sustainability analysis of our business 2.0

Evonik products offer customers resource-saving and energy-efficient solutions for a wide range of applications. In this way we play a part in meeting the rising sustainability requirements of our markets.

At the same time, the rising sustainability requirements are opportunities for new business and additional profitable growth.

Support for the operational units

Our sustainability analysis helps our operational units develop their businesses and products in the relevant markets. It supplements our strategic business analyses and identifies opportunities and risks along the value chain. We applied our sustainability analysis 2.0 for the first time in 2019 on the basis of the enhanced methodology developed and externally audited in the previous year. This analysis covers 99 percent of sales and thus almost all of Evonik’s continuing chemicals operations in 2018.

The sustainability analysis provides insight into

  • our contribution and leverage to reduce our ecological footprint and maximize positive effects along the value chain;
  • approaches to developing resource-saving products and solutions for our customers that also play a part in overcoming societal challenges; and
  • the exposure of our business to issues that are critical for their reputation.

Methodology

The core elements of our sustainability analysis are the sustainability criteria along the value chain which Evonik classifies as being relevant. These are closely based on the principles and content of the WBCSD Portfolio Sustainability Assessments (PSA), which Evonik was actively involved in developing. The framework for our sustainability analysis comprises the following process steps:

2019, in a first step we defined so-called Product-Application-Region-Combinations (PARCs).

Then we prioritized the PARCs.

The criteria selected are based principally on strategically relevant indicators such as sales. The analysis then focused on the PARCs with the highest priority (priority A).

The prioritization and selection were undertaken by our operating units on the basis of their significance for sustainability and the business.

These priority A PARCs were examined using
various signal categories. These categories include, for example, expected regulatory trends, relative ecological and social sustainability performance - such as energy and water savings, reductions in CO2 emissions - and contribution to the SDGs.

The results of the sustainability analysis are used in a structured overall evaluation of the sustainability performance of our businesses, resulting in
allocation to the performance category Leader (A++), Driver (A+), Performer (B), Transitioner (C-), or Challenged (C--) on the basis of the PARCs analyzed.

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The results of the analysis support portfolio-related decisions such as investments, Research & Development and Mergers & Aquisitions

Target

We want to complete our sustainability analysis 2.0 by the end of 2020. Our goal is for at least 30 percent of products to be allocated to the performance categories Leader (A++) and Driver (A+). The aim is to increase this proportion in subsequent years.