Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resource Efficiency
• Health
• Nutrition
• Globalization
• Climate Change
• Biodiversity
• Supply Chain Management
• Human Rights
• Occupational Safety
• Community Engagement

Environmental Achievements

• Reduced specific energy-related greenhouse gas emissions, specific water consumption, and specific production waste by 20 percent or more since 2004; achieved long-term environmental targets two years earlier than planned.
• Reduced greenhouse gas emissions by 16% in 2012 compared to 2011 (9.1 million metric tons in 2012 vs 10.8 million metric tons in 2011).

Social Achievements

• Established the “Together for Sustainability” initiative with other chemical companies to raise sustainability standards throughout the supply chain.
• Successfully completed expansion of capacity at its production facilities in Blair (USA) to 280,000 metric tons a year for Biolys (L-lysine).
• Introduced a sustainability-focused business planning game (napuro) for employee training.
• Extended its range of services to help employees balance their responsibility for caring for sick and elderly relatives.

Governance Achievements

• Established the “House of Compliance” to address compliance issues such as antitrust law, foreign trade law, fighting corruption, data protection, environment, safety, health, quality, know-how protection, and IT compliance.
• Revised Group-wide policy for capital market compliance.
• Issued a Group Policy on Sponsoring in 2012 to set binding rules and processes for the prevention of corruption.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to potential risks identified in the Corruption Perceptions Index (CPI) and the United Nations Human Development Index (HDI).
• Difficult competitive situation on the photovoltaic market.
• Shortage of raw materials.
• Child labor in the supply chain.

Mitigation Strategies

• Global risk screening process for suppliers, supplier self-assessments, and CR audits.
• Settlements with customers to wind up long-term supply agreements for silanes.
• Development of alternative sourcing strategies.
• Termination of agreements with suppliers who violate CR standards.

Supply Chain Management

Supplier Audits: 20 CR supplier audits in 2013

Responsible Procurement

• Global risk screening process for suppliers.
• Supplier self-assessment forms.
• CR audits.
• General terms and conditions of procurement.
• Together for Sustainability initiative.

Climate-Related Risks & Opportunities

Physical Risks

• Water shortages

Transition Risks

• Changes in energy policy
• Changes in emissions trading

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact, German Sustainability Code (GSC)

Certifications: ISO 9001:2008, ISO 14001:2004 + Cor 1:2009

Third-party Assurance: PricewaterhouseCoopers AG (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SEPURAN Green membranes for biogas upgrading
• AEROSIL vacuum insulation panels
• Bio-MTBE biofuel component
• Bio-based polyester polyols for adhesives

Awards & Recognition

• Altran Sustainovation Award
• nova institute award for PLEXIGLAS Wood
• Technology/Innovation category award for Wind Explorer project
• Responsible Care competition award for EffiCO2 project
• Top Employers China award
• Occupational Safety Prize
• German Award for Occupational Safety for Young People
• Director’s Spirit of Partnership Award
• Excellence Award
• Paint & Pintura Award
• Supplier of the Year
• Best Supply Performance Award
• Carbon Disclosure Project (CDP) award for transparent climate reporting
• Green Star Award
• First prize for energy-saving project

Environmental Metrics

ESG Focus Areas

• Sustainability
• Safety
• Resource Efficiency
• Employee Well-being
• Climate Protection

Environmental Achievements

• Reduced specific energy-related emissions of greenhouse gases by 20% (target achieved in 2012, two years ahead of schedule)
• Reduced specific water consumption by 20% (target achieved in 2012, two years ahead of schedule)
• Reduced production waste by 20% (target achieved in 2012, two years ahead of schedule)
• Reduced CO2 emissions by 3% to 8.7 million metric tons

Social Achievements

• Launched On Track 2.0 efficiency enhancement program with potential annual savings of over €280 million (aiming for €500 million by 2016)
• Launched Administration Excellence program aiming for annual savings of up to €250 million by 2016
• Improved accident frequency to 0.9 (from 1.4 in 2012)
• Increased employee participation in the German employee participation plan

Governance Achievements

• Successful stock exchange listing in April 2013
• Inclusion in the MDAX index in September 2013
• Divestment of the majority of shares in real estate activities
• Reduced the size of the Executive Board

Climate Goals & Targets

Environmental Challenges

• Tougher than anticipated economic environment leading to pressure on selling prices and price erosion for some products
• Increased competition in some markets
• Less favorable supply and demand structures
• Higher raw material prices that cannot always be fully passed on to customers
• Risks relating to recalculation of pension commitments

Mitigation Strategies

• On Track 2.0 and Administration Excellence programs to optimize cost position
• Broadening foreign production base and gaining access to new markets
• Developing new products and technologies
• Optimizing global purchasing activities and entering into long-term supply agreements
• Systematic personnel development and attractive remuneration systems

Supply Chain Management

Responsible Procurement

• Focus on safety, health, environmental protection, corporate responsibility, and quality

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, CDP

Certifications: ISO 14001

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)

Evonik's initiatives contribute to these goals through resource efficiency, sustainable products, and climate protection measures.

Sustainable Products & Innovation

• Linerless labels
• Bio-based emulsifier Tego Care PBS 6
• Enzymatic synthesis of serine
• AQUAVI Met-Met for aquaculture
• ULTRASIL 6000 GR silica
• Tin-free crosslinking systems Dynasylan SILFIN 201 and 202
• VESTANAT EP-IPMS for scratch-resistant coatings
• DYNAPOL Terra bio-based binders
• VESTAKEEP PEEK polymers for medical technology
• VESTAMELT adhesion promoter
• ELATUR CH phthalate-free plasticizer

Awards & Recognition

• Human Resources Excellence Award 2013 (Employer Branding Strategy)
• German Innovation Prize for Climate and the Environment 2013 (Environment-Friendly Technologies)

Environmental Metrics

ESG Focus Areas

• Strategy and growth
• Governance and compliance
• Employees
• Value chain and products
• The environment
• Safety

Environmental Achievements

• Reduced specific greenhouse gas emissions by 6 percentage points
• Reduced specific water intake by 13 percentage points
• Commissioned a combined-cycle gas turbine power plant reducing CO2 emissions by up to 280,000 tons per year

Social Achievements

• Expanded the Starting a Career program for young refugees, with 21 of 30 participants starting traineeships
• Built henhouses in Macubeni, South Africa, employing villagers with and without disabilities, improving villagers' diet
• Achieved a 98% pass rate in vocational training

Governance Achievements

• Revised Code of Conduct, effective from spring 2017
• Increased percentage of women on the Supervisory Board to 35%
• Conducted 33 internal investigations into suspected violations of rules

Climate Goals & Targets

Environmental Challenges

• Lower selling prices due to lower raw material prices
• Supply chain disruptions due to raw material volatility
• Potential risks associated with conflict minerals

Mitigation Strategies

• Strategic procurement concepts and management systems for critical raw materials
• Supplier assessments including environmental, social, and corporate governance aspects
• Code of Conduct for Suppliers

Supply Chain Management

Supplier Audits: 29 sustainability audits and 145 assessments in 2016

Responsible Procurement

• Code of Conduct for Suppliers
• TfS initiative
• Sustainability criteria in supplier evaluation

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI G4 (core), UN Global Compact

Certifications: ISO 14001 (at 95-100% of production sites), ISO 50001 (at some sites)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Evonik's initiatives contribute to these goals through energy efficiency improvements, resource conservation, and greenhouse gas emission reductions.

Sustainable Products & Innovation

• REWOFERM® SL 446 biosurfactant
• POLYVEST® ST tire additive
• VISCOBASE® 11-522 wind turbine gear oil

Awards & Recognition

• German Sustainability Award 2016 (top 5 companies and research category)
• Inclusion in Dow Jones Sustainability Indices
• Gold rating from Together for Sustainability

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Social
• Governance
• Value Chain
• Employees

Environmental Achievements

• Reduced specific greenhouse gas emissions by 17% (reference year 2012)
• Reduced specific water intake by 5% (reference year 2012)
• Avoided 95.2 million metric tons of CO2eq by using Evonik products (2016 data)

Social Achievements

• Launched new employer branding campaign (#HumanChemistry)
• Improved employee health ratio to 95.1% (Germany)
• Ranked 3rd in the Diversity Champions BCG Gender Diversity Index 2017

Governance Achievements

• Increased female representation on the Executive Board to 25%
• Implemented an externally managed whistleblower system
• Completed antitrust risk analysis for all business lines

Climate Goals & Targets

Environmental Challenges

• Initial consolidation of Air Products facilities altered fuel mix and GHG emissions
• Increased cooling water requirements due to organic production growth
• Increased hazardous and non-hazardous production waste due to Air Products acquisition and maintenance shutdowns

Mitigation Strategies

• Implementing efficient technologies and production processes to reduce GHG emissions
• Establishing integrated supply systems with graduated water qualities to reduce freshwater use
• Continuous process improvements and integrated production systems to reduce waste

Supply Chain Management

Supplier Audits: 441 TfS audits and 1,794 assessments worldwide

Responsible Procurement

• Code of Conduct for Suppliers
• TfS initiative
• Sustainability evaluations of critical raw material suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers GmbH (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Intensive review of SDG contribution underway; results to be published in 2018

Sustainable Products & Innovation

• Probiotics for poultry
• New paints reducing fuel consumption
• Resource-saving methylmethacrylate production process

Awards & Recognition

• DQS CFS award
• Sustainable Business Awards Singapore
• Econ Award (silver)
• Vision Award (silver)
• Building Public Trust Award
• FOX FINANCE Awards (gold and silver)

Environmental Metrics

ESG Focus Areas

• Strategy and growth
• Governance and compliance
• Employees
• Value chain and products
• The environment
• Safety

Environmental Achievements

• Reduced specific greenhouse gas emissions by 17% compared to 2012
• Reduced specific water intake by 6% compared to 2012
• Avoided 101.8 million metric tons of CO2eq emissions by using Evonik products in 2017

Social Achievements

• Increased proportion of female employees in management functions from 16.6% in 2011 to 23.8% in 2018
• Employee satisfaction scores: 68 (commitment), 72 (leadership), and 71 (agility)
• Opened a new childcare facility at Evonik’s site in Marl (Germany)

Governance Achievements

• 25% female executive board members since July 1, 2017
• Achieved 27.3% female managers at the first management level and 20.0% at the second management level below the executive board
• 90 internal investigations into suspected compliance violations were conducted in 2018

Climate Goals & Targets

Environmental Challenges

• Restrictions on the transportation of goods in fall 2018 caused by low water levels in the river Rhine
• Rising demand for products that demonstrate a good balance of economic, ecological, and social factors
• Potential human rights violations in the supply chain

Mitigation Strategies

• Developed strategic procurement concepts for critical raw materials
• Implemented a new whistleblower system to report suspected breaches of human rights
• Defined ambitious new climate and water targets; aim to reduce absolute greenhouse gas emissions by 50% compared with 2008 by 2025

Supply Chain Management

Supplier Audits: 22 audits/year

Responsible Procurement

• Code of conduct for suppliers
• TfS initiative
• Sustainability evaluations of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Low water levels in the Rhine River

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and processes; Rheticus project on artificial photosynthesis

Reporting Standards

Frameworks Used: GRI Standards (core option), UN Global Compact

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers GmbH

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

Evonik's products and solutions contribute positively to achieving these SDGs; systematic examination of relevant sustainability aspects along the value chain

Sustainable Products & Innovation

• RHEANCE® One, POLYVEST ST®, CALOSTAT®, algal oil from Veramaris joint venture

Awards & Recognition

• Leading Employer 2018 (Germany)
• German award for online communication (#HumanChemistry campaign)
• Gold rating from EcoVadis
• LACP Vision Award (silver)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Renewable Energy
• Eco-efficient products
• Resource Efficiency

Environmental Achievements

• 50% reduction in absolute scope 1 and 2 emissions by 2025 (compared with 2008 levels), 44% reduction achieved by 2020.
• 90% of sales from products with sustainability performance at least in line with market reference.
• 35% of sales from products with clearly positive sustainability profile above market reference level.

Social Achievements

• No employee fatalities in recent years.
• Implementation of a health and safety management system across operations.
• Good approach to community outreach and consultation.

Governance Achievements

• Established a Green Finance Committee to govern selection and monitoring of eligible green projects.
• Sustainability performance integrated into executive remuneration to some extent.
• Group-wide code of ethics covering corruption, antitrust, and conflicts of interest.

Climate Goals & Targets

Environmental Challenges

• Insufficient independence of the supervisory board.
• Some environmental and social measures lack group-wide scope.
• Lack of a comprehensive strategy to shift to alternative and sustainably sourced feedstocks.

Mitigation Strategies

• Majority of board of directors considered independent to balance influence of largest shareholder.
• Implementation of various measures to ensure facility, process, and transport safety.
• Clear climate strategy including emission reduction target and comprehensive greenhouse gas emissions inventories.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMA Green Bond Principles (GBPs), Loan Market Association (LMA) Green Loan Principles (GLPs)

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 6
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15

Contribution to SDGs through eco-efficient products, energy efficiency, and renewable energy initiatives.

Sustainable Products & Innovation

• Next Generation Solutions

Environmental Metrics

ESG Focus Areas

• Fight climate change
• Drive circularity
• Safeguard ecosystems
• Ensure health & well-being

Environmental Achievements

• Reduced GHG emissions (scope 1 & 2) by 6%
• Reduced GHG emissions (scope 3) by 7%
• Increased proportion of electricity from renewable sources to more than 15%
• Avoided 44.3 million metric tons CO2eq by using Evonik products
• Reduced specific freshwater intake by 6% (although production declined)

Social Achievements

• Launched Evonik Explorer talent program
• Improved employee satisfaction (commitment index at 73%)
• Reduced early employee turnover to 1.9%
• Reduced total employee turnover to 6.7%
• Implemented new global ESHQ software ESTER

Governance Achievements

• Conducted first human rights risk analysis
• Appointed a group human rights officer
• Revised policy statement on human rights
• Implemented new IT tool to check and document benefits risks
• Integrated sustainability aspects into executive board remuneration from 2023

Climate Goals & Targets

Environmental Challenges

• Rising raw material and energy prices
• Supply chain disruptions
• Limited availability of circular raw materials
• Geopolitical instability
• Shortage of skilled workers

Mitigation Strategies

• Raising selling prices
• Short-term savings of €250 million
• Investing €3 billion in Next Generation Solutions and €700 million in Next Generation Technologies
• Developing alternative sourcing strategies
• Implementing EAGER project to reduce GHG emissions
• Implementing sustainability data management project
• Strengthening employer brand and recruiting activities

Supply Chain Management

Supplier Audits: 66.4% of raw material suppliers covered by TfS assessments by year-end 2022

Responsible Procurement

• Code of conduct for suppliers
• TfS assessments
• Supplier diversity program
• Risk-based validation of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Raw material price volatility

Opportunities

• Development of energy-efficient products and processes
• Green hydrogen production

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Independent Practitioner’s Limited Assurance Report

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 12
• SDG 13

Evonik's initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

• Rhamnolipids
• TEGO® Therm technology
• Vecollan® recombinant collagen
• Bio-based silica from rice husk ash
• Additives for mechanical and chemical recycling

Awards & Recognition

• EcoVadis Platinum status
• Leading Employer in Germany
• Top Employers Institute ranking in China
• Employer Branding Award
• Rally Awards
• Trendence Awards
• Brandon Hall Silver Award

Environmental Metrics

ESG Focus Areas

• Fight Climate Change
• Drive Circularity
• Safeguard Ecosystems
• Ensure Health & Wellbeing

Environmental Achievements

• Reduced Scope 1 and 2 emissions by approximately 20% (mainly due to annual reduction of up to 1 million metric tons)
• Replaced the last coal-fired power plant at Marl Chemical Park with a flexible combined cycle gas and steam power plant in April 2024
• Increased share of externally sourced green electricity globally to 35% in 2023

Social Achievements

• Employee commitment increased by 5 percentage points in the latest employee survey
• Improved safety performance with a lost time injury rate below the upper limit of 0.21 (number of accidents per 200,000 working hours)

Governance Achievements

• 20% of Long-Term Incentive linked to Sustainability targets
• ESG goals integrated into remuneration schemes of Executive Board
• Established a House of Compliance to define minimum Group-wide standards for compliance management systems

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (-11% target)
• Securing access to low-carbon raw materials
• Managing transition risks related to regulatory changes and market shifts

Mitigation Strategies

• Intensifying collaboration with suppliers to increase availability of low-carbon raw materials and breakthrough technologies
• Implementing “Next Generation Technologies” to reduce emissions at major sites
• Actively managing “Transitioners” and phasing out “Challenged” products

Supply Chain Management

Supplier Audits: 1296 TfS assessments initiated by Evonik in 2023; target of 100% coverage of raw materials suppliers with annual procurement volume >€100k by 2025

Responsible Procurement

• Together for Sustainability (TfS) initiative
• Code of Conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and green hydrogen production

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Next Generation Solutions (NGS)
• Circular products and technologies
• Green tires
• Lipid Nano Particle (LNP) for mRNA technology
• AEM for green hydrogen production

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity
• Ecosystems
• Health & Wellbeing

Environmental Achievements

• 25% CO2 emission reduction target by 2030 (vs. 2021)
• Climate neutral by 2050 target
• Increased share of Next Generation Solutions (products with superior sustainability benefits) from 37% in 2020 to 43% in 2023, targeting >50% by 2030

Social Achievements

• Evonik Tailor Made program for employee empowerment
• First industrial-scale rhamnolipid biosurfactant plant for household & personal care
• Lipid production facility for mRNA-based therapies in the U.S.

Governance Achievements

• ESG targets integrated into management compensation
• Excellent ESG rankings: “AA” MSCI ESG, “Top 5%” Sustainalytics, EcoVadis “Gold”, “B-” ISS Oekom and “A-” CDP

Climate Goals & Targets

Environmental Challenges

• Difficult market backdrop
• Continued negative pricing
• Geo-political uncertainties
• No pronounced demand recovery in end markets
• High competitive intensity (especially Crosslinkers)

Mitigation Strategies

• Short-term self-help measures (cost savings of €250m in FY 2023 & 2024)
• Business optimization programs (€200m cost savings by 2025 in Animal Nutrition)
• Reorganization: Evonik Tailor Made (€400m savings target)
• Contingency measures
• Capex discipline
• Targeted investment approach

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Membranes for biogas separation/hydrogen
• Rhamnolipids
• Lipids for mRNA-based therapies