Evonik Positions

Biodiversity is one of Evonik's 15 key topics. It also plays a role in SDG 12, which is relevant to the Group. We are aware that our business entails opportunities and risks in relation to biodiversity. This includes the loss or preservation of biodiversity on land and in the sea, including microbial organisms. It is important to avoid supply chain disruptions and production stoppages caused by biodiversity loss and damaged ecosystems. The starting points for our engagement with biodiversity are classic environmental issues - such as emissions to water and air, and responsible water and waste management - which we report on regularly. 
In our sustainability analysis of the businesses, we address the following aspects of biodiversity: water, eutrophication, acidification, land use, use of renewable raw materials, emissions of critical and persistent chemicals, and microplastics. 

Our contributions to biodiversity conservation are bundled in the Sustainability Focus Area Safeguard Ecosystems.

The fight against climate change – one of our key issues – and extreme weather events are a major societal challenge that we are also facing. We continue to drive forward the reduction of all climate-relevant emissions and other environmental impacts through our business activities. In order to actively counter the effects of climate change, we have set ourselves new ambitious goals for 2022. In addition, the reduction of our CO₂ emissions (Scope 1 and Scope 2) is anchored in the remuneration of the Board of Management and management. When making investment decisions, we consider a CO₂ price as an additional planning premise. Along the entire value chain, we work on innovative and emission-reducing solutions, often together with suppliers and customers. In addition, we started working on a climate transition plan in the year under review. The biggest lever for GHG reductions lies in our own production. In addition, many of our Next Generation Solutions – compared to conventional alternatives – make a positive contribution to this in application.

In 2022, Evonik committed to the Science Based Target initiative (SBTi). SBTi is a partnership of CDP, United Nations Global Compact, World Resources Institute and World Wide Fund for Nature. The initiative defines and promotes best practices in the field of science-based goal setting and evaluates corresponding goals of companies on an independent basis. In the meantime, it has become an internationally recognized standard.

Our overarching Scope 1 and Scope 2 targets a 25 percent reduction in the corresponding emissions between 2021 and 2030. In addition, Evonik has committed itself to reducing Scope 3 emissions in the upstream categories and the downstream category "Transportation and Distribution" by 11 percent 1 over the same period.

In 2010 the US Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, Section 1502. This law seeks to end the violent conflicts in the Democratic Republic of Congo and adjoining countries by cutting off the raw materials production and –selling that is used to fund these conflicts.
Under the law companies listed on US-stock exchanges have to report if they are using so-called conflict minerals (tantalum, tin, gold and tungsten). These companies have to disclose to the US Securities and Exchange Commission (SEC) if manufactured products use or contain conflict minerals originating in the covered countries.

Evonik Industries AG, as a non-US publicly traded company, is not subject to the law and is not obliged to comply with the disclosure requirements of the SEC.

Nevertheless as a responsible company Evonik is reviewing the use of conflict minerals in its supply chain. Doing so we support our customers in meeting their obligations. We have initiated conflict minerals due diligence to determine if these minerals are used in production processes or contained in our products, and if necessary where they originated from.

Update 2023
To the best of our todays knowledge we can state that none of our products is intentionally manufactured with or using any conflict minerals in the aforementioned meaning.

Our commitment includes donations and sponsorship activities, with a special focus on Evonik's corporate purpose "Leading beyond chemistry – to improve life, today and tomorrow". As a sponsor, we only participate in projects and initiatives that contribute to Evonik's brand essence and express a social attitude. In addition, we want to contribute to positive social development at our sites worldwide.  

Our operating units support their own projects related to their respective businesses and neighborhoods, in accordance with our donation and sponsorship policies. Overall, we focus our activities on the areas of social affairs, education and science, culture and sports.  

In addition, Evonik contributes to society in a variety of ways.

Evonik pays particular attention to greenhouse gas emissions along the value chain. Since 2008, we have been reporting a comprehensive greenhouse gas balance – from raw material extraction to production and disposal of the products. The decisive parameter is the so-called "carbon footprint", the "CO2e footprint". Direct energy and process emissions from Evonik (Scope 1), emissions from purchased electricity and heat (Scope 2), and selected upstream and downstream emissions (Scope 3) are accounted for. These include emissions from the production of purchased raw materials, services and capital goods, energy-related emissions outside of Scope 1 and Scope 2, emissions from inbound and outbound transport, from the disposal of waste, from business travel and employee commuting, from the energy demand of office buildings, and emissions from the use, disposal and recycling of products sold. Methodologically, the accounting is closely aligned with the GHG Protocol Standard of the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) as well as the Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain of the WBCSD.

Respecting human rights is a key element of corporate responsibility. We face up to the obligations arising from this throughout the company and along the value chain in accordance with our ability to exert influence. Evonik has several instruments, principles of conduct, and guidelines at its disposal that are intended to ensure compliance with our human rights due diligence obligations.

The framework within which we operate in our business activities is defined in the Code of Conduct, which is binding on all employees. This is supplemented by the Declaration of Human Rights and the Global Social Policy. Like our values for the environment, safety, health and quality, all three stand for ethical principles.

We promote the observance and implementation of these policies by all employees through Group-wide education and training.

By joining the Global Compact, we have committed ourselves to implementing the ten principles of the Global Compact. These relate to human and labour rights, as well as preventive environmental protection and anti-corruption measures.

In addition, Evonik is committed to complying with the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the core labor standards of the International Labor Organization (ILO).

At Evonik, safety takes precedence over sales and profits. For many years, we have established a safety culture that enables continuous improvement of our processes and systems. In addition, occupational health protection has a high priority.

Evonik is aware of its corporate responsibility to meet its tax obligations. In its worldwide operations, Evonik and its employees therefore observe the applicable national tax law at all times.
Obligations regarding taxes are part of the House of Compliance, which has been established to define group-wide standards for the relevant compliance management system. Decision- making, exchange of experience and coordination of the joint activities all take place in the compliance committee, which is comprised of the heads of the individual departments and the head of Corporate Audit.

Compliance:
A tax standard and relevant procedures are in place to ensure that tax compliance obligations are met. Evonik’s tax affairs are managed by an in house tax team with external tax compliance support, if required. To ensure compliance with local and international tax laws and regulations Evonik adopts tax policies for its businesses and projects. Evonik´s tax department fosters awareness for these tax policies.

Tax Risk Management:
Evonik’s Tax Risk Management is an integral part of the group-wide internal opportunity and risk Management.

Transfer pricing:
The tax policies are aligned with our business strategy, and profit is allocated to countries in which value is created. Evonik acts in accordance with internationally accepted taxation standards, applies the arm’s length principle.

Tax Incentives:
In awareness of the responsibility to comply with its tax obligations Evonik seeks to make use of legally available tax incentives. These incentives are used within the context of business decision-making. We do not avoid taxes through "aggressive" strategies and take account of both the letter and the spirit of the law.

Transparency:
Concerning its approach to taxes and its current tax position, Evonik is transparent in the communication to governments. The relationship between Evonik and the tax authorities/ governments is based on mutual trust and an open-minded dialog. Evonik aims to enhance clarity and prefers to ensure the certainty of tax issues. In accordance with relevant domestic regulations Evonik discloses all relevant facts and circumstances.

Paragraph 19 of Schedule 19 to the Finance Act 2016 is a requirement for publishing online Evonik tax strategy as it relates to UK taxation.

Our efforts to further reduce production waste are based on a clear principle: waste must be avoided in the first place, otherwise it should be recycled or used to generate energy, and only as a third option should it be safely disposed of. With this principle, Evonik implements the five-level waste hierarchy that is legally applicable in the EU. As a specialty chemicals company, we also research and develop solutions for mechanical and chemical recycling.

Our goal is to reduce the specific amount of production waste in relation to the production volume by 10 percent between 2021 and 2030. We intend to achieve this through a wide range of measures at our production sites, which have been identified, among other things, as part of the EAGER project. We also continued our work on a waste management system.

For the production of chemical products, the availability of water is almost indispensable. It is used, among other things, directly in the synthesis of products or as cooling water for safe process control. Water as a resource is of great importance. It must be used responsibly to protect and preserve.

Evonik uses water as sparingly as possible and is working to further reduce emissions. In the year under review, we set ourselves a new water target: In the period from 2021 to 2030, we want to reduce specific freshwater abstraction in relation to production volume by 3 percent. This is to be achieved through a wide range of measures at the production sites.