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.

As a member of the Roundtable on Sustainable Palm Oil (RSPO), Evonik is committed to the use of sustainable palm oil in the supply chain. Since summer 2014 we have offered our customers in the cosmetic industry products that are certified as conforming to the RSPO stand-ard, including modern emulsifiers and consistency enhancers for cremes.

Further information can be found in our Sustainability Report.

Protecting the climate and the environment are major global challenges of our age. We are aware of our corporate responsibility to maintain the natural basis of life for future generations. Through our efforts to achieve a further reduction in emissions along the value chain we make an important contribution to this. Major areas of ecological activity are derived from the need to protect ecosystems and efficiency aspects. For us, these are principally energy generation and consumption, emissions into the air - especially greenhouse gas emissions - and the management of water resources.

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 2022
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.

As a company, our aim is to create value for society that goes beyond our own growth targets. Our donations and sponsorship activities complement the wide-ranging contributions made by the personal commitment of our employees worldwide. Evonik’s sponsorship is aligned to our four core competencies: creativity, specialization, self-renewal, and reliability. We only sponsor projects and initiatives that fit our core brand. In addition, our aim is to foster the positive development of society around our sites worldwide. Within binding strategic guidelines, our operating units therefore support their own projects with a clear connection to their products and the local community. Overall, Evonik concentrates its social commitment on the areas of education and science, social projects, culture and the arts, and sport. The Evonik Foundation has a special place in Evonik’s social commitment. It grants scholarships and provides donations to support projects and organizations. The foundation’s mission defines young people, science, and integration as its areas of focus.

We accept responsibility for our business, our employees, the environment and society. Therefore, we have set ambitious environmental targets, for example for reducing specific greenhouse gas emissions.
In addition to logging direct emissions of greenhouse gases, since 2008 we have continuously analyzed selected categories of indirect greenhouse gas emissions and their distribution among different sources along the value chain.  In terms of methodology, the accounting is carried out in close accordance with the GHG Protocol Standard of the GHG Protocol Standard des World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) as well as on the Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain of the WBCSD.

Further information:

Respecting human rights is a central element of corporate responsibility. We meet the obligations arising from this throughout the company and along the value chain in accordance with the influence we are able to exert. Evonik has several instruments, principles of conduct and guidelines to ensure compliance with our human rights due diligence obligations. 

We are operating in a framework defined by our Code of Conduct, which is binding for all employees. This is complemented by Evonik's Policy Statement on Human Rights and our Global Social Policy. All three  – like our Values for the Environment, Safety, Health and Quality – stand for ethical-based business behaviour.

We promote the acceptance and implementation of these policies by all employees through Group-wide trainings.

By joining the Global Compact, we have committed ourselves to implement the Ten Principles of the Global Compact. They relate to human and labor rights, as well as preventive environmental protection and measures against corruption.

In addition, Evonik is committed to comply with the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and the International Labour Organization's (ILO) Core Labor Standards.

Further information:

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

Avoiding and minimizing waste is important to us for both economic and ecological reasons and is an integral part of the continuous improvement regarding resource efficiency at Evonik.
We constantly strive to improve our plants and production processes. At the same time, in our lifecycle assessments we examine the use of our products right up to the end of their primary use phase. Our waste management priorities are first to avoid waste, or if this is not possible, to recycle it or use it to generate energy. Only as a last resort is it disposed of safely.

The availability of water is almost indispensable during the manufacturing of chemical prod-ucts. Water is used, for example, in the synthesis of products and as cooling water to ensure the safety of production processes. Water is a very important resource and needs to be used responsibly to protect and preserve it.

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