Value Chain & Products
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 2022
In 2022, we sourced raw materials and supplies, technical goods, services, energy, and other operating supplies with a total value of €13.6 billion (2021: €10.4 billion) from around 35,000 suppliers. Local sourcing accounted for around 76 percent of this amount (2021: 76 percent). Raw materials and supplies accounted for 53 percent of procurement volume (2021: 57 percent). Spending on petrochemical feedstocks was around €4.5 billion and accounted for 61 percent of our 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.
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.
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.