Sustainability analysis of the business

Our sustainability analysis 1.0 is based on a method which takes into account criteria from the supply chain through production to subsequent use. The result is a structured presentation of the sustainability performance of all businesses which covers around 94 percent of our Group sales [as of 2016]. We developed our method of the sustainability analysis fundamentally further in 2018.
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 1 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.

Life cycle analyses are a focal area of our sustainability analysis. The high expertise and strong operational involvement of the Life Cycle Management group play a key role in ensuring that Evonik has wide-ranging knowledge of the environmental impact of its operations and is able to quantify this. Around 70 percent of the external sales of our chemical segments have been covered.
Evonik’s procedure covers a broad spectrum of methods, including life cycle assessments (LCA). They comprise either a cradle-to-gate analysis, covering all stages from product development through raw material and energy inputs to production, or a cradle-to-grave analysis covering the entire life cycle including subsequent use and disposal. Another tool is the life cycle-based calculation of the carbon footprint of our products. In addition, we use cross-referencing approaches, where findings, for example from existing LCAs, are used to evaluate similar products.

We offer our 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.

Our sustainability analysis includes the contribution made by our products to improving resource efficiency in their respective applications. This covers energy savings and the reduction in greenhouse gas emissions, water consumption and the use of raw materials. The results confirm that already around 50 percent of the sales generated by our chemical segments come from products that make a measurable contribution to improving the resource efficiency of their applications.