leave to 16 weeks and paternity leave to co-parents

Governance Achievements

• Unveiled Solvay’s Purpose: “We Bond People, Ideas and Elements to Reinvent Progress”
• Introduced a new G.R.O.W. strategy with distinct business mandates
• Implemented a new operating model, Solvay ONE
• Launched a new People Engagement Model, Solvay ONE Team

Climate Goals & Targets

Environmental Challenges

• Significant external headwinds
• Lower volumes in automotive, electronics, and oil & gas markets
• Challenging business environment including the Boeing 737MAX production halt and the COVID-19 virus
• Climate change risks
• Supply chain disruptions
• Geopolitical risks

Mitigation Strategies

• Focus on customers, cost discipline, and cash management
• Implementation of G.R.O.W. strategy and Solvay ONE operating model
• GHG emissions reduction plan
• Alternative sourcing strategies
• Disciplined resource allocation
• Cost reduction programs
• Brexit task force
• Data Protection Plan

Supply Chain Management

Responsible Procurement

• Solvay Supplier Code

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, WBCSD’s ESG Disclosure Handbook, UN Global Compact, IIRC principles

Certifications: ISO 9001:2015, ISO 27001:2013

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 6 (Clean water and sanitation)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

Solvay's initiatives contribute to these goals through its sustainable products, resource efficiency programs, and community engagement

Sustainable Products & Innovation

• AgRHO®S-BoostTM
• SOLVAir®
• Solef®PVDF
• Capterall®
• Alve-One®
• MAX®HT
• Paramove®

Awards & Recognition

• Solvay Way Awards
• Financial Times’ “Diversity Leaders” ranking

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity and Inclusion (DEI)
• Employee well-being
• Supply chain sustainability
• Circular economy
• Resource management
• Human rights

Environmental Achievements

• Set a goal to reduce Scope 3 GHG emissions by 24% by 2030 (validated by SBTi)
• Roadmap to phase out fluorosurfactants
• Commitment to significantly reduce limestone residues released into the sea at Rosignano
• Partnership with Ellen MacArthur Foundation

Social Achievements

• Solvay One Dignity initiative (9 DEI objectives and action plans), including assessing and closing gender pay gaps, roadmap to improve inclusion for people with disabilities, mentoring programs, active Employee Resource Groups (ERGs), and partnerships with NGOs
• ~28% employees shareholders following launch of first employee share plan
• €9.5M bonus for employees most affected by inflation
• Global Performance Sharing Plan budget increased to €15M
• 267,000 hours of employee training
• Employee Assistance Program with mental health support, 1,150 employees trained in well-being webinars
• 100% employees covered by collective agreement
• Renewal of Solvay Global Forum and Global Framework agreements with IndustriAll Global Union
• Citizen Day 2022 on DEI: >40% workforce and >100 sites globally participated, with €50,000 donated to local NGOs
• Solvay Solidarity Fund supported >50 projects related to urgent needs in 14 countries and donated €1.5M to initiatives in Ukraine

Governance Achievements

• Dividend increase of €0.20 to €4.05 per share
• Capex of €1,022M targeting growth businesses
• Success of employee share purchase plan

Climate Goals & Targets

Environmental Challenges

• 360° EcoVadis screening identified controversies, fines or penalties relating to environmental and social issues in the last five years
• Reducing Scope 3 emissions linked to raw materials and processing, use, and end of life of sold products
• Involving employees in Solvay One Planet initiatives
• Po2 project implementation
• Talent recruitment
• Facing challenging environment in key markets
• Impact of inflation
• Mitigate CSR risks in our supply chain through due diligence and traceability
• Reduce Scope 3 greenhouse gas emissions linked to raw material extraction and processing
• Sensitive handling of social media
• Controversies related to effluents or emissions
• Increased sensitivity to potential exposure to substances of concern
• Solvay One Planet targets
• Carbon neutrality before 2050

Mitigation Strategies

• Strong investments promoting sustainability of our products and processes
• Solvay One Dignity DEI roadmap and actions
• Supplier Engagement Program: 60 collaborative projects collected, >20 underway focused on sustainability topics
• Partnering with industry leaders to develop the next generation of product carbon footprint (PCF) assessments and accelerate transparency in the value chain
• Partnership with the Ellen MacArthur Foundation
• Signed a Memorandum of Understanding with local authorities in Rosignano, to improve the footprint and integration of our site in the surrounding area

Supply Chain Management

Supplier Audits: 2,250 suppliers assessed via EcoVadis TfS Audit Program

Responsible Procurement

• Supplier Code of Business Integrity
• Corporate Social Responsibility questionnaire
• Third party assessments through EcoVadis and TfS

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 14
• SDG 15
• SDG 12
• SDG 3
• SDG 6
• SDG 8
• SDG 17

Solvay can have most impact across the value chain on Climate (SDGs 7, 13, 14 & 15), Resources (SDG 12), and Better Life (SDGs 3, 6, 8 & 17)