Supply Chain & Raw Materials
Evonik has a significant influence on the environment and society through its procurement volume. By working closely with our suppliers, we want to help prevent breaches of human rights and environmental violations. We strive to counter a lack of transparency and inadequate traceability in the supply chain. By selecting suppliers carefully, we do not simply secure and increase their sustainability standards, we also enhance the quality of the entire value chain.
HIGH SUSTAINABILITY STANDARDS WITHIN THE SUPPLY CHAIN
We focus on the qualification and evaluation of suppliers. In the case of suppliers of individual critical raw materials, we subject these to a separate assessment. By "critical raw materials" we mean all raw materials that may be associated with a potential supply or reputational risk. These include, for example, conflict minerals and renewable raw materials. We have established special procurement strategies for these "critical raw materials".
PURCHASING VOLUME IN 2023
In 2023, we purchased raw materials, merchandise, technical goods and services, as well as energy and other operating resources worth €11.3 billion from our approximately 34,000 suppliers (previous year: €13.6 billion). Of these, around 75 per cent were procured locally (previous year: 76 per cent). Raw materials and merchandise accounted for 47 percent of the total purchasing volume (previous year: 53 percent). Of this, petrochemical raw materials accounted for around €3.4 billion, which corresponds to 65 percent of the raw material base.
SUPPLY CHAIN MANAGEMENT
With our efficient purchasing organisation, we ensure the long-term supply of necessary raw materials and at the same time generate competitive advantages for our operational business.
TFS-INITIATIVE
Harmonizing global standards in the supply chain creates transparency and makes it easier for both suppliers and customers to reliably assess and evaluate sustainability performance. The chemical industry set up the Together for Sustainability (TfS) initiative for this purpose in 2011. Evonik is one of the six founding members of this initiative.
RAW MATERIALS
We source a wide range of different raw materials due to our extensive product portfolio. We have implemented strategic procurement concepts and management systems for raw materials whose availability is essential for our production processes.