Evonik Industries : Sustainability Report 2022

SUSTAIN

ABILITY2022 REPORT

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2 CONTENTS



EVONIK SUSTAINABILITY REPORT  2022

CONTENTS

At a glance											4
How we drive forward sustainability								4
Foreword											5
Evonik in 2022									6
Sustainability is the backbone of our purpose and our strategy				7
Ten key messages on sustainability at Evonik						8
Evonik in figures							9
Top 10 sustainability targets				10
Business model				11
Fiscal 2022					12
Resources and value contributed by Evonik in 2022			13

SPECIAL

Focus projects of our strategic transformation __ p. 62

Human rights _________ p. 63

EAGER _________ p. 67

POLYVEST® HT _________ p. 71

Sustainability data management _________ p. 75

63

67

71

75

Strategy and growth				14
Transformation and core processes			15
Measurability and management			20
Portfolio transformation			22
Our targets			24

Governance and compliance				25
Responsible management/human rights			26
Cybersecurity				39
Responsibility within the supply chain			42
Our targets			46

Value chain and products				47
Research, development & innovation			48
Circular economy						51
Efficient use of scarce resources				54
Product stewardship			56
Our targets			61

3 CONTENTS



The environment

Strategy and management Mitigating climate change Green energy

Water management

Waste management

Biodiversity

Our targets

EVONIK SUSTAINABILITY REPORT  2022

79	Further elements of						INTERACTIVE PDF
80	our sustainability management			122	Optimized for on-screen use with Adobe Acrobat
81	Organization and management							123
87	Engaging with our stakeholders				123
90	Advocacy					126	GRI INDICATORS
93	Procedure for the materiality analysis 2022				127
95	Impact valuation			128	The indicators used in our sustainability reporting correspond to
97														the Global Reporting Initiative (GRI) and are marked with the
														symbol   .

Employees

Strategy and management Attractiveness as an employer Employee satisfaction Diversity and equal opportunity Our targets

Safety

Strategy and management Occupational safety Plant safety

Health protection and promotion Transportation safety and logistics Our targets

	Basis of reporting					130
	Sustainability indicators for the Evonik Group							130
98	Status of our sustainability targets for 2022						131
About this report							132
99	TCFD index							135
100	SDG index							137
103	GRI content index						138
108	SASB content index				146
113	Independent Practitioner's Limited Assurance Report			148

114	Further information				150
115	History of sustainability at Evonik				150
116	Principal locations						151
117	Ratings and indices, sustainability awards				152
117	List of tables and charts				153
	120	List of abbreviations			154
121	Credits			155

You can find supplementary videos in our

ONLINE REPORT

sustainability-report.evonik.com

4 At A Glance	EVONIK SUSTAINABILITY REPORT  2022
How we drive forward sustainability

How we drive forward sustainability

Evonik is one of the world's leading specialty chemicals companies, with operations in more than 100 countries. We do not make car tires or mattresses, tablets or animal feed. Yet there is a bit of Evonik in all these products-and many more as well. Often it is the small amounts of our products that make a real difference. Because Evonik makes tires more fuel-efficient, mattresses more elastic, tablets more effective, and animal feed more healthy.

2022 - 2030

NEXT

GENERATION

EVONIK

• Portfolio transformation (Next Generation Solutions 2)

• SBTi 3 and new climate targets; EAGER4 project

(Next Generation Technologies 5)

• Integration of sustainability into HR processes

(Next Generation Culture)

• Increased focus on sustainability in long-term

remuneration of executives

2015 - 2017

FOUNDATIONS

• Realignment of management and organization
• Development of analytical methods
• Start of stakeholder dialogue

2018 - 2021

INTEGRATION

• Purpose: Leading beyond chemistry to improve life, today and tomorrow
• Integration of sustainability into corporate strategy
• Green Finance Framework
• Identification of the SDGs 1 of relevance for Evonik

1. SDGs = UN Sustainable Development Goals.
2. Increase the proportion of sales generated with Next Generation Solutions,
   i.e., products with a strong sustainability profile that is above or well above the market reference level.
3. Science Based Targets initiative. Validation of the targets by SBTi not yet completed.
4. EAGER = Evonik Assessment of Greenhouse Gas Emission Reduction.
5. Technologies for the ongoing development of production processes and infrastructure with the aim of reducing scope 1 and 2 emissions.

5 At A Glance	EVONIK SUSTAINABILITY REPORT  2022
Foreword

Foreword 2-14,2-22

Ladies and gentlemen:

Leading beyond chemistry is at the heart of our aspiration to make life better-both now and for future generations. The customer industries and end-markets where we do that vary enormously. What does not vary is how we fulfill our promise: driven by the desire not to be satisfied with the status quo but to carry on researching, probe more deeply, and broaden our understanding.

Continuous improvement is the hallmark of the chemical industry. And it is particularly important at a time when our business is confronted simultaneously with challenges from geopolitical, ecological, and social crises. Consequently, reducing energy consumption and saving resources are continuing to gain in significance. Sustainability is becoming a yardstick of corporate resilience, precisely because a sustainability-focused management approach is increasingly important for economic as well as ecological reasons. That includes massive efforts to increase the availability of green energies, transforming existing production chains into circular processes, and working to future-proof the products and solutions we provide.

Those are also the top topics identified in our most recent materiality analysis. We see that as valuable confirmation of everything we initiated in the reporting period under the motto Next Generation Evonik. We use our innovative capability and the growth of our Next Generation Solutions to address changing customer and market requirements. Our goal is to increase the proportion of particularly sustainable products and solutions in our portfolio from 43 percent at present to over 50 percent by

1 Validation of the targets by SBTi not yet completed.

2030. To achieve that, we are investing around €3 billion. A further €700 million is earmarked for the transformation of our production plants and processes: by investing in Next Generation Technologies, which will help us achieve our ambitious climate and environmental targets. For example, by reducing our scope 1 and 2 greenhouse gas emissions by 25 percent by 2030. That is consistent with the commitment we made to the Science Based Targets initiative (SBTi) 1 in the reporting period.

Realizing this ambitious agenda begins in the hearts and minds of our global workforce of more than 30,000 employees. There- fore, it is very important to keep a clear focus on the human resources side of the transformation as well in the coming years. Consequently, Next Generation Culture is the third element we are using to anchor sustainability in Evonik's core processes- from our attractiveness as a strong employer through recruitment, training, and continuing professional development to contem­ porary performance incentives and remuneration models. We made good headway with this in 2022. In this report, we aim to give you extensive insight into how we translate leading beyond chemistry into our day-to-day business. Today. Tomorrow. And always better.

Christian Kullmann

Christian Kullmann Thomas WesselChairman

of the Executive Board

Thomas Wessel

Chief Human Resources Officer and executive board member responsible for sustainability