SUSTAINABILITYREPORT

2023

Implement!

2 IMPLEMENT!

EVONIK SUSTAINABILITY REPORT 2023

Implementing sustainability
Welcome to Evonik’s sustainability report 2023.
At Evonik, our goal is to make life better for present and future generations. We
work towards that every day by implementing our strategy and ambitious targets.
In the past few years, we have made sustainability an integral part of our core
processes. This report shows how we are putting the transformation to
Next Generation Evonik into practice—as reflected in the title “Implement!”.
We explain what we have already achieved and what we still want toachieve, with a special focus on our three most important sustainability topics:
green energy, portfolio transformation, and circular economy.
A special magazine section in the center of the report contains examples illustrating
our daily work with our employees, customers, suppliers, and other partners.
This report highlights what we have achieved so far. At the same time, we areaware that there is still a long way to go. We are moving consistently towards
Next Generation Evonik, supported by an understanding of the different
perspectives of our stakeholders.

3 CONTENTSEVONIK SUSTAINABILITY REPORT 2023

CONTENTS

73

SPECIAL
At a glance

5

Foreword 
Implementing our top 10 sustainability targets 
Evonik in figures 
How we drive forward sustainability 
Five key messages on sustainability at Evonik 
Evonik’s 15 material topics Resources and value contributed by Evonik in 2023 

5
7
8
9
10
11
12

Strategy and growth

13

Business model 
Fiscal 2023 
Transformation and core processes 
Measurability and management 
Portfolio transformation 
Materiality analysis 
Our targets 

14
15
16
20
23
24
27

77
69

Implement!—Our
focus projects ___ p. 66
Offshore wind farm _____ p. 69
H2annibal project ______________________ p. 73
Future Sustainable Car Materials __ p. 77
Sustainable skincare products ______ p. 81

Value chain and products
Research, development & innovation 
Circular economy Efficient use of scarce resources Product stewardship 
Our targets 

81
28
29
32
37
39
45

The environment
The environment 
Mitigating climate change Green energy Water management 
Waste management 
Biodiversity 
Our targets 

46
47
48
54
57
60
62
65

4 CONTENTSEVONIK SUSTAINABILITY REPORT 2023

Employees85
Employees 
Attractiveness as an employer 
Employee satisfaction 
Diversity and equal opportunity 
Our targets 

86
87
90
95
101

Further elements ofour sustainability management

134

Organization and management  135
Engaging with our stakeholders  136
Donations and sponsorship 
138
Advocacy  138
Sustainability Focus Areas (SFAs)  140
Impact valuation 
140

INTERACTIVE PDF

Optimized for on-screen use with Adobe Acrobat

GRI INDICATORS

Safety102
Safety 
Occupational safety Plant safety 
Health protection and promotion Transportation safety and logistics 
Our targets 

Governance and complianceResponsible management/human rights Cybersecurity Responsibility within the supply chain 
Our targets 

103
104
105
106
108
109

Basis of reporting

142

Consolidated sustainability indicators for the Evonik group  142
Status of our sustainability targets for 2023  146
About this report  147
TCFD index  151
SDG index  153
GRI content index  154
SASB content index 
162
Independent Practitioner’s Limited Assurance Report 
164

110

Further information

166

111
125
128
133

History of sustainability at Evonik  166
Principal locations  167
Ratings and indices, sustainability awards  168
List of tables and charts  169
List of abbreviations 170
Credits 
171

The indicators used in our sustainability reporting correspond to
the Global Reporting Initiative (GRI) and are marked with thesymbol
.

You can find supplementary videos in our
ONLINE REPORT
sustainability-report.evonik.com

5 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Foreword

Foreword

2-14, 2-22

Ladies and gentlemen:
WE GO BEYOND—Enabling transformation and going beyond
what is familiar are the keys to a sustainable world. That is aroute we at Evonik have been traveling for a long time, paving
the way forward with our passion for outstanding products
and technologies. Competitiveness and sustainability arecomplementary elements in a future-oriented business model:
the more resources we save, the more profitable and innovative
we are, the better we secure our future. That is our conviction.
Moreover, it is precisely why we are implementing our sustainable corporate strategy—Next Generation Evonik—even intimes when our business and society are challenged bygeopolitical, ecological, and social crises.
We are driving forward the transformation of industry andsociety by working closely with our customers. That is the only
way we can give our products properties that offer them thecompetitive advantage they need to be successful. Our focus ison using our innovative capability to create a future worth living.
We are cooperating closely with partners in projects on green

energy, portfolio transformation, and the circular economy—the
top topics identified in our materiality analysis.
We are extending our business with NextGen Solutions. In otherwords, we are investing specifically in producing sustainable andcost-effective products—from specialty solutions for battery
technologies for e-mobility through membranes to treat biogas
and extract hydrogen to lipids for modern therapies for infectious
disease control and cancer immunotherapies. At the same time,
we are continuing our endeavors to reduce greenhouse gas emissions with our NextGen Technologies. In the reporting period,
we therefore invested in projects to avoid CO2 emissions in the
future. In short: In these challenging times, we are investing in
our future.
We have more than 30,000 employees around the world. They
are the key success factor for the implementation of ourambitious targets. NextGen Culture is about giving sustainability
a firm place in our hearts and minds. The people who work for

Evonik aspire to achieve something together, to strike out in new
directions and do something that is meaningful. Together withour customers, we are going beyond what is considered possible
today and creating completely new solutions for the mostimportant issues of our shared future. In keeping with our
purpose: Leading beyond chemistry to improve life, today andtomorrow.

Christian Kullmann

Thomas Wessel

Dr. Harald Schwager

Maike Schuh6 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Foreword»Through Next Generation Evonik, wehave integrated sustainability into our
corporate strategy—from research anddevelopment to portfolio management
and our corporate culture. Together withour committed and creative employees,
we will show how competitiveness andsustainability complement each other asfactors for a successful and viablebusiness model.«CHRISTIAN KULLMANNCHAIRMAN OF THE EXECUTIVE BOARD»We are investing in the future—that’seasy to say. But when we say it, wemean it! We are continuing to invest in
sustainable projects, even in thiseconomically challenging year. We arebuilding a production facility for fumed
aluminum oxide for batteries in Japan.
In Austria, we are increasing our capacity
for gas separation membranes.
This is how we are driving forward theindustrial transformation to mitigate
climate change. Moreover, we have also
started to build a facility for specialty
lipids for pharmaceuticals in the USA.«»Climate neutrality, circular economy,
digitalization, and calls for zero emissions
are not only challenges, they are also thebasis for today’s business activities.
For me, that is genuine transformation!
We are already in the middle ofa process that many others are only
talking about.«

DR. HARALD SCHWAGER
DEPUTY CHAIRMAN OF THE
EXECUTIVE BOARD»‘Be a force for good’—for me, this is
an important principle and an incentive
for innovative action. At Evonik,
we accept responsibility, and our
NextGen Solutions and
NexGen Technologies play a partin tackling the major challengesof our time. Today, and above all,in the future.«

THOMAS WESSELMAIKE SCHUH

CHIEF HUMAN RESOURCES OFFICER AND
LABOR DIRECTOR
Executive board member responsible for sustainability.

CHIEF FINANCIAL OFFICER

C01

7 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Implementing our top 10 sustainability targets

Implementing our top 10 sustainability targets

Top 10 strategic targets for 2024 and beyond

Sustainability areas of action

Strategy andgrowthp. 13

Value chain andproducts

p. 28

The environmentp. 46» Portfolio transformation:

43%
2%» Generate at least €1 billion in additional sales with circular products and

––

-- a

– 15%
– 17%

– 6%
– 7%

– 8% absolute+ 10 specific– 1%+/– 0%» Reduce specific freshwater intake by 3 percent between 2021 and 2030

+ 12%

+ 6%

» Reduce the specific volume of production waste by 10 percent between 2021 and 2030

+ 7%

+ 2% d• Proportion of women in top management should be 23 percent at each level by 2026
• Proportion of women in senior management should be 23 percent at each level by 2026
• Intercultural mix e at executive level should be 20 percent by 2026

22.2%
18.5%
18.4%

17.1%
17.1%
15.8%

» Learning time per employee per year in LILY and LinkedIn Learning > 3 hours by 2026––a

• Lost time injury rate (LTI-R) ≤ 0.26
• Process safety incident rate (PSI-R) ≤ 0.40

0.21
0.43

0.25
0.49

procurement volume is > €100 thousand» 100 percent of all raw materials suppliers where annual
f

66.7%

66%

technologies by 2030

» Reduce absolute greenhouse gas emissions

by 5 percent between 2020 and 2025

SafetyGovernance andcompliancep. 102

p. 110Status 2022

43%
2%

» Reduce both absolute and specific energy consumption

p. 85

Status 2023

• Increase the proportion of sales generated with Next Generation Solutions
to > 50 percent by 2030
• Proportion of sales from challenged products should be permanently < 5 percent• Scope 1 and 2 by 25 percent between 2021 and 2030
• Scope 3 b by 11 percent c between 2021 and 2030

Employees

C01

2-22

» Proportion of women and intercultural mix» Occupational and plant safety:

to be covered by TfS assessments by year-end 2025

You can find a full overview of the status of our sustainability targets for 2023 on
p. 146. | You can find an overview of the main sustainability indicators used for the Evonik Group on
p. 142. |categories and the category “Downstream transportation and distribution.” | c Exact target: 11.07 percent. | d Relative to production volume. | e Employees whose nationality is not German. |a New target set in 2023.
f| b Scope 3 emissions from all upstream
Annual procurement volume > €100 thousand.

8 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Evonik in figures

Evonik in figures€

15.3
billion sales

43%

from
Next Generation
Solutions

€

1.7

109

33

27

nationalities

billion adjusted EBITDA

approx.

thousand employees

Shareholder structure% female employees

2-1

C02

53%

47%

RAG-StiftungFree float

45%

thereofsustainability
investors1
As of: December 31, 2023.

1	Investors who include the ESG (environmental, social, and governance) performance of potential investmentsin their investment strategy.

9 At a glance

EVONIK SUSTAINABILITY REPORT 2023

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 productsthat 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
GENERATIONEVONIK•	Portfolio transformation (Next Generation Solutions 2)•	SBTi 3 and new climate targets; EAGER 4 project(Next Generation Technologies 5)•	Integration of sustainability into HR processes(Next Generation Culture)2018 – 2021

•	Increased focus on sustainability in long-term
remuneration of executives

INTEGRATION
2015 – 2017

FOUNDATIONS•	Realignment of management and organization•	Development of analytical methods•	Start of stakeholder dialogue•	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.
	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. Targets validated by SBTi in June 2023.
4
EAGER = Evonik Assessment of Greenhouse Gas Emission Reduction.
5	Technologies for the ongoing development of production processes and infrastructurewith the aim of reducing scope 1 and 2 emissions.
2

10 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Five key messages on sustainability at Evonik

Five key messages on sustainability at Evonik
What sustainability means for our company and our stakeholders.

1

Our purpose

	We aspire to create sustainable, value-added solutions forour customers. That promise is expressed in our purpose:
Leading beyond chemistry to improve life, today andtomorrow. We lead beyond chemistry by networking
competencies, perspectives, and partners.

2

Next Generation Evonik	We have integrated sustainability comprehensively into our
corporate strategy—from research & development throughportfolio management to our corporate culture. The core
process is the sustainability analysis of our business.
Research & development play a key role in the ongoingtransformation of our portfolio. In 2023, Evonik generated
additional sales of over €650 million with, among others,
innovative solutions for health, cosmetics, and membranes(reference base 2015) p. 29.

3

Next Generation Solutions (handprint)

	We already generate 43 percent of our sales with products
and solutions that have a strongly positive sustainability
profile. We aim to increase the proportion of sales generated
with these Next Generation Solutions to over 50 percent by
2030 p. 23.

4

Next Generation Technologies (footprint)	
Evonik supports the objectives of the Paris Agreement on
Climate Change. This is underscored by our commitment to
the Science Based Targets initiative (SBTi). Between 2021
and 2030, we aim to reduce our scope 1 and 2 emissions by
25 percent. For the reduction in our scope 3 emissions, weare committed to a target of –11 percent 1. Our targets arealigned to the SBTi target level of “well below 2°C.” p. 17.

Exact target: 11.07 percent.

Next Generation Culture (heartprint)

	We integrate sustainability into our human resources
processes at all levels, from recruitment through vocational
training and continuing professional development toengagement programs and remuneration p. 17.

Sustainability is the backbone of our purpose and our strategy

PEOPLE

NEXT
GENERATIONCULTUREOUR HEARTPRINT

MARKETSNEXT
GENERATIONSOLUTIONSOUR HANDPRINTASSETS

1

5

NEXT
GENERATIONTECHNOLOGIESOUR FOOTPRINT

11 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Evonik’s 15 material topics

Evonik’s 15 material topics

3-2

Biodiversity

Mitigatingclimate change

GREEN
ENERGY

Attractivenessas an employer

TOP 3 TOPICS

Product stewardship

Diversity andequal opportunity

Responsibility within
the supply chain

Cybersecurity

Employee satisfaction

PORTFOLIO
TRANSFORMATIONCIRCULARECONOMY

Occupational
and plant safety

Responsible
management/
human rights

Health protection
and promotion

Water management

C03

12 At a glance

EVONIK SUSTAINABILITY REPORT 2023

Resources and value contributed by Evonik in 2023

How we create value for society: Resources and value contributed by Evonik in 2023

InputsC03

2-28, 203-1, 203-2

Our business

OutputFinancial capital

Financial capital€6,294 million€860 million

Property, plantand equipment

Capital expenditures

Productive capital€11.3 billion

104

Procurement volume

Production sites
worldwide

Intellectual capital
approx. 23,000€443 million

Patents

R&D expenses

R&D
as a driver forresource-saving
products

We assume
responsibility
for production
and thesupply chain> 9,100

products

34,000

Customers

Suppliers

Natural capital
59.77 petajoules
Energy inputs

approx. 403
million m3
Water intake

a Outside the scope of the auditor’s limited assurance engagement.
b Learning time spent by employees with electronic access to LILYc

(Learning and Individualized Library) and LinkedIn Learning.
TfS assessments of suppliers where annual procurement volume is > €100 thousand.

d For further water data, see C16.

Production output

43%
Sales from
Next Generation Solutions

Intellectual capital227> €650 million

New patents

Additional sales ininnovation growth fields a

Human capital

Employees Investment in vocational
training and CPD

approx. 33,000

Free cash flow

7.5 million
metric tons

€76.7 million

Social capital€801 million

Adj. EBITDA

Productive capital

Human capital
33,409€1.7 billion€ 15.3 billion
sales

2.2%

3.8 hours

Early
employee turnover

Average learning time with
LILY and LinkedIn Learning b

Social capital

Sustainability
as a growth driverfor our markets
and customers

Recycling/
disposalCustomers

SDGs of particular relevance for Evonik:

End-customers

67%

approx. 800

Suppliers evaluated c

Memberships inindustrial associations(Evonik and subsidiaries)

Natural capital
5.4 million
metric tons
CO2 emissions(scope 1 and 2)

6 million m3
Water consumption d

13 Strategy and growth

Strategy andgrowthEvonik aims to be a best-in-class specialty
chemicals company. Our sustainability strategy
is an expression of this aspiration, including
ambitious environmental targets and anunderstanding of how to translate sustainability
into profitability.

EVONIK SUSTAINABILITY REPORT 2023

43%

Proportion of sales from
Next Generation Solutions

5%

MATERIAL TOPIC“Gold” status from EcoVadis.
Evonik is ranked among the top
5 percent of companies evaluatedPortfolio transformation
SDGS OF PARTICULAR RELEVANCEFOR EVONIK

15

Evonik’s material topics

14 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Business model

Contents
14

Business model

15

Broadly diversified end-customer markets

14

Strategy and growth
Implementation of the strategic transformation

Market-oriented corporate structure• Significant investment in Next Generation Solutions• Systematic alignment of the portfolio to sustainability, transformation, and core processes

15	Integrated technology platforms give us acompetitive advantage
15

Global production

15

Fiscal 2023

16

Total value added

16
Transformation and core processes		  2-4, 2-19, 2-20, 2-22, 2-23, 3-1, 3-2, 3-3
18

Sustainable finance19

EU taxonomy—little focus on specialty chemicals so far

20

UN Sustainable Development Goals of relevance for Evonik

20
Measurability and management		  2 -7, 201-2, 203-1, 203-2
20

Sustainability analysis of our business

22

Value chain analysis

23

Portfolio transformation

 -6
		  223
Strategy and management24		Quantifying the handprint of selected
Evonik Next Generations Solutions

24
Materiality analysis
		  2 -4, 2-14, 3-1, 3-2
24Basis: an extensive new materiality analysis in 2022

24

Activities in 2023 relating to the materiality analysis

25

Procedure used for the materiality analysis

27

Our targets

Business model1

Evonik is one of the world’s leading specialty chemicals com­panies. Our strengths include the balanced spectrum of our activities, end-markets, and regions. Our strong competitive positionis based on collaboration with customers, our innovative capability,
and our integrated technology platforms.
Our specialty chemicals products make an indispensable contribution to the benefits of our customers’ products, which generate
their success in global competition. Close cooperation with customers enables us to build up a deep knowledge of their business,so we can offer products tailored to their specifications andextensive technical service. Technology centers and customer
competence centers play an important role in this around theworld. Market-oriented research and development is an impor­tant driver of profitable, resource-efficient growth.
Sustainability is integrated into our strategic management
process. Our goal for the future is to substantially increase theproportion of sales from attractive growth businesses with aclearly positive sustainability profile (Next Generation Solutions).
Evonik supports the objectives of the Paris Agreement on
Climate Change. This is underscored by our commitment to the1

Limited assurance engagement by the external auditor.

Science Based Targets initiative (SBTi). We aspire to be climateneutral by 2050.
Our employees are a key success factor. They drive forward
Evonik on a daily basis through their hard work and identification
with the company. We have therefore developed a wide range ofactivities to gain and develop talented and qualified employees
and to position Evonik as a preferred employer in order to retainthem.
We systematically examine the positive and negative effects ofbusiness activities along the value chain. Early identification of
future opportunities and risks makes our business model more
resilient and sharpens our understanding of the long-term valuethat our activities create for society.

Market-oriented corporate structure

Our specialty chemicals operations are divided into four chemical
manufacturing divisions, which operate close to their markets
and customers. The chemicals divisions—Specialty Additives,
Nutrition & Care, Smart Materials, and Performance Materials—
are clearly aligned to our technology platforms to allow more
selective management. They are supported by the Technology &Infrastructure division.

C04

15 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Fiscal 2023

Corporate structure

C04

Specialty Additives

Nutrition & Care

Smart Materials

Performance
Materials

Technology &Infrastructure

Evonik Group a

Sales(in € million)

3,520

3,611

4,461

2,549

1,073

15,267

Employees

3,492

5,630

8,103

1,738

8,197

33,409DivisionsFiscal 2023

a Including enabling functions, other activities, consolidation.

The Specialty Additives, Nutrition & Care, and Smart Materials
growth divisions offer their customers customized, innovationdriven solutions. The aim is to achieve above-average, profitable
growth in attractive markets through innovations, investments,
and acquisitions. The Performance Materials division is characterized by processes that make intensive use of energy and raw
materials. It therefore concentrates on integrated, cost-optimized
technology platforms, efficient workflows, and economies ofscale. In keeping with our concentration on specialty chemicals,
we are withdrawing from the three businesses in the Performance Materials division. We sold the Lülsdorf site, including thefunctional solutions business, on June 30, 2023, and we expect tocomplete the divestment of the Superabsorbents business in thefirst half of 2024. We are preparing to sell Performance Inter­mediates in the future; this business has operated as an independent unit since mid-2023. We intend to split the Technology &Infrastructure division into cross-site technology and site-specificinfrastructure activities in the future. This will enable moredifferentiated management of their respective services, reducecomplexity, and better meet the distinct requirements of thetechnology and infrastructure activities.

facilities at 104 locations in 27 countries on six continents and are
therefore close to our markets and our customers. Our largest
production sites, for example, in Marl, Wesseling, and Rheinfelden (Germany), Antwerp (Belgium), Mobile (Alabama, USA),
Shanghai (China), and Singapore, have integrated technology
platforms, most of which are used by several operating units.

Broadly diversified end-customer markets

Most of our customers are industrial companies that use our
products for further processing. The range of markets in which
they operate is diverse and balanced. None of these end-markets
accounts for more than 20 percent of our sales. In view of its
focus on a broad spectrum of applications and its worldwide
presence, Evonik operates in a business environment with many
global and regional competitors.

Integrated technology platforms give us acompetitive advantage

Our products are manufactured using highly developed technolo­
gies that we are constantly refining. Evonik has many integrated
production complexes where key precursors are produced inadjacent production facilities. In this way, we offer our customers
maximum reliability of supply. At the same time, integrated
world-scale production facilities, combined with technologicallydemanding production processes, act as entry barriers.

Global production

Evonik has a presence in more than 100 countries, and 83 percent
of sales are generated outside Germany. We have production

Fiscal 2023 was adversely affected by geopolitical crises, highenergy prices, and global inflation. In this challenging environment, our operating business registered considerably lower
demand, partly due to significant destocking by customers. Since
our business performance was below our original expectations,
we had to revise our forecast downwards in summer 2023. We
delivered on this revised forecast.
The Evonik Group’s sales fell 17 percent to €15.3 billion as aresult of lower volumes, a slight drop in selling prices, and negative currency effects. Adjusted EBITDA decreased by 33 percent
to €1.7 billion. The adjusted EBITDA margin declined to10.8 percent (2022: 13.5 percent) and was therefore significantly
below our target mid-term range of between 18 percent and20 percent. ROCE dropped to 3.4 percent as a result of the dropin earnings. It was therefore below the cost of capital and our
mid-term target of 11 percent. As a consequence of the weakbusiness performance, impairment losses on assets totaling€736 million had to be recognized in 2023. Net income wastherefore – €465 million, compared with the prior-year level of€540 million. After adjustment for special items, adjusted net
income, continuing operations was 65 percent lower at €370 million. Thanks to our clear focus on liquidity management, the16 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Transformation and core processes

Evonik Group generated free cash flow of €801 million. The
cash conversion rate 1 was 48 percent, which was above ourtarget of around 40 percent. Evonik has had a solid investment
grade rating for many years. Our net financial debt remains
moderate. In addition to a comfortable liquidity position, we havehigh unutilized credit lines.
Despite the challenging environment, we have made further
progress with our plans to divest the businesses in the Performance Materials division. We sold the Lülsdorf site as of June 30,2023 and expect to complete the sale of the superabsorbentsbusiness in the first half of 2024. To optimize our cost position,
we are embarking on a realignment: The Technology & Infrastructure division is to be split into cross-site technology andsite-specific infrastructure activities to give it a more focusedmarket presence. In addition, Evonik’s entire administration is tobe reorganized through the internal Evonik Tailor Made program.
The goals are far leaner structures, faster decisions, and more
efficient workflows.

Total value added

Value added is calculated from sales and other revenues less thecost of materials, depreciation, amortization, and other expenses.
Evonik’s total value added decreased by 30 percent to €3,222 million in 2023. Payments to employees totaled €3,254 million,
which was slightly more than the total value added. €176 million
was paid to the state in income and other taxes, and interest
payments amounted to €244 million.

1

Breakdown of value added

201-1

T01in € million

2022

2023

Total value added

4,609

3,222

Split
Employees

3,487

3,254

State

445

176

Creditors

122

244

Non-controlling interests

15

13

Net income

540

– 465

Transformation andcore processes
Evonik continued to work on the strategic transformation of its
business in the reporting period. As part of Next Generation
Evonik, sustainability is an integral component of important core
processes such as portfolio and innovation management, production and technology, and human resources work. This strategic
integration paves the way for us to meet our promise to be an
enabler of sustainability in a wide range of markets and areas oflife. Therefore, we have set ourselves ambitious sustainability
targets. These relate, for example, to the transformation of ourportfolio and the continuation of our climate strategy for theperiod 2021 through 2030, in keeping with our commitment to
the Science Based Targets initiative (SBTi) . In 2023, the focus
was on implementing measures to achieve these targets. In addition, we have set ourselves the goal of generating additional sales

The cash conversion rate shows the proportion of adjusted EBITDA that was converted into cash.

of at least €1 billion a year with circular products and technol­ogies by 2030 p. 33.
There were further economic challenges and geopolitical crises
in 2023. We do not see this as a reason to reduce ourcommitment to greater sustainability. On the contrary, we see
our sustainability management as an important basis to safeguardand extend Evonik’s long-term resilience and market success.
Our ongoing project work in 2023 again focused on the topics
identified as material (see “Materiality analysis p. 24). A special
magazine section in this report contains extensive examples of
how we are implementing our three most important material sustainability topics: green energy, portfolio transformation, andcircular economy p. 66 – 85.

66

EVONIK SUSTAINABILITY REPORT 2023

2023

IMPLEMENT!

―Our focus projects*

EnBW HeDreiht
offshore wind farm69

H₂annibal project73

Sustainableskincare products

Future Sustainable
Car Materials

81

77

*

EN_240229_Sonderteil.indd 66

This special section is outside the scope of the auditor’s limited assurance engagement.

29.02.24 12:47

C05

17 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Transformation and core processes

Through our sustainable corporate strategy, we address the UN
Sustainable Development Goals (SDGs) of particular relevancefor Evonik. This strategy comprises the following elements:• Giving sustainability a firm place in our market propositionand purpose• Integrating sustainability into our strategic management
process• Increasing the proportion of attractive growth businesses inour portfolio with a clear focus on sustainability (see “Port­
folio transformation” p. 23)• Foresighted resource management with ambitious environmental targets, including systematically considering the impactof our business along the value chain and on the SDGs
• Selective improvement of our sustainability reporting
In view of the transformation requirements made on our businessactivities, we draw a distinction between market-driven,
asset-related, and human resources influences. In line with this,our sustainable corporate strategy is focused on three core
processes: Next Generation Solutions (market perspective),
Next Generation Technologies (asset perspective), andNext Generation Culture (human resources perspective) (C05).
Between 2022 and 2030, we aim to invest more than €3 billion in
the growth of our Next Generation Solutions, in other words,
products and solutions whose sustainability profile is above oreven significantly above the market reference level. In the same
period, we intend to invest €700 million in Next Generation
Technologies. These are, in particular, measures at production
plants and infrastructure that are geared to our goal of further

1

reducing our CO2 emissions. The aim of Next Generation Culture
is to establish sustainability firmly at all levels of the humanresources process—from recruiting through training and continuing professional development to including sustainability indicators in remuneration systems p. 18. Through these three elements of Next Generation Evonik, we are employing our fullagility to achieve a business model that balances economic, ecological, and social aspects and thus strengthens our resilience.
2-22, 2-23

Transformation requirements and core processes

C05

Transformation
perspective

Our responseCore processes

MarketNext Generation
SolutionsSustainability analysis
of our business

AssetsNext Generation
Technologies

Evonik Carbon
Footprint

Human resources

Next Generation
CultureAll levelsof HR work

Evonik has integrated sustainability into the strategic management process (SMP). Quantifiable effects are included in the
SMP through the sustainability analysis of our business p. 20. In
this way, sustainability aspects play a direct and effective part in
the management of our operating businesses. In our growthdivisions—Specialty Additives, Nutrition & Care, and Smart

Materials—we are extending our product portfolio and specifically increasing sales with Next Generation Solutions. For example, the Silica business line (Smart Materials division) is investinga sum in the mid-double-digit million range to extend capacity
for fumed aluminum oxide for batteries in Yokkaichi (Japan).
This production facility will be geared to special solutions forbattery technology for e-mobility. In Austria, the High Performance Polymers business line (Smart Materials division) is
expanding production capacity for SEPURAN® membranes, forexample, for the treatment of biogas and the extraction of hydrogen. Here too, Evonik’s investment is in the mid-doubledigit million range. It will facilitate defossilation of the energy
sector on the road to a sustainable gas industry. The Health Carebusiness line (Nutrition & Care division) has started constructionof the Lipid Innovation Center in Lafayette (Indiana, USA).
Evonik is investing a sum in the mid-three-digit million range inthis production facility for specialty lipids. Lipids are building
blocks for novel mRNA and other nucleic acid-based medications. RNA technologies can be used in infectious disease control,
cancer immunotherapy, protein replacement, and gene therapy.
Our contributions to improved sustainability are allocated to four
Sustainability Focus Areas (SFAs): fight climate change, drive
circularity, safeguard ecosystems, and ensure health & wellbeing
p. 140. For each SFA, we show how Evonik reduces its own
ecological footprint and the handprint 1 resulting from the use of
our products and solutions in the relevant markets. In 2023,
we drove forward the quantification of positive and negativeenvironmental influences.

We define handprint as positive impacts of our products along the value chain compared with other established products and applications on the market, especially in customers’ applications.

18 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Transformation and core processes

Sustainability is closely integrated into the management of ourinnovation portfolio. Our innovative contributions to the transformation of many areas of application include novel membrane
technologies and our formulating expertise. Evonik also gains
access to innovative technology and new business options
through its corporate venture capital activities (see “Value chain
and products” p. 28).
In 2023, SBTi validated our targets for reducing direct and indirect
greenhouse gas emissions in our production and processing. 1
Selective investment in Next Generation Technologies will help
reduce our scope 1 and 2 emissions by 25 percent between 2021
and 2030. We aim to reduce our scope 3 emissions by around
11 percent 2 by 2030. The first measures to achieve this were developed by our global project “Evonik Assessment of GHG Emissions
Reduction” (EAGER) and are currently being implemented. Evonik
invested around €81 million in EAGER projects in the reporting
period. Our aim is to reduce scope 1 and 2 CO2 emissions by
170,000 metric tons CO2e p.a. from 2026 (see “The environment”
p. 46). At our site in Herne (Germany), we are investing in a pilot
electrolyzer to produce green hydrogen as a starting product for
isophorone diamine (IPDA), an important precursor for rotor
blades for wind turbines p. 73.
As part of Next Generation Culture, we focused, in particular, on
putting this working culture into practice. To achieve that, we

1

launched a cultural initiative that invites them to help shape ourcorporate culture (see “Employees” p. 85).
Given the increasing relevance of sustainability for corporate
management, we integrated further sustainability aspects into
our governance framework in the reporting period. The super­visory board’s finance and investment committee will be extending its focus to sustainability in the future and has therefore beenrenamed the investment and sustainability committee. We drove
forward risk management by increasing the alignment between
sustainability risks and conventional risk management (see“Governance and compliance” p. 110 and p. 114). Furthermore,
we adopted a climate policy and a water policy, which are available on our website (see “The environment” p. 46). Moreover,from 2023, we integrated sustainability more closely into the
remuneration of the executive board and other executives. As
well as including occupational safety in short-term remuneration
as in the past, we introduced sustainability targets, such as reducing scope 1 and 2 emissions, increasing the proportion of sales
from Next Generation Solutions, and employee engagement, as
an additional component of long-term remuneration.
2-19, 2-20
We also drove forward our sustainability reporting in 2023. We
reviewed our materiality analysis, which was already based on
the perspective of double materiality p. 24. Furthermore ourreporting is aligned with the SASB 3 and TCFD 4 (“Basis of

The exact wording of all Evonik emissions reduction targets validated by SBTi can be viewed at
Exact target: 11.07 percent.
3
SASB = Sustainability Accounting Standards Board.
4
TCFD =Task Force on Climate-related Financial Disclosures.
2

sciencebasedtargets.org/companies-taking-action#dashboard

reporting” p. 151). A cross-functional project team is working to
implement the reporting requirements of the new Corporate
Sustainability Reporting Directive (CSRD). We therefore
consider that we are well-prepared for future European andinternational sustainability reporting requirements.
In order to manage Evonik’s business development with a view
to non-financial indicators, we need high-quality sustainability
data. That is also necessary to avoid a lack of transparency inexternal reporting. Our sustainability data management project
plays an important part in this. Following the successful auto­
mation of the sustainability analysis of our business, we
continued our work on the greenhouse gas emission management module. In the coming years, we want to successively add
further sustainability-related management and reporting data tothis platform. In 2023, we greatly extended the overview of
Evonik‘s sustainability indicators by areas of action and material
topics, further improving transparency and ensuring rapid accessto data p. 142.

Sustainable finance

The transformation of our portfolio and the sustainability alignment of our products and processes are becoming increasingly
important for the long-term financing of our business activities.
Products and solutions from Evonik play a part in the sustainabletransformation of many end-markets. Examples are the focus on
circularity and climate neutrality for the future. The capital19 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Transformation and core processes

markets recognize our strategic and operational progress towards
greater sustainability. For some years now, Evonik has been
established among the leaders in renowned sustainability ratings
and rankings (“Ratings and indices”
p. 168). In 2023, theEcoVadis rating agency awarded us “gold” status for our sustainability performance. Sustainalytics classified Evonik as “low risk”
for the first time, positioning it among the top 5 percent of thechemical industry worldwide.
In 2022, Evonik successfully issued its second green bond—asenior bond with a nominal value of €750 million. In keepingwith the allocation of funding outlined in our Green Finance
Framework, in 2023, we allocated €580 of the proceeds toinvestment and research expenses to expand our Next Generation Solutions. More .
Sustainability also has a firm place in the management and investment of our pension assets. Since 2014, we have developed ESG
criteria for the risk analysis of the portfolio of pension assets heldby Evonik Industries AG, which are therefore directly under thecontrol of the company (contractual trust arrangement). Since
2019, the Degussa VVaG pension fund has had its own strategy
for addressing sustainability risks. We regard sustainability in theinvestment process as a holistic and evolutionary process. It isapplied to both liquid and illiquid investments and fine-tuned as
required. Within the organization of the investment vehicle itself,1

the focus is on governance requirements such as risk management,compliance, and fighting corruption, as well as cybersecurity anddiversity. 50 percent of the members of the executive board at
the Degussa VVaG pension fund are women.

EU taxonomy—little focus on specialty
chemicals so far

As part of the Green Deal, the EU taxonomy 1 is designed todirect financing towards sustainable investments. The EU taxonomy has six environmental objectives:
1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems
Reporting obligations for 2023 cover taxonomy eligibility andtaxonomy alignment for the first two environmental objectives.
Their main focus is on economic activities that currently result inhigh carbon dioxide emissions, where a reduction in emissions
would make the biggest contribution to achieving the EU’s
climate targets. Consequently, the chemical products mainly
affected by the delegated acts for these two environmental
objectives are commodity chemicals. At present, only a few
categories of precursors are affected. Delegated acts published in

2023 added further economic activities for these climate objectives 2 and the other four economic objectives 3. In these as well,chemicals and precursors are only rarely included in the taxonomyeligible economic activities. For the four other environmental
objectives, reporting obligations in 2023 related only to taxonomy eligibility.
Consequently, Evonik’s portfolio of specialty chemicals iscurrently only partly affected by the EU taxonomy: Some of ouractivities are listed in the environmental objectives climatechange mitigation and pollution prevention and control and are
therefore taxonomy-eligible 4. In 2023, these taxonomy-eligible
activities accounted for just 17 percent of turnover, 13 percent of
CapEx 5, and 15 percent of OpEx. None of Evonik’s activities aretaxonomy-eligible for the environmental objectives climatechange adaptation, protection of water and marine resources,
transition to a circular economy, and protection and restoration of
biodiversity and ecosystems.
The taxonomy-aligned 6 activities relating to the environmental
objective climate change mitigation account for 1 percent of turnover and less than 1 percent of both CapEx and OpEx. The background to these low ratios is that for the climate change miti­
gation objective for chemical products, the EU taxonomy mainly
addresses the carbon footprint of the products and especially
their raw materials. By contrast, it disregards the positive impacts(handprint) 7 of many products. In view of the rising use ofRegulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment.

2 Commission Delegated Regulation (EU) 2023/2485 of June 27, 2023, which adds economic activities for the climate-related objectives, did not result in any modifications at Evonik.
3 Commission Delegated Regulation (EU) 2023/2486 of June 27, 2023.

4 Taxonomy-eligible economic activities are those activities of a company that fall within the scope of the EU taxonomy and are listed in the delegated acts supplementing Regulation (EU) 2020/852.
5 As defined by the EU taxonomy, see financial report. More.

6 Taxonomy-aligned economic activities are taxonomy-eligible activities that meet the stringent technical screening criteria, do-no-significant-harm (DNSH) criteria, and minimum social safeguards set out in the delegated acts on the EU taxonomy.
7 Positive impacts of our products along the value chain compared with other established products and applications on the market, especially in customers’ applications.

20 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Measurability and management

non-fossil raw materials and greater certification, we assume that
we can increase this percentage in the coming years.
Unlike the EU taxonomy, the sustainability analysis of ourbusiness covers the footprint, handprint, and further signals andmarket requirements. Many Evonik products are differentiatedfrom competing products principally through their handprint.
Our sustainability analysis, with its holistic approach, therefore
remains the key tool for the strategic management and ongoingdevelopment of our portfolio.

UN Sustainable Development Goals of relevancefor Evonik

The Sustainable Development Goals (SDGs) provide guidance on
actively aligning our current business activities to overarchingdevelopment paths. Evonik supports the realization of the SDGs
and has intensively examined its own positive and negative
contributions for a number of years. Examples of the positive
contributions made by our products and solutions to implementing the SDGs can be found on our website. More
. We havealso developed a methodology to identify the SDGs that areespecially relevant for the Evonik Group. This approach includes
the 169 sub-targets of the 17 SDGs.
An SDG is especially relevant for us if there is a significant positive or negative influence on or by Evonik. To this end, we use a
multi-step process to examine and weight key criteria such as
sales, earnings contribution, and inclusion in our growth engines

or innovation growth fields. The evaluation also includes the
expectations of internal and external stakeholders and the resultsof our materiality analysis. The SDGs of particular relevance for
Evonik are:

In 2023, 52 percent of sales from our chemicals businesses (2022:
approx. 52 percent) contributed to SDGs 3, 6, 12, and 13, which
are of particular relevance from the viewpoint of the EvonikGroup.
Throughout this report, you can find information on how ouractivities relate to the SDGs of relevance to Evonik (Sustainability
Focus Areas p. 140, the SDG index p. 153, and mapping of the
17 SDGs to the GRI content index p. 154).

Measurability and management
Extensive transparency and sound analyses are our response to
the growing interest shown by our stakeholders in sustainability.
We take into account ecological, social, and economic effects toarrive at a holistic assessment of our sustainability performance.
Alongside potential future opportunities and risks for our business,
we highlight the cost/benefit effects of Evonik’s activities forsociety. We see this as an important contribution to the acceptance by society of new technologies and industrial production.

Sustainability analysis of our business

The sustainability analysis of our business is the key tool for the
strategic management and ongoing development of our port­
folio. The methodology is based on the chemical industry
standard for portfolio analysis. The extensive evaluation of thesesustainability signals in all three dimensions of sustainability—
economic, ecological, and social—gives us insights for the foresighted management of individual products and entire businessareas. The results of the analysis are used in our strategic management process.

Methodology
The market signals identified as being significant for Evonik form
the heart of our sustainability analysis. These include anticipatedregulatory trends, such as those relating to chemical safety along
the value chain, ecological and social performance compared toalternative solutions and major sustainability ambitions in ourmarkets. The evaluation is based on the framework for Portfolio
Sustainability Assessment (PSA) developed by the World Business Council for Sustainable Development (WBCSD). This
enables us to take account of different market signals in thevarious end-markets for our business. The unit of evaluation isdefined through a differentiated assessment of the relevant products in specific product-application-region combinations(PARCs). For each PARC, we identify the benefits of using the
product and will gradually quantify these in greater detail. We
dynamically extend the PARC approach to include new requirements, for example, in the area of circularity. In the reporting
period, we therefore analyzed our entire chemical business inmore detail from the perspective of the circular economy (see“Value chain and products p. 28).
2-7, 201-2, 203-1, 203-2

C06

21 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Measurability and management

Sustainability analysis of our business: methodology

C06

Are there material strong negative signals?

I
Defining
objectives, scope,and processes

Challenged

No
Are there material weak negative signals?

IV
Categorizing
the portfolio

Application
Product

II
Defining
assessment
segments

Are there material positive signals?

Are there material strong positive signals?

No

Performer

No

DriverLeaderNext Generation
Solutions

Strong positive
Weak positive
NeutralLeaderWeak negative

1

Market signals a
1
2
3
4
5
6
7
8

Transitioner

Yes

Yes

Strong negative

Yes

No

RegionIII
Detectingmarket signals

Yes

2

3

4

5

6

7

8

Critical substances
Regulatory trends and global commissions
Sustainability ambitions along the value chain
Ecolabels, certification, and standards
Relative environmental and social performanceContribution to ecological and social value creation
Contribution to the SDGs
Internal guidelines and objectivesa Signal categories 1-5 are compusory for the evaluation of the PARCs (product-application-region combinations); categories 6-8 are optional (additional evaluations).

V
Reportingand using theresults

DriverPerformer
Transitioner
Challenged

Outcome
integrated into
the strategic
management
process

22 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Measurability and management

Analysis of the measurability of sustainability

T02

Type of analysis

Questions addressed

Sustainability analysis
of our business

What are the strengths and weaknessesof the products in our portfolio with regard
to sustainability requirements?
What economically viable measures help us
reduce the carbon footprint of our products?
(Inside-out perspective)

Evonik Carbon Footprint

What is the annual carbon footprintof the entire Evonik Group?
(Inside-out perspective)

Life cycle assessments

What are the environmental impacts resulting from the production of our products(cradle-to-gate), including their application
by our customers (cradle-to-grave)?
(Inside-out perspective)

Analysis to determine which
Which products and solutions for our
Sustainable Development Goals customers address the challenges facing
are relevant for Evoniksociety? How do we contribute to meetingthe 17 SDGs? (Outside-in perspective)
Impact valuation

What positive and negative impacts do ourbusiness activities have on the environmentand society? (Outside-in perspective)

Supply chain analysis

From the perspective of our stakeholders,
what opportunities and risks are associatedwith our products in their respective value
chains? (Outside-in perspective)

The assessment of all the PARCs analyzed is used in a structured
overall evaluation of the sustainability performance of our portfolio, resulting in allocation to the performance categories leader(A++), driver (A+), performer (B), transitioner (C-), or challenged(C--) (C06 p. 21). We refer to products and solutions allocated tothe categories leader (A++) and driver (A+) as Next Generation

Solutions. These have attractive growth rates and stand out
positively in their markets because of their clear sustainability
benefits.

2023 findings
In recent years, we have accelerated the processes used to compile and evaluate data for the Evonik Carbon Footprint (2020)
and the impact valuation (2021) so that the results can be presented simultaneously with our financial results at our financialpress conference. As a reflection of its strategic importance, in
2022, the sustainability analysis was synchronized with the overall process. Therefore, we now report the findings for the current
reporting period.
For fiscal 2023, we examined 531 PARCs (2022: 534 PARCs),
covering the total sales generated by Evonik with chemicals in
the fiscal year. The number of PARCs was almost unchanged
year-on-year, firstly, because we take an increasingly differentiated view of applications and regions and secondly, because thenumber of PARCs was reduced by divestments. The mostimportant findings are:• Evonik generated 91 percent of sales with products and solutions whose sustainability performance was at least in linewith the market reference level (leader, driver, or performer
category). The figure for 2022 was also 91 percent.
• 43 percent of Evonik’s sales came from Next Generation
Solutions. These are products and solutions with a clearly
positive sustainability profile that is above or even well above
the market reference level (leader and driver categories). In
2022, the proportion was also 43 percent.

• Weak negative market signals were identified for 7 percent ofsales (transitioner category), and strong negative signals wereidentified for 2 percent (challenged category) (2022: also
7 percent transitioner, 2 percent challenged). We are addressing these in dialogue with our customers through innovationor active portfolio management.

Life cycle assessments
Life cycle assessments are a focal area of our sustainability
analysis. The proven expertise and good operational networkingof our internal life cycle management group play an importantpart in continually enhancing our knowledge of the impact of ourbusiness activities. A broad spectrum of life cycle assessments isused for this. We use the findings for selective improvements
such as more product-oriented measures to reduce our carbon
footprint or optimize water management at our sites worldwide.

Value chain analysis

We involve the product managers of our businesses throughworkshops where we analyze the opportunities and risk potentialof the relevant value chains. That includes disruptive factors
observed in their markets, for example, as a result of changing
customer requirements or increased regulation. In this way, wederive strategic recommendations for action on short- and longterm developments in our four Sustainability Focus Areas.

23 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Portfolio transformation

Portfolio transformation
Portfolio transformation is one of the three top topics identified
in our most recent materiality analysis. By transforming our portfolio, we want to make Evonik even more resilient and gain
access to new, high-growth business opportunities. At the sametime, our innovative products and technologies improve our customers’ sustainability performance and can therefore strengthen
customer loyalty.

Strategy and management

A key tool for the strategic management and development of ourportfolio is the sustainability analysis of our business. This gives
us important insights into the quality of our portfolio, fromdetermining the proportion of sales generated by our Next
Generation Solutions to showing which products we classify astransitioners or challenged. To this end, our method takes into
account steadily rising market aspirations. These are shaped by adynamic competitive environment with changing customer
requirements, new technologies, and rising regulatory requirements. Our sustainability analysis enables us to incorporate suchfactors and the resulting changes in consumer behavior into ourstrategic management process.
We want to increase the proportion of sales generated by our
Next Generation Solutions from 43 percent in 2023 to over
50 percent by 2030. On a long-term view, we aim to keep the
proportion of sales generated with products that are classified as

challenged as a result of changes in market conditions, consumer
behavior, rising reference levels, or tighter regulation below
5 percent. This is to be achieved, on the one hand, through theongoing development of existing Next Generation Solutions and,on the other, by aligning our research and development in orderto generate additional sales with new Next Generation Solutions.
At the same time, we are reducing the proportion of sales fromproducts classified as transitioners or challenged through selective reformulation or withdrawal from specific businesses. For
example, in 2023, we sold the Lülsdorf site in Germany and therelated cyanuric chloride business in Wesseling (Germany). As aresult, PARCs in the transitioner category left our portfolio.
Our special strength is working in close partnership with ourcustomers. Most of our customers are industrial companies thatuse our products for further processing. The innovative solutions
and technologies provided by our businesses offer important
additional benefits for our customers compared with competitors
in their end-markets.
Evonik strives to be integrated into customers’ value chains
where possible. That enables us to align our research and development, production, marketing, and distribution workflows
closely to our customers’ requirements. We also seek extensive
contact with our stakeholders to enable the timely identificationof relevant developments and help us understand their market
impact. A global Marketing & Sales Excellence team supports
our businesses in customer focus and the customer benefits ofwhat we offer. To achieve that, we make available a wide range
of internal analyses, training programs, and sales tools. In

addition, research & development alliances help us to address
new market trends, mitigate technological and commercial risks,
and improve the market penetration of sustainable solutions.

See our special magazine
section p. 81.

Portfolio transformation

We are cooperating with a broad spectrum of industrial partners
to encourage the transformation to greater sustainability in our
supply chains and end-markets. Our special magazine section
features four practical examples of how we put this into practiceby partnering with EnBW, Siemens Energy, BMW, and Beiersdorf
p. 66. It also shows how these close collaborations relate to our
top three material topics—green energy, portfolio transformation, and circular economy.

24 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Materiality analysis

Quantifying the handprint of selected Evonik Next
Generations Solutions

Evonik markets a range of products whose use has a clearly
positive sustainability profile (handprint) compared with conventional alternatives. In addition to the CO2e avoided by using our
products, in 2023, for the first time, we calculated the contribution to saving resources in the usage phase. The savings relate to
the application life cycle of the product and are based on volume
sales of the products manufactured by Evonik. For thiscalculation, we use an internal method developed by Evonik toevaluate the handprint. This is based on the Avoided Emissions
Guidance published by the WBCSD and the International Councilof Chemical Associations (ICCA) and on the WBCSD’s new
cross-sector guidance. More
. We updated the data on the six
products and system solutions evaluated in the previous year:“green” tire technology, amino acids for animal nutrition,
additives for hydraulic fluids, the hydrogen-peroxide-topropylene-oxide process, POLYVEST® for tires with lower
rolling resistance, and metal oxides for lithium-ion batteries. In
addition, we examined five new product applications: the Excel®
Rejuvenation process for the regeneration of catalysts, silica inpaper production, additives that enable the use of sustainablebase raw materials in the production of flexible foam (e.g., formattresses), TEGO® RC silicones for linerless labels, and easyto-disperse, silica-based rheology modifier specifically for coatings and printing inks.

1

In 2023, the use of these eleven products—with which we generated sales of €1.3 billion—avoided greenhouse gas emissions of
48 million metric tons CO2e. With three of these products, 1 wealso achieved resource savings totaling 379 kt. Since examples offurther products were included in 2023, a direct comparison withthe previous year is not meaningful. Evonik aims to extend thequantification of the benefits of its Next Generation Solutions incustomer applications (handprint) in the future.

Materiality analysis
Basis: an extensive new materiality analysis in 2022

Our sustainability management is aligned with materiality. This
report continues our strategic sustainability reporting, focusing
on material topics. Steadily improving sustainability reporting is a
key element in Evonik’s sustainable corporate strategy. Going
beyond the requirements of the GRI standards, we therefore
started to address the upcoming EU reporting standards at an
early stage and conducted a fundamentally revised materiality
analysis in 2022.
This was based on the revised GRI Sustainability ReportingStandards and, in some aspects, on EFRAG’s 2 working papers ofJanuary 2022, ESRG 1 Double materiality conceptual guidelines
for standard-setting and ESRS 3 4 Sustainability material impacts,
risks, and opportunities. Similarly, we took into account certain
content from the exposure drafts 4 of April 2022. In keeping with

Excel® Rejuvenation process for catalysts, silicas for paper production, and TEGO ® RC silicones for linerless labels.

2 EFRAG = European Financial Reporting Advisory Group.
3 European Sustainability Reporting Standards.

4 ESRS 1: General principles (exposure draft), April 2022; ESRS 2: General, strategy, governance and materiality assessment (exposure draft), April 2022.

the GRI Sustainability Reporting Standards, in 2022, we wrote
new texts on the management approach for all material topics.
These include positive, negative, actual, and potential impacts ofand on Evonik’s activities.
3-1

Activities in 2023 relating to the materiality analysis

Since conducting the materiality analysis in 2022, the ESRS havebeen revised, with interim standards published in November
2022 and June 2023. The final version of the ESRS was publishedon July 31, 2023. In light of this, in the reporting period, we
examined whether the approach used for our materiality analysis
meets the requirements of the final versions of the ESRS.
Based on the double materiality standards set out in ESRS 1 and
ESRS 2, we conducted a gap analysis in 2023. The aim was to
identify whether the impacts on which our materiality analysis
was based cover the sustainability matters and topics set out inthe ESRS, especially the sub-topics and sub-sub-topics, andwhether they are relevant for our business activities.
We compared the sustainability matters in the original long list
with around 700 impacts. We identified some gaps relating to
sub-sub-topics of ESRS S3 Affected communities and ESRS E4
Biodiversity and ecosystems. Experts then performed a qualitative and semi-quantitative assessment of their significance for
Evonik in workstreams. Based on our business model, we consider that the gaps relating to S3 are not relevant because we do
not have any mining, forestry, or agricultural activities that could

C07

25 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Materiality analysis

give rise to land-use conflicts. Apart from direct exploitation,with a focus on water intake and consumption, the other subsub-topics of E4 are not currently considered to be material.
Nevertheless, we are working to continuously improve our dataso that we can update this assessment if necessary.
In addition, we refined our positive impacts by dividing them into
actual and potential and performed a critical review of humanrights impacts to assess whether sufficient attention had been
paid to them. Neither of these validation steps resulted in any
change in our 15 material topics.

Materiality analysis process

Analysis of
Evonik’s environment• Purpose• Key figures• Business model• Markets• Sustainability strategy• Regions• Stakeholder groups• Value chain

We review the materiality analysis every year between extensive
new analyses using a peer group and media analysis to make sure
it is complete and up-to-date. This review also confirmed thatour 15 material sustainability topics are complete and up-to-date.
This method of validating our material topics was presented tothe assurance practitioners.

Procedure used for the materiality analysis

For the sustainability topics identified in our materiality analysis
and the underlying impacts, there is an anonymous complaints
mechanism for both employees and external stakeholders. One
important tool in this context is our whistleblower hotline (see“Governance and compliance” p. 110).
2-26, 3-2

• Impact materiality: How do our business activities impact theeconomy, the environment, and society (including humanrights)?
• Financial materiality: Do sustainability aspects represent
opportunities or risks for our business activities in terms ofcash flow and enterprise value?

We evaluated actual and potential positive and negative impactsof our business on our area of activity (inside-out perspective)
and the impact of external factors on our business activities (outside-in perspective). In addition, we addressed the following
questions in the context of double materiality:C07

2-14, 3-1, 3-2

Identificationof impacts(outside-in andinside-out perspective)
Impact materiality• How do our businessactivities impact
the economy,
the environment,
and society(including
human rights)?
Financial materiality:• Do sustainability
aspects represent
opportunities orrisks for our businessactivities in termsof cash flow andenterprise value?

Assessmentof the significanceof impacts

Cut-off,
clustering,prioritization• Develop an evaluation
sheet based on
the long list for
distribution• Define materiality
thresholds• Assessment of
the evaluation sheet• Clustering of impacts
by topic, followed byprioritization

Validation• Validation of thematerial topics
by internal andexternal experts
and stakeholders• Approval by the
executive board
member responsible
for sustainability• Definition ofreporting boundaries

Material topics

E
Top 3• Portfoliotransformation• Circular economy• Green energy• Product stewardship• Mitigatingclimate change• Water management• Biodiversity

S• Attractiveness as
an employer• Employee satisfaction• Diversity andequal opportunity• Occupational andplant safety• Health protection
and promotion

G• Responsible
management/
human rights• Cybersecurity• Responsibility within
the supply chain

26 Strategy and growth

T03
C08

EVONIK SUSTAINABILITY REPORT 2023

Materiality analysis

Our materiality analysis comprised five steps.
1 Analysis/description of Evonik’s environment
First, we examined Evonik’s business environment using the listof criteria specified by GRI. This enabled us to identify actual andpotential positive and negative impacts. To this end, we took into
account, among other things, our business model, our sustainablecorporate strategy, key performance indicators, and our collaboration with stakeholders.
2 Identification of impacts
The heart of the second step was the identification of impacts.
For this, we evaluated a wide range of internal and external data
sources. In addition, questions from major sustainability rankings,
such as MSCI and EcoVadis, and reporting frameworks such as
GRI, SASB, and TCFD were considered. In this way, we covered
both the business perspective and the stakeholder perspective.
The impacts identified from a total of around 700 were bundled
in a long list of 67 impacts.

3 Assessment of the significance of the impacts
Based on this long list, we generated an evaluation sheet todetermine the impact materiality and financial materiality. We
sent this to a broad spectrum of specialist colleagues around theworld—in various functions, divisions, and regions. In this, we
paid attention to a balanced mixture of gender and professional
experience.

impacts, we derived average values and defined a materiality
threshold on the basis of significance.

The impacts were assessed using different criteria and scales.
This impact materiality assessment was performed using thecriteria defined by GRI and EFRAG on severity (scale, scope,
remediability) and likelihood. Financial materiality was assessedusing the EFRAG scale. 1

These were then re-examined in light of company-specific andexternal conditions. As a result, diversity and equal opportunity
was added as an additional topic in the prioritization process.

4 Cut-off, clustering, and prioritization
The analysis of the evaluation sheets led to four impact rankings,
subdivided into impact materiality and financial materiality—and
further subdivided in each case into positive and negative
impacts. To permit a comparison of the positive and negative

Table illustrating the assessment of our list of impacts by category and impact type 

T03.

Categories
Environmental (E)Social (S)Governance (G)Type ofimpactImpactmateriality

Financialmateriality

Actual/potential
impactHuman rights
impactMaterial topic

Impact 1

E

Positive

Yes

No

ActualNoe.g., water management

Impact 2

G

Negative

Yes

Yes

PotentialYese.g., cybersecurity

Impact 3

S

Negative

No

No

Potential

No

–

1

ESRG 1: Double Materiality conceptual guidelines for standard-setting (working paper), January 2022, page 19, paragraph 114.

The result of these four process steps was the total amount ofmaterial impacts in the categories impact materiality and financial
materiality. By clustering these impacts in accordance with
EFRAG and GRI, we identified the material topics.

5 Validation of the material topics
We presented the results of the materiality analysis to internaland external sustainability and financial experts who had not previously been involved in the evaluation. The external validation
was undertaken by representatives of industrial unions, industry
associations, NGOs, sustainability consultancies, and the financial
sector. As a result of the feedback, three material topics wererenamed and thus refocused.
3-1
Result of the validation:complete refocusing of three material topics
Energy management

Green energy

Sustainable products/
solutions for customers

Portfolio transformation

Climate change

Mitigating climate change

C08.

27 Strategy and growth

EVONIK SUSTAINABILITY REPORT 2023

Our targets

The final outcome, following the prioritization and validation
steps, was a list of 15 material topics ( p. 11). This list was thenapproved by the member of Evonik’s executive board responsible
for sustainability.
2-14, 3-1
The three materiality topics identified that were ranked highest
for Evonik are green energy, portfolio transformation, and circular
economy. Compared with our previous extensive materiality
analysis in 2018, the following new material topics were identified: green energy, cybersecurity, and employee satisfaction.
Topics that were no longer evaluated as material in our materiality analysis in 2022 but are nevertheless considered relevant toEvonik as a specialty chemicals company are still contained in thisreport. These include, for example, waste management andvocational training and continuing professional development. We
continue to report on these topics.

As the final step, we used this as the basis to define the reporting
content and boundaries, with a focus on the top topics. The
material impacts and topics resulting from this process define thestructure and depth of our sustainability report 2023. We havegrouped these topics in six areas of action, which correspondto the chapters in this report. The focus of our reporting andthe reporting boundaries are therefore based principally on thesustainability topics derived from our materiality analysis.
2-4, 3-1, 3-2

A compact overview of how we conducted our last extensive
materiality analysis in 2022 can be found on our website. More .
In connection with the materiality analysis, we revised our stakeholder management concept. More .

Our targets
Below is an overview of the targets set forour strategy and growth area of action.  
Target attainment in 2023
Increase the proportion of sales generated with
Next Generation Solutions to over 50 percent by 2030.
Status: 43 percent (2023)
Proportion of sales from challenged products
should be permanently below 5 percent.
Status: 2 percent (2023)

Targets for 2024 and beyond
Increase the proportion of sales generated with
Next Generation Solutions to over 50 percent by 2030.
Proportion of sales from challenged products
should be permanently below 5 percent.

Target not achieved
Target partially achieved or target horizon extends beyond 2023
Target achieved

28 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Value chain
and products>

In addition to our own production andbusiness processes, we always have an eye
on the supply chain for our raw materials,
goods, and services, as well as on productbenefits and applications for customers.
Our innovative products help our customers
meet their sustainability goals.

99%

Percentage of risk estimatesfor substances placedon the market in quantitiesof >1 metric ton p.a.

227

New patentapplications filed

1

MATERIAL TOPICS> € billion

Circular economy
Product stewardship
SDGS OF PARTICULAR RELEVANCEFOR EVONIK

Additional sales from circular products
and technologies by 2030 2

1With products introduced in or after 2015.

2 New target.

> €1 billion

Additional sales 1 in our
six innovation growthfields by 2025

29 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Research, development & innovation

Contents
29

Research, development & innovation		201-429

Strategy and management

30

Global research network

32

Circular economy

32

Strategy and management

36

Circular economy: Our engagement in 2023

37

Efficient use of scarce resources

37

Palm oil38

Transparency and traceability

Value chain and products
Sustainability integrated into management of the innovation portfolio• Development of circular business models• Extension of the product range for mechanical and chemical recycling• Product stewardship: new regulatory challenges

		  301-1, 301-3, 306-2

37

Alternative and renewable raw materials

39

Product stewardship

39

Strategy and management39

Responsible handling of chemicals

		  416-1, 416-2, 417-1, 417-2

39	Implementation of the REACH regulation and qualityof dossiers
43

Further product stewardship topics

		

43 Animal protection		

43 Nanotechnology		

44 Microplastics

		

44 Proposed restriction of PFAS in the EU

		45 Biotechnology

45

Our targets

Research, development &innovation
Strategy and management

Developing sustainable innovations is vital for our focus on
profitable growth. In this way, we help our customers achieve
their own climate protection, circularity, and biodiversity targets.
Examples of our innovative contribution to a sustainable trans­
formation are our membrane technologies and our lipid nano­particles for modern mRNA vaccines.
Sustainability is an elementary component of our innovation
portfolio. Our aim is to steadily improve both our handprint andour footprint. Therefore, some of the members of the research,development & innovation (RD&I) council and the sustainability
council are the same. We use strategic perspectives to allocate
our research and development (R&D) resources. These include
an intensive sustainability assessment using the methodology thathas become established for the sustainability analysis of ourbusiness (see “Strategy and growth” p. 13). Idea to Profit (I2P)
is used to manage our R&D projects in several steps—
from the idea through systematic development to profitablecommercialization. Since 2022, this has included our Sustain­­ability Focus Areas (see “Further elements of our sustainability
management” p. 134)
Our innovative capability enables us to open up opportunities innew, future-oriented businesses in six innovation growth fields:• Sustainable Nutrition: establishing new products andservices for sustainable nutrition of livestock and people• Healthcare Solutions: developing new materials for implants,
as components of cell culture media, and for custom-tailored,
innovative drug formulations• Advanced Food Ingredients: creating a portfolio of healthenhancing substances and nutritional supplements as a contribution to healthy nutrition• Membranes: extending SEPURAN® technology for efficient
gas separation to further applications• Cosmetic Solutions: developing further products based onnatural sources for cosmetics and sensorially optimized
formulations for skincare products• Additive Manufacturing: developing products and technologies for additive manufacturingC0

30 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Research, development & innovation

Our aim is to generate additional sales of over €1 billion withthese innovation growth fields by 2025. 1 We are making good
progress towards this. Our R&D activities are guided by our
Research, Development & Innovation (RD&I) function. This
comprises the R&D teams of the growth divisions, innovation
management, Creavis, which is our business incubator andstrategic research institute, and Evonik Venture Capital.
The strategic framework for our R&D is set by the RD&I council,
which also manages the targeted allocation of human and financial R&D resources. It is chaired by the member of the executive
board responsible for chemicals and innovation. Other members
are the chief innovation officer, the head of Corporate Strategy,
and the heads of the divisions.
Creavis serves the Evonik Group as an innovation driver forresource-saving solutions with a perspective that goes beyond
2025. In this role, it develops transformative innovations that go
beyond the product and market focus of the operational units.
Creavis bundles its activities in three incubation clusters:•	The Defossilation cluster helps industries become less dependent on fossil raw materials by developing high-growthsolutions that make a contribution to the transition to acircular, climate-neutral economy.
•	The Life Sciences cluster focuses on novel concepts forresource-efficient and sustainable food production for theworld’s continuously growing population. Another focal area
is preventing and curing diseases, especially as many people
are living to an advanced age.
•	Solutions Beyond Chemistry fosters traceable, safe, andcircular value chains based on special application know-how
and data-based solutions. These increase the transparency,
effectiveness, and sustainability of industrial systems.

1

Reference base: 2015.

Our venture capital activities give Evonik an early insight into
innovative technologies and business models. By collaboratingwith start-ups and technology funds around the world, Evonik
gains more rapid access to attractive future technologies andmarkets. The Evonik Group has made more than 50 investments
since the establishment of Evonik Venture Capital in 2012.
More. One important instrument for this is the Sustainability
Tech Fund, which was set up in 2022 and has a total investment
volume of €150 million. This fund is oriented, on the one hand,
towards climate-neutral technologies and business models and,on the other, towards innovative technologies that complement
our Next Generation Solutions.
The Evonik Biotech Hub uses its extensive understanding ofcomplex biological systems and biotechnological production
processes to develop custom-tailored, competitive solutions for
its customers, with a focus on all of Evonik’s business lines.
We place our trust in industrial biotechnology for the productionof biomolecules and micro-organisms, such as• highly soluble, ultra-pure collagen of non-animal origin foruse in pharmaceutical and medical applications, as well as incell culture and tissue engineering;• biosurfactants for household and cosmetic applications;• omega-3 fatty acids produced from natural microalgae foranimal nutrition;• amino acids for low-protein diet formulations as a global
standard for animal nutrition; and• probiotics to reduce the use of antibiotics in livestock farming.

Breakdown of R&D expenses

C09

Other
CreavisSpecialty Additives

Performance Materials

Smart Materials

Nutrition & Care

Global research network

RD&I has more than 40 locations worldwide and around2,650 R&D employees. R&D expenses totaled €443 million in
2023. The ratio of R&D expenses to sales was 2.9 percent (2022:
2.5 percent). At present, our operational chemicals divisions
account for around 83 percent of our R&D expenses, while
Creavis accounts for about 14 percent. In the reporting period,
some of our projects received funding from the European Unionor the Federal Republic of Germany. In all, we received fundingof around €3.7 million.
201-4
Evonik has an extensive patent strategy to protect new products
and processes. The value and quality of our patent portfolio haveincreased steadily in recent years. 227 new patent applications
were submitted in 2023, and we had around 23,000 patents andpending patents. To position ourselves close to our partners andcustomers with our innovative ideas, minimize geopolitical risks,and enable us to respond quickly to regional trends, we are31 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Research, development & innovation

driving forward our globalization strategy, for example, throughinnovation hubs in attractive growth regions. Outside ofGermany, we currently have innovation hubs in:• Allentown (Pennsylvania, USA): research focuses onapplications for amines, high-performance polymers, andpoly­urethanes• Mumbai (India): research focuses on formulations for thepharmaceuticals industry, catalysts for oils and lubricants, andthe development of applications for construction and agriculture• Shanghai (China): research focuses on applications forlithium-ion batteries, cosmetics, and silicone• Singapore (Singapore): research focuses on cell cultures andskin models, coating additives, and photopolymers.

Through our venture capital investment in the Chinese battery
expert Hefei Haizhou New Material Co. Ltd., known as SuperC,
we are supporting a key technology that improves the range,
robustness, charging speed, and service life of batteries. In thisway, we are stepping up our efforts to extend Next Generation
Solutions, because high-performance batteries are a crucial
factor for the electrification of road transport and a permanent
reduction in CO2 emissions. By working with SuperC, we areenhancing our understanding of this highly dynamic market anddriving forward our growth strategy for battery solutions. The
investment comes from the Sustainability Tech Fund set up by
Evonik Venture Capital in 2022.

Research, development and innovation:
progress in 2023

In the reporting period, we engaged in many research projects
that contributed to the green transformation of Evonik and its
customers towards sustainability and more efficient use ofresources. These are illustrated by the following examples:
We are contributing our specialty chemicals expertise in plastics
and additives for recycling to the Future Sustainable Car
Materials (FSCM) project: A consortium of 19 leading industrial
companies and research institutes is working on new processes
to use sustainable materials for a circular economy in the automotive industry. The aim is to keep the materials in the value
chain at the end of their useful life and use them to produce new
objects, such as automotive parts, without using fossil resources.
This project, which is funded for three years by the Federal
Ministry for Economic Affairs and Climate Action, was launchedat the end of 2022. 1
1

Funding reference 19S22005b.

2 Funding reference 16BZF305C.

SuperC has developed an innovative process to produce few-layer graphene(FLG), which can be used in pastes for electrodes in lithium-ion batteries.

At the beginning of 2023, we also strengthened our position insustainable products and recycling processes through a venture
capital investment in the British company Interface Polymers Ltd.,Loughborough. Its additives simplify the recycling of plastics.
Interface Polymers’ additive technology is therefore an excellent
fit with Evonik’s Circular Economy Program p. 32. This investment was also made by the Sustainability Tech Fund. In parallelwith this investment, the Coating Additives business line has
agreed to an extensive development partnership with Interface
Polymers with the aim of using its technologies in paints andcoatings.
In the EarLi project (extraction and purification of lithiumhydroxide monohydrate from spent lithium-ion batteries forreuse in the production of battery cells), we are working withseveral partners from science and industry on an economically
viable method for the recovery of high-purity lithium. We want toplay our part in finding a solution that drives forward e-mobility
with the lowest possible environmental impact. The project isfunded by the Federal Ministry for Economic Affairs and Climate
Action. It is scheduled to run for three years 2.
Creavis has developed IN VIVO BIOTICS™, an innovative platform for synbiotic dietary supplements, and brought further
products to market maturity in the reporting period. The
synbiotic solutions combine selected micro-organisms withhealth-enhancing ingredients, generating various positive effects
in the human gut such as strengthening the immune system, andreducing inflammation or gluten degradation in people who
suffer from gluten intolerance. The first products are alreadybeing marketed by the Health Care business line.
The growing popularity of fermented food and beverages andthe increasing awareness of the role of the microbiome for healthhave significantly increased consumer acceptance of fermentationbased beauty products.

C1

32 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Circular economy

Circular economy

Circular economy

Strategy and management

Circular economy is a system-oriented approach covering industrial processes and economic activities along the entire value
chain. It aims to achieve a climate-neutral, resource-efficienteconomy, which preserves the value of products, materials, andresources for as long as possible. Circular economy means
decoupling economic growth and the use of resources by returning valuable raw materials to the loop at the end of their usefullife. Better use of resources and the circular economy are becoming increasingly important for Evonik in view of the limitations ofour planet and the diversification of raw materials. As a specialty
chemicals company, Evonik is an integral part of various value
chains and has in-depth knowledge and expertise in the processes, technologies, opportunities, and risks of upstream anddownstream elements. Our activities aim to mitigate theinadequate availability of resources in the supply chain and our
production processes and to reduce their dependence on finite
fossil-based and other non-circular resources. At the same time,
circularity opens up new business opportunities and attractive
growth potential for Evonik.
Circular economy involves looking at the entire life cycle ofproducts (C10). The focal areas are the production phase, theusage phase, and the recyclability of the products. In the production phase, recycled, bio-based, or CO2-based resources are used
as a substitute for fossil-based raw materials. During the usage
phase, products are characterized by durability, reparability, andreuse. To close the loop, products have to be recyclable or bio­

C10
Circularity (broad)
Circularity (narrow)

Use

Keeping resourcesin the loop as longas possible
Make

Recover/
Biodegrade

Circular feedstocks

degradable at the end of their life cycle. In this way, less material
is sent to landfill or for incineration.
Evonik sees circularity as a fundamental transformation of economic activity. We support all business activities, technologies,
and innovations that help to speed up ecologically and economically viable measures to promote circular value chains. Circular

economy is one of Evonik’s top 3 material topics
p. 11. We
drove forward our activities in this area in 2023. For example, westarted to draft a circular economy policy, which should be
published on our website in 2024. In this way, we are substantiating the status and importance of circularity for Evonik’sbusiness activities.

Ongoing development of the sustainability analysis of ourbusiness
Within the WBCSD, Evonik is involved in the ongoing development of portfolio sustainability assessments (PSA
p. 20) to
improve the evaluation of product portfolios from the perspective of circularity. In view of this, we integrated our circular
economy assessment into the sustain­ability analysis of our business in the reporting period. The aim is to determine the future
opportunities and risks of our portfolio even earlier and more
effectively, so that we can derive specific strategic recommendations on how to refine it. To determine the environmental impactof circular products, Evonik mainly uses life cycle assessments inaccordance with ISO standards 14040 and 14044. In this context,
we also examine which methods could be used for quantitative
indicators in the future.
Global circular economy program
In 2023, we extended our global circular plastics program into a
global circular economy program. In this way, we are strengthening the continuous development of our business activities
towards a circular economy by integrating all business lines at
Evonik. Going beyond the previous focus on the circularity ofplastics, we will now look at the circularity of raw materials of all

33 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Circular economy

types and the value chains in all of Evonik’s markets. In light of
this, our previous targets have been combined in a new target.
Previous targets (global circular plastics program):• Generate more than €350 million in additional sales withsolutions for the circular plastics economy from 2030
• Solutions for around 400,000 metric tons of recyclable
plastics by 2025
New target (global circular economy program):• Generate at least €1 billion in additional sales with circular
products and technologies by 2030
The global circular economy program comprises short- to midterm activities with a clear focus on business development. Hereare some examples of our activities:• the use of circular raw materials,• the development of solutions for mechanical and chemical
recycling technologies,• the identification of business opportunities and the development of circular business models, and• intensive examination and structuring of new value chains.
As a specialty chemicals company, Evonik is at the heart ofvarious value chains. Therefore, refining our products and technologies and changing our raw material platforms are the basic
preconditions for the circular economy. In addition to our own
aspirations, major drivers are the self-commitments of ourcustomers and other companies along the value chain, as they are

See our special magazine section „Implement!“

p. 77.

defining increasingly ambitious plans to reduce CO2 as well as
targets for the use of circular materials.
Working with partners along the entire value chain is an impor­tant key for Evonik to play a successful role in the transformation
to a circular economy. Evonik divides its circular economy
activities into upstream, gate-to-gate, and downstream activities.

Upstream
The procurement of circular raw materials covers bio-based,recycled (bio-based and non-bio-based), and CO2-basedmaterials. Evonik’s aim is to increase the use of circular raw
materials to reduce the consumption of limited resources, reduce

Circular economy

its own carbon footprint, and, in particular, reduce scope 3 emissions along the value chain. We are therefore examining technical, economic, ecological, and social aspects and developing new
business models.
For example, Evonik introduced the ECOHANCE® productprogram in the reporting period. In this program, skincare
products are produced from plant-based residues. For instance,
the raw material for ECOHANCE® Care PSC3 is a fatty acidenriched olive oil that cannot be used in food production. Consequently, this process does not compete with food crops andplays a part in saving primary plant-based resources. Moreover,it supports the development of transparent supply chains and also
includes smaller suppliers.

34 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Circular economy

In order to build up a circular system for sustainable recycling ofpolyurethane, in the reporting period, Evonik teamed up with
REMONDIS, one of the world’s leading recycling companies.
Within the framework of this cooperation, REMONDIS supplies
us with end-of-life mattress foams as a circular raw material.
One ongoing challenge is the limited availability of circular raw
materials due to regional fluctuations in supply, the legal framework, and the fact that infrastructure is still at the ramp-up stage.

Gate-to-gate
Continuous process optimization and the efficient use ofresources have always been very important in our production
activities. We use a wide variety of measures to drive our activities towards circularity. These include:• measuring and reporting on waste from our production plants
in keeping with our goal of reducing production waste,• increasing resource efficiency by continuously optimizing
production processes,• leveraging the benefits of integrated production sites andsystems for systematic waste management in alignment withthe waste hierarchy, and• reducing, reusing, and recycling the packaging used for our
products.
In our production operations, we prioritize avoiding waste inaccordance with the waste hierarchy defined in EU law, mainly

1

Rebottled IBCs: IBCs where a completely new liner (bottle) is inserted into a used cage.

by continuously optimizing operating processes and utilizing thebenefits of integrated production sites and systems. As the next
step, waste has to be reprocessed or used to generate energy.
Safe disposal is merely the third option. Evonik’s goal is to reduce
specific production waste relative to production volume by
10 percent between 2021 and 2030. For detailed information onwaste, see “The environment” p. 46
Our goals are to close the loop and design more sustainable
packaging. In this way, we want to make a contribution to reducing our carbon footprint in the future.
Evonik already uses plastic packaging, including bulk packaging,with a high proportion of recyclate at various sites. The availabilityof more sustainable packaging options has increased significantly,
not least due to more stringent national and European packaging
regulations, the introduction of a tax on plastics in various EU
countries, and higher demand from customers. Sustainable
packaging has not altered the types, appearance, or handling of
packaging (filling, palletization, transportation).
We are constantly endeavoring to increase the proportion ofrecyclable packaging. For categories of packaging where recycling
rates are low, increasing the rates is held back by regulatory or
technical barriers. We are addressing this in collaboration withrepresentatives of the packaging industry within the German
chemical industry association VCI and with our customers. Our
recycling rates per category are shown in table T04.
301-1, 301-3

Recycling rates by packaging categories
Category in %Bulk containers (>180 l),e.g., IBC c, metal drums

301-3

T04

Recycling rate
per category a

Percentage of procurement volume b

18.8

50.3

Small containers (<180 l),e.g., canisters

3.9

5.3

Pallets, e.g., wood and plastic

13.1

20.3

Film, e.g., refuse bags, flat film

8.8

4.6

Paper and cardboard,e.g., corrugated cardboard, paper bags

4.5

11.4

–

7.9

d

FIBCs , e.g., plastica Based on weighted average of the units.
b Based on invoice value, rounded.
c

IBC = Intermediate bulk container.

d FIBC = Flexible intermediate bulk container.

We are working on various ways of increasing recycling rates forrigid bulk containers depending on the products, processes, andcustomers. These include the reuse of reconditioned IBCs (intermediate bulk containers; recycling rate: 100 percent) andrebottled IBCs 1 where the steel cage and pallet are reused with a
new plastic liner (recycling rate: 70-80 percent). In other areas,
we use IBCs with a plastic liner made from about 40 percent
post-consumer recyclate (PCR), which results in a recycling rateof about 60-65 percent. Since 2022, we have been trialing PCR
IBCs on the filling lines for non-hazardous goods at initial sites inGermany. We extended this to further sites and containers in the35 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Circular economy

reporting period. The plan is to roll out usage further locally,nationally, and globally in the future. Since October 2023, wehave also been using PCR IBCs and 220-liter plastic drums forhazardous goods. The plan is to roll out usage further locally,nationally, and globally. By increasing the use of reusable systems
such as DrumGuard® to secure loads, we are also reducing theuse of shrink-wrap film and therefore the amount of plastic waste
for our customers.

In 2023, we continued to partner with Wildplastic, a start-up that
supports countries with inadequate waste management systems
in the collection of plastic waste from nature by providing fairpayment. The recycled plastics are used, for example, inhigh-quality garbage bags and mailing bags. As well as additives
for cleaning and reprocessing, we offer Wildplastic an extensive
network and thus support the creation of jobs in the relevant
countries. More .

Downstream
Evonik offers solutions that support customers’ and consumers’
circularity aspirations during the use of products and at the endof their life cycle. For example, our additives increase the durability of our customers’ products and therefore make a contribution to saving resources. Furthermore, our additives improvemechanical and chemical recycling processes and recyclates.
Evonik provides an extensive range of additives for mechanicalrecycling. In this way, we help our partners optimize the efficiency and quality of their circular processes and products. Durable
products with good usability reduce the use of primary resources
and waste. For example, our building protection additives
enhance the stability and appearance of concrete structures thatare exposed to weathering and environmental influences.

Our products and technologies enable the recycling of used tires
at the end of their life cycle for reuse in high-quality applications,thus avoiding incineration. Our partners reduce their ecologicalfootprint by using tire granulates instead of fossil-based bitumen
in road surfaces. As well as reducing traffic noise (low-noiseasphalt) and cutting fuel consumption by cars, this greatly
increases the service life of the road surface, reduces maintenance, and makes the surface recyclable.

Our surfactants enable printing inks to be washed out of usedplastics faster, so they reduce the ink residues in recycled plastics.
Moreover, after the washing process, less water remains on theplastic, saving time and energy in the drying process. Our additives also minimize odor and improve the processability andmechanical properties of recyclates. This allows higher yields of
secondary materials with better quality recyclates. We are
involved in a consortium with BMW and other companies along
the value chain that aims to increase the proportion of recyclates
that can be used in automotive components to enable circularity
in the automotive sector p. 77

Evonik’s pilot plant in Hanau (Germany) for recycling polyurethane
mattresses.

Chemical recycling is a solution for waste streams that cannot berecycled eco-efficiently using mechanical or technical processes.
That applies, for example, to mixed, heavily contaminated orcolored thermoplastics and duroplasts that cannot be melted. To
achieve this, Evonik makes additives, adsorbents, catalysts, andprocess know-how available to its partners. We therefore facilitate chemical recycling of plastics residues that would otherwise
be incinerated or disposed of in landfills, for example, byenabling the use of heavily blended or contaminated plastics inthe production of pyrolysis oils. In this technology, plastics
streams are converted into pyrolysis oil at a high temperature
without air. This can be used as a substitute for fossil naphtha incrackers, providing the basic ingredients for the synthesis ofpolymers. This technology is currently still in the pilot stage. To
help meet the ecological and economic requirements on anindustrial scale as well, we have increased our product offerings
for the production of pyrolysis oils. We supply adsorbents and36 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Circular economy

catalysts for the separation of contaminants and purification as
well as additives that enable the processing of pyrolysis oils at
low temperatures. Our SiYPro™ additives help our partners
make reprocessing in crackers safer and more robust. Anotherway of ensuring the circularity of heavily contaminated or
mixed plastics streams is the production of synthesis gas. For
this too, we provide cleaning technologies such as adsorbents.
Similarly, our alkoxide catalysts and process technologies enable
the recycling of PET packaging and colored PET plastics, which
are not suitable for mechanical recycling, at the end of their life
cycle. We assume that alkoxides will play an important role inchemical recycling of PET plastics in the future. Evonik is
expanding its global alkoxides business with a new facility in
Singapore. Moreover, other material classes will become significant in the future. For example, Evonik has developed chemical
recycling processes to regain the basic components of polyurethanes for use in the production of new polyurethanes. Evonik isproviding the know-how in catalysts and process technology,
while its partner REMONDIS secures the supply of circular raw
materials and is also contributing expertise in recycling logistics
at the end of the usage phase.
Since a circular economy extends beyond recycling approaches
and includes the production and usage phases of products,
Evonik’s technologies are also used in design for recycling anddesign for circularity. For example, our binder for heat-sealing
applications allows the production of packaging materials such as

1

Cefic = Conseil Européen des Fédérations de l’Industrie Chimique.

yogurt pots from a single material, so they can be recycled. Other
examples are a monomaterial prototype of a car seat produced by
3D printing and monomaterial toothbrushes. In these applications, polyamide 12 is substituted for all previous material blends,
facilitating cost-efficient and eco-friendly mechanical recycling.
The concept should inspire other product designers to reduce therange of materials used. Moreover, new business models such asleasing could make such concepts viable in more price-sensitivemarkets. Evonik complements this technical approach by using
bio-based products; these are particularly significant for our
Nutrition & Care division. One important technology platformthat should be mentioned here comprises our biosurfactants,
which are a relevant raw material base for various productranges. Alternative circular solutions are needed for products andingredients that are difficult or impossible to collect and recycle
because of their properties or application. Evonik’s answers
include, for example, biosurfactants derived entirely from renewable raw materials. For example, our rhamnolipids are used incosmetic products and domestic cleaning agents. Thesesugar-based biological products are mild, highly efficient, andfully biodegradable, so they are returned to the biological cycle
at the end of their useful life.

Circular economy: Our engagement in 2023

Evonik is a member of the European Circular Plastics Alliance.
This EU initiative aims to return 10 million metric tons of plastic
recyclate to the market in Europe every year from 2025. Further,

2 Sub-project L IV: C2+ alcohols, C2+ olefins, synthetic fuel components, funding reference 03EW0008; funded by the Federal Ministry of Education and Research.
3 EU funding reference 20028.

we have extended our involvement with Plastics Europe inGermany and Europe and the European Chemical Industry
Council Cefic 1, both of which support circularity. We are also amember of Circular Economy for Flexible Packaging, an initiative that develops circular solutions for all stages in the flexible
packaging value chain. We support the Circular Valley initiativeof WupperTalBeWegung e.V., which networks start-ups in thefield of circular solutions with industry. It also offers representatives of industry, science, politicians, and the arts a platform forconstructive dialogue to encourage the transformation to acircular economy.
Networks and partnerships are the lifeblood of the circular
economy. Therefore, frameworks are vital to create a mutual
understanding of activities. As a member of the WBCSD, we arecontinuing to play a part in working groups that are working on
standardization and evaluation of circularity, both in the chemicalindustry and along the value chain.
Evonik is involved in the Carbon2Chem research project 2, whichaims to convert exhaust gases from steelworks into chemical
products such as ammonia for nitrogen fertilizers or methanol for
use as a production input. We are a partner in the EU project
ReProSolar, which is working on the complete recycling ofphotovoltaic modules 3. In this context, all components of used
modules are completely recycled. This allows pure silicon, silver,
and glass to be returned to the manufacturing industry.

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EVONIK SUSTAINABILITY REPORT 2023

Efficient use of scarce resources

In the CEWI project, Evonik is working with companies, politicians, and other groups on circular models to drive forward the
reprocessing of used cars. More .
Together with other companies in the plastics value chain in thefederal state of North Rhine-Westphalia, we are setting up a
networking platform and demonstration facility for practicalresearch into recycling technologies up to market maturity.
306-2

Efficient use of scarce resources
Alternative and renewable raw materials

Evonik uses a wide range of raw materials in the production of its
products. Like technical goods and services, they are sourced
from a variety of suppliers. Production inputs decreased from
7.7 million metric tons in 2022 to 6.2 million metric tons in 2023.
Production output was 7.5 million metric tons. Evonik replaces
CO2e-intensive raw materials with alternatives wherever this ispossible and competitive.
In its fermentative production processes, Evonik uses dextroseand saccharose, mainly as substrates for the production of aminoacids, rhamnolipids and sophorolipids. Natural fats and oils andtheir derivatives are used to produce precursors for the cosmetics,
detergents, and cleaning agents industries and in technicalprocessing aids. Renewable raw materials are classed as criticalraw materials for procurement purposes, especially with a viewto ecology and the reliability of supply. Consequently, they are
subject to a special examination.

We are endeavoring to increase the proportion of renewable raw
materials. That includes examining technical, economic, ecological, and social aspects. In 2023, the proportion of renewable raw
materials increased to 12.0 percent of production inputs (2022:
11.1 percent).
The use of renewable raw materials, especially in personal careand cleaning products, has to meet the special expectations ofcustomers and consumers. Therefore, the Care Solutions businessline defined the requirements in more detail in the reporting
period and included them in its CARETain Guidebook. This
guidebook is a compilation of sustainability requirements, focusing on the personal care and cleaning agents markets. We use it
to identify risks and opportunities and support new productdevelopments. We also use it to better assess the scope for using
alternative raw materials and next-generation raw materials in
our products. The guidebook therefore reflects a high proportionof market and quality requirements. It uses a Sustainable Product
Trend Index (SPTI) for internal visualization and guidance. The
categories in this index include, among others:• High biomass content, including the use of next-generation
raw materials• Support for the circular economy and the protection of ecosystems through defossilation• Encouraging the diversification of raw materials to protect
biodiversity
The first result of this initiative is a new ECOHANCE® productline, which combines next-generation raw materials with innovative processing and application properties. More .

Palm oil

Evonik mainly uses palm oil, palm kernel oil, and their derivatives
to produce ingredients for the cosmetics, detergents, and cleaning agents industry (Care Solutions business line) and to produce
polymers used to improve the viscosity index and reduce thepour point of lubricants (Oil Additives business line). Our annual
requirements are around 80,000 metric tons. We are critical of
the establishment of new palm oil plantations and the associatedland use. Therefore, we pay special attention to the ecologicaland sociopolitical developments relating to this market.
For many years, Evonik has supported the use of sustainablepalm oil in the supply chain. The focus here is on internationallyrecognized certification standards. Evonik has been a member ofthe Roundtable on Sustainable Palm Oil (RSPO) since 2010. In
our annual RSPO progress report, we outline our activities andtargets to foster sustainable palm oil production. In keeping withour commitment to ensuring the responsible use of palm oil, we
actively network with NGOs, customers, and other stakeholders
in the value chain. Recommendations for sustainable procurement and use of palm oil, palm kernel oil, and their derivatives
can be found on our website. More .
Evonik plans to use only RSPO-certified palm oil and palm kernel
oil in its products by 2025. In addition to the sharp price rise,significant regional fluctuations in the supply of certified derivatives are challenging as this entails uncertainty in meeting
demand. The preconditions for achieving our target are therefore
the availability of the necessary raw materials and commercial
feasibility on the global market.

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EVONIK SUSTAINABILITY REPORT 2023

Efficient use of scarce resources

In the RSPO 2022/2023 accounting period 1, around 60 percentof the palm oil used by the Evonik Group was RSPO-certified.
Specific strategies, targets, and measures are defined by theoperational management teams in the Care Solutions and Oil

A joint project with Beiersdorf and WWF Germany supports smallholders.

Additives business lines. About 90 percent of the palm-based
raw materials used by the Care Solutions business line are
RSPO-certified. Moreover, we have started to extend this to all
available raw materials. Care Solutions’ strategic priorities are thecertification of its sites and extending its portfolio of certified

1

RSPO accounting period: September 1, 2022 through August 31, 2023.

products. The Care Solutions sites that use palm oil have beencertified since 2018 as conforming to the RSPO’s mass balance(MB) and segregated (SG) standards. This shows that our organizational structure at these sites meets the RSPO requirements,
which is a basic precondition for the continuous transition tocertified raw materials. Care Solutions continuously screensmarket supply and uses its influence on direct pre-suppliers sothat it can switch products globally to the MB standard. The
majority of the palm-based products marketed by this businessline already conform to the RSPO MB or SG standard. This isindicated in the tradename of all RSPO-certified products
marketed by Care Solutions. The strategic priorities of the Oil
Additives business line are extending its portfolio of certified
products. At present, all five production sites that use palm oil
derivatives have been certified as conforming to the RSPO’s MBor SG standard. In 2021, Oil Additives drew up a stepwise planfor RSPO certification of the raw materials it uses. This includes
a phased transition to certified starting products. In the RSPO
accounting period1, more than 30 percent of palm-based raw
materials are now RSPO-certified .

Sustainable palm oil production: collaboration with WWF
and Beiersdorf extended
Progressive deforestation to establish new palm oil plantations isa major challenge. Through a joint project with WWF Germany
and Beiersdorf, we aim to strengthen sustainable development in
the Malaysian region of Tabin in Sabah on the island of Borneo.
This program takes a three-pronged approach—protect, produce,
restore. The aim is to encourage the sustainable production ofpalm oil and other agricultural produce and stop deforestation.
By 2026, around 15,000 hectares farmed by small- and mid-sized

growers should be RSPO-certified. In addition, a political framework is to be created for sustainable agriculture and forestry. This
is to be supplemented by the establishment of at least one ecological corridor to allow wild animals to migrate to other habitats.
Moreover, the project in Tabin should stabilize the population of
threatened and endangered species, such as rare Borneo
elephants and orangutans, and protect their habitat.
Since 2022, Evonik has been partnering with the WWF andBeiersdorf on a further project on Borneo, in the Indonesian
Province of West Kalimantan. The aim is to certify 200 independent palm oil producers with a total of 300 hectares of land as
RSPO-compliant. The goal is to give these smallholders direct
market access to a palm oil mill by 2026. This is an importantbuilding block for Beiersdorf and Evonik in their commitment tosustainability along the entire supply chain for palm (kernel) oil
derivatives.

Transparency and traceability

Evonik advocates the responsible use of woodland and forests
and the protection of the soil. Our Care Solutions and Oil
Additives business lines are founding members of Action for Sustainable Derivatives (ASD). The goal of the ASD initiative is toensure the traceability of palm (kernel) oil derivatives to mills andplantations. Its risk analysis methods and joint action plans aim to
help counter progressive deforestation. Within ASD, Care
Solutions and Oil Additives report annually on the degree oftransparency in the supply chain and at the oil mills involved. At
present, traceability is ensured for 97 percent of ascertainable
volumes at mill level and 51 percent at plantation level. Evonikpublishes corresponding lists of mills. More .

C1

39 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Product stewardship

Product stewardship
Strategy and management

Product stewardship is a vital precondition for our business. It is
our “license to operate”. That includes evaluating the environmental and health risks of Evonik products and minimizing themwhere possible.
As well as complying with all statutory requirements, such as theEuropean chemicals regulation REACH 1 and the Globally
Harmonized System of Classification and Labelling of Chemicals(GHS), product stewardship at Evonik includes voluntarycommitments that go beyond these regulations. We have beencommitted for many years to the international Responsible Care®
initiative and the Responsible Care Global Charter of the International Council of Chemical Associations (ICCA). The key elementsof both aspects of product stewardship are defined in groupwide product stewardship standard, which defines how they are
to be implemented and sets out control mechanisms to monitor
their observance. In addition, the key elements of our productstewardship have also been defined in a product policy. More .
Moreover, in 2023, Evonik started work on a product stewardship policy, which would be published on our website in 2024.
416-1, 417-1

Responsible handling of chemicals

We examine the entire value chain of our products from the procurement of the raw materials to the delivery to our industrial
customers. This is a product stewardship approach and should
not be confused with a complete life cycle assessment. In light ofglobal trade in chemicals and chemical products, it is important to

1

REACH = Registration, Evaluation, Authorisation and Restriction of Chemicals.

encourage broad communication on their safe handling and use.
We therefore have an extensive worldwide information system.
This includes information portals, safety data sheets—not just for
dangerous products—in more than 35 languages, technical data
sheets, and extensive information on our website. We also have
24/7 emergency hotlines, including an interpreting service andemail addresses.
Our specialist departments provide advice for our customers at
all stages in the product life cycle, from the selection of the raw
materials through dealing with possible toxicological, ecotoxicological, and physical chemistry risks and the resulting exposurebased risks. Our advice also includes regulatory requirements
relating to the planned application, right up to transportation anddisposal. Where necessary, we give customers training in how tohandle our products. We did not register any breaches of productlabeling regulations in 2023.
416-2, 417-2

Implementation of the REACH regulation andquality of dossiers

Under REACH, all substances produced, imported, or placed on
the market in the EU in quantities of more than 1 metric ton p.a.
have to be registered. Evonik supports the aim of protecting
health and the environment in the handling of chemicals. To
implement the complex REACH requirements, we maintain aclose dialogue with our suppliers and customers, as well as withindustry associations and authorities.
As well as the continued need to register substances, the priorities
are the evaluation of dossiers and substances and restriction andauthorization. Evonik itself is not presently affected by authoriza-

European chemicals regulation REACH
Registration,

Evaluation,

Authorisation
and Restriction

C11
of Chemicals

tions. We compare the substance lists published by the authorities
with our own portfolio to identify as early as possible whether
any of our substances come within this focus so we can takeappropriate action. We maintain close contact with our customers
on this. Our reviews also cover the raw materials we purchase.
Where substances are categorized as being of very high concern,for example, if they are on the REACH list of potential candidates,
we discuss the steps to be taken with our suppliers or look foralternatives. We have set up email addresses for all REACH-­
related inquiries from customers and suppliers to ensure theyreceive timely and full replies.
Another focus of our REACH activities is updating the dossiersfor substances that have already been registered. This is based
closely on the Cefic action plan, which Evonik has signed as partof a voluntary commitment. The review of all of Evonik’s
dossiers with a view to enhancing quality will take place stepwise
up to year-end 2026. Progress is outlined annually in this reportand in a report to Cefic. We have reviewed more than 420 dossiers
since the action plan started in mid-2019.

40 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Product stewardship

The Globally Harmonized System (GHS)The GHS established by the United Nations is a worldwide system
for the classification of chemicals for labeling on packaging andin safety data sheets. The GHS is still not applied uniformly
around the world. We therefore have an in-house database togather information on progress, changes, and national requirements for internal communication. Evonik applies the GHS/CLP 1
requirements worldwide.
Our chemicals management systems
We evaluate all substances placed on the market (> 1 metric tonp.a.). Particularly dangerous substances are included from lower
amounts. That allows a soundly based assessment of the risks.
Where necessary, restrictions are placed on certain usage patterns
or, in extreme cases, a complete ban is issued on use in certain
products.
Evonik evaluates its substances using its own chemicals management system (CMS). This system supports us in the global
evaluation of our substances. The content of the CMS has been
harmonized with the requirements of ICCA and the REACH
requirements. All substances that were added to our portfolio
through acquisitions between 2017 and 2020 have already been
included in the CMS and evaluated. We want to include andevaluate substances added through acquisitions between 2021
and 2023 by the end of 2026.
As an extension of the CMS, our Chemicals Management
SystemPLUS is used for products containing more than 0.1 percent

1

substances of very high concern. Our aim is to reduce or replacethese wherever possible. The precondition for this is a detailed
analysis so that we can derive suitable action to bring about afurther reduction in the possible negative effects on people andthe environment. All products that were added to our portfolio
through acquisitions between 2017 and 2020 have already been
included in CMSPLUS and evaluated. We want to include andevaluate products added through acquisitions between 2021 and2023 by the end of 2026.
The European Green Deal published by the EU Commission
sets out a timetable for Europe to become climate-neutral by
2050. One element in the zero-pollution target is the chemicals
strategy for sustainability (CSS), which will have far-reachingconsequences for the chemical industry and its value chain.
Evonik supports the goals of the Green Deal. In this context, weare actively campaigning both at the level of industry associations and with the EU Commission for the proposed changes tobe made circumspectly in order to safeguard planning reliability
and for the retention of REACH as the central regulatory
instrument for chemicals. We also take part in consultation
procedures.
Evonik sees the following more restrictive regulations that could
result from the revision 2 of REACH as particularly critical: thegeneric risk approach, registration of polymers, the extensive
data requirements to identify substances with endocrine disruptors and persistent properties, and the mixture allocation factor(MAF).

CLP = Classification, Labelling and Packaging of Substances and Mixtures (Regulation EC no. 1272/2008).

2 Revision postponed. The new EU Commission will resume work on this after the upcoming elections to the European Parliament in June 2024.
3 ESPR = Ecodesign for Sustainable Products Regulation.

Green Deal
The main regulatory challenges for Evonik• Amendment of the REACH Regulation, including more
restrictive provisions• Amendment of the Classification, Labelling, andPackaging (CLP) Regulation• More stringent requirements as a result of the planned
Ecodesign for Sustainable Products Regulation(ESPR 3)
• Tightening of the Industrial Emissions Directive (IED)• Introduction of a Safe and Sustainable by Design(SSbD) guideline• Implementation of the EU Taxonomy Regulation• Tightening of the Packaging Regulation• Extended reporting requirements as a result of the new
Corporate Sustainability Reporting Directive (CSRD)

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EVONIK SUSTAINABILITY REPORT 2023

Product stewardship

Under the generic risk approach, the exposure data required fora sound scientific assessment would be disregarded. The plan is
to base restrictions or bans solely on specific hazard properties,
which will be continuously extended. This approach is to be
stepped up not only for end-consumer products but also forcommercial users.
The EU Commission has been instructed to review and implement the requirements for polymer registration under REACH.
The regulatory procedure process currently under discussion is
likely to be divided into several phases. The first would be a notification phase to compile data on all polymers on the EU market.
The second step would be the clustering of the polymers, including subsequent data generation. That would be followed byregistration of the polymers actually subject to registration. It isestimated that up to 70 percent of polymers on the EU market
would be subject to mandatory registration with corresponding
data requirements. From an industrial perspective, the costs andwork involved would have to be reasonable.
The CSS extends the data requirements for endocrine disruptors,
including restrictions and possibly bans on consumer applications. Endocrine disruptors are either natural or chemical
substances that disrupt or alter the regulation of the hormone
system and can cause lasting damage.

1
2

The MAF relates to the introduction of an additional safety
factor for the assessment of possible combined and synergistic
effects. The EU Commission is calling for a generic MAF for all
applications. Together with the chemical industry, Evonik isadvocating for the use of a targeted MAF. At present, theapplication of an MAF of five for substances exceeding
1,000 metric tons per year is under discussion. That could meanthat applications that have so far been evaluated as safe would
have to be reviewed and adapted. The planned amendments
to the CLP regulation also contain some critical aspects. For
example, new hazard classes have been introduced for endocrine disruptors and for PBT/vPvB 1 and PMT/vPvM 2. PBTs aresubstances with persistent, bioaccumulative, or toxic properties.
PMTs are substances with persistent, mobile, and toxic
properties. The introduction took place within the scope of the
CLP (EU), without prior consultation at UN level (GHS). The
EU’s chemicals strategy aims to define substances that meetthese criteria as substances of very high concern (SVHC) andregulate them as such through the CLP regulation. For Evonikand the chemical industry, it is essential that the guidelines
currently being developed provide extensive assistance withclassification and labeling.
The proposed Ecodesign for Sustainable Products Regulation(ESPR) sets out performance and information requirements foralmost all product categories. More
. These include, among
others, durability, recycling, and resource efficiency. In Evonik’s

Chemicals that are persistent (P), bioaccumulative (B), and toxic (T) or very persistent (vP) and very bioaccumulative (vB).
Chemicals that are persistent (P), mobile (M), and toxic (T) or very persistent (vP) and very mobile (vM).

view, the planned information requirements for the digital productpassport are unnecessarily extensive because they require thedisclosure of product information that relates to the protection of
intellectual property. Moreover, certain substances of concern(SoC) could be subject to regulation in parallel with the REACH
regulation. In principle, Evonik welcomes this approach because
it is an important part of product safety in a circular economy.
The EU Commission also aims to tighten the Industrial Emissions
Directive (IED). It wants to introduce an environmental management system comprising a chemicals management system that
includes an assessment of the risks to health and the environment
and a substitution analysis. The plan is to make the environmental
management system obligatory for operators, although it differsfrom established environmental management systems such as
ISO 14001 and ISO 50001. Furthermore, thresholds are to betightened, and compliance with performance thresholds, forexample, for energy and resource efficiency, will be mandatory.
Safe and Sustainable by Design (SSbD) is a new concept to evaluate the safety and sustainability of products in the innovation
phase. SSbD is being tested until the end of 2024 and is being
monitored both by industry associations and by Evonik in closeinterdisciplinary exchange between product stewardship, innovation, and sustainability. It is initially planned as a guideline
rather than legislation but will probably have implications for our
product portfolio.

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EVONIK SUSTAINABILITY REPORT 2023

Product stewardshipWith regard to the implementation of the EU taxonomy, Evonik
sees a need for further discussion of the “do-no-significantharm” (DNSH) criteria for the environmental objective pollution
prevention and control. Regulatory enhancements in the reporting period only provided clarity on some of the ambiguous wording. Furthermore, the first delegated act on the EU taxonomy
setting out the criteria whereby selected economic activities
make a substantial contribution to the environmental objective
pollution prevention and control was adopted in 2023. The economic activities for this environmental objective only cover a verysmall proportion of our portfolio (1 percent of our sales in 2023).
Hardly any account is taken of the use of our products forpollution prevention and control, for example, by reducing
emissions, remediating contaminated sites, or as an alternative tohazardous substances.

and thus disclose information required by the ESRS. The requirements for product stewardship are contained in standard ESRS E2
Pollution.

The EU Commission is planning to replace the Packaging andPackaging Waste Directive with a regulation. Here too, Evonik
sees a danger that certain substances could be subject toregulation in addition to the provisions of the REACH regulation.
The development of these proposals is being monitored both byindustry associations and internally at Evonik.

Sustainability analysis of our business

The aim of the EU’s Corporate Sustainability Reporting Directive(CSRD) is to place sustainability reporting on the same level asfinancial reporting. This includes the introduction of theEuropean Sustainability Reporting Standards (ESRS) as uniform
standards for sustainability information. In the future, Evonik will
have to prepare sustainability reports on the basis of the CSRD

Aspects of product stewardship in the value chain are also examined as part of the sustainability analysis of our business (see“Strategy and growth”
p. 20). In the reporting period, we
identified and evaluated various product stewardship signals in
the context of the sustainability analysis of our business. Signal
categories 1 and 2 specifically relate to critical substances and regulatory trends. Signal category 3 relates to sustainability ambitions
along the value chain, including for product stewardship andchemical safety, even before the introduction of corresponding
regulations. PARCs with a negative rating—sales classified astransitioner or challenged—only account for a small proportion ofMarket signals a
1
2
3
4
5
6
7
8

Critical substances
Regulatory trends and global commissions
Sustainability ambitions along the value chain
Ecolabels, certification, and standards
Relative environmental and social performanceContribution to ecological and social value creation
Contribution to the SDGs
Internal guidelines and objectivesa Signal categories 1 – 5 compusory, 6 – 8 optional.

C12

our portfolio. We want to keep the proportion of sales generated
with challenged products below 5 percent (see “Strategy andgrowth” p. 22). To achieve this, we are conti­nuously replacing
hazardous products and working on alternative solutions.

REACH-type regulations in other regions
Various countries and regions have either introduced or are
currently introducing chemicals regulations with requirementsthat are broadly similar to those of REACH. Examples are South
Korea, Turkey, Taiwan, and the Eurasian Economic Union. Other
countries, such as the USA, have also raised their standards
significantly. Evonik is actively monitoring the development ofregulations worldwide in order to be able to implement them in
the relevant regions. In South Korea, consultations on the next
volume band are taking place within the Chemical Substance
Information Communicative Organization (CICO) and consortia.
Substances are continuously being registered in Turkey. In addition, Evonik is monitoring the development of other upcoming
regulations to prepare accordingly. These include, for example,
the entry into force of the new chemicals regulation in theEurasian Economic Union. This will probably take place in twophases. Based on the present status, the regulation is expected tocome into effect in Russia on September 1, 2024 and in the othermembers of the Eurasian Economic Union two years later. There
are plans to introduce REACH-style regulation of chemicals in
India. Evonik was instrumental in the establishment of a new
Product Stewardship Advocacy Committee to monitor further
developments by the Indian Chemical Council (ICC). Evonikchairs this committee.

43 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Product stewardship

Further product stewardship topics

Our product stewardship covers a broad spectrum of topics,
which we are continuously addressing. The most urgent issues
from the perspective of our stakeholders and in our own assessment are outlined below.

Animal protection
We need toxicological and ecotoxicological data to assess thesafety of our products. In keeping with our responsibility to protect animals, we start by examining possible alternatives to animal testing in detail. These include, for example, quantitative
structure-activity relationship analyses, analogies, literature, andnon-animal testing methods and approaches. These are referred
to collectively as NAMs (new approach methodologies). NAMs
will receive greater attention in the revision of the CLP and
REACH. We have set up an internal working group to bundle ourexpertise. As an active member of the European Partnership for
Alternative Approaches to Animal Testing (EPAA), we drive forward alternative methods on a cross-sector basis. Evonik was
actively involved in drafting the position paper published by theGerman chemical industry association (VCI). We advocate at
national and international levels to minimize the possible impactof the new demands made by the CSS chemicals strategy withregard to animal testing. For example, we are involved in theactivities on the Next Generation Risk Assessment and theUsability of New Approach Methodologies for Risk Assessments
and in discussions on data sharing.
Evonik is also involved in various national and international associations and initiatives engaged in the ongoing development ofrisk evaluation criteria such as EPAA, ECETOC 1, and Cefic-LRI 2.

1

ECETOC = European Centre for Ecotoxicology and Toxicology of Chemicals.

2 LRI = Long-Range Research Initiative.

It’s important to avoid animal testing wherever possible. As well as using in-vitro
testing, we achieve that by applying intelligent analogies that enable us to draw
conclusions about how a target substance will behave. Last year, we worked withleading scientists on using and improving non-animal methods for inhalation
toxicology and respiratory sensitization tests.«

Dr. Nils Krüger | Vice President Product Stewardship HRA (Hazard and Risk Assessment), Germany

Nevertheless, from a regulatory and scientific perspective, inmany cases, tests on animals are the only way to meet thenecessary data requirements. If animal testing is unavoidable,
Evonik ensures that the tests are performed only by test institutes
that are validated in accordance with the applicable national andinternational legal provisions and that these tests meet animal
protection standards. An internal working group monitors theauditing of the test institutes. More . As a responsible company,
we also have our own animal protection guidelines, which are
currently being revised.

Nanotechnology
Nanotechnology is a generic term covering a wide range ofdevelopments and innovations as well as established technologies. Their common feature is the investigation, production, andProduct stewardshipuse of minute structures measuring around 1 to 100 nanometers.
Some have been known for many decades, while others are newdevelopments. Nanomaterials used in products and efficient system solutions for our customers make a substantial contribution
to environmental protection and climate protection. Evonik
strives to handle the associated technologies responsibly and conscientiously. We see considerable opportunities in new materials
for high-end batteries and energy-saving technologies.
Our long-standing experience helps us implement measures toprotect employees, customers, and consumers in the handling of
nanomaterials. These measures are based on the latest
assessment of the risks and dangers resulting from scientificinvestigations and epidemiological and toxicological studies. In
addition, Evonik supports the establishment of new methods of44 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Product stewardshipinvestigation aligned to the specific effects of nanomaterials,
which refine the evaluation of risks. We are also continuously
investigating the potential hazards and safe handling of thesematerials. We regularly discuss the opportunities and risks ofnanotechnology with experts from industry, science, authorities,
and industry associations. The revised definition of nanomaterials(Commission Recommendation 2011/696/EU) has resulted insome market uncertainty: The EU unexpectedly defined many
powder substances as nanomaterials, and this definition has notbeen accepted or adopted in the rest of the world. In addition,
the definition has not been transposed uniformly in national legislation within the EU. Furthermore, many other EU regulations
have their own definitions that conflict with this recommendation. What is more, the European Court of Justice has ruled that“nano” is not an intrinsic property of a substance.

Microplastics
On behalf of the European Commission, in 2019, the European
Chemicals Agency (ECHA) published a draft restriction on
intentionally added microplastics. Evonik took part in public
consultations, both directly and through industry associations(Cefic and VCI). The EU published its draft restriction at the endof August 2022. It was adopted in September 2023 and tookeffect in October 2023. Compared with ECHA’s original draft,some improvements have been achieved for the chemical industry, for example, extending the transition periods for substitution,
reporting, and labeling. Nevertheless, the restriction will increase
the administrative work for producers and users. We are advocating for the publication of an additional guideline to specify details
that have not yet been clarified to safeguard implementation.
Evonik became a signatory to Operation Clean Sweep in 2015.
The aim of this global campaign is to reduce pellet loss in

production, processing, and transportation. Evonik is also working on the removal of microplastics from wastewater. One
example is the development of an electrochemical process, which
was presented at the UNESCO – EU H2020 LimnoPlast Conference in May 2023. This process can be used to recover micro­
plastics from wastewater for reuse. Evonik also offers alternatives
that can replace microplastic particles in both rinse-off andleave-on cosmetic products.

Proposed restriction of PFAS in the EU
In spring 2023, five EU member states (Denmark, Germany,
Netherlands, Norway, and Sweden) submitted a joint proposalon the restriction of PFAS to the European Chemicals Agency(ECHA). The proposed restriction affects an estimated
10,000 substances in almost all usage forms. Evonik is concernedthat the implementation of this proposal could have a massive
impact, for example, by disrupting value chains, and could prevent important applications in batteries, semiconductors, electricvehicles and renewable energy generation. Another critical factor
is that the proposal does not contain any exceptions for the use of
PFAS in industrial applications, for example, as intermediates.
Moreover, the use of PFAS-coated pipes, valves and seals inplant engineering could be banned within 1.5 years of the introduction of the restriction. That would affect entire industrial
plants.
A six-month public consultation on the proposed restriction of
PFAS took place in 2023. Together with industry associations,
Evonik played an active part in this consultation process and provided supplementary information and data in an effort to makethe regulation more appropriate. Our critical assessment wasshared by many other market participants. This was demonstrated by the fact that approximately 5,600 contributions to the

Bioreactor for the cultivation of micro-organisms in a biotech lab.

consultation process were uploaded—more than in any previous
consultation. Under the REACH regulation, the scientific bodies
now have to prepare a scientific evaluation within 12 months.
This will then be submitted to the European Commission, which
will make a final decision on the possible restriction with the EU
member states.
Evonik markets small amounts of polymers classified as a
subgroup of PFAS for the manufacture of medical products. In
addition, Evonik uses a small amount of PFAS compounds asprecursors and intermediates, for example, in the production ofpharmaceutical active ingredients and additives for the insulationof buildings.

45 Value chain and products

EVONIK SUSTAINABILITY REPORT 2023

Our targets

We also produce small quantities of polyfluoroalkyl substances,which we mainly use in coatings to protect surfaces, for example,
from graffiti. Evonik routinely looks for possible alternatives, but
this is particularly difficult because of the special properties of
PFAS. In principle, Evonik supports prudent regulation of PFAS.

Biotechnology
Industrial biotechnology uses micro-organisms such as bacteria,
yeasts, and algae to develop sustainable industrial products on
the basis of renewable raw materials and the associatedprocesses. It is an important driver of growth and innovation andwill therefore make a significant contribution to reducing theconsumption of natural resources and enabling the transition to abio-based circular economy.
Evonik uses natural micro-organisms, strains developed using
conventional processes, and genetically modified microorganisms (Innovation, Biotech Hub
p. 30). Safe, modern,high-performance biotechnology methods are used to optimize
our microbial production organisms and processes. All microbial
strains undergo a thorough scientific safety assessment in ourlaboratories as part of the necessary registration procedures. We
comply with the latest scientific standards and regulations withthe aim of making our products safe for people, animals, and theenvironment.

Our targets
Below is an overview of the targets set for our value chain and products area of action.
Target attainment in 2023

Targets for 2024 and beyond

Research, development & innovation

Research, development & innovation

Generate more than €1 billion in additional sales 1
in our six innovation growth fields by 2025

Circular Economy
Generate more than €350 million in additional sales withsolutions for the circular plastics economy from 2030

Generate more than €1 billion in additional sales 1 in our six
innovation growth fields by 2025

Circular Economy
Generate at least €1 billion in additional sales with circular
products and technologies by 2030

Solutions for around 400,000 metric tons of recyclable
plastics by 2025

Product stewardship
Add substances/products from acquisitions  2 to
CMS/CMSPLUS and process them by the end of 2023

Target not achieved
Target partially achieved or target horizon extends beyond 2023
Target achieved
1	Reference base: 2015.
2 Since 2017.

Product stewardship
Add substances/products that were added to our portfolio
through acquisitions between 2021 and 2023 to
CMS/CMSPLUS and process them by the end of 2026

46 The environment

EVONIK SUSTAINABILITY REPORT 2023

The
environment–

Protecting our environment and the climate
are major global challenges of our time.
Maintaining the natural basis of life for
future generations is part of our corporate
responsibility. This also includes continuously
reducing emissions in keeping with oursustainable corporate strategy.

15%

Reduction in absolute
scope 1 & 2 greenhousegas emissions 1–

MATERIAL TOPICS
Green energy
Mitigating climate change
Biodiversity
Water management–

17%

Reduction in absolute
scope 3 greenhousegas emissions 1, 2

410 kt p.a.

CO2 reduction with power fromcertified sustainable sources

SDGS OF PARTICULAR RELEVANCEFOR EVONIK

1Reference base: 2021.

2 Scope 3 emissions from all upstream categories and the category “Downstream transportation and distribution” as defined in our SBTi target.

47 The environment

EVONIK SUSTAINABILITY REPORT 2023

The environment

Contents
47

The environment		 303-1, 303-2, 306-1, 306-2
47
Strategy and management
48

Certification

48

Mitigating climate change

48

Climate targets 2021 – 2030

51

Greenhouse gas emissions

52

Carbon pricing

52

Evonik Carbon Footprint

54

Green energy		 201-2, 305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7
48Strategy and management		  302-1, 302-3, 302-4, 305-1, 305-2, 305-3,
305-4, 305-5, 305-6, 305-7

54Strategy and management

56

Energy data

57

Water management

58

Water data

59

Emissions into water

60

Waste management

62

Biodiversity

64

Evonik’s products and solutions

65

Our targets		 303-1, 303-2, 303-3, 303-4, 303-5
57
Strategy and management		  306-1, 306-2, 306-3, 306-4, 306-5
60Strategy and management		  304-1
62
Strategy and management

The environment
Climate targets validated by SBTi
• Long-term power purchase agreements for wind energy and solar power• Significant increase in green electricity• New climate and water policies• Extension of our water and biodiversity analyses

The environment
Strategy and management

As a specialty chemicals company, we are aware that our production impacts the environment. To minimize the impacts, we set
ambitious targets and put many measures in place. According toour materiality analysis, the most important sustainability issues
for Evonik include mitigating climate change, green energy,
water management, and biodiversity.
Our actions are based on an extensive, integrated management
system for the environment, safety, health, and quality. Thisapplies to the whole of the Evonik Group and is based on legal
requirements, internal policies, and standard operating procedures. In addition to meeting compliance requirements, wetherefore support a targeted improvement in our environmental
performance. Furthermore, we require our manufacturing sites
to be validated as conforming to ISO 14001, the internationallyrecognized environmental management standard. In the energy
sector, we have used an ISO 50001-certified energy management
system for many years. This is currently being transferredstepwise to a digital system p. 55.

The ESHQ (Environment, Safety, Health & Quality) function hasa central audit system to regularly monitor the implementation of
our strategy and management system. Based on the findings andanalyses of internal and external audits and site inspections, talks
are held on possible improvements and ways of implementing
them. The executive board is informed annually of the outcomeof the audits. The processes used to collect and process environmental data are subject to internal and external audits. Our highquality standards are backed up by regular training. Data input isdecentralized, and the data can be evaluated on the basis ofmanagement units, legal structures, or regions.
In 2023, we completed the introduction of our global ESHQ software, ESTER (Evonik Standard Tool ESHQ and Reporting), andintegrated a further module to systematically record environmental
data on scope 1 and 2 emissions. ESTER replaces the SuRe 2.0
sustainability reporting software that we used for many years.
Our environmental data for 2023 are reported entirely using
ESTER for the first time. That greatly improves data quality andallows timely evaluation. In 2024, we plan to record all internaland external audits for matrix certification in the ESTER tool.

C13

48 The environment

EVONIK SUSTAINABILITY REPORT 2023

Mitigating climate changeThis will further harmonize processes and systems and therefore
contribute to enhanced efficiency. You can find further information and details of the principles we use to capture environmental
data in “About this report” p. 149.
The ESHQ function bundles all group-wide strategic management and coordination activities relating to the environment,
plant safety, occupational safety, and health. The global strategy
for the safety area of action is defined by the HR Executive
Committee, which comprises the chief human resources officer,
the HR partners of the divisions, and the heads of the ESHQ,
Sustainability, and HR Business Management functions. Decisions on the implementation of this strategy are taken by the
ESHQ panel. Its members are representatives of the divisions,regions, technical committee, and employee representatives. The
panel is chaired by the head of the ESHQ function, who reports
directly to the chief human resources officer. Management anddecision-making for the environment area of action are assigned
to the sustainability council and the sustainability circle. The
Sustainability and ESHQ functions work together closely to
prepare and implement the work of the sustainability council andthe sustainability circle (see “Further elements of our sustain­
ability management” p. 135).
303-1, 303-2, 306-1, 306-2

Certification

Our divisions and regions are subject to annual audits to monitor
compliance with DIN EN ISO 14001 and RC 14001 validation at
our production locations. In 2023, we conducted 101 internal andexternal ESHQ audits worldwide. The proportion of output
covered varies from year to year because of the addition of newly
acquired units, but so far it has always been between 95 and100 percent.

Mitigating climate change

our Next Generation Solutions make a further contribution at theapplication stage (see “Strategy and growth” p. 14).

Strategy and management

Mitigating climate change—which is one of our material topics—
and the related extreme weather events are a major challenge forsociety and one that we are also addressing. We are driving
forward the reduction of all climate-relevant emissions and otherenvironmental impacts of our business activities. To actively
mitigate the effects of climate change, we set ambitious new
targets in 2022. We have also integrated reducing our CO2
emissions (scope 1 and 2 emissions) into the remuneration of theexecutive board and other executives. Carbon pricing is used as
an additional planning criterion in investment decisions. Alongthe value chain, we are working on innovative solutions to reduce
emissions—often in collaboration with suppliers and customers.
Moreover, we started work on a climate transition plan in thereporting period.
The main lever to reduce GHG emissions is our own production.
In addition, compared with conventional alternatives, many of

Climate targets 2021 – 2030

In 2022, Evonik announced its commitment to the Science Based
Targets initiative (SBTi). SBTi is a partnership of CDP, the United
Nations Global Compact, the World Resources Institute, and theWorld Wide Fund for Nature. It defines and encourages bestpractices for science-based target setting and independently
evaluates targets set by companies from this perspective. It has
now become an internationally accepted standard.
In the reporting period, the emission reduction targets submitted
by Evonik were successfully validated by the SBTi. It confirmedthat the ambitious target set for scope 1 and 2 emissions is suitableto help reduce global warming to well below 2° C. Our overriding target is to reduce scope 1 and 2 emissions by 25 percent
between 2021 and 2030. In addition, Evonik has given an undertaking to reduce scope 3 emissions in all upstream categories andthe category “downstream transportation and distribution” by

Our levers a to reduce GHG emissions along the value chain
Upstream• Projects with key suppliers• Using climate-neutral instead of fossil-based raw
materials• Closed-loop material flows; raw materials fromrecyclatea Examples.

C13
Gate-to-gate• Integrated facilities to use by-products• EAGER b project/Next Generation Technologies/
research• Green energy• Process efficiency• Sustainable data management

b EAGER = Evonik Assessment of Greenhouse Gas Emission Reduction.

Downstream• Next Generation Solutions• CO2e avoided by using Evonik products• Products to support a circular economy

C14

49 The environment

EVONIK SUSTAINABILITY REPORT 2023

Mitigating climate change

Ambitious climate targets

C14

305-1, 305-2, 305-3

New targets c for GHG emissions reduction (2021 - 2030)

Our path to climate neutrality
Scope 1 & 2

Scope 1 & 2
Well below 2°C

2050– 100%– 25% a~6,300

2030

– 25%

2030

– 11%

Scope 3

– 100%

b~4,725 b

0
2021

2025

2030

2050

a Gross emissions; base year 2021, target year 2030.

b In thousand metric tons CO₂e.
c Validated by SBTi
sciencebasedtargets.org/companies-taking-action#dashboard

11 percent 1. 2, 3 You can find an overview of our climate-related
targets in C14.
To achieve our ambitious scope 1 and 2 target, we have put inplace a wide range of measures. These include exiting coal-fired
power generation at our site in Marl (Germany), ongoing global
development of production processes and infrastructure (Next1

Generation Technologies), and a stepwise switch to renewableenergy. In this way, we are also contributing to achieving theParis Agreement on Climate Change.
In 2022, the EAGER project identified the potential to reduce
GHG emissions at our sites. A cross-functional team identified
scope to reduce CO2e (scope 1 and 2 emissions) at the
top 20 sites around the world by around 1 million metric tons

Exact target: 11.07 percent.

2 Based on greenhouse gas emissions from our sites in 2021.

3 Some emissions fall within the scope of the SBTi criteria for the electricity sector and are therefore covered by different intensity targets.

The exact wording of the Evonik emission reduction targets validated by SBTi can be viewed at

4 Based on greenhouse gas emissions from our sites in 2020.

sciencebasedtargets.org/companies-taking-action#dashboard(including the related costs of emissions avoidance), in accordance with the “well below 2° C” target. The top 20 sites accountfor 80 percent of Evonik’s GHG emissions 4. In the period to2030, we plan to invest €700 million in Next Generation
Technologies, in other words, in the ongoing development of
production processes and infrastructure to reduce GHG
emissions. In the reporting period, Evonik invested around€81 million in EAGER projects. Our aim is to reduce scope 1 and 2
CO2 emissions by 170,000 metric tons CO2e p.a. from 2026. For
example, we are investing in the construction of a new facility
in Singapore for carbon-neutral production of alkoxides.
In view of the geopolitical situation, we could not decommission
the coal-fired power plant in Marl (Germany) as planned in 2022.
Due to the consequences of Russia’s invasion of Ukraine, we are
required to retain the capacity until the end of March 2024 tosafeguard the general reliability of supply. In this way, we
secured the supply of electricity, heat, and steam to the site. We
nevertheless assume that we will be able to achieve our scope 1
and 2 emissions reduction target for the period between 2021
and 2030.

Measures to reduce scope 3 emissions between 2021
and 2030
Reducing scope 3 emissions is challenging for the entire value
chain because these emissions are outside our direct sphere of
influence and are affected by many external factors. That necessitates intensive cooperation with partners along the value chain.

50 The environment

EVONIK SUSTAINABILITY REPORT 2023

Mitigating climate change

We analyze which raw materials and suppliers offer us thegreatest potential for reduction. The starting point comprises
secondary data from databases but also, increasingly, primarydata. To increase the proportion of primary data, we contact our
key suppliers once a year. In this context, we discuss, among
other things, the main ways we can leverage emissions reduction
with our suppliers. That may be renewable energies, improved
processes, or alternative raw materials. Taking the overview of
all factors, we then discuss specific targets with our suppliers. In
this way, we support our customers’ focus on reducing carbon
emissions and circularity.
The short-term availability of low-carbon raw materials is
limited. Therefore, we also use detailed mid- and long-term
scenario analyses for the alignment of our procurement strategies. Green hydrogen is expected to drive the energy transitionin the area of raw materials. That opens up opportunities for the
production of green ammonia and green methanol. In themethanol process, CO2 removal is possible, so the product would
have a negative carbon footprint. Evonik is monitoring thesedevelopments and is in close contact with potential suppliers.
Since ammonia can be used as a transport medium for hydrogenand as a substitute for marine diesel, we assume that thedevelopment here will be faster than for other raw materials.
A first step towards reducing our scope 3 emissions is the use ofgreen C4 crack, which is produced from green naphtha in Marl(Germany). There are signs of a significant increase in volumes,
especially of biomethanol, which is used to produce MTBE
(methyl-tert.-butylether). In addition, green acetone is used to
produce sustainable isophorone products. As an additional

1

measure, in the reporting period, we started to procure inorganic
raw materials produced using green electricity. We have also
extended certification under the mass balance standard of theRoundtable on Sustainable Palm Oil (see “Value chain andare switching to intermodal transportation or using HVO 1 as a
substitute for diesel fuel in road transportation (see “Transpor­
tation safety and logistics”
p. 108). In addition, our supplierengagement program has been extended to include selected

Validation of our climate targets by SBTi gives us the assurance that we areheading in the right direction. They are an incentive for us to work towards
a further significant reduction in our emissions in the future as an important
contribution to limiting global warming.«

Holger Höcker | Vice President Safety, Strategy & Controlling, ESHQ, Germany

products” p. 37). Process improvements on the supplier side
can therefore be reported as a scope 3 measure thanks to theimproved data transparency resulting from various suppliercommitments.
Moreover, in the reporting period, for the first time, we wereable to report measures to reduce CO2 in the procurement oflogistics services and packaging. Based on initial pilot talks withselected logistics providers, we have been able to alter our
calculations to integrate measures that our suppliers are planningor have already implemented to reduce CO2. Examples of savings

Hydrotreated vegetable oil; corresponds to biodiesel produced entirely from waste and residues.

Mitigating climate change

indirect suppliers in order to check the availability of primary data
and the inclusion of potential measures to reduce CO2.

Outlook 2030 – 2050
On our climate journey, we are currently focusing on reducing
our scope 1 and 2 emissions. In the period to 2030, this will be
leveraged principally by exiting coal-fired power generation,
switching to green electricity, and increasing process and energy
efficiency at our sites, especially by applying best practices. Our
efforts will be supported by digital process technologies and theestablishment of a sustainability data management system.

T05

51 The environment

EVONIK SUSTAINABILITY REPORT 2023

Mitigating climate change

Looking beyond 2030, we see broadening our technology andraw material portfolios as the key drivers of our transformation.
We anticipate that the availability of alternative raw materials will
improve significantly and drive forward circularity. From 2035,
we expect new technologies to reach maturity, one example
being the widespread availability of green hydrogen. In thefollowing years, we expect to see the breakthrough of processes
such as carbon capture and storage (CCS) and carbon capture
and utilization (CCU). Carbon capture and utilization technologies are a possible way of reducing the consumption of fossil
fuels and avoiding CO2 emissions. Together with partners, weare engaged in research in this field to improve our understanding of the interaction of such technologies with our portfolio of
specialty chemicals under market conditions. For instance, ourexpertise in catalyst research offers the possibility of using thestable CO2 molecule in combination with green hydrogen andrenewable energies to generate a higher quality product. Following chemical conversion, CO2 counts as a raw material and nolonger as waste. This could enable the production of methanol
and other hydrocarbons for use in products such as solvents,
fertilizers, polymers, and liquid e-fuels. The use of CO2 for e-fuels
will be further strengthened by the ReFuelEU regulations foraviation 1. We are supporting these projects and are in close contact with those involved in the relevant stages of the value chain.

Task Force on Climate-related Financial Disclosures
A cross-functional working group at Evonik is following theobjectives of the Task Force on Climate-related Financial
Disclosures (TCFD) very closely. The TCFD focuses on climate

reporting by companies and their climate-related opportunities
and risks. We provide an overview of climate-related informationin the categories governance, strategy, risk management, andmetrics and targets in line with the TCFD structure (see “Basis ofreporting” p. 151). The executive board receives regular updates
on climate-related opportunities and risks as part of our groupwide opportunity and risk management. In October 2023, TCFD
considered that it had fulfilled its purpose and was therefore
disbanded. In the future, companies’ progress will be monitoredby the IFRS Foundation.
201-2
Evonik is a member of the climate protection platform
Chem­istry4Climate—a joint initiative of the German chemicalindustry association (VCI) and the association of German engineers (VDI). The aim of this dialogue platform, which comprises
around 70 partners from industry, NGOs, and politics, is tocome up with practical ideas on how the chemical industry
and other sectors can move towards defossilization by 2045.
Chemistry4Climate supports Germany as an industrial base andpromotes a fairer world, where value chains are viewed globally,and partner regions are given a fair share as advocated by the UN
Sustainable Development Goals (SDGs).

Greenhouse gas emissions

The standard used to report our GHG emissions is the Greenhouse Gas (GHG) Protocol Standard. We distinguish between
direct scope 1 emissions from energy generation and production
and indirect scope 2 emissions from the purchase of electricity
and steam. Purchased electricity is calculated by the market-

based method using the individual emission factors of the power
suppliers.
Greenhouse gas emissions
305-1, 305-2, 305-4, 305-5, 305-6, 305-7
in thousand metric tons CO₂e a,b

T05
2021

2022

2023

Gas

1,881

1,892

1,871

Coal

1,275

1,127

926

Oil

8

7

5

1,168

1,137

985

13

22

21

12

17

18

25

19

17

4,381

4,221

3,842

	Purchased electricity d

979

905

801

Purchased steam

937

852

736

Scope 1	
Substitute fuels andprocess emissions
Methane (CH₄) c
Dinitrogen oxide (N₂O)

c

Hydrofluorocarbons (HFCs)
Total
Scope 2Total
GHG emissions, total scope 1 & 2

1,916

1,757

1,537

6,297

5,978

5,379

0

–5

– 15

Reduction in GHG emissions
versus 2021 in %a	The calculation of greenhouse gases as CO2e is based on the Sixth Assessment Report

IPPC AR6 (2021) and is based on a period of 100 years.

b	Adjusted presentation of the results in accordance with the GHG Protocol Standard.
c	Emissions from production and energy generation.
d	Market-based method using individual emission factors of electricity suppliers.

1	 consilium.europa.eu/de/press/press-releases/2023/10/09/refueleu-aviation-initiative-council-adopts-new-law-to-decarbonise-the-aviation-sector/

52 The environment

EVONIK SUSTAINABILITY REPORT 2023

Mitigating climate change

Global demand remained weak overall in 2023 in challenging
economic conditions, and production contracted by 10 percent
year-on-year to 7.5 million metric tons. That was also one of themain reasons for the sharp drop in scope 1 and 2 GHG emissions,which also fell by 10 percent in the reporting period. Other
reasons for the reduction were increased purchasing of electricity
from renewable resources (“Green energy“
p. 54) and themode of operation of the power plants in Marl (Germany).
Significantly less coal was used at the coal-fired power plant as
block 4 was taken out of service in April 2023, and there was along maintenance shutdown at block 5 in the second half of theyear.
The requirement to extend the operation of the coal-fired power
plant at this site, which was imposed to safeguard general supply
as a result of the geopolitical situation, expires at the end of
March 2024. Worldwide, Evonik will then no longer generate
any electricity from coal.
In 2023, Evonik had 26 (2022: 24) facilities that fell within thescope of the EU Emissions Trading System (EU ETS). In total,
these EU ETS facilities emitted 2.5 million metric tons CO2 in thereporting period (2022: 2.8 million metric tons CO2). Moreover,
we are subject to carbon pricing systems in a number ofcountries. In Germany and Austria, we are subject to nationalemissions trading systems in addition to the EU ETS. In theprovinces of Fujian and Shanghai in China, our Nanping andShanghai sites are subject to regional emissions trading systems.
National emissions trading systems apply for our sites in Morrinsville (New Zealand) and Ulsan (South Korea). Our sites in
Gibbons and Maitland (Canada) and Singapore are subject to therelevant national CO2 taxes. Overall, about 78 percent of GHG
emissions were subject to carbon pricing systems in 2023.

Furthermore, we use a CO2 cost calculator that allows efficientand systematic calculation of the CO2 costs to be taken into
account in every investment. Since it provides site- andfuel-specific emissions factors and regional scenarios for thedevelopment of carbon pricing, it permits harmonized evaluationof the CO₂ cost of investments throughout the Evonik Group.

Carbon pricing

We pay special attention to greenhouse gas emissions along thevalue chain. Since 2008, we have reported an extensive overview
of greenhouse gas emissions—from the extraction of raw materials
through production to the disposal of the products. The key
parameter is the carbon footprint (CO₂e footprint). The data
cover Evonik’s direct energy and process emissions (scope 1),
emissions from purchased electricity and heat (scope 2), andrelevant upstream and downstream emissions (scope 3). These
include emissions from the production of purchased raw materials,
services, and capital goods, energy-related emissions notincluded in scope 1 and scope 2, emissions from inbound andoutbound shipments, from the disposal of waste, emissions
caused by business trips and employee commuting, energy
requirements for administrative buildings, and emissions fromthe use, disposal, and recycling of sold products. The method is
closely based on 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 theChemical Sector Value Chain published by the WBCSD.

We use internal carbon pricing for major investments as a basis
for effective management of our CO₂ reduction target. The aim
is to be able to reflect the development of carbon-intensive
investments in a reliable and harmonized manner in all investment applications worldwide. At present, we assume that the
carbon price for the EU ETS will be €142 per metric ton CO2 up
to 2030. In all other regions of relevance to Evonik, we havealtered our forecast to €40 per metric ton CO2 by 2030 at thelatest. This reflects the development of the political frameworkin key emerging markets and developing countries, which does
not currently indicate an increase in carbon pricing.
In view of regional differences in the starting situation, we havedeveloped scenarios for the development of carbon pricing—differentiated by countries and regions—showing the rise to theassumed final global price. In these, we take into account both
direct CO2 emissions (scope 1 emissions) from production andenergy generation and indirect CO2 emissions from the purchaseof secondary fuels (scope 2 emissions).

Evonik Carbon Footprint

T06

53 The environment

EVONIK SUSTAINABILITY REPORT 2023

Mitigating climate change

Evonik Carbon Footprint a

305-3, 305-5

Greenhouse gas emissions in million metric tons CO₂e

T06
2021

2022 c2023 dScope 1

Direct energy- and process-related emissions

4.4

4.2

3.8

Scope 2

Indirect emissions from purchased energy (gross, market-based approach)

1.9

1.8

1.5

Category

1: Purchased chemical raw materials, packaging materials, and indirect goods and services

13.0

11.2

10.6

Category

2: Capital goods

0.3

0.3

0.4

Category

3: Energy-related activities (not included in scope 1 and 2)

1.7

1.5

1.0

Category

4: Upstream transportation and distribution

1.1

1.0

1.0

Category

5: Disposal and recycling of waste

0.3

0.3

0.3

Category

6: Business travel

0.01

0.03

0.02

Category

7: Employee commuting

0.06

0.05

0.04

Category

8: Upstream leased assets (company cars, electricity and heating of administrative buildings)

0.00

0.00

0.00

Category

9: Downstream transportation and distribution (to direct customers)

0.05

0.04

0.04

Category 11: Use of sold products (direct emissions only)

4.2

3.1

3.2

Category 12: Disposal and recycling of products

2.8

3.0

2.7

–

– 13

– 17

23.4

20.5

19.2

15.3

14.4

13.3

b

Scope 3  

Reduction in scope 3 e GHG emissions versus 2021 in %GHG emissions, total scope 3
thereof upstream
thereof downstream
GHG emissions Evonik Carbon Footprint (sum of scope 1, 2, and 3)

6.3

6.1

5.9

29.7

26.5

24.6

a The fast close process reporting was used for this reporting period, see “About this report”

p. 149. Differences between the data and totals are due to rounding. The inventory
covers fossil greenhouse gas emissions and emissions of gases—other than CO2—of biogenic origin. Moreover, scope 3 categories 1 (– 1.3 million metric tons biogenic CO2e), 11 and
12 (approximately +0.8 million metric tons biogenic CO2e together), and direct scope 1 process emissions (+1.0 million metric tons CO2) entail relevant use of biomass with the associatednet amounts of CO2 removal and biogenic CO2 emissions. In the past, the net biogenic amounts were: scope 3 category 1 approximately – 1.4 (2021) / – 1.3 (2022) million metric tons
CO2; scope 3 categories 11 and 12 together approximately +1.0 (2021)/+ 0.9 (2022) million metric tons biogenic CO2. The corresponding direct process emissions (scope 1) wereconstant at around +0.1 million metric tons CO2 in 2021 and 2022.

b Some calculations are based on assumptions and estimates. Scope 3 category 10 “Processing of sold products” is not reported due to its complexity; categories 13 “Downstream leased
assets,” 14 “Franchises,” and 15 “Investments” are not disclosed separately as they are not applicable or not significant.

c Since the economy was weaker in the second half of 2022 than in the first half of 2022, resulting in a reduction in production activity, emissions in the fourth quarter of 2022 were
overestimated as the fast close process used a projection based on the first three quarters. As a result, the data for the full year had to be corrected. Therefore, the figures for 2022 in thepresent report differ from those reported in the sustainability report 2022.

d To calculate the emissions data for 2023, the IPCC AR6 - GWP100 impact assessment method (Sixth Assessment Report IPCC AR6 (2021), which is based on a 100-year period) wasused where possible to determine scope 3 emissions, instead of the previous method developed by the University of Leiden (CML2001- Aug. 2016).

e Scope 3 emissions from all upstream categories and the category “Downstream emissions from transportation and distribution“ as defined in our SBTi target.

The data in table T06 cover fossil GHG emissions and biogenic
GHG emissions other than CO2 . Net amounts from CO2 removals(due to biological carbon sequestration by biomass at the
beginning of the life cycle) and biogenic CO2 emissions arereported separately.
The development of our direct energy- and process-related
emissions, our indirect emissions from purchased energy, andgreenhouse gas emissions along our value chain, including thecontribution made by the individual categories in the GHG
Protocol Standard, are presented for 2021 (baseline), 2022, and2023 in table T06.
In 2023, greenhouse gas emissions decreased to 24.6 million
metric tons CO₂e, compared with 26.5 million metric tons CO₂ein 2022. This was mainly due to a cyclical reduction in businessactivities, which was reflected in lower procurement, production,and sales volumes.

Other emissions into the air
Alongside emissions of greenhouse gases as reported above,energy generation and industrial production result in further
emissions into the air. We want to reduce these further andtherefore take the emissions situation into account whenplanning new facilities. Our clean air measures include returning
exhaust gases to the production process, thermal processing ofresidual gases with a high calorific value (as substitutes fornatural gas), the use of electric filters to remove particulates, theuse of catalysts to reduce nitrogen oxide, and desulfurization by
washing with subsequent precipitation. We also use othermethods to reduce emissions from production facilities. Examples
are wet and dry scrubbing, condensation, adsorption, andthermal and catalytic incineration. Some of these emissions
treatment facilities are used simultaneously by several units.

T07

54 The environment

EVONIK SUSTAINABILITY REPORT 2023

Green energy

Other emissions into the air

305-6, 305-7

in metric tons

T07
2022

2023

Carbon monoxide (CO)

800

803

Sulfur oxides (SOx/SO2)

1,185

1,027

Nitrogen oxides (NOx/NO2)

3,192

2,803

994

741

Non-methane volatile organic compounds(NMVOC)
Particulates

449

484

Heavy metals (As, Cd, Cr, Cu, Hg, Ni, Pb, Zn)

0.31

0.26

0.30

0.29

Ozone-depleting substances ain metric tons CFC-11 equivalentsa	Emissions of ozone-depleting substances calculated in accordancewith the Montreal Protocol.

The other emissions into the air declined in 2023 as a result of
lower production output and the reduced use of coal for energy
generation at Marl Chemical Park. The coal-fired power plant inMarl will be finally decommissioned at the end of March 2024 inaccordance with the statutory requirements. That will bring asignificant reduction in emissions into the air (excluding greenhouse gas emissions). Based on the data for 2023, we assume thefollowing reductions:• Nitrogen oxides (NOx/NO2): – 1,000 metric tons
• Sulfur dioxide (SOx/SO2): – 500 metric tons
• Particulates: – 25 metric tons
• Heavy metals (As, Cd, Cr, Cu, Hg, Ni, Pb, Zn):
– 0.05 to – 0.07 metric tons

Very low level of ozone-depleting substances
The ozone-depleting chlorofluorocarbons (CFCs) are presently
only used as refrigerants on a very restricted basis as a transitional
solution in line with national and international regulations.
Emissions of ozone-depleting substances fluctuate at a low level
due to aperiodic replenishment of refrigerant systems.
Consequently, they were again very low in 2023. The main substitutes at present are partially fluorinated hydrocarbons (HFCs),
which are used in decentralized air-conditioning systems andsmall process cooling systems. These substances do not harm theozone layer, but they have a significant impact on the climate. We
anticipate that these refrigerants will be replaced by moreclimate-friendly products in the mid-term. The greenhouse gas
potential of the refrigerants is shown in table “Greenhouse gas
emissions” T05 p. 51.

Green energy
Strategy and management

Green energy is one of Evonik’s three most important material
topics. In the reporting period, we made good progress with thestrategic transformation of Evonik in this area. The focus at oursites is clearly defined: In the long term, supply will be switched
to energy from renewable resources. More than 50 sites in
Europe, Asia, and North and South America currently source orgenerate sustainable energy. That avoids around 410,000 metric305-6, 305-7

1

PPAs are long-term power supply agreements between a producer (e.g., a wind farm operator) and a major customer (e.g., an industrial company).

2 MWp = Megawatt peak.

tons of CO2 a year. Our energy management system ensures acontinuous and lasting increase in energy efficiency. We havealready optimized more than 80 percent of our global energy
requirements using an ongoing, certified process.

Significant increase in the proportion of green electricity
In the future, our European sites will be far less dependent on
fossil fuels. In 2022, we signed a long-term power purchaseagreement (PPA 1) with EnBW for the supply of green electricity
from the planned 960 Megawatt (MW) He Dreiht offshore wind
farm, starting in 2026. Further PPAs were concluded in December 2023. From 2025, Evonik will source electricity from Vattenfall under a ten-year PPA. This will come from the approximately
120 MWp 2 installed capacity at the locations that are being
erected in northern Germany. Furthermore, under a ten-year
PPA with RWE, from 2028, we will be sourcing approximately
37.5 GWh p.a. green electricity from the Kaskasi offshore wind
farm, which started operating in 2023. These long-term agreements ensure the financial viability and realization of theseprojects and help advance the energy transition. Evonik
compensates for fluctuations in the wind energy and solar power
feed-in through its own balance group management. This showsthat we have a keen eye on the reliability of supply, can avoid
potential bottlenecks, and safeguard the long-term operation of
our production facilities.

55 The environment

EVONIK SUSTAINABILITY REPORT 2023

Green energy

Worldwide, about 35 percent of electricity purchased by Evonikfrom external suppliers already comes from renewable sources.
By 2030, we want to switch to green sources for 100 percent ofpurchased electricity. The PPAs with EnBW, Vattenfall, and RWEin Germany will increase this to well over 50 percent. At thesame time, these agreements will reduce scope 2 emissions(purchased power) by about 150,000 metric tons CO2 a year. Our
goal is to reduce scope 1 and 2 emissions from 6.3 million metrictons to 4.7 million metric tons between 2021 and 2030 C14 p. 49.
About one-third of this reduction should be achieved by using
renewable energies.

technologies and efficient processes will pay a part in this. For
example, our digital energy management system (DEnMS)
supports the achievement of operational energy targets at oursites. In 2022 1, successful energy efficiency activities led to a
reduction of more than 380 GWh in energy consumption, as well
as reducing emissions by around 1 million metric tons CO₂,
compared with 42,000 metric tons CO2 in the previous year. ThisIn addition to green electricity, biomethane is becoming increasingly important for Evonik as a substitute for fossil-based naturalgas. Our production facilities in Schörfling am Attersee (Austria)
already operate entirely with energy from renewable resources.
These production facilities for SEPURAN® membranes run
exclusively off green electricity from wind, hydroelectric power,
and biomass. Moreover, since the beginning of 2022, this site’sgas requirements have been fully met by locally produced biomethane. By switching to environmentally friendly energy
supply, Evonik has reduced direct CO2 emissions at this plant inUpper Austria by about 5,000 metric tons a year. Moreover, since2021, the High Performance Polymers business line has used biomethane for the manufacture of certain products in Germany.
Since May 2023, biomethane has been used to produce steam atthe Health Care business line’s site in Ham (France.)1

Data for 2023 will not be available until summer 2024.

In 2023, we successfully had further sites in Europe, North
America, Brazil, and China certified as conforming withISO 50001. Our certified energy management system now
includes 57 sites, and ISO 50001 certification is planned forfurther sites in the coming years. Our aim is for certification tocover more than 90 percent of Evonik’s global energy consumption by 2026. While absolute energy consumption at the
ISO 50001-certified sites was reduced by 2.8 percent between
2020 and 2022, we registered a 3.4 percent rise in specific energy
consumption in this period. The main reason for this was thecyclical drop in production volumes. Lower capacity utilization at
production facilities often reduces their energy efficiency.
The energy efficiency measures implemented in 2022 included
the following measures, which resulted in considerable energy
savings:• Commissioning of the new, highly efficient gas and steam
turbine power plants in Marl (Germany) (project AS20+;
energy savings: approx. 97 GWh p.a.)• Use of innovative advanced process control (APC) systems invarious plants in Marl and Wesseling (Germany) (energy
savings: approx. 150 GWh p.a.)• Use of exhaust heat from flue gas in Rheinfelden (Germany)(energy savings: approx. 6 GWh p.a.)302-1, 302-4, 305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7

Energy management systems and measures to increaseenergy efficiency
Evonik aims to reduce both absolute and specific energy
consumption by 5 percent by 2025 (baseline year: 2020). New

was due to the switch from coal to natural gas following commissioning of the highly efficient gas and steam turbine power plants
at our site in Marl (Germany).

See our special magazine section
p. 69.

Green energy

56 The environment

C1

EVONIK SUSTAINABILITY REPORT 2023

Green energy

The energy management system is being switched stepwise to a
uniform digital basis for all sites, supporting all steps from energy
data capture through data analysis to monitoring the action taken.
The benefits of the digital energy management system (DEnMS)
are increased global data transparency and, in particular, faster,
automated availability of real-time data at plant level.

Evonik’s energy data 2023 a, bGross electricity/
steam required
62.45
Purchased electricity d 10.94
Coal 20.54%

Regular exchange formats ensure that the specialists for
production, sustainability, and energy efficiency at our sites andin the divisions, functions, and regions share experience tostrengthen the global best practice network. Networking is
supported by the continuous expansion of our global knowledge
platform on the energy management system.
302-1, 302-4

C15

302-1, 302-4

Substitute fuels
10.18%

9.64 Steam f
13.31
Electricity

Internal electricity
generation 4.78

Fuels c48.03

Oil 0.13%

Net electricity/
Electricity/steam
steam required
supply to 3rd parties
50.39
12.05
2.41 Electricity

Internal steam
generation e, f 33.88

37.09 Steam f

Natural gas 69.15%

Energy dataIn our energy reporting, we distinguish between primary energy
inputs, generally fossil fuels used to generate electricity andsteam, and secondary energy inputs. These mainly comprisepurchased electricity and steam. We also use substitute fuels suchas thermal processing of by-products, waste, and sewage sludge.
At present, natural gas and coal are Evonik’s main fuels. The
coal-fired power plant in Marl (Germany) will be decommissioned at the end of March 2024. That will end coal-fired power
generation by Evonik worldwide. Coal will then be a negligible
component of our energy mix.
In addition to natural gas-fired generation of electricity and steam
for captive use, large amounts of process heat from exothermic
reactions, for example, from the production of acrolein, are used
in integrated heating systems.

Purchased steam f 12.85

a In petajoules.

b Contains the energy required to generate refrigerants. Does not include cooling energy sold to third parties.
c Fossil fuels and substitute fuels used by Evonik for internal energy generation.

d Excluding trading and excluding supply of purchased electricity to third parties in Germany.
e Including process heat, e.g., from acrolein production.
f Conversion factor: 2.8 * 10-6 PJ per metric ton steam.

Thanks to the coordinated operation of the power plants inMarl, there was a stronger shift in our energy mix towards
natural gas in 2023. Increased use was made of the new, highly
efficient gas and steam turbine power plants. Together with thehigher availability of the power plants and the actual market
prices, there was a significant rise in power sold to third parties.
There was a significant reduction in the availability of substitutefuels due to the substantial drop in production activity. Heating
oil now only plays an insignificant role in the energy mix. It isonly used for auxiliary firing systems in the coal-fired power
plant I in Marl. Moreover, insignificant amounts are required for
emergency generators at some sites. The change in absolute andspecific net energy input versus 2020 mainly reflects the trend
in production.

T08

57 The environment

EVONIK SUSTAINABILITY REPORT 2023

Water management

Energy inputs

302-1, 302-3, 302-4, 302-5

T08

in petajoules

2020

2022

2023

Total fuels

54.59

50.49

48.03

Natural gas

30.42

33.12

33.21

Coal

15.97

11.22

9.86

Substitute fuels

8.11

6.06

4.89

Oil

0.09

0.08

0.06

Purchased electricity

9.17

10.70

10.94

Electricity sold

1.59

0.83

2.41

Purchased steam

12.84

13.78

12.85

Steam sold

10.10

9.51

9.64

Gross energy input a

76.59

74.96

71.82

Net energy input b

64.90

64.63

59.77

Change in net energy input
versus 2020 in %

0

0

–8

Production in million metric tons

8.93

8.38

7.50

7.27

7.71

7.97

0

6

10

Specific net energy input
in petajoules per
million metric tons production

Change in specific net energy
input versus 2020 in %a	Fuel inputs plus purchased electricity and steam.

b	Fuel inputs plus purchased electricity and steam less electricity and steam supplied

to third parties.

1

World Wide Fund For Nature.

2 TNFD = Task Force on Nature-related Financial Disclosures.
3 AWARE = Available WAter REmaining.

Water management
Strategy and management

We save water wherever possible and endeavor to achieve afurther reduction in our emissions. In the reporting period,
Evonik adopted a water policy and published it on its website.
More. Our aim is to reduce specific freshwater intake by
3 percent relative to production volume between 2021 and 2030.
This is to be achieved by a wide range of measures at our
production sites. These measures were identified as part of the
EAGER project p. 49. Integrated heat management measures
can reduce the demand for cooling water, which in turn reduces
the demand for freshwater. For example, our Active Oxygens
business line has planned power-to-heat (PtH) projects for theperiod up to 2030. These include, for example, installing heatpumps in Europe, which should avoid around 35,000 metric tonsof CO2 and save more than 3 million m3 of water a year. Process
improvements help reduce freshwater intake. For instance, theAnimal Nutrition business line has reduced water consumption
by about 40 percent per metric ton of methionine at its facility in
Mobile (Alabama, USA) by improving resource management at
the site. In Antwerp (Belgium), Evonik is planning to use treatedmunicipal wastewater instead of drinking water for its cooling

towers in the future. Furthermore, there are plans to use thetreated waste­water for steam generation, chemical processes,
and in the desalination plants at this site. Based on full capacity
utilization, this should allow savings of around 2.5 million m3 ofdrinking water a year at this site from 2026 and reduce fresh­water requirements by a further 10 percent. In view of this, themunici­pal water utility in Antwerp is planning to build a coolingwater factory with several technology companies in the next
three years to recycle and treat municipal wastewater.
We are also continuing our work on established water management topics, including monitoring our sites in water stress areas.
Adequate availability of water for cooling and production
processes plays a key role in our production activities. We therefore regularly analyze the short-, medium-, and long-term water
risks at our sites. In the reporting period, we therefore widened
our analysis of water stress at our sites to encompass a holistic
assessment of water risks. We use the WWF 1 Water Risk Filter
to analyze various physical risk aspects such as water stress,
flooding, and water quality. In addition, we evaluate reputationalrisks, such as water conflicts and media scrutiny, and regulatory
risks. Another focus is on the 2030 and 2050 time horizons,
based on the TNFD 2 climate scenarios. The AWARE 3 method,

T09

58 The environment

EVONIK SUSTAINABILITY REPORT 2023

Water management

Anaerobic processes for the treatment of process effluent and sludge with ahigh organic content use very little energy compared with incineration or
aerobic biological treatment and generate virtually no residues for landfill.
These methods also produce valuable biogas and reduce CO2 . We havedeveloped a variety of concepts to implement this.«

Matthias Woyciechowski | Senior Expert Environmental Technologies, Germany

which we previously used to identify sites in water stress areas,
has been integrated into the WWF Water Risk Filter. The waterrisk assessment looks at risks relative to the water basin and thetype of water use at each site. Examples are particularly waterintensive processes. In the reporting period, we performed a fullwater basin assessment. We also started to assess water use byinterviewing experts at our sites. We started with those sites that
our water basin analysis identified as being in high-risk regions.
We use the WWW Water Risk Filter to determine the sites thatare most affected by water risks. In the reporting period, we did
not obtain a rating of very high or extreme for any of our
104 production sites. At five sites, water risk was classified ashigh. A further 47 sites are classified as medium risk in respect of
the water basin. Ten of these are in the upper range (mediumhigh). The shift compared with the previous year (AWARE
method) is attributable to the considerably wider scope of theWater management

WWF Water Risk Filter, which has a total of 12 risk categories.
Risk category 1 (water scarcity) looks at six indicators, one ofwhich is the AWARE approach. In addition, the WWF Water Risk
Filter defines levels (extreme, very high, high, medium, etc.) towhich the sites are allocated.
We also examined future risks for the 2030 and 2050 time
horizons using the WWF Water Risk Filter, including analyses forthe pessimistic, current trend, and optimistic scenarios. The
pessimistic scenario is based on very conservative assumptions.
On this basis, 19 sites would be classified as high risk in 2030 (butnone as very high or extreme). In 2050, 23 sites would be classified as high risk and a further three as very high risk (but none asextreme risk). Analyzing our sites using the WWF Water Risk
Filter helps us identify relevant water-related impacts, dependencies, and risks in order to derive and prioritize future measures.
Furthermore, we are currently working on an approach to assign
a monetary value to water risks.

In addition to the water risks outlined above, we perform a holistic
risk analysis covering the additional potential impact of natural
catastrophes such as storms, hail, floods, hurricanes, tornadoes,
and torrential rainfall. Moreover, our sites are regularly audited byinsurance companies.
303-1, 303-2, 303-3, 303-4, 303-5

Water data

Total water intake was 403 million m3 in the reporting period,
while discharges amounted to 397 million m3. The difference of
6 million m3 between water intake and discharge mainly comprises
water used to replace evaporation losses. Around 98 percent
of our total water intake of 1,724 million m3 was for cooling
purposes in energy generation and production. Only 2 percent(41 million m3) was used for production purposes. We include
Water intake by source a

303-1

in million m³

Drinking water

b

T09
2021

2022

2023

20.7

20.6

19.0

Groundwater

56.6

51.7

46.7

Surface water

174.3

172.1

153.8

4.3

3.4

4.7

Recycling of water from third parties
and use of rainwater
Total freshwater

255.9

247.8

224.3

Salt water (sea water)

206.0

196.6

179.0

Total

461.9

444.4

403.2

9.5

8.4

7.5

26.8

29.5

29.9

0

10

12

Production
in million metric tons

Specific water intake
intake in m3 freshwater
per metric ton production

Development of specific freshwater
intake relative to the reference
base 2021 in %a Differences between the data and totals are due to rounding.
b

Water from municipal or other utilities.

59 The environment

C1

EVONIK SUSTAINABILITY REPORT 2023

Water management

water used in closed cooling circuits and evaporation losses whencalculating the proportion of total water used for cooling.
Evonik’s consumption of freshwater—the total of recycled waterfrom third parties, rainwater, drinking water, groundwater andsurface water—declined by 10 percent to 224 million m3 in thereporting period. The reduction in consumption of drinking
water and surface water was mainly attributable to the reductionin production in 2023. The reduction in groundwater consumption was mainly due to the sale of the Lülsdorf site in Germany.
The increase in recycling of water from third parties and use of
rainwater was mainly due to increased rainfall in Marl(Germany) compared with the drought in 2022. The reduction insalt water intake in 2023 was due to a maintenance shutdown at
a methionine plant on Jurong Island (Singapore) in the fourth
quarter.

Emissions into water

Our sites aim to make a contribution to protecting natural water
resources. When planning new production plants, we therefore
consider the use of processes that generate little or no waste­water. Where contaminated water from production processes(production effluent) is unavoidable, partial streams are tested,
for example, for biodegradability. We have high technology standards and infrastructure for the disposal of wastewater at oursites. In some cases, production effluent is pretreated in the
production plants. Consequently, the effluent load of wastewater
discharged into our own or third-party treatment facilities ismoderate.

Evonik’s water data 2023

C16

303-1, 303-2, 303-3, 303-4, 303-5(in million m3 p.a.) a
Recycling of water b, e 5eDrinking water and groundwater 66

Intake
403

Use
1,724

Discharge
397

Production c 41

7 To external wastewater
treatment plants

179 Into the sea
Salt water (sea water) 179

Through-flow cooling 342

Surface water e 154

212 Into surface water

6 Consumption d
Cooling circuits
1,341

Water consumption is thedifference between water intake
and discharge. It is mainly
due to evaporation losses.

a Figures in the chart are rounded. | b Recycling of water from third parties, including use of rainwater. | c Water used in chemical processes, including generation of steam andwater for sanitary purposes. | d Water consumption in accordance with GRI Standard 303-5 (2018). | e Freshwater.

At Marl Chemical Park in Germany, sewage sludge is dewateredin our own treatment plant and subsequently incinerated in ourown facilities with integrated flue gas treatment. We use some ofthe exhaust gases from the production plants as substitute fuels.
The incineration gases are then used to generate 20 bar steam.
Wastewater discharged from our sites is carefully monitored, forexample, by regular sampling and measuring equipment that
operates continuously. These analyses support the managementof our wastewater treatment facilities. Moreover, many analyses
are required by legislation on self-monitoring. In addition, theauthorities frequently perform unannounced checks to monitor
discharges.

60 The environment

T10
T11

EVONIK SUSTAINABILITY REPORT 2023

Waste management

Wastewater loads a

303-2

T10

in metric tons

2022

2023

Chemical oxygen demand (COD)

1,433

1,316

143

185

Total nitrogen (N)Total phosphorus (P)3337

Absorbable organic halogen compounds (AOX)

1.2

1.4

Heavy metals (As, Cd, Cr, Cu, Hg, Ni, Pb, Zn)

1.3

1.4

a Direct discharges only.

In 2023, we discharged a total of 397 million m3 wastewater,
including 7 million m3, which was channeled to third-party
facilities (e.g., municipal facilities) for treatment (indirectdischarge). 47 million m3 were discharged directly into water via
our own drainage system after treatment in Evonik wastewater
treatment facilities. These direct discharges also include amounts
accepted from third parties for treatment at the wastewater treatment facilities operated by us at chemical parks. Since 2021, ourexternal reporting has only disclosed the wastewater loads of
direct discharges. In view of this, data from 24 direct dischargesources were included in the reporting period.
Organic substances—expressed as chemical oxygen demand(COD)—account for the highest proportion of our wastewaterloads. COD is the concentration of all substances in the waste­water that can be oxidized under certain conditions. The
decrease in COD was mainly attributable to the reduction in
production. The increase in total nitrogen (N) emissions wascaused by the temporary malfunctioning of one of our waste­water treatment plants.

Waste management

the EAGER project. In addition, we are continuing our work on awaste management system.

Strategy and management

Our efforts to further reduce production waste are aligned witha clear principle: the first priority is to avoid waste; otherwise
waste should be recycled or used to generate energy. As a third
option, if this is not possible, it should be disposed of safely.
Evonik uses this principle to implement the five-step wastehierarchy defined by EU legislation. As a specialty chemicals
company, we are involved in research and development workon mechanical and chemical recycling (see “Value chain andproducts” p. 33).

Continuous optimization of production processes contributes toavoiding and minimizing waste. That includes in-plant reprocessing of substance streams and the use of highly specializedcatalysts to minimize side reactions. Where waste is unavoidable,
the focus is on mechanical or thermal reprocessing. At our sites,
various types of recyclable waste, such as glass, paper, and wood,
are collected separately and sent to external recycling firms. We
regularly monitor these firms through audits to review theirsuitability in conformance with statutory provisions.

Between 2021 and 2030, we aim to reduce specific productionwaste relative to production volume by 10 percent. We want toachieve this by implementing a wide range of measures at our
production sites. These measures were identified, for example, in

We also use the benefits of integrated production sites andsystems for systematic waste management. By-products of a
production process are used as raw materials in other production
plants. For example, at the integrated C4 production facilities at

Waste management a,b

306-4, 306-5

T11
2022

2023

2022

2023

internal

internal

external

external

Incineration with recycling of heat energy

16

10

25

27

Disposal by incineration

43

43

32

15

Recycling (including composting)

52

34

71

62

Landfill

2

0

55

54

Chemical/physical/biological treatment

9

9

19

17

Other reprocessing methods

2

4

75

44

Other disposal methods

1

1

25

29

125

100

302

248

in thousand metric tons

Total
a

Differences between the data and totals are due to rounding.

|b

Only includes waste streams in the gate-to-gate process.

T12

61 The environment

EVONIK SUSTAINABILITY REPORT 2023

Waste management

Waste a, b

306-1, 306-2, 306-3, 306-4 

T12
2021

2022

2023

2021

2022

2023

internal

internal

internal

external

external

external

Hazardous production waste, reprocessed

69

65

44

64

62

Hazardous production waste, disposal

68

45

45

36

50

Non-hazardous production waste,
reprocessed

4

5

4

45

Non-hazardous production waste,
disposal

13

10

8

Total production waste

153

125

100

in thousand metric tons

2022

2023

internal and internal and2021
external

external

internal andexternal

55

133

127

99

36

104

95

81

49

51

49

54

55

43

49

45

55

59

53

188

211

187

Production in thousand metric tons
Specific production waste
in metric tons per metric ton production

Development of specific productionwaste relative to the reference base2021 in %

342

335

287

9,540

8,380

7,503

0.036

0.040

0.038

0

12

7

Hazardous building and demolition
rubble, reprocessed

0

0

0

1

1

1

1

1

1

Hazardous building and demolition
rubble, disposal

1

1

0

38

7

8

39

7

8

Non-hazardous building and demolition
rubble, reprocessed

0

0

0

39

59

27

39

59

27

Non-hazardous building and demolition
rubble, disposal

0

0

0

31

25

26

31

25

26

Subtotal building and demolition rubble

1

1

0

109

92

61

109

92

61

125

100

297

302

248

451

427

348

Total

154

a Differences between the data and totals are due to rounding.

|b

Only includes waste streams in the gate-to-gate process.

our site in Marl (Germany), we produce butadiene, butene-1,
MTBE (methyl-tert-butylether), isononanol, and plasticizers.
Integrated management means that waste products can be usedin nearby plants. At Marl Chemical Park, liquid organic residues
are used as a substitute for heating oil in the gas synthesis plant at
this site, and waste sulfuric acid is recycled in the sulfuric acidplant.
Alongside reprocessing methods, waste with a high calorificvalue (“substitute fuel”) is used to produce energy. This reduces
the use of primary fossil fuels. We use some of the exhaustgases from production plants as substitute fuels. Heat from thesubstitute fuels and incineration gases is used to generate steam.
In our analysis of waste management/circular economy, we
distinguish between waste processed on-site and waste transferred off-site. Waste transferred off-site physically leaves ourreporting boundaries as “genuine” waste. By contrast, waste
processed on-site is recorded as waste, but its environmental
impact is generally only registered for the by-products of thevarious treatment steps, for example, as CO2 from incineration
T11
p. 60.
In 2023, total waste decreased by 19 percent year-on-year to348,000 metric tons. The reduction in production waste wasmainly attributable to the reduction in production in 2023, while
the reduction in building and demolition rubble was due to a
reduction in construction activity. Construction activity depends
on specific measures and may vary considerably from year toyear. The percentage of waste reprocessed comprises recycled
substances, incineration with recycling of heat energy, and otherdisposal methods. The reprocessing rate decreased to 52 percent
in 2023 (2022: 56 percent).

62 The environment

EVONIK SUSTAINABILITY REPORT 2023

Biodiversity

Biodiversity
Strategy and management

Biodiversity is one of Evonik’s 15 material topics. We are awarethat our business operations involve both opportunities and risks
with regard to biodiversity. These include, for example, the loss
or protection of biodiversity on land and in the oceans, including
microbial organisms. It is important to avoid supply chain disruption and production stoppages caused by reduced biodiversityand damaged ecosystems.
The starting points for our examination of biodiversity areconventional environmental topics such as emissions into waterand the air and responsible water and waste management, which
we report on regularly. In addition, the following aspects of
biodiversity are addressed in the sustainability analysis of ourbusiness: water, eutrophication, acidification, land use, use ofrenewable raw materials, emissions of critical and persistentchemicals, and microplastics. Our contributions to maintaining
diversity are bundled in our Sustainability Focus Area safeguard
ecosystems p. 140.
In the reporting period, we were involved in various biodiversity
workstreams at the German chemical industry association (VCI)
and the federation of German industries (BDI) and also took partin various consultation procedures. Moreover, we continued
our discussions with the European Commission on the EU bio­diversity strategy for 2030 with a focus on the proposed EU soil
legislation.

In 2023, we also set up internal expert groups to examine
relevant aspects of biodiversity. We started to analyze newreporting guidelines and methods and to define and calculate
additional biodiversity indicators. In addition, we are preparing
for the new EU reporting requirements of the CSRD, ESRS E4
Biodiversity and ecosystems. We follow the activities of bio­diversity initiatives such as the Task Force on Nature-related
Financial Disclosures (TNFD), Science Based Targets for Nature(SBTN), and the Intergovernmental Science-Policy Platform on
Biodiversity and Ecosystem Services (IPBES).
For biodiversity analyses, we still use a geoinformation system
based on the data of the IBAT Alliance 1. On this basis, we annually examine the potential impact of our worldwide sites on areasof special significance for biodiversity. This focuses on all sites
within one kilometer of conservation areas or key biodiversity
areas. Key biodiversity areas are areas with land, freshwater, andmarine ecosystems that play a key role in protecting global bio­diversity. Areas are classified as global key biodiversity areas if
they meet one or more of eleven criteria, which are subdivided
into the following five categories: threatened biodiversity, geographically restricted biodiversity, ecological integrity, biologicalprocesses, and biological irreplaceability. The data on key bio­diversity areas are also made available by the IBAT alliance andare linked to the data on Evonik sites in our geoinformation
system GIS-Sus. Overall, 37 percent of our production sites arelocated within one kilometer of conservation areas or key bio­diversity areas. The table showing sites adjacent to conservation
areas in 2023 includes Natura 2000 areas.

Ecosystem services and direct drivers of
biodiversity loss based on IPBES 2, 3
Biodiversity and ecosystems are natural capital and form
the basis for processes that are vital for life. They provide
what are known as ecosystem services, which can bedivided into four categories:• Provisioning services (e.g., wood, water, clean air)
• Regulating services (e.g., climate regulation,
pollutant decomposition, water purification)• Supporting services (e.g., nitrogen and carbon cycles,
water cycle, soil formation)• Cultural services (e.g., therapeutic, recreational,
spiritual fulfillment)
Communities and economic systems are supported bythese ecoservices. The IPBES reports that biodiversity andecosystem services are decreasing as a result of anthro­pogenic influences. According to the IPBES, the directdrivers of the reduction in biodiversity and ecosystems are:
• Land use/seascape change• Resource use• Climate change• Pollution• Invasive alien species

1	The IBAT Alliance comprises the following four non-governmental organizations: (1) Bird Life International, (2) Conservation International,(3) International Union for Conservation of Nature (ICUN), (4) United Nations Environment Programme World Monitoring Centre (UNEP-WCMC).

2 IPBES = Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services.

3 Source: IPBES 2019; Global Assessment Report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. E. S. Brondizio, J. Settele, S. Diaz, H. T. Ngo

ipbes.net/global-assessment

T13

T14

63 The environment

EVONIK SUSTAINABILITY REPORT 2023

Biodiversity

Evonik production sites adjacent
to conservation areas 2023
304-1

T13

Production site CountryArea
in km²IUCN acategories

Lafayette

USA

7.004

V

Marl

Germany

6.529

IV, V

Morrisburg

Canada1.132

Ia

Antwerp

Belgium

1.083

IVHanauWolfgang

Germany

0.779

IV, V

Rheinfelden

Germany

0.554

V

Wesseling

Germany

0.331

IV, V

Herne

Germany

0.261

IV, V

Krefeld

Germany

0.237

IV, V

Greensboro

USA

0.235

V

Ramsar b
area

Natura2000 c
area






Evonik production sites adjacent
to key biodiversity areas 2023

304-1

T14

Production site

CountryArea
in km²

Criterion

Antwerp

Belgium

1.083

Migratory birds, other

Rheinfelden

Germany

0.554

Other
Endangered species,
migratory birds, otherDelfzijl

Netherlands

0.105

Tonawanda

USA

0.087

Migratory birds

Qingdao

China

0.040

Species threatenedwith extinction,
critically endangered,and endangered species

Taoyuan City

Taiwan0.035

Endangered species,
migratory birds

Ami-Machi

Japan

0.034

Endangered species

Rheinmünster

Germany

0.026

Endangered species,
migratory birds, other

a IUCN = International Union for Conservation of Nature.

Umbogintwini

South Africa

0.020

Species threatened withextinction, criticallyendangered, endangered,and endemic species

Lauterbourg

France0.018

Endangered species,
migratory birds, otherb	Ramsar Convention = convention on wetlands, especially as habitats for waterfowl.
c	Natura 2000 = an EU-wide network of protected areas to protect endangered or typical

species and habitats.

Compared with 2022, the list of the ten largest production sites
adjacent to conservation areas no longer includes Lülsdorf(Germany) because this site was sold to International Chemical
Investors Group (ICIG), effective June 30, 2023. Instead, the list
now contains Greensboro (North Carolina, USA). Moreover, thearea of some sites deviates slightly from the data published in
2022.
Overall, there are 34 production sites adjacent to conservation
areas. The total area of all production sites adjacent to conservation
areas is 19.8 km2.

1

LEAP = Locate, Evaluate, Assess, Prepare.

T14 shows our ten biggest production sites adjacent to key bio­diversity areas. Compared with 2022, we have added the site in
Rheinmünster (Germany). There have also been slight changes
in the area of the sites in Rheinfelden (Germany) and Tonawanda(New York, USA) compared with 2022.
We have a total of 11 sites adjacent to key biodiversity areas. The
total area of all production sites adjacent to key biodiversity areas
is 2.0 km2.

In 2023, we embarked on a more detailed examination of thedirect drivers of biodiversity loss defined by IPBES. The main
drivers of relevance for Evonik are climate change, pollution,
direct use of resources, and land-use change. We report extensively on climate change and pollution in CDP Climate Change.
In the area of direct use of resources, we are currently focusing
on our water consumption, which we report in CDP Water
Security. We address aspects of changes in land use in CDP
Forests in connection with palm oil, palm kernel oil, and theirderivatives p. 168. In the selection of raw materials, we applyinternationally recommended certification standards for palm oiland plan to use only deforestation-free palm derivatives (see“Value chain and products” p. 37).
In the future, we want to analyze the bio-based raw materials we
procure. The focus here will be on land use and changes in land
use with regard to purchased renewable raw materials and therelated water consumption for irrigation. This is an importantlever for Evonik’s biodiversity footprint. Invasive alien species are
not currently classified as material for Evonik.
Progress with these aspects is altering our analysis of the biodi­
versity of our sites. In the future, we will be giving greater priority
to a holistic perspective. Alongside the drivers of biodiversity
loss, we intend to review risk assessments and our dependence
on ecosystem services. In the reporting period, we started to
identify and evaluate nature-related risks and opportunities,
using the LEAP 1 method developed by TNFD. That will help us
include biodiversity even better in the sustainability analysis of
our business p. 20.

64 The environment

EVONIK SUSTAINABILITY REPORT 2023

Biodiversity

In addition to compiling data on conservation areas, in 2023, forthe first time, we used the WWF Biodiversity Risk Filter and the
WWF Water Risk Filter to assess the risks of all sites p. 57. Thisshows that, at present, Evonik has five production sites in regionswith high physical risks. The biggest physical risks at these sites

In addition, we are working to compile and visualize further
biodiversity indicators. To this end, a group-wide biodiversity
dashboard is currently being developed so that the most affectedsites can be identified more easily in the future and appropriate
action can be defined.

When upgrading the railroad bridge over the Silvert stream in Marl, we
considered all ecological aspects and discussed them with the nature protection
organization NABU, local residents, and the local authorities. The project
includes rewilding the stream in this area and incorporating a hibernation
bat box into the bridge.«

Thomas Kruck | Project Manager, Construction Engineering, Germany

are environmental pollution, tropical cyclones, and landslides.
None of our sites is located in an area classified as having generally high reputational risks, but particularly critical media reports
represent a high or very high risk at most sites. At sites where theanticipated risks are high and that are also close to conservationor key biodiversity areas, we want to examine the direct driversof biodiversity loss in more detail in the future. This could bedone through interviews and workshops at the relevant sites.

1

Biodiversity

Our sites are engaged in various initiatives to protect biodiversity.
For example, the Evonik site in Antwerp (Belgium) is committed
to participating in the Voka 1 Charter for Sustainable Entrepreneurship . This goes hand in hand with the implementation of the
17 SDGs. We have already implemented the first points, including
renesting protected barn swallows and collecting litter, both on thesite and beyond. At our site in Marl (Germany), we are involved in a
project to rewild the Silvert stream.

Voka = A Flemish network of companies in Belgium.

2 Information on CO2e avoided by the use of Evonik products can be found in ”Strategy and growth”

p. 24.

Evonik’s products and solutions 2

Declining biodiversity has a negative effect on Evonik’s businessactivities. At the same time, our business activities can have anegative effect on biodiversity. However, Evonik’s products andsolutions also play a part in maintaining biodiversity and help
protect habitats.
Peracetic acid from Evonik is an effective alternative to established biocides for disinfecting wastewater. Before the treatedwastewater is discharged into the environment, it undergoes adisinfection process to eliminate pathogenic bacteria. This
prevents the bacteria from getting into waterways used bypeople for recreational purposes or fishing. One big advantage of
peracetic acid compared with chlorinated disinfectants is that it
decomposes, and no or only very few toxic by-products are
released.
Evonik’s Health Care business line markets products that can beused as alternatives to animal-derived substances in pharma­
ceutical applications and therefore make a positive contribution
to circularity and biodiversity. One example is PhytoChol®, aplant-based cholesterol, which is an essential component in the
production of lipid nanoparticles, a key technology for drugdelivery. Another example is PhytoSquene®, a squalene based onamaranth oil. We therefore offer an alternative to traditional
production from shark liver oil, which makes a contribution topreserving the biodiversity because many species of shark are
currently endangered.

65 The environment

EVONIK SUSTAINABILITY REPORT 2023

Our targets

Our targets
Below is an overview of the targets set for the environment area of action.
Target attainment in 2023

Targets for 2024 and beyond

Reduce absolute scope 1 and scope 2 emissions by 25 percent
between 2021 and 2030 (status: – 15 percent)

Reduce absolute scope 1 and scope 2 emissions by 25 percent
between 2021 and 2030

Reduce absolute scope 3 emissions 1 by 11 percent 2 between 2021 and 2030
(status: – 17 percent)

Reduce absolute scope 3 emissions 1 by 11 percent  2
between 2021 and 2030

Reduce both absolute and specific energy consumption by 5 percent
between 2020 and 2025 (status: – 8 percent absolute; +10 percent specific)

Reduce both absolute and specific energy consumption by 5 percent
between 2020 and 2025

Switch purchased electricity to 100 percent green electricity by 2030
(status: + 35 percent)

Switch purchased electricity to 100 percent green electricity by 2030

Reduce specific freshwater intake by 3 percent relative to
production volume between 2021 and 2030 (status: +12 percent)

Reduce specific freshwater intake by 3 percent relative to production volume
between 2021 and 2030

Reduce the specific volume of production waste by 10 percent relative
to production volume between 2021 and 2030 (status: +7 percent)

Reduce the specific volume of production waste by 10 percent relative
to production volume between 2021 and 2030

Target not achieved
Target partially achieved or target horizon extends beyond 2023
Target achieved1	Scope 3 emissions comprise all upstream categories and the category “Downstream transportation and distribution“ as defined in our SBTi target.
	Exact target: 11.07 percent.

2

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2023

IMPLEMENT!

―Our focus projects*

EnBW HeDreiht
offshore wind farm69

H₂annibal project73

Sustainableskincare products

Future Sustainable
Car Materials

81

77

*

This special section is outside the scope of the auditor’s limited assurance engagement.

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Introduction»

Driving forward the transformation of industry and society means
actively shaping fundamental changes. Evonik wants to make a contri­
bution to a future that is worth living—a future that uses resources
efficiently and is innovative, sustainable, and profitable. We can only
achieve that by working together with everyone in the value chain—
our employees, customers, and suppliers.
Our activities are focused on those aspects that are of material importancefor us and our direct stakeholders. We take into account both how
Evonik impacts the environment and society and how the environmentand society impact us. In our materiality analysis, we evaluated andweighted these impacts. In this way, we identified 15 material topics,
three of which are particularly relevant for Evonik: green energy,
portfolio transformation, and circular economy.
Transformation may be triggered by innovations or by changes insociety’s needs and the environment. We therefore review our material
topics every year and compare them with current trends and develop­
ments. That helps us keep an eye on the implementation of our sustain­
able corporate strategy for the transformation to Next Generation
Evonik and address the changes as we move forward.
In this special section of our sustainability report 2023, we have selectedfour examples that illustrate how we help make our world moresustainable in collaboration with our partners. The focus is our threemost important material topics. Trustful collaboration and close partner­
ships pave the way for their implementation.
Green energy is the basis for the energy transition. Together with
Siemens Energy, we are researching and testing innovative hydrogentechnology in an industrial environment at our site in Herne (Germany).
The goal is to use green electricity to generate green hydrogen, which
is used in the production of a key precursor for rotor blades for windturbines. Our collaboration with EnBW shows how we source green
electricity from wind farms for our sites and, at the same time, makea contribution to more widespread use of renewable energies.
In the Future Sustainable Car Materials project, we are working in aconsortium with BMW. Our joint aim is to close the plastics cycle andmake a contribution to a circular economy. Evonik and its customers
know that portfolio transformation can only be achieved by working
together as partners. A good example is Beiersdorf and its shift to moresustainable skincare products. We show how we work together to tackle
challenges and develop viable solutions.
We partner with our customers to go beyond what is considered
possible today. Together, we work on new solutions for the mostimportant questions for our shared future.
WE GO BEYOND.

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Introduction»

The transformation of industry
and society is not just challenge, it
is also an opportunity for Evonik.
WE GO BEYOND is our response.«
Dr. Ralf Düssel (Head of Sustainability at Evonik)»

Our material sustainability topics
guide us in the focused transformationof Evonik.«
Sabine Kuznik (Head of Sustainability Relations at Evonik)

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Green energy

Green electricity
from the EnBW He Dreiht
offshore wind farm

Dr. David Gohsen (Evonik) and Dr. Thomas Schrey (EnBW) at EnBW’s offshore office.

Wednesday, November 15, 2023, 7.30 a.m.
Chilehaus, Hamburg
The sun has not risen yet, and Chilehaus, a
UNESCO World Heritage building, shines out
magnificently in the dark.
Dr. Thomas Schrey (PPA Originator at EnBW) and
Dr. David Gohsen (Head of Portfolio Management
Power at Evonik) have scheduled an early­morning
meeting in the offshore wind office of energy
company EnBW (Energie Baden­Württemberg AG)
to discuss the new EnBW He Dreiht offshore windfarm and Evonik’s power purchase agreement (PPA)
for green electricity.
Symbolic

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View of the prow of the Chilehaus.

»

Discussing the location of the new EnBW He Dreiht offshore wind farm.

David Gohsen: Hello Thomas, nice to see you. Many thanks
for agreeing to today’s meeting in your offshore wind office in
Hamburg to talk about our long­term purchase agreement forgreen electricity.

power from the EnBW He Dreiht offshore wind farm. That
will meet more than a third of Evonik’s total electricity
demand in Europe. Thomas, perhaps you can give us somemore details of the project and the present status.

Thomas Schrey: Hello David, I’m glad to welcome you to
our office here in the Chilehaus. The shape of this building
is reminiscent of a ship. It’s almost a hundred years old andis a UNESCO World Heritage Site.

Thomas: Nomen est omen: He Dreiht is a dialect term for“It Spins”. That’s a really apposite description of EnBW‘s thirdwind farm! It is being built at a site about 90 kilometers north­west of the island of Borkum and 110 kilometers west of
Helgoland. It will have 64 wind turbines in total, with installedcapacity of 960 MW and will start to feed electricity into thegrid at the end of 2025. As one of the first non­subsidized
offshore wind farms, it will almost double EnBW’s offshore
portfolio, which generates an output of 976 MW at present.

David: Originally, it was a symbol of economic upswing.
In much the same way, Evonik wants to play a proactive rolein shaping and driving forward the energy transition. One
particular goal is that, by 2030, all the electricity we source
externally should be green. Green energy and the associatedreduction in CO2 are central to our sustainable corporate
strategy. From 2026, we will be sourcing 150 MW of electric

He Dreiht moves into a completely new dimension comparedwith our other North Sea wind farms, Hohe See and Albatros,

which are already operating. It is also the first commercial
project to use the Vestas V236­15 turbines, which have anominal power of 15 MW each.
So EnBW is continuing its pioneering role in the offshore
sector. Moreover, with total installed capacity of 960 MW,
EnBW He Dreiht is currently one of the largest projects for
Europe’s energy transition. Theoretically, it could supply
renewable electricity to 1.1 million households.
With a hub height of 142 meters and a rotor diameter of
236 meters, one rotation covers an area of 43,742 square
meters—equivalent to six soccer pitches. The grid operator
TenneT TSO will connect the wind farm to the grid via an
offshore transformer station and two high­voltage direct
current cables. The total cable length will be 230 km, with
120 km offshore and 110 km onshore.

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The EnBW He Dreiht
project is financed
exclusively by the private
sector and will be oneof Germany’s firstnon-subsidized windfarms.«
Dr. Thomas Schrey (EnBW)»»Our goal is to switch our external
electrical power sourcing worldwide entirely
to green energy by 2030.« Dr. David Gohsen (Evonik)

Manufacture of the transition pieces began early in 2023.
Work on the monopiles and the cabling has also commenced,
and production of the wind turbines started recently as well.
From the permitting, financing, and production perspectives,
the project is right on schedule. David, could you explain why
you decided to take part in our offshore wind tender?
David: That’s a great question. The advantages of offshore windenergy are clear: Offshore wind turbines benefit from higher
and steadier wind speeds. Therefore, they can generate about
twice as much electricity as comparable onshore installations.
That makes them very reliable and ensures even energy
generation, so they are an attractive basis for generating
power from renewables.

Through our commitment, we want to encourage the installa­tion of further renewable energy assets and drive forward theenergy transition. Our agreement secured the financing, so it
was possible to start realizing the wind farm. That additionality
factor was an important aspect of the EnBW He Dreiht projectand our decision to take part in the tender. Thomas, could
you explain in detail what these PPAs are and what function
they have for Evonik?
Thomas: Of course. Power purchase agreements—or PPAs for
short—are long­term supply contracts between suppliers and,generally, large industrial users. Like our joint PPAs, they often
run for more than 15 years. The industrial customers source
physically green electricity directly from renewable resources
via these installations, often on fixed, predefined terms.

The Video.

Transition piece

Monopile

The Podcast.

Perhaps I should say that PPAs are a central element in theenergy transition: they help guarantee reliable financing ofmajor projects because they give the operators calculable
revenues of cash inflows. The EnBW He Dreiht wind farmis a good example.
The electricity supply agreements we signed with you at avery early stage in the project were the key basis for obtaining
the approval of EnBW’s supervisory board for the final
investment decisionin the wind park in March 2023. As aresult, this purely privately financed project is making progress
and EnBW He Dreiht will be one of Germany’s first non­subsidized wind farms.

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Chilehaus—a UNESCOWorld Heritage site

The Kontorhaus and warehouse districts and theChilehaus in Hamburg (Germany) were awarded
UNESCO World Heritage status on July 5, 2015.
The Chilehaus is an office building built between
1922 and 1924 in Hamburg’s trading district.
The architect, Fritz Höger, was a pioneer of brick
expressionism in the 1920s. The Chilehaus covers
an area of 5,950 m2 and was one of the firsthigh-rise buildings in Hamburg with up to ten
storeys, a gross surface area of 36,000 m², and2,800 windows. With its eastern tip resembling
the prow of a ship, it is an icon of expressionist
architecture.

Incidentally, this striking tip is the sharpest angle ofany facade in Europe.
As well as its unique architecture, the building isa symbol of Hamburg’s economic upswing. Overthe years, it has become a tourist attraction. It isparticularly worthwhile viewing the building’s
charming interior features: the linoleum flooring,which is subject to a conservation order, the paneledmahogany doors in the stairwells with their handwrought brass handles, and the elaborate decor.
For the construction of this building, the merchant
Henry Brarens Sloman purchased 4.8 million bricks
in 1922.

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H₂annibal project*—Water electrolysis for Herne

Members of the Siemens Energy and Evonik joint project group (from left:
Axel von Levetzow, Dr. Rainer Stahl, Eric Klein, and Lutz Komorowski).

Friday, November 17, 2023, 8 a.m.: Siemens Energy Gigawatt Factory in Berlin (Germany)
This morning, two representatives of Evonik, Dr. Rainer Stahl (Manager of the Herne site) and Lutz Komorowski (Head ofElectrical and Process Control Technology in Herne), are meeting with Eric Klein (European Sales Director, Hydrogen) andAxel von Levetzow (Production Manager Gigawatt Factory) from Siemens Energy for a tour of Siemens Energy’s new
Gigawatt Factory, where stacks for proton exchange membrane (PEM) electrolyzers are manufactured. The key componentsof the planned electrolyzer for the Herne site will also be produced here.

Green energy*The H₂annibal project: a pilot electrolyzer to produce hydrogen for IPDA production at the Herne/Hannibal mine site is funded by theGerman Federal Ministry of Education and Research. Funding reference: 03HY131B.

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Green hydrogen, in other words,
hydrogen produced with theaid of renewable energy, is a key
element in the transition fromfossil fuels and feedstocks torenewable resources andan important step forward in
the Herne Green Deal.«Dr. Rainer Stahl»

Wind energy for green hydrogen andgreen hydrogen for wind energy
Evonik is investing in a pilot electrolyzer at its site in Herne(Germany) to produce green hydrogen as a starting productfor isophorone diamine (IPDA), a key raw material for therotor blades for wind turbines. In the electrolysis process,water is split into green hydrogen and green oxygen withthe aid of green electricity.
Evonik plans to invest a total of €700 million in production
processes by 2030 as part of its Next Generation Tech­
nologies drive. Our goal is to reduce our carbon footprint(scope 1 and 2 emissions) by 25 percent. The H₂annibal
project is one element in this. Incidentally, it is named
after one of the shafts at a former coal mine.

»Thanks to our highly
automated series productionof PEM stacks, we are wellpositioned to meet a significant
rise in demand for equipment
to produce hydrogen. That is
an important basis for thedefossilization of industry.«
Eric Klein

The project started at the end of 2022 and runs until
mid­2025. The aim is to install industrial­scale water elec­
trolysis technology at Evonik’s site in Herne and test how it
stands up to industrial operation. Installation by the project
partners—Siemens Energy and Evonik—is in full swing.
When it is completed, the site will have a state­of­the­art
electrolyzer (advanced technology based on the Silyzer 300)with the capacity to produce 13.5 million m3 of greenhydrogen a year. It will be powered by green electricity, forexample, from offshore wind farms. It will be able to meet
about 45 percent of the hydrogen required by this site eachyear and 100 percent of its oxygen requirements. As well
as avoiding 12,500 metric tons CO2 a year, local production
will make operation of the facilities at the site more reliable.
At present, gray hydrogen (see box “The colors of hydrogen”)

is delivered to the site by pipeline. A single pipeline isused to supply the entire site, which is also a risk for
production availability. Therefore, beside the impact on the
carbon footprint of production in Herne, the decentralized
production of hydrogen directly at the production site offers
the opportunity to avoid any shutdowns in the event ofpipeline maintenance or defects. In addition, the decentralized
production offers the opportunity to free up capacity of theexisting pipeline networks and therefore offer capacities
for new hydrogen applications. The new Siemens Energy
PEM electrolyzer at the site will have rated power demandof 8 MW. If the project is successful, a second electrolyzer
could be installed in the same building in order to raise
the supply of green hydrogen to 100 percent of the site’srequirement.

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The industrial significance of hydrogen
Steel, chemical, petrochemical feedstocks and the production of ammonia areimportant industries. Mobility—aviation, shipping, and the transportation of heavy
goods—is another key sector where hydrogen could play an important role, alongwith synthetic fuels. In the energy sector, hydrogen will be used both as an energy
storage medium for exports and long­distance transportation and in re­electrificationin hydrogen­capable gas turbines.
To replace fossil fuels, sufficient quantities of green hydrogen need to be available
at competitive prices. That requires massive expansion of renewable energies,
the construction of highly automated factories to produce gigawatt­scale industrial
electrolyzers, and pipelines and large­scale infrastructure for the storage andtransport of hydrogen. One significant factor in this is how the price of fossil fuels
develops, especially in light of carbon pricing.

»Transforming Herne into agreen site in this way is possible,
but it takes time, and we needcolleagues and partners who areprepared to think out of the box. That
requires a real team effort. At thesame time, we must never lose sightof the cost-efficiency of the project.«
Lutz Komorowski

The PEM electrolyzer technology being installed in Herne has enormous potential
for use in the chemical industry: It can respond flexibly to fluctuations in power
supply and the demand for hydrogen and also enables the use of high­purity oxygen.
Moreover, the floor space required for installations is low.
Why is Herne an ideal site for the use of green hydrogen? Green hydrogen is a key
element in defossilization. It can be used as a storage media and a starting product forother applications, for example, for “green chemistry”. Herne could become the firstchemical site where production without any fossil­based resources is possible. Evonikcalls this the “Herne Green Deal”.
Among other things, the Herne site produces isophorone, which is then processed
into VESTANAT® IPDA eCO, a crosslinker used in the manufacture of rotor blades forwind turbines. Simple commodity chemicals such as hydrogen, ammonia, methane(natural gas), acetone, and oxygen are required to produce this product. Those are allcompounds that can already be procured from sustainable production or, even better,produced on­site.

»

Without green molecules there
would be no energy transition.
By producing electrolyzers on
a gigawatt scale, we’re creating
the technological basis for thesmallest molecule to be a huge
success story.«
Axel von Levetzow

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Robot-assisted high-tech
production of electrolyzer
stacks.

Siemens Energy Gigawatt Factoryfor electroylzers
In November 2023, Siemens Energy
and Air Liquide opened a new Gigawatt
Factory for electroylzers in Berlin.
This 2,000 m² manufacturing facility
produces stacks, which are the key
components of electrolyzers. The stacks
are based on proton­exchange membrane(PEM) technology. The new factory
allows highly automated industrial­scale
manufacturing of PEM electrolyzers,
enabling a rapid ramp­up of production
for gigawatt­scale production. The stacks
produced in Berlin are assembled into
ready­to­use electrolyzers at the Siemens
Energy facility in Mühlheim an der Ruhr
(Germany) or by partners close to theproject locations.
Annual production capacity was initially
1 gigawatt and is scheduled to increase
to 3 gigawatts in 2025. An installed
electrolyzer with capacity of 3 gigawatts
powered by renewable energy could
produce an average of 300,000 metrictons of green hydrogen a year. If thegreen hydrogen were used as a substitutefor fossil fuels, it would be possible to
avoid the CO2 emissions of a town thesize of Aachen (Germany), which has
260,000 inhabitants.

The colors of hydrogen
Green hydrogen
Green hydrogen is produced by electrolysis
of water with electricity sourced entirely
from renewables. Production is completely
CO2-free.

Visual check on a newly
produced PEM membrane.
View of the fully automatedstack production for PEM
electrolyzers.

Gray hydrogen
Gray hydrogen is produced from fossil
fuels, and the CO2 released is discharged
unused into the atmosphere.
Blue hydrogen
Blue hydrogen is gray hydrogen thatuses carbon capture and storage (CCS)
to capture the CO2 during production.
Turquoise hydrogen
Turquoise hydrogen is hydrogen produced
via thermal splitting of methane. Solidcarbon is generated instead of CO2. This
process may be carbon-neutral if theheat supplied for the process comes fromrenewable resources and the carbon
released is permanently captured.
Green hydrogen and its derivatives
can make renewable energy available
to industry and the transportation sector
for defossilization of all end-consumer
sectors. As a first step, the gray hydrogencurrently used is being replaced by greenhydrogen.

The Podcast.

The Video.

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FutureSustainable
Car Materials(FSCM)—
Making autos
moresustainable

Martin Derks: »We work
continuously to reduce the carbon
footprint of our cars. The materials
we use play a major role.«

Dr. Patrick Glöckner: »Collaborationand teamwork are vital to makecircularity a success. By building up
ecosystems, we can develop afunctioning circular economy along
our value chains.«

Circular Economy

Thursday, November 30, 2023, 8 a.m.:
BMW Research and Innovation Center,
Munich (Germany)

It is snowing heavily as Martin Derks (Head of the FSCM consortium, BMW Group), Martin Schneebauer (Project Manager Plastics, BMW Group),
Dr. Patrick Glöckner (Head of the Circular Economy Program at Evonik), and Kathrin Lehmann (Head of Applied Plastics Additives at Evonik)
meet at the FIZ, the BMW Research and Innovation Center in Munich (Germany). Today’s topic is Future Sustainable Car Materials. This project
consortium is led by BMW with Evonik as a key partner in the area of plastics, and receives funding from the Federal Ministry of Economic Affairs
and Climate Action.

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The project team inspecting plastic components made from recycled materials and taking a close look at samples of possible applications in cars.

Martin Derks: Patrick, thank you for coming along to our
Research and Innovation Center today. We’ve known eachother for some years and set up the Future Sustainable Car
Materials (FSCM) project together. This project is about thedevelopment of key materials in the automotive value chain.
One focus of the project is metals. Here we’re improving theefficiency of the direct recycling of rejects, increasing thesecondary aluminum content, and developing high­strength
steel grades to reduce weight and increase material efficiency.
At the same time, we’re looking into lower CO2 production
routes for the production of steel and aluminum. In plastics,
we’re concentrating on increasing the content of secondary
raw materials and integrating mechanical recyclates into
interior and exterior applications. We’re also working on new
concepts to replace paint and exploring the use of bio­based
plastics to reduce CO2 emissions even further. Today, wewant to talk about the challenges and progress in the area ofplastics. What are you working on at the moment?

Patrick Glöckner: I’m specifically looking at the European
Union’s Circular Economy Action Plan, which is a central
element in the European Green Deal. One aspect that affects
both of us is the end­of­life vehicles regulation, which isdesigned to push the automotive industry towards a circular
economy. What makes it particularly interesting and excitingis that we began working together on this topic long before
the EU started to discuss it intensely. It was back in 2020 that
we first talked about a project that could set new standards
for plastics recycling in the automotive industry.
Martin: Looking back, I’m really happy we did start ourcollaboration in 2020. We welcome the fact that politicians are
setting guidelines and frameworks. Circularity is a topic that’s
important for society; it affects us all. We recognized early thechallenges of a circular economy for plastics. That’s why weinitiated the FSCM project, a cross­industry alliance to tackle
the challenges together. However, that can only work if we all
get together around the same table.

Patrick: Precisely. Together, we ensure that the project covers
the entire value chain. Large corporations like BMW and
Evonik are involved, but to close the loop, we also have partners
from the SME sector. Now we understand the challenges
facing some players and the hurdles for the others. BMW isa premium partner, and we discuss the hurdles openly andconstructively so that we can find solutions.
Martin: Patrick, that’s exactly how I see it, too. Our customers
expect us to deliver a sustainable, premium product. We don’t
see anything incompatible in that. Our cars already contain asecondary raw material content of up to 30 percent. Closed
loop post­consumer recycling in the automotive industry
requires everyone involved to work together closely. Coatedplastics are a good example. Cars contain a lot of coatedplastics. The challenge for the future is sorting and processingthese materials so that they can be returned to the closed loopwith the highest possible proportion of recycled materials.

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Patrick: That involves some incompatible aspects that need tobe tackled. On the one hand: high performance. For example,
the paintwork must not peel off during use. On the other
hand, stripping the paintwork from plastic components after
use needs to be quick and complete so that it is economically
viable. That’s exactly where specialties offer solutions, andthat’s where Evonik comes in. Our specialty additives facilitate
cleaning by recyclers and can enable high­quality plastic
blends. Therefore, the companies involved in this project area perfect fit.
Martin: I’m convinced that many of the challenges are
solvable. Take paintwork for example. It doesn’t only lookappealing; it also has a protective function. Without it, thepolymers would degrade, in other words, they would age
faster. Fortunately, there are solutions to overcome thechallenges of paint stripping. That enables us to avoid down­
cycling plastics and return them to the automotive loop.
Targeted research has the goal of ensuring recycled plastics
are equivalent so they can be kept in the closed loop. Thatmeans that the properties of the recycled materials need tobe identical to those of the primary materials. That’s what ourcustomers expect from us. At the same time, it’s one of thebiggest challenges for the plastics industry and confronts
us with a massive transformation.
Patrick: In this project, we show how this transformation canbe achieved with partners along the value chain.
Martin: There are 19 different partners in the Future Sustain­
able Car Materials project. We look at the entire value chain,
strive to find new solutions for sustainable materials, andexamine the possibility of using biopolymers. That includes
considering how components can be designed in the future
to make recycling more economical. Examples are the useof monomaterials and developing new logistics chains for
waste streams. The use of different material qualities also
plays a part. The chemical industry and Evonik in particular
can play an important role to ensuring that recycled polymers
meet the same quality standards as new materials. By that
I mean mechanical properties, appearance, color, odor, andminimizing the carbon footprint of the product.

In the podcast, Kathrin Lehmann (Evonik)
and Martin Schneebauer (BMW) talk about
the practical challenges of the FSCM project.

Patrick: Working together at all stages in the value chain
is exactly what the circular economy is all about. The FSCM
project offers us a big chance to benefit from the different
skill sets of the various partners involved. One aspect that werarely had to consider in the chemical industry in the past was“Where does the material actually come from, and what are
its properties?” Now we have to ensure that high volumesof recyclates of varying quality can be used without impairing
the performance profile. Those are big challenges. Customers
want cars with recycled materials yet make premium demandson their quality and characteristics. The goal of the additives
we are developing is to match those requirements.
Martin: One thing which helps us in the FSCM project isdigitalization. We’re using the Catena­X data ecosystem,
which provides the necessary data format for the digital finger­
print of the materials. It’s also a platform for collaboration.
Evaluating the data supports standardization and will also
create value for the companies involved. It will help drive
forward the value chain. That can become a real locational
advantage for Europe and Germany.
Patrick: As you say, standardization and harmonization are
only possible by digitalizing the value chain. Recyclers needto know what plastics are being delivered to them and how
they can be recycled most effectively so that the product canbe used, for example, as a new fender in a new vehicle.

Kathrin Lehmann: »To produce a high-quality
recyclate, it’s essential that the paint can be
stripped completely and efficiently from the oldcomponents.«

Martin Schneebauer: »One future challenge isseparating and processing plastics so they can be
re-used in the closed loop, with a high recyclate
content.«

FSCM project

The Video.

The Podcast.

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BMW is working toincrease the recycledcontent of cars,
especially in interior
components.

Future Sustainable Car Materials
Digitalization

Video

RecyclingVideo

The Future Sustainable Car Materials (FSCM)
project led by the BMW Group brings together
19 partners from industry and research tofacilitate the transition to circular and low-carbon
value chains for plastics and metals in automotive
production.
This three-year project, which receives funding
from the Federal Ministry for Economic Affairs
and Climate Action, focuses on sustainable
material concepts for the future.

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Portfolio transformation

Partnering to create moresustainable skincare care products

Friday, December 15, 2023, 8 a.m.:Beiersdorf Campus, Hamburg (Germany)

The Nivea brand store at the Beiersdorf Campus.

Today, Julia Beier, Dr. Ingo Hahn, Julia Niedermeier, Urte Koop, and Dr. Manuela Köhler from Beiersdorf are meeting withPeter Becker, Dr. Achim Friedrich, and Jörg Prante from Evonik at Beiersdorf’s research center in Hamburg (Germany). The agenda
for today’s meeting is portfolio transformation as both companies move towards greater sustainability. In fact, it is one of the topics
that they regularly address—together with further participants—at Beiersdorf’s Sustainability Campus.

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Video
For us at Beiersdorf, sustainability is a key priority of corporate strategy. Our CARE BEYOND SKIN
Sustainability Agenda defines our responsibility to our customers, society, and the environment. We
are aware that we have a long journey ahead to transform our company and value chain, but we are
optimistic that we can achieve our ambitious targets and play a pioneering role in the transformationof the cosmetics industry.«
Urte Koop(Principal Scientist Sustainability, Beiersdorf)

»

Video

Video

The long-standing partnership between Beiersdorf andEvonik is based on trust and shared sustainability goals.
We have developed a common understanding of sustainable raw materials and have used it to define sustainableproduct indices (SPIs). That makes us quick and effective
when we validate new, more sustainable raw materials.
That is an important precondition for transforming
Beiersdorf’s product portfolio. Our cooperation is helping
us to come up with more sustainable solutions so we
can achieve our climate target as soon as possible.«»Beiersdorf and Evonik work together closely together in
the area of sustainability. Both companies have set clear
goals for sustainable formulations and the related raw
materials. Evonik helps Beiersdorf develop sustainable
solutions and solve joint problems such as the complete
reworking of formulations and formulation platforms
and the implementation of sustainability targets along theentire value chain. Sustainability is becoming increasingly
important for the business relationship between Evonik andBeiersdorf, because sustainability criteria are a source ofadditional value, which is also reflected in the value chain.«Dr. Ingo Hahn
(Manager Raw Materials Portfolio, Beiersdorf)

Jörg Prante(Business Director Central Europe, Evonik)

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Video

Video

»
»

Evonik’s Care Solutions business line works closely with Beiersdorf to implement sustainability andtransform the portfolio. The two companies set up the Sustainability Campus to address sustainability
at product level and quantify its effects. The campus allows the companies to collaborate across functions.
We are taking joint steps towards innovative skincare products that are more sustainable. Sustainableprocurement of raw materials is important to us because we have a responsibility to the environment andsociety and want to make sure that our procurement chains are as sustainable as possible.«Peter Becker (Senior Sustainability Manager, Evonik)
Beiersdorf’s sustainability team is closely networked with all functions, as well as with our strategic
suppliers, in order to implement our ambitious sustainability agenda CARE BEYOND SKIN. This includes
our responsible sourcing program, which we use to pursue demanding targets such as using renewable
and certified sustainable raw materials and packaging. At the end of 2020, we achieved an importantmilestone: switching our primary packaging entirely to sustainability-certified palm (kernel) oil-based
raw materials (certified by RSPO*) and FSC-certified paper. Our commitment also extends to our
supply chain: Together with Evonik, we support WWF Germany in two palm oil projects in Indonesia
and Malaysia. The aim is to stop deforestation and train local smallholders to grow sustainable palm
oil crops that can be certified as conforming to the RSPO standard. Here, we can jointly have a valuable
local impact in the regions where the product is cultivated.«
Julia Beier (Sustainability Manager Responsible Sourcing, Beiersdorf)

The Podcast.

Julia Beier and Peter Becker in discussion at
the modern workspace at the Beiersdorf Campus.
* Roundtable on Sustainable Palm Oil

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Video
As Chief Scientist Feedstock & Formula Science at Beiersdorf, I develop the feedstock strategy for ourcosmetic raw materials and help put it into practice. In the selection of raw materials, not only safety,
tolerability, performance and formulating properties play a central role, also sustainability. Identifying
optimal raw materials, in other words, materials that have a good safety and performance profile yet
are eco-friendly in the long term, is the daily focus of our R&D team. One specific project we have beenworking on together with Evonik is the Kopernikus project. As part of the Power to X subproject, we
worked on the CCU technology (carbon dioxide capture and utilization) to produce cosmetic and otherchemical raw materials from CO2. It’s a very exciting field. We collaborate in interdisciplinary teams
with experts from Beiersdorf and Evonik to achieve the best results.«
Dr. Manuela Köhler
(Chief Scientist Feedstock & Formula Science, Beiersdorf)

Dr. Achim Friedrich at
Beierdorf’s Nivea store.

»

Video

Video

Fossil-based resources are widely used in the cosmetic
industry because they are safe and readily available.
However, their negative image and their role in the
climate debate drive companies like Beiersdorf totransition to a more sustainable product product portfolio
by reformulating their products. That is a real challenge
because the product properties, especially what they feel
like, must be preserved. Evonik has been developing
sustainable raw materials for years and we work closelywith Beiersdorf to provide a range of sustainable raw
materials for their reformulation efforts. This collaboration benefits consumers as well as both companies
because it accelerates the transition to more sustainableproducts, which in turn helps protect the environmentand reduce their carbon footprints.«»Sustainability in procurement means taking a new
approach. For us, it means diving far deeper into our
supply chains, as well as questioning and optimizing ourprocesses and procurement structures constantly withregard to sustainability. Next to respecting human rights
and meeting social standards, the development andpurchasing of sustainable raw materials are central tasks
for us. We aspire to integrate our entire value chain into
our transformation and, at the same time, maintain ourhigh quality standards, safeguard the availability of supply,and ensure a competitive cost structure. We want toactively drive the transformation of our industry and forthat, we need strong partnerships like the one between
Beiersdorf and Evonik.«

Dr. Achim Friedrich(Global Head of Applied Innovation Skin Care, Evonik)

Julia Niedermeier (Head of Procurement Raw Materials
Sourcing, Beiersdorf)

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EVONIK SUSTAINABILITY REPORT 2023

Employees€

Leading Beyond Chemistry is a far-reachingpromise that more than 30,000 employees
at Evonik work to fulfill. Their talent,professional qualifications, and passion
are the cornerstones of Evonik’s success.

76.7 million

Spending on vocational training and CPD

6%Training ratio 1

MATERIAL TOPICS
Attractiveness as an employer
Employee satisfaction
Diversity and equal opportunity

27

SDG OF PARTICULAR RELEVANCEFOR EVONIK

Pulse checks

1

German average: 4.7 percent.

2.2%

Early employee turnover

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EVONIK SUSTAINABILITY REPORT 2023

Employees

86
86Contents

Employees

Employees• Diversity has high priority at Evonik: first group inclusion officer appointed

Strategy and management

87

Attractiveness as an employer

87

Strategy and management

90

Employee satisfaction

90

Strategy and management

95

Diversity and equal opportunity

95

Strategy and management

99

Vocational training and continuing professional development		  2-7, 2-19, 404-3

		  2-7, 2-9, 2-20, 2-21, 2-30, 201-3, 202-1, 401-1, 401-2,
401-3, 402-1, 403-6, 405-2, 407-1, 408-1, 409-1

		  202-2, 401-1, 404-1, 404-2, 405-1, 406-1

101

Our targets• New global positioning as an employer• Greater integration of sustainability into core HR processes (Next Generation Culture)

Employees
Strategy and management

Qualified and motivated employees are vital for Evonik’s longterm success. Our HR strategy therefore focuses on three
aspects: Attracting qualified and talented people in the market,
developing them, and retaining them in the company in the longterm. We use a wide-ranging and active approach to achievethese objectives. This is based on extensive human resources andrequirements planning in close consultation with our organizational units and a targeted recruitment policy, especially for key
positions. At the same time, we empower all employees to actively
shape and pursue their own career paths within the company. Thisis supplemented by competitive remuneration and benefits. Beinga highly attractive employer with a correspondingly high level of
employee engagement is still of central significance for Evonik.
At Evonik, we place special emphasis on empowering executives
to transform the business and lead it into a successful future with
their teams. We are aware that the demands made on executives,
especially when leading global teams, are more complex thanever. Alongside quality and qualifications, they need an in-depth
knowledge of economic, ecological, and social sustainability
requirements, including the associated management knowledge.

Our HR strategy is aligned with the practical requirements of theoperational business and functions. It therefore plays a part inachieving Evonik’s overarching strategic goals and supports the
positive development of the group.
Our global HR organization comprises the HR Talent Management and HR Business Management functions, both of whichhave global management tasks and work closely together. HR
Talent Management bundles activities relating to attracting,developing, retaining, and leading employees. HR Business
Management coordinates the regional employer function, allperformance-related aspects, digital HR applications and systemsolutions, interaction with representatives of the workforce, andaspects of employment law. Our HR processes are supported bydigital services, learning offerings, and a global knowledge
database for executives and employees.
The heads of both HR functions report directly to the chief
human resources officer (CHRO). The heads of both functions
make key decisions on the basis of the Group Organizational Policy HR. They are responsible for defining strategic topics for the
Evonik Group worldwide and making decisions on implementing
the HR strategy. The central body for project management andthe implementation of all topics is the HR alignment meeting,87 Employees

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EVONIK SUSTAINABILITY REPORT 2023

Attractiveness as an employer

which is chaired by both functions. Alongside the heads of thetwo HR functions, the permanent members are the heads of HR
Solutions & Systems, Workforce Analytics & Business Services,and Labor Law Relations.
The development of corporate executives is a separate function,
which reports directly to the chairman of the executive board.

Attractiveness as an employer
Strategy and management

In order to attract employees and strengthen employee retention,
Evonik revised its positioning as an employer in 2023. Our new
employer identity, “Be Part of Something Special,” covers three
key aspects: the importance of products and solutions for a sustainable future, the potential for individual development, and thestrong team spirit within the workforce. Evonik offers an appreciative and motivational working environment with performance-related remuneration and additional benefits, flexible
worktime models, a focus on occupational health and safety, andtransparent development opportunities that supports digitalcompetencies, diversity, and work-life balance. Employees
around the world were actively involved in developing the new
employer branding and are important advocates for Evonik as an
employer. Our attractiveness as an employer is measured byexternal rankings, internal surveys, and employee turnover.

Talent management
We regularly assess and evaluate potential, succession scenarios,
and the development requirements of talented employees at HR
meetings attended by the executive board. Special attention ispaid to attractive career paths, job rotation, and high-quality
development programs to support the development of our
future top executives. Our programs include aspects such assustainability, entrepreneurial and personal responsibility, andgeopolitical developments.
As well as appointments to top management positions, our focus
is on building up a pipeline for key roles at various levels. With
this in mind, we offer the Evonik Explorer Program, where
employees can proactively apply to take part in a group-wide
talent program. This two-year program gives participants individual, practice-oriented preparation for the next steps in theirdevelopment along a specialist or management career path. A
nine-month development program is a central element in this.
Around 320 employees were confirmed as Evonik Explorers in
2023.

Onboarding new employees
Onboarding initiates new employees into our corporate culture
and processes so they can get off to a successful start at Evonik.
We use two methods to give new employees the latest and most

ONE Culture

Our Purpose inspires us

C17

Our Values guide us

Our Working Principles empower us

Try and learn

Move fastand simplify

Stick together

To work on our joint Next Generation Culture

Decide anddeliver
Safety firstis one of ourbasic principles

Focus onthe customer

Seize
opportunities

C18

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Attractiveness as an employer

relevant information: We work with stakeholders at local,
national, and business level to ensure that onboarding is state-ofthe-art in all areas. In addition, we use digital tools, which can be
updated at short notice. These are available to new employees
from their first day. In this way, we ensure that from the very
beginning, our employees are well-informed and prepared sothey are able to meet our requirements.

Corporate culture
The world of work is undergoing profound changes—from digitalization and new ways of working to the responsible use ofnatural and social resources. To complement Next Generation
Technologies and Next Generation Solutions, Evonik has adopted
Next Generation Culture with the aim of integrating sustainability
requirements at all stages in the HR process. These include
personnel planning, analysis of the additional capabilities, skills
and management required, individually tailored upskilling offers,
and a greater focus on sustainability indicators in remuneration
systems. Since 2022, we have greatly increased the information,
training, and workshops on this topic. We have integrated
sustainability more strongly into the long-term remuneration of
the executive board and other executives (see “Strategy andgrowth”
p. 18).
2-19
In times of transition, our corporate values—performance, openness, trust, and speed—can play a valuable part in providing
guidance and stability and contribute to the readiness to change.
We are therefore continuing our ONE Culture initiative to makeEvonik more dynamic and performance-oriented on the basis of
our corporate values. We invite all employees to play an active
part in shaping and driving forward our corporate culture so we
can respond faster to changes.

One special focus in 2023 was putting our Next Generation
Culture into practice. The Next Generation Culture initiative
invites all employees to play a part in shaping and driving forward
our corporate culture. An Evonik social network community
hosted information, learning content, and a collaborative
campaign to collect and share established measures to increasesustainability at work. There was a good response: The community attracted 1,300 members, and 75 measures were submitted.
The most successful of these were presented to several hundred
employees worldwide through internal learning formats aspositive examples to be copied. More .

There was a sharper focus on aspects such as diversity, sustainability, and leadership behavior, which are included in the Evonik
competency model. This describes the professional and personalabilities that we as a company expect from our employees andexecutives. We are firmly convinced that sustainable businessactivities and diversity are the basis for performance excellence.

Performance management system
Our performance management system is based on eight dimensions. These include performance and leadership behavior and,in particular, goal achievement, and quantity and quality of work.
How goals are achieved and the related behavior are always
taken into account.

Dealing with the shortage of skilled workers
The intensifying shortage of skilled workers requires us to stepup our activities to retain and develop our employees and recruit
qualified new employees while they are training or studying. We
support the retention of skilled staff through a culture thatstrengthens performance, loyalty, and identification with thecompany throughout their employment with Evonik. Regularpulse checks help make retention measurable. Our career development portal highlights opportunities for development within
the company, and a new vocational training campaign reaches
out to school students and their parents. Our employer brandinguses job fairs, social media campaigns, and information on our
careers pages to position Evonik as an employer with the relevanttarget groups. We benefit from long-standing partnerships with
universities and student networks. In addition, we cement ourcontact with students through our “Evonik Perspectives”
retention program. We are increasingly offering dual training andstudy programs. As part of our talent acquisition drive, experts
actively approach candidates in the market to gain key specialists
for Evonik.

Performance management

C18

Living the Evonik values

Personal andtechnical skills

Leadership behavior

Performance behavior

Quantity and quality of work

Performance
Dimensions

Fulfillment of
the expectationsof the function

Daily business

Goal achievement/
project results

Around 88 percent of our employees worldwide receive a regularperformance appraisal. 71 percent of the employees appraised aremen, and 29 percent are women. 69 percent are non-exempt
employees, and 31 percent are exempt employees.
404-3

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Attractiveness as an employer

Employees by contractual status
Around 96 percent of our permanent employees worldwide havepermanent contracts. We work with staffing agencies inGermany to cover short-term or temporary bottlenecks. All
agencies must provide evidence of a valid operating permit. If
agency staff have been used for a job for more than six months,
we examine whether it is a permanent job for which a permanent
employee can be hired. Alongside appropriate remuneration, we
make sure that agency staff are covered by the high social andsafety standards applicable to our own staff. Since the chemicalindustry requires a large number of highly qualified employees,
fewer agency staff are used than in other sectors of manufacturing industry. Evonik had around 229 agency staff in Germany asof December 31, 2023 (2022: 583). That was about 1.3 percent of
our workforce in Germany. The difference is due to lower
staffing requirements on the reporting date.
2-8
Employees by contractual status,
region, and gender 2023
2-7

No. of employees

T15

of whichof which
employees on employees on
permanent limited-term
Employees
contracts
contractsof whichapprentices/trainees

Evonik33,40930,898

1,361

1,150

EMEA a22,48020,924415

1,141

Asia-Pacific

5,122

4,197

925

0

Central &South America

768

754

9

5

North America

5,039

5,023

12

4

27

27

38

25

Women in %a EMEA = Europe, Middle East & Africa.

As someone who is new to the company, the Collaboration Hub is a great
way to meet people and put faces to the names with which I only interacted
via email. As much as I enjoy working from home, the hub allows the kindof organic interactions and networking that you can’t
always get through a video chat.«
Emily Cotter | Business Development Analyst, USA

Attractiveness as an employer: progress in 2023

Evonik, as an employer, has adopted a new global positioning
approach to address the employment market. Based on an
analysis of the recruitment market and the support of many
employees around the world, we developed a new slogan: “BePart of Something Special.” Working closely with our organizational units, our three topics—Impact, Potential, Culture—
support sustainability. We see these topics as major career
drivers, for example, in areas such as green hydrogen and thecircular economy. Our new positioning can be adapted flexibly
for different target groups and regions. Our new identity as an
employer was presented worldwide. Together with Employer
Branding, our business entities and regions are integrating their
key messages into their strategies and using them digitally toaddress potential employees.
Our most important advocacy platforms are the People Stories on
our careers site, featuring employees and their stories, andtemporary takeovers of the Evonik Instagram channel. Our aim is
to gain the right people for key positions and strengthen theloyalty of present employees. Alongside themed pages aimed at

Attractiveness as an employer

specific target groups, employees give insights into their daily
work on the new “Be Part of Something Special” social wall.
More. LinkedIn and Instagram are the social media platforms
most widely used to address younger target groups with an affinity to social media. We use innovative formats, such as collaboration with influencers, for example, in a TikTok campaign. In “Thegreenest job,” a student provides insights into Evonik’s
wide-ranging activities in the area of sustainability. In “We WantYou,” an initiative launched jointly with Regional-Verband Ruhr,
we provide information on “green” jobs in the Ruhr region ofGermany.
Together with our Research & Development and Engineering
departments, Employer Branding is stepping up its partnerships
with selected German universities. In North America, employee
ambassadors and members of employee resource groups assist us
with our university relations strategy, which we use to address
talented people at target universities. In China, we work closelywith reputable universities to enhance our attractiveness as an
employer. Our established trainee programs offer an optimum
starting point for highly qualified employees.

T16

90 Employees

EVONIK SUSTAINABILITY REPORT 2023

Employee satisfaction

We benefit from our long-standing partnerships with student
networks such as UNITECH, a network that brings together
international universities, global corporations, and engineering
students, and FEMTEC, which focuses on fostering young female
employees and talents in STEM professions (science, technology,
engineering, mathematics, and IT). To attract candidates withprofessional experience, we collaborate with alumni organizations. These partnerships play a part in our diversity strategy by
specifically addressing the recruitment of women and international staff.
In Germany, our employer branding campaign aimed at young
people seeking an apprenticeship won first place in the Digital
Communication Awards. In China, the Top Employer Institutepresented us with the Top Employer accolade for the 16th time.
In Germany, Evonik was ranked as a Leading Employer for thesixth time in succession.

Forbes and Statista named Evonik the Best Employer in the stateof Alabama in the USA. In China, we received the Top Graduate
Employer, 100 Employee Excellence, and Best HR Program
awards in 2023.

Employee satisfaction
Strategy and management

Employee satisfaction is a central success factor for Evonik.
Alongside competitive remuneration and attractive development
opportunities, our employees benefit from a wide range of offerings to improve their work-life balance as well as preventive
health care. The aim is to maintain productivity at a high level andminimize employee turnover. We regularly measure employee
satisfaction through group-wide employee surveys and annual
pulse checks and derive specific action for continuous improvement. We are convinced that the focus on employee satisfaction
will continue to gain importance in view of the dynamic labormarket trends. Satisfied employees value their employer,
contribute to a positive working atmosphere, and are less likely
to change employer. For prospective employees, customers, andcolleagues, motivated and committed employees are our mostimportant advocates.

Employee survey
In our most recent extensive employee survey in November 2021,
around 33,000 employees around the world were asked to assess
their working conditions. 84 percent of all employees took part.
The employee survey provides insight into how organizationalchanges and the implementation of our corporate values—
performance, openness, trust, and speed—are perceived
throughout the Evonik Group. The commitment index, which is
calculated from six of the 56 survey items, was 73 percent (forcomparison, in 2018 it was 68 percent). Key questions focused on
general satisfaction, whether employees would recommend thecompany as an employer, and behavioral factors such as pride,
confidence, motivation, and commitment. The results areavailable at team level and are made available to managers via adashboard. In the communication and follow-up process, we
identified more than 2,500 suggestions for specific improvements.
In 2023, Evonik stepped up its initiatives to enhance employee
satisfaction and change management. In all, 27 pulse checks(10,562 participants) were performed to obtain a full picture of
employees’ needs and opinions. Vocational training at Evonik
was a special area of focus. Here, we conducted a special surveyof apprentices in order to improve training conditions and quality.
To further enhance the feedback culture at Evonik, we introduced a modern survey tool that can be integrated into thegroup’s HR management system. In the future, employees will
receive a “Moments that Matter” survey at key points in theircareers, such as when joining and leaving the Evonik Group.
These surveys are scheduled to supplement the regular pulse
checks from February 2024.

Employee retention
Early turnover increased slightly to 2.2 percent (up from 1.9 percent in 2022), and the total turnover rate dropped slightly from
6.7 percent to 6.6 percent. Our goal is a further reduction in theearly turnover rate.
Length of service

401-1

T16
2021

2022

2023

Early turnover in %

2.2

1.9

2.2

Total turnover in %

7.0

6.7

6.6

14.5

14.1

13.9

Average length of service in years

91 Employees

T17
T18

EVONIK SUSTAINABILITY REPORT 2023

Employee satisfaction

Employee turnover 2023

2-7, 401-1

T17

Turnoverin %No. ofemployees
who left thecompany

Europe, Middle East & Africa

5.4

1,249

Asia-Pacific

8.5

450

By region

Central & South America

6.3

46

North America

10.3

515

Female

6.3

566

Male

6.8

1,694

By gender

By ageUnder 30 years

7.7

492

30 to 50 years

5.1

860

Over 50 years

8.5

908

Evonik

6.6

2,260

3.5

1,190

thereof termination by the employee

Attractive remuneration
Attractive, market- and performance-oriented remuneration isanchored in our human resources tools worldwide. The principles
we use to structure remuneration, including fringe benefits, are
set out in group-wide policies. Remuneration is set on the basisof objective criteria such as responsibility, competencies, andsuccess. Personal attributes such as gender, age, etc., play no partin the process, and our policies explicitly forbid discrimination. In
addition, minimum standards defined by law and in collective
agreements, e.g., local minimum wages, are applied. Furthermore, in the future, we want to regularly check that we pay aliving wage to our employees in all countries.
2-20, 202-1

Gender pay gap
405-2
In 2023, the global gender pay gap––the difference between the
average base salary of female employees and male employees––
was –6.6 percent. The year-on-year change in this indicator was
due to a change in the calculation method. In 2023, we compiled
the data via a cockpit for the first time. As a result of systemconstraints, in the previous year, we initially calculated a countryspecific pay gap and then derived the average weighted gender
pay gap based on the ten largest countries. For 2023, we present
the overall difference between the average full-time base salaryof all female employees worldwide and that of male employees.
In Germany, where about 60 percent of Evonik employees work,
the gender pay gap is –1.7%.
Ratio
2-21
The ratio of the total remuneration of the highest paid person in
the company to the average total remuneration of the workforce
in Germany was around 41 to 1 in 2023. That was 37 percent
higher than in the previous year. This increase was mainly
because a long-term incentive payment for the executive board
became due for payment, resulting in a significant increase inremuneration, whereas the average remuneration of the workforce was around the prior-year level. More
. If the ratio is
determined using the median remuneration of all employees inGermany, the ratio is around 45 to 1.
The total remuneration of the workforce was calculated on thebasis of full-time equivalents (FTE). The average remuneration of
the workforce is derived from the remuneration components paidin the fiscal year, excluding any special payments (for example,
anniversary bonuses and other bonus payments). Variable remuneration components are included on the basis of the provisions
established for fiscal 2023. The relevant workforce comprises

permanent employees at all consolidated companies in Germany,
excluding the members of the executive board, apprentices, andinterns.
Evonik complies with its obligation to provide information onequal pay for men and women in comparable functions under theGerman Salary Transparency Act. Four requests for information
were received in 2023. Following examination of the right toinformation, all had to be rejected on data protection grounds.
In 2023, we paid out €2,605 million in wages and salaries.
202-1, 401-2

Personnel expenseT18

in € million

2021

2022

2023

Wages and salaries

2,668

2,745

2,605

Social security contributions

409

451

465

Pension expenses

255

227

125

Other personnel expense

76

64

64

3,408

3,487

3,254

Collective agreements on remuneration cover 100 percent of ouremployees in Germany and around 70 percent of our employees
worldwide. There are performance- or profit-oriented incentive
systems at around 96 percent of our sites and companies. Thesesystems cover around 99 percent of our employees.
2-30
Evonik offers voluntary social benefits in all regions where it has
a presence. These are available to more than 99 percent of ouremployees. Close to 100 percent of our employees have statutory
or company pension insurance and health insurance. As a rule,92 Employees

T19

EVONIK SUSTAINABILITY REPORT 2023

Employee satisfaction

part-time employees benefit from our performance- and profitoriented incentive systems and our voluntary social benefits,provided that they meet the minimum working hours prescribedin some regions. In addition, in 2023, we once again offeredemployees in Germany, the USA, Belgium, and Singapore theopportunity to take part in the “Share” employee share program.
The participation rate remained high at around 40 percent (2022:
42 percent).
Evonik offers pension plans in many countries where it iscustomary to do so. In the past, defined benefit pensions
financed solely by the employer were most common. Newer,
defined contribution plans are generally based on mandatory or
voluntary contributions by employees. Since the structure ofpension plans differs by country, there are also differences in thelevel of contributions made by employees and/or the employer.
Examples are the plans available to newly hired employees inGermany and the USA. Since 2023, employees in Germany havebeen able to choose to make a personal contribution of 0 percent,3 percent, or 4 percent of their salary. The contribution made by
the employer rises with the personal contribution. Employees
covered by the previous plan still have the option of making apersonal contribution of 6 percent. In the USA, the pension planis based on standard employee contributions of 6 percent of theirsalary, which can be increased or decreased individually. The
employee’s total contribution is topped up by graduatedemployer contributions.
201-3

Work-life balance
A family-friendly HR policy that is geared to different phases inpeople’s lives is important to Evonik. More than 96 percent of
our employees around the world have access to related initiatives.
At the heart of this approach are flexible worktime models,
support for people caring for close relatives, and assistance withchildcare. The PAIRfect initiative offers a job sharing platform tohelp our employees structure their work time more flexibly bybringing them together with colleagues who want to share a job.
Evonik is also perceived by the general public as a family-friendly
employer. Since 2009, we have been audited every three years
by the Hertie Foundation for the berufundfamilie certificate. The
most recent audit, in 2021, once again rated our work-life balance
offerings as above-average.

Well@Work403-6
Alongside work-life balance, the focal areas of our in-house
Well@Work initiative are exercise, nutrition, and mental fitness.
A wide range of offerings at our sites, supplemented by groupwide digital programs, foster the physical and mental health of
our employees. In 2023, Evonik responded to the rising demandfor vegetarian meals by extending the menus available in its staff
restaurants. Moreover, the carbon footprint of lunchtime
menus was disclosed for the first time. Our employees responded
positively to the increased choice.
#SmartWork#SmartWork is our approach to hybrid working, comprising abalanced mixture of presence in the workplace and mobile working. In spring 2023, the maximum possible time permitted formobile working was increased to an average of 60 percent.
Worldwide, around 11,900 employees have now registered for#SmartWork. A global framework provides a basis for optimizing collaboration, while local rules can be used to structure andimplement details of #SmartWork at country level. In Germany,
the employer and employee representatives concluded
agreements on this at the beginning of this project. These arecontinuously reviewed.

Young Spirit gives kids a hands-on introduction to chemistry.

Employee participation in #SmartWorkThe Young Spirit initiative, which celebrated its 20th anniversary
in the reporting period, enables our employees to combine theirwork with volunteering and, at the same time, make a valuable
contribution to the education of children. Through Young Spirit,
we encourage children’s interest in science and thus foster thedevelopment of an understanding of nature and its laws from anearly age. Some 220 employees visit schools and preschools toshare their enthusiasm for the natural sciences and provide a fun
introduction to the basics of chemistry and physics.

RegionGermany

T19

Headcount

Registrations

Percentage

19,3208,86646%Europe, Middle East &Africa

3,160

427

14%

North America

5,039

1,183

23%

768

319

42%

Central & South America
Asia-Pacific

5,122

1,058

21%

Total

33,40911,85335%

As of December 31, 2023.

T20

93 Employees

T21

EVONIK SUSTAINABILITY REPORT 2023

Employee satisfaction

We expect the introduction and ongoing development of#SmartWork to bring cost savings by reducing the office spacerequired and business travel. Both aspects contribute to a further
improvement in Evonik’s ecological footprint. To further
optimize mobile working, a survey was conducted in 2023, and aplatform was set up to share good practices.

Worktime models
The regular, contractually defined working hours for about
74 percent of our employees are defined in collective agreements. We limit employees’ working hours to 48 hours a week
unless shorter working hours are applicable. 78 percent of ouremployees benefit from annual vacation rules that exceed thestatutory provisions in their country. Since there is no statutory
ruling in the USA, the situation there is based on regional custom.
In Germany, all 19,320 employees, including our 14,106 male
employees, have a statutory right to parental leave. In 2023,
773 employees used this right. Male employees accounted foraround 48 percent. They took an average of 1.7 months parental
leave in 2023, while female employees took an average of
6.8 months. In the reporting period, 563 employees returned towork after parental leave. Here, men accounted for just under
63 percent.

We involve our employees in our sustainable corporate strategy through
NextGen Culture. That empowers them to integrate sustainability into their
daily work. We invite all employees to take part, for example, throughsustain­ability days at our sites and helpful hints for their workplace.«

Viviane Papa | Head of HR Talent Management, Germany

Employee satisfaction

Apart from a few exceptions, all employees who returned towork after parental leave in 2022 were still working for us a year
later. As of December 31, 2022, there were 233 employees onparental leave. Of these, 164 (including 21 men) returned to workin 2023, amounting to around 70 percent. Of the employees who
did not return to work in 2023, 64 were still on parental leave at
year-end 2023. The proportion remaining in the company istherefore nearly 98 percent.
2-7, 401-2, 401-3
Some employees ask about the possibility of taking paid or
unpaid leave for an extended period, for example, to enhance thecompatibility of private and professional phases in their lives.

Parental leave in Germany

T20
Total

Women

Men

Employees entitled to parental leave

19,3205,214

Employees on parental leave in 2023

773

403

Although interest is rising, it is nevertheless still low. In percentage terms, it is in the low single-digit range based on our total
headcount.
About 93 percent of our 33,409 employees have full-time jobs
and 7 percent work part-time. About 80 percent of our
9,066 female employees work full-time, compared with 97 percent of male employees. Around 11 percent of employees in theEurope, Middle East & Africa region take up the option of working part-time to improve their work-life balance. By contrast, thisoption is hardly used in other regions because it has no social
relevance there.
2-7, 407-1, 408-1, 409-1
Ability to take extended periods of leave a

T21
Employees in %Women in %Men in %14,10627.0

73.0

Europe, Middle East & Africa

94

370

52.1

47.9

Asia-Pacific87

Central & South America

100

North America

98

Average duration of parental leave in months in 2023

4.4

6.8

1.7

–

–

Return from parental leave in 2023

563

206

357

36.6

63.4

a Option to take paid or unpaid leave for more than three months.

94 Employees

EVONIK SUSTAINABILITY REPORT 2023

Employee satisfaction

Community Management@Evonik
In response to employees‘ increasing desire for digital networking and interaction, Evonik has stepped up its community
management. Evonik’s social media network is accessed morethan 5 million times a year, testifying to the enormous interest ininternal forums. The community management team provides
advisory and learning offerings to support netiquette. In addition,
there is a special community for the Next Generation Culture
initiative. These activities contributed to Evonik winning firstplace in the Internal Channel category of the “Digital Communication Award.”
Colorful and diverse: Evonik make a clear statement against racism and intolerance at events at its site in Hanau (Germany).

Long-term accounts
Since 2007, Evonik has offered employees in Germany the option
to set up a long-term account for deferred compensation. In all,about 57 percent of employees have taken up this option, which
offers them the scope to retire at an earlier age.
Trustful collaboration
Trustful collaboration between representatives of the management and the workforce is an important success factor for
Evonik. It takes account of operating conditions and the laws
applicable in the various countries.
In Germany, the fundamental rights of our employees and theirrepresentatives to be consulted are anchored in statutory

regulations such as the Codetermination Act and legislation on
executive staff councils. Employees at all Evonik sites in Germany
are represented by elected councils. Works councils represent
exempt and non-exempt employees, while executive staff councils represent our executives. They are consulted in good time on
all major changes. That includes processes relating to corporate
reorganization and restructuring, as well as agreements on, forexample, the introduction of short-time working or similar
measures. These take place several weeks or months in advance,
depending on the significance of the upcoming changes. During
this period, written agreements may be made on the upcoming
measures and their impact on our workforce.
2-9, 402-1
There are comparable rules on the type and scope of consultationand negotiation in many other regions where Evonik has
employees. The information and consultation rights of employees
on European cross-border issues are represented by the Evonik
Europa Forum, which is composed of employer and employee
representatives. At company level in Germany, employees’interests are represented by employee representatives on supervisory boards.

Evonik does not restrict employees’ rights to freedom of association or the right to collective bargaining. These rights are also
ensured in countries where freedom of association is notprotected by the state. Based on our sites worldwide, there are
employee representatives for more than 94 percent of ouremployees.
2-30
At the initiative of the committee representing young employees
and apprentices (GJAV), Evonik took part in the internationalanti-racism weeks in Germany and organized activities at various
sites. Flashmobs, workshops, and a human chain of apprentices
made a clear statement on the rejection of racism. In addition,
employees were offered an opportunity to anonymously shareexperiences of racism in their daily lives to support the fightagainst hostility and exclusion. Based on these experiences, the
GJAV made videos to raise employee awareness of the different
types of discrimination. In this context, Evonik held a pilot
event titled “Civil courage can be learned” at its site in Hanau.
(Germany).

95 Employees

EVONIK SUSTAINABILITY REPORT 2023

Diversity and equal opportunity

Diversity and equal opportunity
Strategy and management

As an international company with a presence in wide-ranging
markets, we see diversity as an opportunity. Diversity is not simply a social or political obligation. We see it as a key to businesssuccess. Employees with different backgrounds and personalities
enrich our teams and our company. We do not tolerate discrimination. Diversity enhances Evonik’s creativity, innovative
capability, and proximity to customers. It also has a positive
influence on the recruitment of new employees and on staff
retention. We actively raise awareness of this issue through our
corporate media and regular dialogue formats. We use training indiversity and unconscious bias for employees in a wide range ofjobs and levels in the company to raise awareness of diversity andunconscious bias and of factors that hinder diversity.
Our diversity strategy is derived from our corporate strategy.
Diversity is a firm element in our corporate values, working
principles (ONE Culture C17 p. 87), and the Evonik competencymodel. The parameters we use to manage diversity often exceed
the legal requirements. Via the HR dashboard, executives canobtain a monthly overview of relevant diversity indicators. We
inform all employees about the present situation in an annual
diversity report.
The role of the diversity council is to embed diversity in ourorganization and to drive it forward through cross-businesscriteria. It comprises the members of the executive board, theheads of the divisions, and representatives of the regions andcorporate functions. Global implementation of the measures
adopted by the diversity council is driven forward by threeEthnicity

Language

Age

GenderVisiblePhysical
attributes

Physicalabilities

Family status
Level in organization

Sexual orientation

Communication style

Education

Experience

Religion

Personality

Nationality

CultureThinking styles

ValuesNative born/Non-native

Beliefs

Personal interests

Socio-economic status

Invisible

C19
C20

96 Employees

EVONIK SUSTAINABILITY REPORT 2023

Diversity and equal opportunity

program gives different generations an opportunity to learn fromone another across regional boundaries and organizational
units to develop an understanding of the viewpoint of different
generations.

Evonik North America has a robust and growing number of Employee Resource
Groups (ERG). I have been impressed with the learning opportunities offeredby all our groups as well as the networking options. Personally, I have learned
that being an ally for any of our ERGs means speaking up when you
may be the only dissenting opinion in the room.«

Melissa Jones | Head of Global Onboarding, USAdiversity panels—for processes, regions, and communication.
Our global diversity & inclusion team is responsible for implementation at regional level.
All measures to foster diversity take a holistic approach: We
address the issue from strategic, cultural, and process perspectives. Our executives are required to actively manage diversity
with the aid of specific indicators relating to experience, age,training, nationality, and gender. We also take into account different mentalities and perspectives arising, for example, fromreligious conviction and sexual orientation.
We have set specific targets for dimensions where we want toimprove. These are currently gender diversity (T22 p. 97) andintercultural mix (T24 p. 98). Since 2021, diversity criteria havebeen incorporated into the performance appraisal of ouremployees. That gives us additional leverage to encourage
diversity.

In 2023, the average age of Evonik employees was 43 years.
47 percent of new hires (1,047 employees) were under 30,
46 percent were in the 30- to 50-year age group (1,027 employees), and 7 percent (161 employees) were over 50. Our youngest
employees in the reporting period were apprentices aged 15.

Diversity and equal opportunity

Dimension 1. Age/generations
We foster cross-generational collaboration in our teams and give
special priority to mental and physical health p. 92. Other offerings include LILY (Learning and Individualized Library), an online
platform that facilitates lifelong learning. Our reverse mentoring
Age structure in the Evonik Group 2023

C19

Dimension 2. Competencies and experience
In line with our corporate purpose, we foster cross-functional
collaboration. We network competencies and perspectives.
Diversity and opportunities to use various dialogue formats arepresented to new employees at virtual onboarding events or as
part of the Evonik Starting Kit. The offering comprises learningjourneys, reverse mentoring, diversity fairs, lunch & learn eventsand diversity BarCamps.

External hires by age 2023

401-1

C20

in %
Over 50 years 7%

Under 21 years

161 employees

21 – 30 years
Under 30 years 47%

31 – 40 years

1,047 employees

41 – 50 years
30 – 50 years 46%

51 – 60 years

1,027 employees

Over 60 years
40
Female

20
Male

0

20

40

60

80

97 Employees

T22
C21

EVONIK SUSTAINABILITY REPORT 2023

Diversity and equal opportunity

Dimension 3. Gender
We aim to increase the proportion of women in our company
worldwide and at all levels. The following table provides an
overview of our targets:
Diversity targets: gender405-1

in %T22
Diversity
targets 2023

Status
2023

23

22.2

23

18.5

30

30.3

Executives a
Senior managementb

Other management levels cbeyond yourself” initiative launched in the Asia-Pacific region in
2023 targets the same professions: In China, Japan, and India,
Evonik offers a training program, including an innovation competition for schools. The aim is to improve everyday opportunities
for girls and to encourage them to take up STEM professions.

External hires by gender 2023

401-1

Female 29%654 employees
Male 71%

At present, women make up around 27 percent of our workforce(9,066 employees), and men about 73 percent (24,343 employees).
In 2023, 29 percent of external hires were female (654 employees),and 71 percent (1,581 employees) were male. We are seeing an
increase in the proportion of women, especially among younger

1,581 employeesa	Executives = executive functions, i.e., top management functions in the Evonik Group.
b	Senior management = senior management functions, i.e., key functions in the segments,

regions, service units, and corporate divisions.

c

C21

Other management levels = further management functions.

We take equality of opportunity very seriously in the recruitmentof new employees. As a guide, we use the proportion of womenstudying the disciplines that are relevant for us. Our objective isfor women to make up around 40 percent of new management
employees.
An extensive range of measures supports the attainment of thesegender targets. Examples are childcare offerings, vacation
programs for kids, and job sharing. For ten years now, the groW
global network has been bringing together women in the EvonikGroup. It fosters talent, shares knowledge, and advocates fordiversity and different perspectives.
Evonik supports social impetus and takes part in alliances toencourage young women to enter STEM professions. The “Grow
Evonik India provides educational materials for about 200 girls from the socially disadvantaged Malvani district in Mumbai to encourage them toacquire scientific skills.

C2
C2

98 Employees

T2
T2

EVONIK SUSTAINABILITY REPORT 2023

Diversity and equal opportunity

Employees by region 2023

C22

External hires by region 2023

Central & South America 2.3%
768 employees

North America 15.1%
5,039 employees

North America 25%

EMEA 67.3%

5,122 employees

22,480 employees

C23
Central & South America 3%563 employees

Asia-Pacific 15.3%

401-1

72 employees

EMEA 56%
1,242 employees

Asia-Pacific 16%
358 employees

age groups. In the under-40s age group, the proportion of female
employees in management is now just over 37 percent. That is an
improvement of around 10 percentage points compared with
2011.
Percentage of women in managementT232011 a2022 b2023

Executives

8.2

20.3

22.2

Senior management

8.1

17.1

18.5

Other management levels

17.8

29.9

30.3

Total management

16.6

29.1

29.6

in %

a Including the methacrylates business.
b As of December 2021, allocation to management functions reflects thetarget group of the position, rather than personal grade as in the past.

Overall, the proportion of female employees in management
functions increased from 17 percent in 2011 to around 30 percent
in 2023.
Several events and talks on transidentity and intersexuality were
held in 2023. Various related processes were optimized, forexample, the procedure for changes in people’s first names andgender. The policy on discretionary leave of absence in the eventof bereavement in North America was revised, and the definitionof spouses, parents, and children was broadened significantly.

Dimension 4. Intercultural mix#TogetherAsOneEvonik stands for Evonik’s commitment to fairness and diversity and the rejection of hatred and discrimination.
We offer our employees and managers a wide variety of job-

related training opportunities. These include anti-discrimination
and anti-racism events, media competency workshops, breakout
days on courage at our site in Essen (Germany) and the Jewish
Museum in Frankfurt (Germany), as well as activities such as the
Cultural Appreciation Day at our site in Singapore.
The number of employee resource groups (ERGs) increased
to seven. As well as the established ERGs—groW for women,
BUILD for Afro-American employees, ASPIRE for Asian
employees, E-Vet for veterinarians, and FoNeMa for new
employees, the Early Career Professionals and EQuALS (EvonikQueer Alliance for Learning and Support) ERGs were established.
The ERGs are networks that offer a varied range of activities
both within and beyond the respective ERG, ranging from BarCamps and mentoring to talks by experts and speed networking.
Diversity targets: intercultural mix a

405-1

T24

Diversity
targets 2023

Status2023

Executives

20

18.4

Senior management

35

25.7

in %

a	Employees whose nationality is not German.

Evonik currently employs people of 109 nationalities at 205 sites
in 53 countries. The proportion of managerial employees who do
not hold German citizenship is around 46 percent. Group-wide,C24

99 Employees

EVONIK SUSTAINABILITY REPORT 2023

Diversity and equal opportunity

External management hires by region 2023
289

47

103

16

247

42

86

15

42

5

17

1

Asia-Pacific

EMEA a

Local

C24

202-2

North America

Central & SouthAmerica

GlobalLocal: Manager’s nationality corresponds to the location of the operation.
Global: Manager’s nationality differs from the location of the operation.
a EMEA = Europe, Middle East & Africa

the proportion in senior management positions is around 26 percent. Chart C24 covers all management levels, i.e., executives,senior management, and other management levels. The data
cover our ten largest locations in each region.

Discrimination
Our code of conduct and global social policy forbid discrimination on the basis of ethnic origin, skin color, religion or beliefs,
age, gender, sexual identity, physical constitution, appearance, orother attributes that are protected by law. Employees who feelthey have been discriminated against have a right to lodge acomplaint via our anonymous whistleblower system, which canbe accessed both internally and externally.

Information on complaints procedures is available to all employees
via internal media and personal discussions in all regions. To
prevent discrimination, we have training and activities to raiseawareness of our code of conduct p. 123.
A total of 12 cases of discrimination were reported in 2023, nineof them in the USA via a structured annual questionnaire andthree via the whistleblower system. Evonik investigates all cases
and takes action to stop them recurring.
406-1

Integrating people with disabilities
The employment and inclusion of people with disabilities isanother way in which we embrace diversity. We focus on providing a working environment where every individual can use theirpersonal strengths optimally for the development of themselves
and the company. Evonik was the first company in the sector tosign a policy on occupational inclusion in the chemical industry.
To implement the works agreement, which was revised in 2022,
the position of group inclusion officer was created and filled in
2023. Together with focus groups on topics such as vocational
training, accessibility, and awareness training, this central roleensures that we gain a better understanding of the needs ofpeople with disabilities and can continue to handle the challenges
of inclusion in the future. In the reporting period, two vocational
training instructors embarked on a supplementary training course
on inclusive teaching to improve support for apprentices withdisabilities. Further upskilling is planned.
In 2023, employees with disabilities accounted for 8.2 percent of
Evonik’s workforce in Germany.

Vocational training and continuing professional
development

Evonik regards well-trained employees as a success factor incompetition and has a global learning strategy aligned with
future business requirements. Our activities in this area coverboth the vocational training of young people at the start of theirworking lives and continuing professional development of ouremployees. The central elements are• uniform global solutions for training and personnel development with digital self-directed learning content,• simplifying the offering of digital learning platforms, and• increasing the acceptance of self-directed digital learning andlifelong learning.
We offer our employees access to a wide range of learningjourneys and digital content for self-directed learning. Our
FutureZone learning platform administers the participation of
employees in mandatory training and e-learning sessions andnotifies them of the need to complete them. We measure our
success in implementing our learning strategy by the number ofactive participants, their average learning time, and the total
number of people registered to use the LILY learning platform.
Both platforms are available to all employees worldwide,
provided they have access to the intranet. At the start of 2023,
Evonik introduced the LinkedIn Learning digital library of over
20,000 courses in various languages for all employees. The
courses range from business-specific software through project
management to career advice and tips on leadership.

100 Employees

EVONIK SUSTAINABILITY REPORT 2023

Diversity and equal opportunity

In connection with its long-term incentive (LTI) remuneration
plan, Evonik has introduced a new key performance indicator(KPI) to measure and extend self-directed, digital learning. The
aim is to establish a modern, sustainable learning culture at
Evonik based on individual responsibility. This KPI is calculatedby dividing the total learning time in the LILY and LinkedIn
Learning systems by the total number of permanent employees.
The baseline for this KPI is the average of 2.05 hours per
employee in 2022. The aim is to increase the average to
3.00 hours per employee by 2026. The KPI does not include
mandatory training, face-to-face training, and courses outsidethese two systems. Evonik has developed standardized
definitions, processes, and a dashboard to measure progress.

Apprentices accounted for 6 percent of our workforce inGermany, and therefore remained above the national average ofaround 4.7 percent in Germany. 1 Overall, we invested around€64 million in vocational training in 2023. Our high commitment
is also reflected in good examination rates. The pass rate is over
98 percent.
Over the past 20 years, the “Start in den Beruf” pre-apprenticeship program has proven very effective preparation for youngsters who are not yet ready for a vocational training course. In
the 2022/2023 project year, we offered an additional 15 placesin this program, bringing the total to 65. This complementaryoffering gives young people an insight into the dual training
system and the occupations available to help them make acareer choice.
Evonik has integrated the course content trialed with the BBNE
sustainable development education forum into its vocational
training as a firm course component. In addition, learning paths
were developed for our library of training media for apprentices.
These contain direct links to content related to the stages in their
vocational training courses.

404-2

Since we have more than 1,112 apprentices and a strategy tosecure skilled employees, we consider that we are well-prepared
for the challenges of demographic change, including in
production and related areas. To retain young people in thecompany, all apprentices who are able and willing to take up
employment are offered jobs. In addition, we are training
556 apprentices in cooperation with other companies.

Vocational training and continuing professional
development: progress in 2023

In 2023, Evonik trained more than 1,660 young people. Our
offering covered 36 recognized vocational training courses andcombined vocational training and study programs at 15 sites.

At the Open House day in August 2023, more than 1,000 visitors took advantage of the opportunity to visit Evonik’s vocational training center at
Marl Chemical Park and gain direct insight into various apprenticeships.
1

The tables in the vocational training data report 2023 in the internet are from 2021.

101 Employees

EVONIK SUSTAINABILITY REPORT 2023

Our targets

The quality of vocational training at Evonik was highlighted bysuccessful DIN ISO 21001 certification and further awards in 2023:
For the fifth consecutive time, a study of Germany’s best
vocational training companies awarded Evonik first place in thespecialty chemicals category. Furthermore, we were given a fivestar rating by the business magazine Capital for our performancein dual vocational training andcombined vocational training and university courses—also for the fifth
time. In addition, a joint project by
Evonik’s vocational training department and MINT-EC, an association ofscience and math centers of excellence for schools, was awarded the
Comenius EduMedia seal.
In 2023, Evonik invested about €371 per employee in training andcontinuing professional development (CPD). That was a total of€12.39 million. The reduction in external training expenses wasdue to extensive savings drives. In the reporting period,
16,590 employees used digital learning content in the LILY and
LinkedIn Learning systems, giving an average of 3.75 hours per
user.
404-1
The second worldwide application round for the Evonik Explorer
development program started in spring 2023. Overall, about
320 talented employees were confirmed as new Evonik
Explorers. This program also uses a blend of digital self-directed
learning phases, remote group work, online seminars, andface-to-face sessions.
The aim of the Evonik learning sessions is to try out new methods of collaboration, learn from one another, and encourage networking with colleagues from other disciplines. The corresponding community now has around 16,500 members worldwide.
The program content, which is developed by the community
itself, includes a broad spectrum of topics and speakers. In
2023, we organized 74 learning sessions, in which about
17,700 employees took part.

Our targets
Below is an overview of the targets set for our
employees area of action.
Target attainment in 2023
Proportion of women in top and senior management
should be 23 percent at each level by 2023
(status 2023: 22.2 percent and 18.5 percent)Intercultural mix at executive level should
be 20 percent by 2023
(status 2023: 18.4 percent)Targets for 2024 and beyond
Proportion of women in top and senior management
should be 30 percent at each level by 2026
Intercultural mix at executive levelshould be 25 percent by 2026
Average digital, self-directed learning using the LILY and
LinkedIn Learning platforms should be more than 3 hours
per employee per year by 2026

Target not achieved
Target partially achieved or target horizon extends beyond 2023
Target achieved

102 Safety

SafetySafety has priority over sales and profits at
Evonik. We have a long-established safety
culture that allows continuous improvementof our systems and processes. Protecting
the health of our employees is also very
important to us.

EVONIK SUSTAINABILITY REPORT 2023

0.21

LTI-R (no. of accidents per
200,000 working hours)

0.43

MATERIAL TOPICS
Occupational and plant safety
Health protection and promotion
SDGS OF PARTICULAR RELEVANCEFOR EVONIK

5.5

Occupational healthperformance index

PSI-R(no. of incidents per
200,000 working hours)103 Safety

EVONIK SUSTAINABILITY REPORT 2023

SafetyContents
103

Safety

		

403-5

103

Strategy and management

104

Occupational safety		Strategy and management

105

Plant safety403-1

105

Strategy and management

106

Health protection and promotion

106

Strategy and management

108

Transportation safety and logistics

109

Our targets

		  2-8, 401-2, 403-1, 403-2, 403-3, 403-4,
403-5, 403-6, 403-7, 403-8, 403-10

108

All safety data compiled in ESTER• Corporate health promotion: focus on mental fitness• Further digitalization in the areas of transportation safety and logistics

403-1, 403-4, 403-9

104

		

SafetyStrategy and management

SafetyStrategy and management

Protecting the health, safety, and employability of our employees
and preventing accidents and incidents at work and in the operation of our production facilities are of central importance toEvonik. That is also reflected in the UN Sustainable Development
Goals of relevance to Evonik. Our high safety standards aim toprevent fatalities, accidents, and damage to health and theenviron­ment. That includes both our employees and contractors’
employees during their working hours, during commuting, andduring the transportation of goods. Another goal is to prevent
Evonik releasing hazardous substances into the environment andto exclude damage to our production facilities resulting frominadequate safety precautions. We take into consideration
both internal and external factors such as extreme weather,manipulation, and terrorist attacks.
The group-wide management of occupational and plant safety at
Evonik is based on global policies, processes, and systems. These
are an integral part of our integrated management systems.
We use centrally planned internal audits to evaluate theimplementation of the applicable rules and regulations andidentify any scope for optimization. Our internal processes aresupplemented by external audits by independent certification
bodies. The ESHQ function is responsible for the standardizationof mission-critical processes for all divisions (see “The environment” p. 47). Requirements and the need for action are definedin binding targets based on performance indicators. Accident
frequency is also reflected in the variable remuneration ofmembers of the executive board.
Our ESHQE management handbook sets out our mandatory
global rules on the environment, safety, health, quality, andenergy. The aim is to continuously optimize our processes,
plants, products, and services. That includes minimizing theundesirable influences of our activities on people and nature.
Our group-wide Safety at Evonik management approach covers
all aspects of occupational and transportation safety. It definesbinding principles of action that give our managers andemployees, including personnel from staffing agencies, reliableguidance on safety-compliant conduct in their daily work. This issupplemented by Safety at Evonik 2025 , a roadmap setting

C25

C26

104 Safety

EVONIK SUSTAINABILITY REPORT 2023

Occupational safety

out further safety elements for every year up to 2025. We areplanning to extend this roadmap to 2030.

ESTER targets

Our crisis and incident management are designed to prevent andlimit the damage if accidents nevertheless happen 1. We systematically analyze and simulate incidents with external support. In
this way, we aim to further improve our safety performance. We
share the findings within the company via our ESHQ Global
SharePoint. One successful format for this is our safety flyer. To
build and share experience, we also participate in various national
and international networks.
403-5

Target1

Target2

Target3

Target4

In the areas of health protection and health promotion, weconcentrate on an integrated, holistic approach. The aims are to
maintain and enhance the wellbeing of our employees and theiremployability.
Safe transportation of goods is very important for Evonik. We
use a uniform process to select the logistics service providers fortransportation and regularly review their reliability. In keepingwith our understanding, this includes evaluating the Responsible
Care® performance of all transportation providers. Our aim is tominimize risk at all stages, from loading through transportation to
unloading p. 108.

Group-wide
ESH software

Improve
ESH performance

C25

Replace many
IT solutions

Reduce the timeand expense for ESH

Safety: progress in 2023

In the reporting period, we completed the introduction of our
ESHQ software, ESTER (Evonik Standard Tool ESHQ and
Reporting), and continued our work to optimize it. ESTER harmo­
nizes processes throughout the Evonik Group, makes workflows
leaner, and broadens our database for evaluation purposes. That
helps us improve our safety performance and makes it easier tolearn from one another. All relevant indicators and reports areavailable in a central database (single point of truth). In addition,
the most important data on our safety performance are available
to all employees via an intranet dashboard.

Occupational safety
Strategy and management

We have always paid special attention to occupational safety,
which also includes both safety on the way to and from work andthe safety of contractors’ employees working at our sites. The
key performance indicator for occupational safety at Evonik is thelost time injury rate (LTI-R) 2. In 2023, we once again achieved
our target of remaining below the defined upper limit for the
LTI-R of 0.26 accidents involving Evonik employees 3 resulting in
absences of at least one full shift per 200,000 working hours.
The LTI-R was 0.21 4 and therefore well below the defined upper
limit.
403-1, 403-4
Our ESHQ software, ESTER, offers us various ways to evaluate
incidents. As in the previous year, most injuries in 2023 related tohands and fingers.
Lost time injury rate

C26

Number of accidents
per 200,000 working hours

Upper limit
≤0.26

2019

0.24
0.16

2020

0.19

2021
2022

0.25

2023

0.21
0.00

1

Based on the definition in the German guideline SFK-GS-26.

2 All reported work-related accidents (excluding traffic accidents) resulting in absences of at least one full shift per 200,000 working hours.
3 Evonik employees including employees from staffing agencies as defined in the German legislation on staffing agencies (AÜG).
4 The total number of hours worked by Evonik’s employees in the reporting period was around 67 million hours.

0.05

0.10

0.15

0.20

0.25

0.30

C27
C28

105 Safety

EVONIK SUSTAINABILITY REPORT 2023

Plant safety

We’ve introduced a maintenance safety system based on a globally recognized
standard as a systematic safeguard for safety-critical tasks. For example, it securesinterfaces to pipes that have not been emptied and machinery that is connectedto the power supply. This enhances safety in the workplace.«

Dr. Arndt Selbach | Site Manager, Wesseling, Germany

Occupational and plant safety

The LTI-R for contractors’ employees was 0.79, which was
higher than in the previous year (0.43). The number of accidents
increased from 47 in 2022 to 48 in 2023. The increase in the
LTI-R is attributable to the fact that fewer contractors were used.
Most of the accidents were caused by workers tripping, slipping,falling, or coming into contact with machinery.
403-9
Lost time injury rate, contractors’ employees a

C27

Number of work-related accidents involving non-Evonik employees
resulting in absence from work per 200,000 working hours
0.61

2019
0.55

2020

0.67

2021
0.43

2022

0.79

2023
0.0

0.1

0.2

0.3

0.4

a Calculation based on assumptions and estimates.

0.5

0.6

0.7

In 2023, there were no fatal accidents involving our employees orcontractors’ employees either at our sites or during commuting.
There were no accidents resulting in more than six months’
absence from work.
403-9

Plant safety
Strategy and management

Safety is the basic precondition for the operation of our facilities
and their performance. It is therefore the basis for reliable, effective, and future-oriented production. We set demanding safety
standards for the entire life cycle of our plants worldwide. We
regard safety as an all-round task, which is established worldwide through our safety management systems and regularly
reviewed.

The key performance indicator for plant safety at Evonik is theprocess safety incident rate (PSI-R). This is used to monitor thenumber of incidents in production plants involving the release of
substances, fire, or explosion (process safety incidents) as
defined by Cefic.
403-1
Our PSI-R was 0.43 in the reporting period, so we failed to meet
our target of remaining below the upper limit of 0.40. Nevertheless, the PSI-R was considerably better than in the previous year
(0.49). Although most incidents were due to the release of
substances, specific countermeasures resulted in an improvementin the PSI-R in 2023.
We steadily endeavor to optimize our safety management
system. Our expert circle on plant safety worked on various
projects in the reporting period. The focus is on the ongoingdevelopment of our plant safety regulations. Based on theexperience gained with ESTER, we continued to optimize themanagement-of-change process.
Process safety incident rate a

C28

Number of incidents per 1 million working hours (up to 2020)
Number of incidents per 200,000 working hours (from 2021)
Upper limit ≤ 0.40

Upper limit ≤ 1.10
1.10

2019

1.45

2020
2021

0.48

2022

0.49

2023

0.8

0.43
0.0

a

0.3

0.6

0.9

1.2

1.5

2017 – 2020 in accordance with Cefic 2011, from 2021 in accordance with Cefic 2016.

106 Safety

C29
EVONIK SUSTAINABILITY REPORT 2023

Health protection and promotion

Health protection and promotion
Strategy and management

Global management of health protection and promotion at
Evonik takes a long-term, holistic approach, covering employees,
the working situation, and the general working environment.
Our approach to health protection and promotion includes
high-quality medical care as required, applying ergonomic andhealth-related measures to structure working conditions, and afunctioning emergency management system at plant level. Our
aim is to meet all statutory requirements on occupational healthand safety and avoid high rates of sickness-related absence.
We offer our employees a range of voluntary measures to foster
their health. These are bundled in the group-wide Well@Work
initiative. In this way, we support a healthy lifestyle. A familyfriendly human resources policy that takes account of different
phases in employees’ lives and supports a good work-life balanceis important to Evonik (see “Employees” p. 92). Appropriate
offerings are designed to counter a poor work-life balance andthe increase in mental health and stress-related illness. Our
health protection and promotion measures are also available to all
employees, including personnel from staffing agencies.
403-1, 403-3, 403-4, 403-5, 403-7

The Evonik Global Health Program sets out the main goals of ouroccupational health strategy, together with data and facts. We
use this as the basis for refining our strategy and adapting it to
the latest developments. The main challenges identified for theperiod 2020 through 2025 are the aging workforce, the global
increase in mental health problems, and changes in the working

world due to digitalization and Work 4.0. On this basis, priorities
have been defined for our occupational health activities. Our
occupational health management policy sets binding worldwide
standards for health protection and promotion at Evonik.
401-2

Occupational health performance index

2021

5.6

In Germany, issues relating to occupational safety and health protection have to be agreed on with the employee representatives.
Our policies for our global workforce are also based on this.

2022

5.5

2023

5.5

In line with statutory requirements, at our German sites, we haveoccupational safety committees that meet at least four times a year
to discuss issues relating to occupational safety and the protectionof health. These committees are composed of employee andemployer representatives, safety specialists, safety officers, andoccupational medicine specialists. The committees cover morethan 99 percent of our employees in Germany. There are also
comparable bodies at other sites.
403-8
Fulfillment of the relevant requirements is monitored throughinternal and external environment, safety, and health audits,accompanied by extensive reporting. We recommend or require
action to address indications that there is scope for improvementand deviations from the applicable guidelines. As an overriding
indicator, we have established an occupational health performance index.

Occupational health performance index
This index shows the extent to which internal requirements havebeen implemented and goals achieved. It enables us to measureprogress in the area of occupational health and drive forward
targeted improvements.

Calculated from occupational medicine, health promotion,and emergency medical management

0.0

1.5

3.0

C29
Lower limit ≥ 5.0

4.5

6.0

The index is calculated from two parameters from each of thefollowing areas: occupational medicine, health promotion, andemergency medical management. Both the quality and the scopeof the measures are taken into account. The index is calculated
annually. In the reporting period, it covered 109 sites and 92 percent of Evonik employees.
We have defined a target of ≥ 5.0 for the occupational healthperformance index. In 2023, the index was 5.5 (maximum: 6.0).
For Germany, we also calculate a health ratio, which was
94.5 percent in 2023 (2022: 94.0 percent). This is the ratio oftarget working hours less sickness-related hours lost to target
working hours.

Emergency medical management
Evonik’s Medical Incident and Emergency Management standard
defines binding basic requirements for emergency medical
management at all sites worldwide. The exact equipment andhuman resources required depend on production-related risks
and the availability and quality of local medical infrastructure.

107 Safety

EVONIK SUSTAINABILITY REPORT 2023

Health protection and promotion

Specific procedures have been defined for accidents where
employees come into contact with chemicals and special medical
treatment is required immediately. Emergency medical management also includes pandemic plans and regular training exercises.
An extensive preventive health and risk management program isin place for employees on business trips and foreign assignments.

Workplace-related preventive healthcare
The results of our hazard assessment help us take suitable
preventive measures to avoid work-related illnesses and healthproblems. Where we identify a risk for specific employees,
technical and organizational measures to counter the risk havepriority over the use of personal protective equipment. Information and training of employees also play an important part inavoiding health impairments. Such training is mandatory for all
employees worldwide. Preventive healthcare includes advice for
employees on their individual health risks, including preventive
check-ups where necessary. The medical data generated in thisprocess are subject to medical confidentiality and are protected
and archived in accordance with national data protection regulations.
403-2, 403-5, 403-7
Evonik regularly reports on occupational illnesses. The indicatorused for this is the occupational disease rate (ODR), which isdefined as the number of newly identified cases of occupational
illnesses per 1 million working hours. The calculation includes allcases recognized in the reporting period, including latent illnesses, which are illnesses where the causes lie well in the past.
The calculation does not include contractors’ employees, as
we do not have access to such data due to data protection
regulations.
2-8, 403-10

1

The ODR for 2023 will probably be available on our website in spring 2024.

2 OSHA = Occupational Safety and Health Administration.

HIV and Aids have devastating effects on individuals and communities. South
Africa alone records about 950 Aids-related deaths daily. Therefore, it is crucial totalk about the dangers and break the stigma surrounding the topic. To contributeto this common goal, Evonik Peroxide Africa held an interactive awareness session
and offered voluntary testing for its staff along with pre- and post-counselling.
We have received a lot of positive feedback.«

Surie Govender | ESHQ Manager, South Africa

In 2022 1, there were 74 cases of newly recognized work-related
illnesses, giving a total ODR of 1.11 for the Evonik Group (2022:
0.28). New cases were reported in Germany (ODR: 0.85 in 2023
and 0.27 in 2022), North America (ODR: 3.7 in 2023 and 0.5 in2022), EMEA (ODR: 0.48 in 2023 and 0.5 in 2022), and AsiaPacific (ODR: 0.09 in 2023 and 0.00 in 2022).
The unusually high number of new cases is due to the pandemic
and the fact that, under the OSHA 2 regulations applicable for theUSA, COVID-19 infections contracted at work in the USA are
counted as occupational illnesses. In 2022, 34 Evonik employees
in the USA became infected with coronavirus during theirwork—generally on business trips. That is a very low small proportion of the total number of 1,151 infections recorded among
our employees in the USA and shows the effectiveness of the

Health protection and promotion

protective measures in our workplaces. In the calculation of the
ODR, however, these 34 cases resulted in a significant increase in
the indicator compared with previous years. Factoring out thecoronavirus infections, the ODR for 2022 was 0.6, a normal
level for Evonik.
The main causes of occupational illness at Evonik that are
unrelated to the pandemic are still exposure to asbestos andnoise. Exposure to asbestos relates to the period prior to 1993,
the year Germany banned the production and use of asbestos.
Our occupational safety measures endeavor to minimize the risksof sustaining an occupational illness. In view of this, the risk forour employees and contractors’ employees working under
Evonik’s direct supervision is very low. In the reporting period,
there were no reported deaths of members of our active workforce as a result of work-related illness.

T25

108 Safety

T26

EVONIK SUSTAINABILITY REPORT 2023

Transportation safety and logistics

Corporate health promotion
Our Well@Work program centers on four central areas: exercise,a healthy diet, mental health, and work-life balance. Our corporate health promotion activities center on basic programs with along-term focus to encourage employees to adopt a healthy lifestyle. These are supplemented by health campaigns, whichchange every year. At all of our German sites, there are inter­disciplinary health task forces to implement Well@Work. The
Care & Support program in Germany enables employees tocontact the company medical service with private medical
questions. They are given advice and support. In the event of
illnesses requiring treatment, they are referred to their generalpractitioner or a specialist physician.
403-6
In 2023, we continued our online health promotion offerings,
which we had expanded considerably during the pandemic. In thisway, we also take into account the fact that many employees now
use our SmartWork mobile working program (see “Employees”
p. 92). In the reporting period, employees in Germany had
access to a wide choice of offerings through our #Gesunddurchsjahr program, including online talks on various topics,
advice on ergonomics and healthy eating, online exercise sessions
to encourage activity during lunch breaks, and online gettogethers for personal interaction, e.g., for parents and employees
caring for relatives. In-person offerings at our sites also restarted.
In the fall, we offered our routine influenza vaccine program andcoronavirus booster vaccines where required. Our global healthcampaign was dedicated to preventing cardiovascular disease.
During “CPR week” in September, many sites again offeredemployees an opportunity to learn simple resuscitation
techniques. In Germany, Evonik once again took part in a mental
health week to raise employees’ awareness of mental health1

Hydrotreated vegetable oil; biodiesel produced 100 percent from waste and residues.

problems, overcome prejudice, and provide information on
where to get help. Maintaining the long-term employability andwellbeing of our employees was also at the heart of two fit-forlife seminars for our employees, which ran over several days.
Worldwide, around 95 percent of our workforce can seek advice
on workplace-related, personal, or family problems from socialand employee counseling centers.

Transportation safety and logistics
Strategy and management

Our aim is to minimize risk at all stages in the shipping process—from loading right through transportation to unloading. We takespecial care when shipping dangerous goods. Moreover, oursafety standards for especially dangerous products and raw
materials go beyond the regulations for such substances. In thereporting period, we continued our focus on sustainability
and alternative fuels for transportation such as HVO110 1 andbio-LNG 2.

Transportation safety and logistics: progress in 2023

In 2023, Evonik took part in various projects and initiatives withthe aim of further improving safety in the transportation ofchemicals.
Our agenda includes the efficient, resource-saving optimizationof our forklift fleet. In the reporting period, we therefore introduced an automated fleet management system with a central
database, access controls, and various sensors. The aim is tomonitor our forklift fleet to meet compliance requirements and2 Liquefied natural gas from renewable resources (biogas/biomethane) such as animal manure, organic waste, and sewage sludge.

significantly reduce the frequency of accidents, damage caused
by incorrect use, and consequential damage. Digitalization of our
fleet of vehicles allows for the optimization of logistics processes.
We also expect the evaluation of the net duration of use andextended intervals between trips to reduce maintenance costs by
20 percent.
Outgoing shipments of hazardous goods aT25
2022 cin thousand metric tons

2023

Air

0.7

0.4

Ocean

462

437

Inland waterway

283

307

Rail

729

717

Pipeline

b

923

608

Road

1,873

1,667

Total

4,271

3,737

a Excluding goods collected by customers.

b External shipments only.

c Corrected data.

Outgoing shipments of other goods a
in thousand metric tons

Air
Ocean
Inland waterway
Rail
Pipeline b

T262022 c

2023

6

5

1,141

1,086

0

0

213

219

6

3

Road

2,212

1,877

Total

3,578

3,191

a Excluding goods collected by customers.

b External shipments only.

c Corrected data.

109 Safety

EVONIK SUSTAINABILITY REPORT 2023

Our targets

The next phase is data analysis. We will then evaluate the findings and define appropriate measures.

Analysis of the causes of transportation accidents
Evonik analyzes the causes of transportation accidents very carefully. We identify the reasons for them and take steps to prevent
similar incidents in the future. In 2023, our Logistics Safety
department developed a concept for the systematic analysis of
the causes of transportation accidents. This includes an evaluation using a points system based on a system for reportable
accidents set out in the regulations on dangerous goods. A
structured analysis of the causes is carried out on the basis of thetotal points and a review of each incident. The results are used todevelop recommendations and improve logistics processes.
Development of a reusable strap system
We launched a project to develop a reusable strap system forcontainers in collaboration with Cordstrap, a company thatspecializes in the manufacture and development of systems tosecure loads. In the past, the straps used to secure transportation
containers were not reusable. This project focuses on thecomplete reusability of all materials, in other words, the steel
components as well as the strap itself. Evonik successfully tested
the first prototypes in the reporting period. We are driving
forward this development so we can make a contribution to
reducing the use of resources and avoiding CO2 emissions.

Alternative fuels
There are regular shuttle services between our German production facilities in Wesseling, Marl, and Witten and a distribution
warehouse in Belgium. Intermodal options for defossilation ofroad transportation are not available for the short distances
involved. Evonik partnered with a leading global energy company
to provide its haulage providers with the alternative fuels
HVO100 and bio-LNG. In this way, we were able to reduce CO2
emissions from these road transportation trips by about
80-90 percent and NOx emissions by more than 90 percent.
In the area of transportation safety, Evonik is also involved ininternational projects that aim to increase safety in the transportation of dangerous goods. Our experts took part in several
OPCW 1 workshops to develop indicative guidelines for the shipment of dangerous chemicals by road. They also participated in
the advisory discussions at the Federal Ministry for Digital andTransport (BMDV) on transforming the transportation sector in
Asia and Germany, including a Sino-German dialogue workstream on the transportation of dangerous goods. As well as
providing support in aligning Chinese regulations on dangerous
goods with international regulations, the aim is to provide information for German participants on the latest developments in
Chinese regulations and technical standards.
We evaluate accidents in the shipment of goods using the criteria
set out in section 1.8.5 ADR 2. The aim is to increase transparency
and align Evonik with this international standard. Two reportable
incidents involving dangerous goods listed in section 1.8.5. ADR
occurred in the reporting period.

Our targets
Below is an overview of the targets set forour safety area of action.
Target attainment in 2023
Lost time injury rate (LTI-R) 1 0.21
Process safety incident rate (PSI-R) 2 0.43
Occupational health performance index 5.5

Targets for 2024 and beyond
Lost time injury rate (LTI-R) 1 ≤ 0.26
Process safety incident rate (PSI-R) 2 ≤ 0.40
Occupational health performance index ≥ 5.0

Target not achieved
Target partially achieved or target horizon extends beyond 2023
Target achieved
1	New reference parameter from 2021 aligned to international practice.
2	Calculation modified from 2021.

1

OPCW = Organisation for the Prohibition of Chemical Weapons.

2 ADR = Accord européen relatif au transport international des merchandises Dangereuses par Route, English: European Agreement concerning the International Carriage of Dangerous Goods by Road.

110 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Governance andcompliance

66.7%

We are convinced that reliable and ethicalmanagement of the company is the basis
for long-term business success, faircompetition, and acceptance by society.

Raw materials suppliers 1
covered by TfS assessments

8phishing tests

MATERIAL TOPICS
Responsible management/human rights
Cybersecurity
Responsibility within the supply chain

92.0%

SDGS OF PARTICULAR RELEVANCEFOR EVONIK

1Average procurement volume > € 100 thousand.

Training rate
code of conduct

C30

111 Governance and compliance

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111

Contents

Governance and compliance

Responsible management/human rights• Supervisory board’s finance and investment committee renamed investment and sustainability committee		 -9, 2-10, 2-11, 2-12, 2-13, 2-15, 2-16, 2-17,2
2-19, 2-20, 2-21, 2-23, 2-24, 2-25, 2-26,
2-27, 202-2, 205-1, 205-2, 205-3, 206-1,
403-2, 405-1, 407-1, 408-1, 409-1

111

Strategy and management

112

Corporate governance

114

Opportunity and risk management

117

Ethics and compliance120

Human rights compliance risk analysis

125

Cybersecurity

126

Management of data protection

127

Tax

128

Responsibility within the supply chain

128

Strategy and management

129

Together for Sustainability (TfS)

130

Validation and evaluation of suppliers

132

Conflict minerals

133

Supply chain resilience in times of geopolitical change

133

Our targets

		  2-15, 207-1, 207-2, 207-3, 415-1, 418-1

		  2-6, 2-23, 204-1, 406-1, 407-1, 408-1, 409-1, 414-1, 414-2• Second human rights risk analysis and first face-to-face human rights training sessions• First long-term assessment of physical and transitional opportunities and risks• Increased data transparency and intensity for primary product carbon footprints

Responsible management/
human rights
Strategy and management

As well as complying with the law and respecting human rights,
the principles of business ethics involve respecting internal
regulations and binding voluntary commitments. We strive to

Voluntary commitments

prevent compliance violations and breaches of human rights at
Evonik and put an end to any that do occur. We also want tomake sure that comparable standards of human rights areobserved within our supply chain. Where this is not the case, wewill work with our suppliers to establish such standards
and remedy violations. We therefore see fulfilling statutory
regulations, for example, on fair competition, fighting corruption
and money laundering, and respecting protected human rights as
a minimum requirement.
C30

2-23, 2-24, 2-28

Internal

External

Code of Conduct for Evonik employees

econsense—Forum for Sustainable
Development of German Business

Chemie3

Global Social Policy

ILO—International Labour Standards

Global Reporting Initiative

ESHQE Policy of Evonik Industries AG

OECD Guidelines for Multinational Enterprises

Responsible Care ®

Policy Statement on Human Rights

Code of Responsible Conduct for Business

Together for Sustainability

Code of Conduct for SuppliersWorld Business Council for
Sustainable Development (WBCSD)

UN Global Compact

112 Governance and compliance

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Responsible management/human rights

We are also committed to observing internationally recognized
standards and our own more far-reaching guidelines andprinciples of conduct. The starting point for responsible cor­porate management at Evonik is our code of conduct, together
with our policy statement on human rights, our global social
policy, our policy on the environment, safety, health, quality, andenergy (ESHQE), and our code of conduct for suppliers. 1, 2
Our code of conduct sets out Evonik’s most important principles
and standards, which all employees must be aware of. It is valid
throughout the Evonik Group and is an integral part of theemployment contract between each individual employee andEvonik. Evonik has defined responsibility for the topics includedin the code of conduct, along with key contacts. Violation of thecode of conduct can damage Evonik’s reputation and result in
substantial financial loss. In view of this, violations can havefar-reaching consequences for the employee involved. We do nottolerate violations of our code of conduct. Evonik has issued aspecial code of conduct for suppliers, which sets out binding
requirements p. 128.
In the policy statement on human rights, Evonik gives a commitment to respect human rights and also sets out what it expects of
its employees, executives, suppliers, and other business partners.
It highlights our general commitment to respecting human rights
and to an intact environment, as reflected in other corporate
policies and our membership of various organizations. Our global

1social policy sets out rules for social responsibility and businessethics in our relationship with our employees. As a member of
the UN Global Compact, we have given an undertaking that,within our sphere of influence, we will actively respect and promote labor rights and human rights, avoid discrimination, protect
people and the environment, and fight against corruption. In
addition, we make a contribution to achieving the United Nations
17 Sustainable Development Goals (SDGs). We have therefore
identified the SDGs that are most relevant for us (see “Strategy
and growth” p. 20).
As a signatory to the chemical industry’s Responsible Care®
Global Charter, we have an obligation to continuously improve
our performance in health protection, environmental protection,
product stewardship, safety, and engagement with our stakeholders. Our ESHQE positions are predicated on the protectionof people and the environment. Together with more detailed
policies and procedures, they form Evonik’s ESHQE regulations.
Evonik is involved in many national and international competency
networks in the area of sustainability. These include econsense—
Forum for Sustainable Development of German Business, andChemie³, the sustainability initiative of the German chemicalindustry. We are also a member of the World Business Council
for Sustainable Development (WBCSD) and are committed to its
Vision 2050. We regularly report our climate and water
performance to CDP and our contribution to deforestation-free
supply chains.

Our sustainability reporting complies with the GRI standards. We
are a member of the GRI Community and support the mission of
GRI to empower decision-makers everywhere through the
GRI Sustainability Reporting Standards and its multi-stakeholder
network to take action towards a more sustainable economy andworld.
2-28, 407-1, 408-1, 409-1

Corporate governance

As a specialty chemicals company with a presence throughout theworld, good corporate governance with a long-term focus isessential for Evonik. The executive board and supervisory board
are explicitly committed to responsible corporate governance andidentify with the goals of the German Corporate GovernanceCode. We see respecting and applying the principles of corporate
governance as important management tasks. That starts withcollaboration within the executive board and supervisory board
and between these two boards. It also includes Evonik’s relationship with its shareholders and other people and organizations
that have a business relationship with the company.
As provided for by the foreword to the German Corporate
Governance Code, Evonik reserves the right not to implementcertain provisions if departure from the recommendations isjustified. The latest declaration of conformity with the requirements of the German Corporate Governance Code has been
published on our website. More .

ESHQE = Environment, Safety, Health, Quality, and Energy.

2	The code of conduct applies to a) all employees of Evonik Industries AG, b) all employees of companies where Evonik Industries AG directly or indirectly holds more than 50 percent of the shares or is able to exert a controlling influence in any other way,

and c) the executive board of Evonik Industries AG and all managing bodies of the companies referred to in b). At companies where Evonik holds a stake but does not exert a controlling influence, we work towards establishing comparable standards.

113 Governance and compliance

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Executive board
The executive board of Evonik Industries AG is responsible forrunning the company in the company’s interests, taking into
account the interests of the shareholders, employees, and otherstakeholders. It discusses sustainability at its meetings several
times a year, especially aspects relating to the environment,
safety, and portfolio transformation. For information on theexecutive board’s overall responsibility for sustainability and all
climate-related aspects, see “Further elements of our sustainability
management” p. 135.
When making appointments to the executive board, the super­visory board considers both the professional qualifications of thecandidates and the other criteria it has defined for the executive
board as part of the diversity concept. More . These include, forexample, a suitable mixture of ages, professional competencies,
and fulfillment of the targets for the proportion of women on theexecutive board.

Percentage of women on the executive board andin management
For the period from July 1, 2022 through June 30, 2027,
the supervisory board has set a target of 25 percent for the
proportion of women on the executive board. At present, one
member of the executive board is female, and three are male, so
it meets this target.
For the period from January 1, 2021 through December 31, 2024,
the executive board has set a target of 30 percent female
managers at the first and second management levels 1. At yearend 2023, the proportion of female managers was 38.5 percent at
the first management level and 33.3 percent at the second
management level.

1

At Evonik Industries AG.

Supervisory board
The supervisory board advises and supervises the executive
board. It appoints the members of the executive board and names
one member as the chairperson of the executive board. It alsodecides on the remuneration of the members of the executive
board. The supervisory board examines the company’s annual
financial statements, the executive board’s proposal for the
distribution of the profit, the consolidated financial statements
for the Evonik Group, and the combined management report.
The executive board is required to obtain the approval of thesupervisory board on decisions of fundamental importance,
which are defined in a separate list. The supervisory board has
the following committees: an executive committee, an audit
committee, an innovation and research committee, a nominationcommittee, and the mediation committee required by theGerman Codetermination Act. In 2023, the supervisory decided
that the finance and investment committee would also address
sustainability in the future. Therefore, the rules of procedure of
the supervisory board were revised to extend the committee’srole, and it was renamed the investment and sustainability
committee at the start of 2024.
The executive board provides regular, timely, and extensive
information to the supervisory board on all matters of relevancefor the company. Major sustainability aspects are included in thiscontext. On this basis, Evonik’s sustainability activities werediscussed at several meetings of the supervisory board in 2023.

In accordance with the provisions of the German Codetermination
Act, the supervisory board comprises 20 members, ten of whom
are representatives of the shareholders, while ten are representatives of the workforce.
A minimum quota of 30 percent women is set by law. The supervisory board currently meets this requirement as it comprises six
women and 14 men. Women therefore make up 30 percent of
the total. The supervisory board takes diversity into account, bothin its own composition and in appointments to the executive
board. The supervisory board’s diversity concept includes ruleson the independence and age of supervisory board members andtheir maximum term of office. Supplementary criteria apply forthe profile of skills and expertise of the supervisory board as awhole. These relate to the necessary knowledge and abilities ofthe members of the Supervisory Board, for example, international experience, a knowledge of business administration andscience, and experience in managing a company. In this context,
the supervisory board took on board a new recommendation of
the German Corporate Governance Code in 2022 and extended
the profile of skills and expertise to include experience inecological and social sustainability. At present, ten members of
the supervisory board have expertise in this area.
You can find further information in the declaration on corporate
governance, which is available on our website and also forms
part of Evonik’s financial report. More .
2-9, 2-10, 2-11, 2-12, 2-13, 2-15, 2-17, 2-18, 405-1, 407-1, 408-1, 409,1

114 Governance and compliance

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Opportunity and risk management

Since it operates globally, Evonik is exposed to a range ofinfluences along the entire value chain that may be either
opportunities or risks. We have a three-pronged approach to risk
management:

1

Period of more than three years.

C31

Environment & Input Factors
SocietyCommunicatons

Suppply
Chain

SafetyIde

RiskManagement
Process

Innovation

Politics

Our COSO risk management takes a multidisciplinary approach.
Early identification and evaluation of potential opportunities andrisks is part of our extensive opportunity and risk management.
This takes into account financial and non-financial opportunities
and risks, for example, in relation to occupational safety, process
safety, product stewardship, health protection, and climatechange.
202-2
Our established risk management system systematically capturesand monitors both quantifiable and non-quantifiable risks in thepresent fiscal year and the mid-term period. Risk reporting is thestarting point and result of our continuous risk management

ss

ReputationCo

SustainabilityAs

se

3.	Sustainability aspects as an additional risk assessment criterion
for capital expenditures for property, plant and equipmentthat exceed €25 million.

mentMarkets

Environment

rting
po
Re

Monitoring

2.	A long-term 1 risk analysis based on the frameworks issued by
the Task Force on Climate-related Financial Disclosures(TCFD) and the Task Force on Nature-related Disclosures(TNFD): This determines and evaluates long-term risks andopportunities using defined categories for defined scenarios.
The scenarios are based on externally defined climate scenarios.

The risk management process at Evoniknato

In accordance with the recommendations of the German
Corporate Governance Code, the supervisory board commissions
a remuneration report (vertical comparison) to review the ratioof remuneration of the executive board to that of senior executives and Evonik’s workforce. The most recent review was in
2020. The results are confidential and are not published.
2-21

1.	Risk management in compliance with the framework definedby the Committee of Sponsoring Organizations of the Treadway Commission (COSO): This identifies risks when there isa positive or negative deviation from the present business planor the mid-term plan over a three-year period.

c
ifi
nt

Performance-oriented remuneration of senior management
The supervisory board is responsible for the employment
contracts with the members of the executive board. It sets thetotal remuneration package for each member of the executive
board, comprising a basic salary, variable short- and long-term
components, pension benefits, the reimbursement of expenses,
insurance, and various other fringe benefits. The contracts withmembers of the executive board and all executives include
remuneration elements based on personal performance and theoverall performance of the Evonik Group. As one of our material
sustainability topics, occupational safety (accident frequency)
influences the remuneration of the executive board. From 2023,
further sustainability aspects were integrated into the long-term
remuneration of the executive board and senior executives (see“Strategy and growth” p. 18). The remuneration report 2023
provides further information on the remuneration of theexecutive board and supervisory board. More .
2-19, 2-20

n tro

llin gIT

Regulation

Technology

process. Risk coordinators ensure that internal and external risks
are identified and reported by their organizational unit (identi­
fication). Risk assessment uses clear and uniform criteria to allow
classification and prioritization. The measures selected andimplemented to manage risks are designed to limit the likely
damage caused by the risk factors and/or their probabilityof occurrence (controlling). Progress with the measures115 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsible management/human rights

implemented and the development of the risks over time aretracked (monitoring). Monitoring only becomes unnecessary
when a risk actually occurs, becomes obsolete, or is reduced to
an insignificant level. All units are required to update their opportunity and risk reports quarterly. Ad-hoc risks have to bereported without delay, even outside the defined reportingintervals (reporting).

Examination of extreme risks
We continuously align our risk management system to new
requirements. Following the revision of German audit standard
IDW PS 340, we also examine extreme risks and consider longterm scenarios, such as a major earthquake in the Rhine region.
Extreme risks are incidents that could cause a crisis, for example,
as a result of a major fire, cyberattack, or the collapse of supply
chains. There is a very low probability that risks of this type will
occur, but their impact on our business could be very extensive,
and they could substantially jeopardize the company’s status as agoing concern.
Integration of sustainability risks into conventionalrisk management
The identification of sustainability opportunities and risks withinconventional risk management and monitoring of the measurestaken are organized on a decentralized basis. Responsibility is

1

LEAP = Locate, Evaluate, Assess, Prepare (TNFD framework approach).

assigned to the risk coordinators and risk officers in our management units: The risk coordinators in the divisions entersustainability-related risks and opportunities, including theirimpacts and likelihood of occurrence, in the group-wide risk
reporting system for the current year and the three-year
mid-term period. The status of the relevant measures is also
entered. We use our annual risk coordinator conference to raise
the awareness of the relevant personnel of the increasing
significance of sustainability-related opportunities and risks.

Long-term risk analysis in accordance with the TCFD and
TNFD frameworks
The significance for Evonik of the risk and opportunity categories
in these frameworks has been evaluated. The LEAP 1 method
contained in the TNFD framework is used to evaluate local
environmental risks. Our scenario analysis and inclusion in our
corporate strategy and strategic financial planning focus on thefollowing categories:
Policy and regulation transition risks
Evonik is exposed to potential risks arising from changes inpolicies and regulatory conditions in all countries where wesource raw materials and services or have production operations
or sales activities. Examples are changes in emissions and waste
regulations, recycling legislation, and permitting requirements.

Technology transition risks
Evonik is exposed to potential technology risks if they affect therelative cost position of existing products and services. Examples
are new production processes that are significantly more energyefficient or use alternative raw materials and energy sources with
far lower CO2 costs.
Market transition risks
Evonik is exposed to potential market risks that could affectdemand for our products. Our assessment of market transition
risks includes our exposure to competing systems and whether
our products could be replaced by others on the market. Politicaldecisions and business decisions by other countries could
accelerate the market transition. Examples are the substitution of
combustion engines by electric motors and switching fromfossil-based materials that are not recyclable or biodegradable toreusable materials.
Legal transition risks
Evonik is exposed to potential legal risks because NGOs andpolitical decision-makers are increasingly using legal means toforce companies to take steps to mitigate climate change oraddress other aspects of sustainability. These risks are heavily
dependent on where a legal dispute takes place and may relate tovarious aspects of our business, such as the manufacture of our116 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

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products, our supply chain, or the disclosure of risks. Examples
would be lawsuits to reduce environmental impacts, countergreenwashing, or obtain compensation for damage to people andthe environment.

Reputation transition risks
Evonik is exposed to potential risks resulting from a reduction intrust and loss of reputation with its customers, suppliers,
communities close to its sites, permitting authorities, and otherstakeholders. A loss of trust could affect both the sales and thecost side and also significantly restrict our ability to enter into
strategic alliances.
Acute physical risks
Evonik is potentially exposed to acute physical risks 1 in the formof extreme weather events due to climate change, e.g,,hurricanes, floods, heatwaves, and extremely cold periods. Acuteevents could impact production, supply chains, and our markets.
Chronic physical risks
Evonik is potentially exposed to chronic physical risks in its
supply chains, production facilities, and markets. Examples are
exposure to water scarcity as a result of progressive climatechange and production losses in countries with low laborproductivity due to high temperatures and high humidity.

1

Product & service opportunities
Evonik can exploit potential opportunities by developing
products and services that cause only low emissions, developing
further sustainability aspects, and increasing the sales generated
by these products and services, as set out in the Evonik Transition
Plan. As well as the avoidance of greenhouse gas emissions,
opportunities include reformulating products to adapt to climatechange and avoid critical chemicals.
Energy & resource efficiency opportunities
Evonik can exploit potential opportunities through more efficient
production that reduces the use of energy, water, and materials.
Energy source opportunities
Evonik can exploit potential opportunities by achieving a highlevel of electrification. That helps to lower exposure to rising or
volatile energy and resource prices.
In establishing our scenarios, we take into account the scenarios
used by the NGFS 2, the IEA 3, and the IPCC 4. We make sure thatpossible transitional and physical risks are addressed in a mannerthat takes account of the expected combination of both risk types
by resiliency testing these scenarios. In the present analysis, wehave evaluated our resilience in the NGFS “current policies” and“net zero 2050” scenarios, which are aligned with the IPCC
Shared Socio-Economic Pathways SSP5 and SSP1.

For our 2030 analysis, we use an extrapolation of our mid-termplanning based on information from the Portfolio Sustainability
Assessment or existing strategic financial planning, which is
linked to our annual strategic management process. For 2040 and
2050, we only make qualitative predictions.

Sustainability as a separate criterion in the risk assessment of
capital expenditures on property, plant and equipment
Projects costing €25 million or more have to be approved by the
executive board. To supplement the established review criteria—country, competition, other stakeholders, Evonik resources andcompetencies, and customers—sustainability was added as a new
category in the reporting period. This category addresses risks
arising from changes in the political and legal situation, market
developments, and technological change. These are assessedwith a view to production and cost-efficiency, reputational risks,
and the country’s aspiration to achieve the SDGs. Acute physicalrisks are included in the “country” category as location-based
environmental risks, alongside the other risks considered in thiscategory.
Further information on risk management can be found in theopportunity and risk report in the financial report 2023. More .

Country-specific risk assessments can be found in Swiss Re Institute 2021 “Economics of Climate Change” and McKinsey 2020 “Climate risk and response: Physical hazards and socio-economic impacts.”

2 NGFS = Network for Greening the Financial System.
3 IEA = International Energy Agency.

4 IPCC = Intergovernmental Panel on Climate Change.

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Ethics and compliance

The compliance areas of specific relevance to Evonik are bundled
in a House of Compliance. Each area defines relevant rules for its
compliance-related issues and the voluntary commitments
entered into by Evonik and issues internal regulations.
Responsibility for the environment, safety, health, and quality isbundled in a corporate function with the same name (see “Theenvironment” p. 46).

House of Compliance

Minimum group-wide standards have been defined for thecompliance management systems for the areas covered by theHouse of Compliance, and we make sure that they are implemented in every area. The final responsibility for this rests withthe executive board, which defines the key elements of theminimum standards for the compliance management systems andmonitors their observance as part of its management responsibility
for ensuring compliance with legally binding regulations within
the Evonik Group. The supervisory board’s audit committee
oversees the effectiveness of the system. The process of forming
C32

2-23, 2-26, 205-1, 403-2

Executive Board
Compliance Committee

a Advisory role.

Head ofGroup
Audit aGroup Audit

Head of
Taxes

Taxes

Human Resources

Capital Market Law

Foreign Tradeand Customs Law

Code of Conduct

Fighting Corruption,
Money Laundering,and Fraud

Antitrust

Human Rights

Compliance management system

Data Protection

Head ofHR Business Management

Chief Compliance Officer

a consensus, sharing experience, and coordinating complianceactivities takes place in the compliance committee, which iscomposed of the heads of the respective units, who have independent responsibility for their areas, and the head of Group
Audit. Group Audit performs independent audits to support theexecutive board and subsequent management levels in theperformance of their supervisory duties and continuous improvement of business processes. A key focus is auditing the internal
control system and the risk management system.

Compliance management system
The executive board sets the minimum standards for thecompliance management system. Its main aim is to avoid, or atleast minimize, compliance violations and the associated risks.
Compliance violations should be identified and halted and sanctions imposed, depending on their severity. The heads of thecompliance units work to make sure the compliance management
system is appropriate and effective for the respective complianceissues.
Principle of prevention
Tools used to avoid potential compliance risks relating to the
topics bundled in the House of Compliance include risk analysis,
training, raising awareness, and providing advice. In this context,
we take account of our group-wide business activities in all
regions and at all locations.
To identify potential risks as early as possible, every unit isrequired to perform regular risk analyses. Based on the results of
its risk analysis, each organizational unit issues binding standards

118 Governance and compliance

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Compliance management system

C33

2-24, 2-25, 2-26, 205-1, 403-2, 407-1, 408-1, 409-1

Responsibility of Management
Values and Objectives
Detection

Response• Risk Analysis• Whistleblower System• Corrective Measures• Standards• Investigations• Sanctions• Processes• Monitoring & Audits• Lessons Learned• Training• Sensitization/Communication• Advice & Support

Continuous Improvement

Adequacy, EffectivenessPrevention

Compliance Reporting
Compliance Organizationand processes for the precautions to be taken with regard tobusiness activities where there are specific compliance risks. The
topics forming the focus of the risk analysis and the action taken
may vary over a given period. Substantial changes in the relevantrisk situation are examined on a case-by-case basis. As soon as a
topic is examined, the main risks are reported to the management
and governance bodies at the company concerned, depending on
their type and extent. A regular risk analysis is undertaken in thecompliance areas fighting corruption, antitrust law, and preventing money laundering. Human rights were added in 2022. The
following risk analyses have been performed in recent years:• Fighting corruption (2015 to 2017)• Anti-money laundering (2017 to 2019)• Anti-money laundering and fighting corruption, with a
specific focus on procurement (2018 to 2020)• Human rights (2022 and 2023)

review them. Alongside the target group, they define the type,
frequency, and content of training. Each organizational unit is
responsible for conducting its training. We pay special attention
to training in the areas of antitrust law, fighting corruption, antimoney laundering, human rights, and the code of conduct.
Participants are allocated to three levels on the basis of risk (T27).
Each unit is responsible for making employees aware of theimportance and scope of the rules on each compliance topic.
That includes advising and supporting them in questions relating
to a particular issue. This supports early identification andevaluation of risks. In the training sessions, we provide
information on where to seek advice.

Uniform group-wide training concept
Topic

Description

Topics covered

Human rights

T27

Antitrust law
Fighting corruption
Code of conduct

Taking the mitigating measures into account, these risk analyses
did not identify any significant compliance risks. In the reporting
period, we embarked on a risk analysis in the area of antitrustlaw.

Selection of target group

In the reporting period, we used the IT-based process developedwith an external service provider in the previous year in our
analysis of human rights and antitrust risks see p. 120.

Frequency b and typeGroup-wide training concepts are available for all aspects
bundled in the House of Compliance, and we continuously

2-24Anti-money laundering
Job function and qualifications
Uniform risk criteria
Risk level a: none—low—high
Differentiation between compliance issues
Low risk: approx. every three years →mandatory e-learning sessions
High risk: approx. every two years →mandatory face-to-face and e-learning
sessions (alternating)a	An additional risk level covering those at risk of being affected has been introduced forhuman rights compliance. This reflects the fact that any employee’s human rights could
be affected.

b	Training can be held more frequently, if necessary, e.g., if there are changes

in the legal framework or statutory requirements.

C34

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Responsible management/human rights

Principle of detection
All employees are required to report possible or actual violationsof the code of conduct to the responsible department or compliance officer without delay, regardless of whether they relate tothem personally or to their colleagues. To detect possible
non-compliance, Evonik has established several channels that
employees, personnel from staffing agencies working at Evonik,
and external stakeholders can use to report suspected complianceviolations p. 121.
Principle of response
We initiate suitable measures to end the violation and minimize
the risk. Depending on the severity of the case, the measurestaken with regard to employees range from warnings or
reprimands to termination of employment and claims forcompensation. In addition, further action is taken to raise awareness, for example, through training. Sanctions against business
partners can include termination of the business relationship andblacklisting.
Evonik’s whistleblower system

2-16, 2-25, 2-26

C34

Whistleblower(internal or external)
ReportInformation about potential compliance breaches

Manager(responsible compliance department)
Case managementa External whistleblower system. Guarantees anonymity, if desired by whistleblower.

Since 2023, we have performed an annual human rights risk analysis of ourbusiness and (in)direct suppliers. This global, IT-based analysis involves many
departments. The risks are examined from the perspective of the groups thatmight potentially be affected, taking into account the severity and probabilityof occurrence. Preventive or remedial action is taken as necessary.«

Gerald Breyer | Human Rights Commissioner, Germany

Our compliance reporting
Our annual compliance report mainly provides information on
the compliance organization and issues specific to the compliancemanagement system. The report on internal investigations pre­sents the internal investigations conducted during the year. Bothreports are prepared for the executive board, division heads, andthe management board of Evonik Operations GmbH. They arealso made available to the supervisory board’s audit committee.
Furthermore, the audit committee and executive board are
informed of relevant risks and developments—insofar as isdeemed necessary in individual cases—both during the year andon an ad-hoc basis in urgent cases. This applies to all material
risks and violations of regulations that are of overriding significance for the Evonik Group.
2-16
Moreover, we have introduced half-yearly reports on internal
investigations, training, key activities, and risks. These are
addressed to the divisions, the management board of Evonik
Operations GmbH, and the regions. This target group also

Responsible management/human rights

receives ad-hoc notification of material risks and breaches ofregulations where appropriate. Furthermore, we communicate
relevant risks and issues to other line managers.
Transparent presentation of our activities to protect human rights
is very important to Evonik. For many years, we have provided
relevant information in our non-financial statement, our sustainability report, and the sustainability section of our website. Ourannual statements on the UK Modern Slavery Act and theCalifornia Transparency in Supply Chains Act are also publishedon our website. More . They contain information on the action
we take to prevent modern slavery.

Continuous improvement of the compliancemanagement system
Moreover, every organizational unit in the House of Compliancemust regularly check the appropriateness and effectiveness of its
compliance management system. In addition, regular reviews are
performed by Group Audit.

120 Governance and compliance

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Human rights compliance risk analysis

The annual group-wide risk analysis in the area of human rights
covers both Evonik’s own area of business and direct and indirect
suppliers. The risks of breaches relating to protected legal
positions are identified and prioritized. Risks are identified via atask management tool using a standardized questionnaire. Morethan 350 employees group-wide were sent this questionnairein the reporting period. We identified this target group as
employees with information on protected human rights positions.
The questionnaire is followed up by risk-based interviews andworkshops, where the risks identified are examined in moredetail and appropriate mitigation measures are defined. As thenext steps, the measures are implemented and updated,and effectiveness checks are defined. The entire process is
documented in the IT tool.
This is supplemented by the identification and evaluation of therisks at direct suppliers by the Procurement function as part ofthe ongoing supplier-specific risk management process. The
abstract human rights risk relating to the supplier is determinedwith the aid of the EcoVadis predictive risk tool. In the next step,
a possible specific risk is determined via EcoVadis assessments
and other tools, for example, by using digital platforms to screen
business partners. Building on this, preventive measures such ascorrective action plans and training are put in place to avoid
specific risks. If actual breaches of human rights are identified in
audits, via whistleblowers or via external sources, action is taken
to end such breaches by the suppliers. The task management toolis also used to document this process and monitor its effectiveness.

The risk analysis enables us to gain a good overview and a moredetailed basic understanding of the relevant risks. Overall,
Evonik’s risk profile is in line with expectations for a global
specialty chemicals corporation. The gross risks identified andprioritized can be brought to a reasonable, manageable net level
through suitable measures, including standards and processes, sothat the statutory requirements, especially those of the German
Act on Corporate Due Diligence Obligations in Supply Chains(LkSG), are met.
In the human rights risk analysis in the reporting period, we
focused on compiling systematic, group-wide information on risk
topics at direct suppliers and those indirect suppliers identified in
the previous year. This was additional to the ongoing supplierspecific risk management of direct suppliers. We will successively
include other potential risk areas further along the supply chain.
Within the supply chain, the following priority issues wereidentified for further examination and, where necessary, thedevelopment and implementation of additional measures:• Metallic and mineral raw materials due to the very highhuman rights risks, particularly at the extraction stage, but also
in the processing of these materials• Renewable raw materials due to the very high human rights
risks, especially in the production of certain raw materials• Services due to the high human rights risks to employees,
especially those arising in connection with low-skilled and/or
low-wage work and the use of sub-contractors• Logistics due to the high to very high human rights risks ofcertain shipping modes such as ocean freight and transportation of goods by road

Business partner assessments at Evonik
Various departments are involved in different aspects of business
partner assessments at Evonik. To leverage synergies, avoid
duplication of work, and create transparency, a standing committee has been set up. The members are Group Compliance (Antitrust, Compliance, Foreign Trade, Human Rights), Procurement,
Marketing & Sales Excellence, and Group Security. Together
with an external provider, these functions have established an
IT-based process to validate the integrity of business partners. To
supplement their internal assessments, this enables the relevant
departments to request integrity checks and to initiate andmonitor any necessary action. If any of the findings are of potential relevance, the respective departments are automaticallyrequested to evaluate them. This IT solution also facilitates interdisciplinary communication, collaboration, and documentation.
2-24, 2-25

Compliance rules for business partners
Evonik has issued a special code of conduct for suppliers, whichsets out binding requirements p. 129. Intermediaries, above all
sales intermediaries, are subject to a compliance check before theestablishment of the business relationship and normally every
five years thereafter. They also have to sign a compliance declaration. Risk-based compliance checks (due diligence) and anynecessary measures are also applied to business partners involvedin acquisitions, joint ventures, corporate venture projects, andmajor investment projects. These are based on uniform rules for
the Evonik Group.
2-24, 2-26

C35

121 Governance and compliance

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Responsible management/human rights

Business partner assessment at Evonik

C35

2-25

1. Business partners• Defined by the relevant departments• Basically, all types of business partners

5. Measures & monitoring• By departments, e.g.,– Measures to raise awareness– Monitoring– Notification of authorities– Termination of business relationship– Blacklisting of business partners
as a result of non-compliant conduct• Legally secure documentation

2. Initiators• Abstract criteria definedby the relevant departments• External drivers, e.g.,laws and standards• Internal drivers, e.g.,
Evonik’s internal regulations

4. Evaluation

3. Screening and pre-evaluation• Evaluation of findings by departments
based on pre-defined criteria• By an external provider• Uniform traffic light system• Involvement of other departments
via a workflow-based IT solution

Evonik’s whistleblower system
Evonik has set up various channels for people to report actual andpossible compliance violations.
• An electronic whistleblower system operated by an independent external provider with data protection certification,
whose servers are based exclusively in Germany, is available
worldwide 24/7 via the intranet and via Evonik’s internet site.
In keeping with Evonik’s global presence, this system is available in more than 20 languages. This system can be used by
Evonik employees, agency staff working for Evonik, business• Various levels, e.g.,– Database searches, sanctions, andwatch lists– Media & internet– Corporate structure andultimate beneficial owner– On-site verification

partners—for example, suppliers, service providers, customers,
and their employees—and other external stakeholders, such as
local residents in the vicinity of our sites and NGOs, to report
actual or potential non-compliance. The system is certified asconforming with European data protection legislation.
Technical security measures mean that neither Evonik nor theprovider can draw conclusions about the identity of thewhistleblower if they prefer to submit their report anonymously. In addition, whistleblowers can set up a “postbox” inthe system, which they can use to communicate continuously,
confidentially, and, if required, anonymously, with the casemanagers at Evonik.

• Additionally, Evonik employees and agency staff working for
Evonik can contact the internal compliance officers personallyor by phone.
• Employees and external stakeholders can submit reports byemail to compliance-officer@evonik.com.
Evonik falls within the scope of the German legislation on theprotection of whistleblowers (HinSchG), which transposes EU
directive 2019/1937 into national law. In addition to the issues
and legal positions defined in these two regulations, reports canbe filed on all important compliance issues, including cases ofsuspected breaches of human rights, corruption, and blackmail.
Reports submitted via the electronic whistleblower system areautomatically routed to the relevant units at Evonik. Our
employees are made aware of the various reporting channels via
information in the intranet and in recurrent compliance training
sessions and can access them with a few clicks.
Specially trained staff in the departments at Evonik responsible
for the specific issues reported take up all allegations immediately
and investigate them internally. Our code of conduct states that
Evonik does not tolerate any disadvantage to persons who reportpossible or actual violations in good faith or who cooperate in theinvestigation of such violations. Consequently, the identity ofsuch persons may only be disclosed on a need-to-know basis tothose employees who legitimately require this confidential
information for the purpose of internal investigations. Possible
conflicts of interest in the conduct of internal investigations anddecisions on remedial and follow-up measures must be disclosed
so that they can be eliminated in order to ensure impartiality.
Evonik and its investigating employees are obligated and empowered to process all such reports in accordance with the principles
of independence, impartiality, due diligence, and confidentiality
without being subject to directions on how to act. They are122 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsible management/human rights

required to maintain secrecy. In the interests of a fair process, allrelevant circumstances must be taken into account and theprinciple of proportionality must be observed.

corporate due diligence obligations. These are applied on arisk-related basis in relationships with suppliers and otherbusiness partners.

plan to implement any measures. Initial preparations were madefor the reports to be submitted to the Federal Office for Economic Affairs and Export Control (BAFA) under this legislation.

Evonik endeavors to ensure comparable protection of external
whistleblowers. To this end, we have set out corresponding
expectations, for example, in our code of conduct for suppliers.

We implemented the human rights training concept for our own
business area developed in the previous year. Employees who arein a position to identify or could even commit a breach of humanrights because of their field of work are required to take amandatory e-learning module, followed by a mandatory face-toface training course. In addition, the e-learning module is open to
all other employees on a voluntary basis. It is available in
13 languages, so about 96 percent of the employees subject tomandatory training can complete the module in their mothertongue. In 2023, we developed a concept for face-to-face training in human rights with external support. The focal areas are
dealing with human rights dilemmas and the application of theprinciples in day-to-day work situations. By year-end 2023,
11 face-to-face training sessions had been held in Germany. A
train-the-trainer concept has also been developed on the basis of
the face-to-face sessions. This is used to train regional
compliance officers and empower them to conduct face-to-facehuman rights training sessions in their region.

In the reporting period, we rolled out the mandatory e-learning
module on fighting corruption for the “low-risk” group in ten
further languages. We also revised the mandatory e-learning
module on fighting corruption and the code of conduct for the“high-risk” group and made it available in 12 languages.

2-25, 2-26

Responsible management/human rights: progress in 2023
Evonik is subject to the German Act on Corporate Due Diligence
Obligations in Supply Chains (LkSG). In January 2023, KPMG
conducted a readiness check and confirmed that Evonik met all
requirements of this legislation, taking into account thereasonable timeframe for implementation. In the reporting
period, we met further due diligence requirements andestablished and developed additional elements of a compliancemanagement system.
The group-wide annual risk analysis in the area of human rights
is outlined in the sections “Principle of prevention” p. 117 and“Human rights compliance risk analysis”
p. 120. Our policy
statement on human rights was updated on the basis of the findings of this risk analysis and the identified priority risks.
We have developed processes to review human rights andenvironment-related risks in connection with our collaboration
with business partners. These extend beyond our suppliers andare integrated into our decisions. This applies, in particular, to
M&A and investment projects, as well as to the use of externalintermediaries. In addition, the contractual compliance clauses
and general terms of business were revised to take account of the

1 SEAANZ: South East Asia, Australia, and New Zealand.

The management of the companies subject to the German Act on
Corporate Due Diligence Obligations in Supply Chains—Evonik
Industries AG and Evonik Operations GmbH—obtain regular
information, at least once a year, on the status and developmentof the activities to comply with the human rights due diligenceobligations. This is ensured through appropriate processes forstandard and ad-hoc reporting. In addition, Procurement andother relevant organizational units are informed of the results andconsequences of the risk analysis, especially in order to define a

To meet the requirements of the benefits policy issued in 2022
and various local legal requirements, the North America region
completely revised and rolled out the regional version of thispolicy. The EMEA region and the Greater China and SEAANZ 1
cluster completely revised their regional policies. Implementationis scheduled for 2024.
Furthermore, the processes contained in the policy onintermediaries were redesigned in consultation with Procurement and Marketing & Sales Excellence to meet the heightenedcompliance requirements, including the human rights aspects. In
this context, special attention was paid to consultants and service
providers involved in the sale of Evonik products and those who
maintain contact with public authorities in countries where there
is a particular risk of corruption.
In the area of anti-money laundering, we implemented theformal legal requirements, especially registering those groupcompanies in Germany that fall within the scope of this requirement with the Financial Intelligence Unit (FIU). As a further
measure to prevent payment fraud, we ran an internal awarenesscampaign in the group-wide intranet.

123 Governance and compliance

T28

EVONIK SUSTAINABILITY REPORT 2023

Responsible management/human rights

In 2023, we aligned the (anonymous) whistleblower system withthe requirements of the German whistleblower and supply chain
due diligence legislation, drafted a group-wide policy on initiating and conducting internal investigations, which was adopted by
the executive board, and issued group-wide standards, forexample, on the conduct of compliance interviews.

Fines and other sanctions
In 2023, the annual compliance reporting comprised a structured
survey to identify significant fines (>€100,000) and nonmonetary sanctions resulting from failure to comply with laws or
regulations. The survey covered all areas included in the Houseof Compliance, plus Group Security, ESHQ 1, and IT security. No
fines or sanctions were imposed in the reporting period.
2-27
Legal proceedings resulting from anti-competitive conduct
or the formation of cartels and monopolies
There were no pending antitrust proceedings in 2023.
206-1
Training
For the compliance areas antitrust law, anti-money laundering,fighting corruption, code of conduct, and human rights, wereport a training rate for 2023. This is defined as the number oftraining candidates with a valid certificate relative to the total
number of training candidates. The data refer to both face-toface training and e-learning sessions.
The chief compliance officer reports to the executive board quarterly on the present status of compliance, including on fighting
corruption.
205-1, 205-2

Compliance training and training rate 2023 a

2-24

Anti-money laundering

T28
Antitrust law

Fighting corruption b

Code of conduct c

Training
candidates,
total

Trainingrate
in %Training
candidates,
total

Trainingrate
in %Training
candidates,
total

Trainingrate
in %Training
candidates,
total

Trainingrate
in %Training
candidates,
total

Trainingrate
in %Worldwide

5,027

98

4,660

89

14,13486

31,333

92

1,571

90

Management functions

2,437

98

3,211

88

9,081

87

9,471

91

1,319

90

Executives  d

36

100

108

93

158

96

158

97

96

90

Senior management e

100

100

329

89

481

90

481

90

242

93

Other management levelsfNon-management functions

2,301

98

2,774

87

8,442

86

8,832

91

981

90

2,590

98

1,449

93

5,053

83

21,862

92

252

89

4

100

152

93

3,600

86

13,558

90

170

96

Job functions
Production & Technology
Innovation management

1

0

675

91

1,731

89

4,624

96

71

94

Marketing & Sales

1,693

98

1,518

86

1,627

88

1,724

89

2

100

Administrative functions

3,330

98

2,315

91

7,176

84

10,300

93

1,328

89

0

0

0

0

0

0

1,127

84

0

0

Other

g

Regions
Asia-Pacific

1,211

99

1,164

94

2,330

89

3,759

95

236

90

Central & South America

304

94

185

81

414

71

781

82

59

69

Europe, Middle East & Africa

446

97

378

61

954

91

2,714

88

113

86

North America

847

94

793

82

2,284

79

4,985

86

222

79

2,219

99

2,140

95

8,152

86

19,094

94

941

95

Germanya	
The training rate is defined as the number of training candidates with a valid certificate relative to the total number of training candidates as of December 31, 2023.

All training reported in the system is included.

b We do not explicitly provide the disclosures on the training of business partners required by GRI 205-2.
c

We do not explicitly provide the disclosures on the number of hours of human rights training required by GRI 412-2.

d	Executives = executive functions, i.e., top management functions in the Evonik Group.

e Senior management = senior management functions, i.e., key functions in the segments, regions, service units, and corporate divisions.
fOther management levels = further management functions.

g Other = apprentices, non-permanent staff.

1

Including failure to comply with environmental laws and regulations.

Human rights

C3

C3

C3

124 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsible management/human rights

Internal investigations into compliance violations
In the reporting period, the departments responsible for conducting investigations reported 126 alleged compliance violations.
Chart C36 shows their distribution between the investigating
departments.
As a result of these allegations, 110 internal investigations ofsuspected compliance violations were reported to us. In addition,
there were 82 cases of payment fraud in the reporting period.
These were handled by the Antitrust Law & Investigations unit
through an interdisciplinary payment fraud task force, which
includes representatives of other functions.
Reports of suspected compliance violations

C36

Internal investigations reported

Action taken 1

C37

Total 110

Total 126
2
1

Human rights

8844

Foreign trade and customs law

3

5

10

Taxes

0

2
33

2022

20

30

40

14

25

23

0

2022

2023
1

20

8

Other

4
3
10

7

5

12
13

0

3

Criminal charges

16

23

6

Termination of contractual
business relationship, including
blacklisting, where appropriate

1
0

50
2023

2
1

Redeployment

Training/awareness-raising

10

ESHQ
10

38

0
0

Group security

4
3
0

3

15

5

10

HR compliance1213Group security

12
11

Warning or reprimand
30

Taxes

21

10

Compliance

Data protection

14

HR compliance

ESHQ

50

Capital market law

Data protection

Termination of
employment contract
7

Foreign trade and customs law

00Capital market law

01

Antitrust law

Compliance

C38

Total 86

Human rights

Antitrust law

2023

Based on the investigations concluded by year-end, 86 measures
were taken. The breakdown was as follows: 12 employees weredismissed and a further 15 received a warning or reprimand.
Three contractual relationships were terminated, and thecontracting parties were blacklisted. Special training and otherawareness-raising measures were taken in 23 cases. In addition,
33 case-specific measures were implemented.
2-16, 2-27

Confirmed incidents of corruption and action taken
Eight alleged cases of corruption were investigated in the reporting period. Six of the eight cases of corruption involved kick-backscenarios, where there was a suspicion that Evonik business
partners had made payments to individual employees to givethem preferential treatment when selecting suppliers or to obtainoffers of Evonik products at preferential prices. Following athorough investigation, no evidence was found of such conduct
in any of these cases. In one case in the USA, a procurement
employee had accepted critical invitations. The employee and his
supervisor received further training. For the first time in many

Two reports of breaches of human rights did not lead to an
investigation. One of these reports did not have any meaningfulcontent, and the other related to employment law.

30

40

10

20

40
30

2022

Excluding action taken with regard to suspected cases of payment fraud andcybersecurity incidents.

40

125 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Cybersecurity

years, there was a significant drop in the number of alleged casesof corruption in China (from six in 2022 to one in 2023). By
contrast, there was a significant increase in the number of casesin North America and EMEA.
205-3

Cybersecurity
Evonik regards cybersecurity and information security as vital
preconditions for successful digitalization. The challenges incyberspace are increasing exponentially. This is attributable tothe further professionalization of cyber blackmail, the serious
effects of ransomware attacks, the increasing diversity of malware programs and their mutations, and critical weaknesses inwidely used software products. The growing importance of this
topic is confirmed by our materiality analysis: Cybersecurity was
ranked as a material topic. To heighten cybersecurity, we arefocusing on the risks of a loss of intellectual property, combinedwith a loss of business, inadequate observance of regulatory andcompliance requirements, and inadequate robustness of critical
IT and operational technology systems. We are also focusing on
inadequate technical equipment and speed in order to keep pacewith digital business projects, risks for third parties such as theloss of customer data, reputational risks, and emerging
technological risks.
Cybersecurity affects IT throughout the Evonik Group, including
both office systems and IT for operational technology (OT). The
chief financial officer (CFO) bears overall responsibility forcybersecurity. The chief information officer (CIO), who reports
directly to the CFO, is responsible for cybersecurity atoperational level. The CIO and chief IT security officer (CISO)

report regularly to the CFO on the related tasks and risks, as wellas the appropriateness and efficacy of the IT security management system. Our IT security organization includes a central
cybersecurity operation center, which protects Evonik’s digitalterritory and brings together the important operational IT
security functions. The cybersecurity operation center includes
the cyber defense team, which is based in Germany and is
responsible for identifying and dealing with IT security incidents.

ALL EVONIK LOCATIONS WITH
>10 IT EMPLOYEESARE CERTIFIED AS COMPLIANT
WITH DIN ISO 27001

Evonik’s cybersecurity framework comprises a binding groupfunctional policy, group-wide standards, and standard operatingprocedures for IT and OT. To protect its information and IT
systems, Evonik uses international security management systems.
These include ISO/IEC 27001—our central IT organization wascertified as compliant with this standard for the first time in2020—and IEC 62443 for OT. All Evonik locations with morethan ten IT employees are certified as compliant withDIN ISO 27001.
There is a binding technical document containing supplementary
information security rules for OT. This describes the OT security
management system, including the roles in the OT security

organization. We use a global network of experts and partners tocounter cyberattacks. In addition, we are a member of various
professional cybersecurity associations and working groups.
Evonik has insurance to cover business interruption andconsequential damages resulting from cyberattacks.
We continuously review our extensive security measures toprevent attacks by third parties and invest in technical andorganizational measures to identify and ward off such attacks.
One example is our cybersecurity enforcement program, whichclassifies our employees in cyberattack protection (CAP) groups.
The higher the CAP classification, the greater the level ofprotection required. More stringent security measures apply toparticularly high-risk employees and applications, especially withregard to information requiring special protection, for example,
information affecting Evonik’s competitiveness or accessto critical IT infrastructure. For risk-based checking andimprovement of the security of IT systems, we carry out regular
penetration tests and IT security audits.
We drive forward and monitor the implementation of our
security measures for the operation and use of IT with the aid of
an internal management system. In this way, we keep a constanteye on the present threats and align our security measures tothem. Our cybersecurity performance is measured and evaluatedby the external rating agencies BitSight and CyberVadis using
their own parameters. Evonik’s current rating positions it in the
top third of the manufacturing industry peer group. Evonikincreasingly uses digital networking in its collaboration with
suppliers, partners, and customers and develops special cyber­security measures for this purpose.

126 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Cybersecurity

Increasingly, our production plants are networked with eachother. Originally designed as stand-alone solutions in many cases,
they are increasingly being connected to the Office network andthe internet. To mitigate the associated cyber risks, we constantly
adapt the protection level for our plants by implementing our
EMPOS program (Evonik Management Platform for OT
Security). We use our Cyber Security Resilience Program—
known as CRISP for short—to protect the Evonik Group against
increasingly aggressive, state-motivated cyberattacks. In thereporting period, a hiring freeze was introduced as aconsequence of the business situation in the chemical industry.
This affected the planned timeline for the implementation of the
EMPOS and CRISP programs.
We regularly train our employees and use posters, training
modules, video formats and interactive events, such as the Evoniklearning sessions, to heighten awareness. Participation in cybersecurity training sessions was 95 percent in the reporting period.
We also continued our phishing test initiatives: eight tests wereconducted in 2023. In the reporting period, 66 system administrators took online training modules, which are designed to further enhance the risk awareness of this mission-critical group of
employees. Timely information on current threats is posted on
the intranet and via an app for mobile devices. In the reporting
period, Evonik was presented with the Outstanding Security
Award (OSPA) for the best cyber awareness program.

Green Data Center
We have been systematically optimizing the energy performanceof our computer centers since 2021. This includes an agreementwith the provider of our central computer services on exclusive

Our annual Cyber Security Month features internal and external lectures,training sessions, and elements like games and competitions. For the fourthtime, we have held this format as a way to reinforce the awareness of thisimportant and dynamic topic to complement our current awarenessmeasures.«

Juliana Bornato | Cyber Security Awareness Lead, Germany

use of green power. In the selection of cloud providers, Evonikalso makes sure that they have set CO2 avoidance targets.

Management of data protection

Protection of personal data is one of the principles used by
Evonik to shape its relationship with employees, job applicants,
customers, suppliers, other business partners, prospects, andother people affected. Therefore, handling personal data
conscientiously is important to us. One focus of our activities in
the reporting period was ongoing progress in aligninginternational data transfer with the legal requirements. Targetgroup-specific data protection training is mandatory and is basedon a defined training plan. All employees worldwide who have acompany email address were sent a one-pager outlining particularly important basic rules on handling personal data. The training rate was around 81 percent in 2023.

Cybersecurity

All employees have access to information on the relevant requirements and responsibilities via the intranet. The organization ofdata protection and rules on reliable processing of personal data,
including customer data, are set out, among other things, in thecompliance policy and the group-wide data protection policy.
Our data protection management supports compliance with theregulations and assists the organizational units in implementing
them. It also monitors the correct use of data processing. Data
protection incidents are dealt with in accordance with thestatutory and in-house documentation, information, and reporting obligations. In the reporting period, Evonik received one
complaint relating to the loss of data or violation of data protection rules in connection with customer data.
418-1
Based on a readiness check performed on the compliancemanagement system on the basis of standard IDW PS 980 in
2022, the policy landscape in the area of data protection wasrestructured and extended in the reporting period.

C3

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Cybersecurity

Tax 1

The payment of taxes is a central link between legislators, states,
local authorities, and companies. We affirm our responsibility to
stakeholders in the countries where we operate. As well as credibility and transparency in all tax matters, this includes levying
taxes correctly and timely and the complete payment of taxes. In
2023, for example, Evonik paid income taxes worldwide totaling€292 million and received reimbursements of previous tax
payments totaling €60 million.
In our code of conduct, the executive board has defined principles
for tax strategy. These are published on our website.
More. The values set out in the code of conduct explicitly
include observing laws and regulations on taxation. In its worldwide operations, Evonik and its employees are required toobserve the applicable national tax law at all times. In view of thediversity of local tax laws, Evonik has issued internal regulations
to standardize cross-border issues. There are mandatory where
local tax laws are less stringent.
Tax planning at Evonik is based exclusively on economic principles
using Evonik’s business model and corporate values. We rejectaggressive tax strategies geared exclusively toward tax avoidance.
Evonik strives for a high level of transparency and a stable legal
basis in tax matters. In accordance with the applicable national
provisions, we make all relevant facts and circumstances trans-

1parent. We communicate openly and constructively with public
institutions, local fiscal authorities, and financial statement andtax auditors. Where necessary, we also defend Evonik’s tax
position by utilizing the legal scope and weighing up non-tax
aspects. In addition, Evonik plays its part in the development oftax legislation and administrative instructions, as well as in theacademic debate on aspects of tax policy.

Evonik’s tax compliance management system is based on threebasic elements: the Group Organizational Policy Taxes, risk
control matrices, and process documentation C39. These elements
are reviewed annually to check that they are up-to-date andwhether modifications are needed.
Elements of our tax compliance management system

Risk management and tax compliance
Evonik has a decentralized group-wide risk management system( p. 114), which includes effective and appropriate managementof tax risks. This provides for systematic identification, analysis,
evaluation, monitoring, and minimization of tax risks as well as
communication of the risks.
The Tax department is one of the units assigned to our House ofCompliance, which is responsible for setting minimum groupwide standards for compliance management systems. Uniform,
binding group-wide rules have therefore been issued for tax
compliance. In the interests of tax compliance, the Evonik Group
gives top priority to prompt and full settlement of all tax liabilities
in accordance with the applicable laws, directives, contracts, andlegal judgments. Other tax compliance objectives are optimizing
and steadily extending the internal tax control system and avoiding tax risks. Information on the violation of tax complianceobligations can be reported anonymously via a whistleblower
hotline run by a third party p. 121.

C39.

Risk
control matrices

Process documentation& flow charts

Group Organizational Policy Taxes

The Group Organizational Policy Taxes sets out the fundamental
responsibilities for the fulfillment of our tax obligations, together
with the associated tasks, accountability, authorizations, andguidelines. It defines how those involved work together in order tomeet Evonik’s obligations and allocates tasks and responsibilities.

Voluntary reporting in accordance with GRI Standard 207: Tax 2019, because taxation was not identified as a material topic in the 2022 materiality analysis. This section refers to the disclosures

207-1, 207-2, 207-3

C4128 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsibility within the supply chain

Typical risk mitigation measures include process documentation
and are defined and documented by the Tax department. The
processes are mandatory for employees of the Tax department.
For other departments, the processes are by nature descriptive
and may be supported by further instructions within the Taxes
function’s scope to issue policies.

Examples of risk-mitigating measures for tax complianceGroup-widestandards

Checklists& randomchecks

Review &doublechecking

Operatingprocedures

Riskmitigating
measures

Policies,
handbooks &processes

1

Digitalization,interfaces intax software

Accounting
ICS
Test software& online
controls

C40

Training
concepts

Annual procurement volume > € 100 thousand.

The risk control matrices map possible scenarios for incorrect tax
assessment of tax-related topics that could occur at Evonik. On
the basis of risk identification and evaluation in the risk control
matrices, risk mitigation measures are derived and defined C40.
In light of the increasing digitalization of fiscal authorities aroundthe world, Evonik is currently building up the necessary digitalknow-how and corresponding IT solutions. We have developed
a digital agenda and installed corresponding software solutions
for our tax compliance management system to enable monitoringof defined principles, measures, and controls. Furthermore, fortax purposes, online controls have been introduced to optimize
business processes and identify structural errors.

Responsibility within the
supply chain
Strategy and management

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 andenvironmental violations. We strive to counter a lack of trans­parency and inadequate traceability in the supply chain.
2-6
By selecting suppliers carefully, we do not simply secure andincrease their sustainability standards, we also enhance thequality of the entire value chain. Our focus is on validating andevaluating suppliers. Suppliers of certain critical raw materials are
subject to a special examination. We define critical raw materials

as all raw materials that could potentially involve a supply risk or
reputational risk, such as conflict minerals and renewable raw
materials. We have established specific procurement strategies
for these critical raw materials. The processes are integrated intoa management system, where they are mapped. As well as
monitoring suppliers of critical raw materials, we aim to examine
all major raw material suppliers 1 from sustainability perspectives
through Together for Sustainability (TfS) assessments by 2025.
At year-end 2023, we had validated around 66.7 percent of thisgroup using the corresponding criteria.
Continuous dialogue with our suppliers is very important for us.
In addition to direct contact with Evonik’s procurement
organization, employees at supplier companies always have theoption of reporting any issues or problems to our externallyoperated whistleblower hotline p. 121. All cases are examined
promptly so that appropriate action can be taken. In 2023, noissues relating to our suppliers were reported to us.
The aim of our procurement organization is to guarantee longterm reliability of supply for the production of Evonik products
and to secure competitive advantages for our operating
businesses. Alongside economic requirements, our procurement
strategy takes account of criteria such as health, quality, safety,social factors, and environmental protection. As a member of the
UN Global Compact, we are committed to its principles. These
requirements are documented in our code of conduct for
suppliers, which is based on our corporate values, the principlesof the UN Global Compact, the International Labor Standards
issued by the International Labour Organization (ILO), and the
topics addressed by the Responsible Care® initiative (“Voluntary

C4

129 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsibility within the supply chaincommitments” p. 111). The code of conduct for suppliers was
updated in the reporting period to give greater prominence to theimportance of observance of human rights by direct and indirect
suppliers and to draw attention to the risks and consequences offailure to comply.
Procurement is organized globally at Evonik and comprises direct
procurement (raw materials, logistics, and packaging) andindirect procurement (general and technical goods and services).
Both are subdivided into strategic and operational procurement
activities. Global procurement is managed from Germany,with the support of regional units in Asia and North and SouthAmerica C41.
The validation and evaluation of our suppliers are an integral partof sustainable supply chain management at Evonik. The validationof new suppliers includes checking that they meet the requirements of our code of conduct for suppliers. In our evaluation of
Evonik’s procurement organization

C41

Executive Board
Head of Procurement
Global &Western Europe,
Eastern Europe,
Middle East & Africa

North America,
Central &South America

Direct procurement

Asia-Pacific

In procurement, our commitment to sustainable procurement and business
relationships based on partnership have top priority. This includes criteriasuch as health, quality, safety, social affairs, and environmental protection.
Therefore, it is very important to thoroughly review our supply chains andidentify potential risks at an early stage.«

Jane Zhang | Manager Procurement Strategy, China

suppliers, special attention is paid to our strategic suppliers andsuppliers of strategic raw materials. Strategic suppliers and raw
materials are defined as those identified by the operational units
as being of high significance for our business performance. Thesemay be key raw materials or single-source situations. We work
systematically both to extend strategic relationships with suppliers and to validate new suppliers. To supplement our code of
conduct for suppliers, our approach includes self-assessments,
audits, and validation of suppliers through the Together for
Sustainability (TfS) initiative.
In 2023, we sourced raw materials and supplies, technical goods,
services, energy, and other operating supplies with a total value of€11.3 billion (2022: €13.6 billion) from around 34,000 suppliers.
Local sourcing accounted for about 75 percent of this amount 1(2022: 76 percent). Raw materials and supplies accounted for

Indirect procurement1

For us, local sourcing means deliberate procurement from sources that are geographically close to our production sites.

Responsibility within the supply chain

47 percent of procurement volume (2022: 53 percent). Spendingon petrochemical feedstocks was around €3.4 billion andaccounted for 65 percent of our raw material base.
204-1

Together for Sustainability (TfS)

Harmonizing global standards in the supply chain creates transparency and makes it easier for both suppliers and customers toreliably assess and evaluate sustainability performance. The
chemical industry set up the TfS initiative for this purpose in
2011. Evonik is one of the six founding members. More. The
aim of TfS is the joint development and implementation of a
global assessment and audit program for responsible procurement of goods and services. It also provides webinars and training on sustainability. In this way, the initiative does not simply
make environmental and social standards in supply chainsmeasurable; it also contributes to a direct improvement.

C4

130 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsibility within the supply chain

Active involvement in TfS is important to us. Our employees are
represented on TfS workstreams in Germany, North and SouthAmerica, and Asia. Moreover, Evonik plays a leading role bychairing or co-chairing TfS workstreams. Sharing knowledge ofsustainability criteria with suppliers is a key aspect of TfS.
Through the TfS Academy, we therefore invited our suppliers toparticipate in the corresponding TfS and EcoVadis  1 webinars in
2023. This new learning platform is used to provide specificinformation and for the training and development of both suppliers and Evonik’s procurement organization. In all, the training
rate for sustainability-related procurement training programs is>99 percent.
As a member of the TfS initiative, we are also subject to TfS
assessments. In 2023, for the seventh time, the EcoVadis rating
agency awarded us a status of at least gold. This places us among
the top 5 percent of the companies evaluated by EcoVadis in boththe chemical industry and in other sectors.
Worldwide, the TfS member companies initiated 492 audits and1,296 assessments in 2023.2 Evonik initiated 17 of these audits
and 91 of the assessments. About 80 percent of our direct andover 70 percent of our indirect procurement volume was coveredby TfS assessments.

Validation and evaluation of suppliers

We expect our suppliers to share our principles and act correctlyin all respects, which means accepting responsibility towards
their employees, business partners, society, and the environment.
In the interests of a fair and reciprocal understanding of business,
Evonik always endeavors to pay outstanding invoices by theagreed payment deadlines. Around 90 percent of invoices aresettled within 60 days. Validation is the first step in every new
supply relationship. For this purpose, we use a validation process
based on the values defined in our code of conduct for suppliers.
Alongside quality, environmental protection, safety, health, andenergy management, the assessment of potential risk factors
includes corruption prevention, cybersecurity, labor and social
standards (the right to freedom of association and collective

bargaining), human rights (compulsory, forced, or child labor),
conflict minerals, and responsibility within the supply chain. All
details are entered online and evaluated using a validation matrix.
The initial validation is a country-based process and does notinclude a separate review of the location of operations. The values and expectations set out in our code of conduct for suppliers
are communicated to all suppliers in our general terms andconditions of purchase. In 2023, we evaluated 1,440 new suppliers.
That was over 85.2 percent of new suppliers.
Successfully completed TfS assessments can also be used as
evidence of validation. Overall, suppliers are evaluated using amethod that identifies and quantifies risk factors as a basis forrisk mitigation. This safeguards the supply of raw materials andSupplier validation and evaluation
Before entering into abusiness relationshipSupplier
validation aC42During the business relationship

TfS audits

Supplier evaluation
Supplier development

TfS assessments a

TfS assessments

Risk evaluation

Evonik Code of Conduct for Suppliers

TfS process.

1

EcoVadis is the partner that performs the sustainability assessments for the TfS initiative.

Evonik process.

2 The results of the audits and assessments by EcoVadis and TfS were outside the scope of the auditor’s limited assurance engagement.

aAlternatives.

C4C4131 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Responsibility within the supply chain

technical goods to Evonik and enables us to gain access to new
procurement markets and suppliers. In the reporting period, TfS
assessments were performed on 116 new suppliers of raw
materials, technical goods, and services.

evaluated evidence and self-assessments on compliance with therelevant German legislation (the German Minimum Wage Act,
the German Employee Secondment Act, and the German
Ordinance on Craftsmen).

Chart C44 shows the sustainability performance of our suppliersin the various evaluation categories used by the EcoVadis
ratings 1. Taking all criteria together, around 68 percent of our
suppliers are within our target range of 45 to 100 points.

2-23, 308-1, 308-2, 407-1, 408-1, 409-1, 414-1, 414-2

We apply the same care to the evaluation of existing relationships
with suppliers. In addition to the annual evaluation of all significant supplier relationships, a more detailed review of strategic
suppliers is undertaken. On the basis of the findings, measures
are initiated as required C43. To minimize the risk to Evonik, aspart of our management of contractors, we obtained andWe have a clear and structured process for supplier audits,
including various escalation steps. If shortcomings are identified,
we expect our suppliers to implement corrective action plans
within a defined timeframe. If the shortcomings are particularly
serious and no improvement can be identified, we reserve theright to end our collaboration with the supplier.

Audit escalation process

C43

Sustainability performance of Evonik suppliers a

C44

in %

Supplier audits

No shortcomings

We focus particularly on the process of following up on audits
and assessments. In the reporting period, corrective action was
initiated with nine suppliers, where major or critical issues wereidentified during audits. In 13 cases, supplier assessments showedthat insufficient attention had been paid to sustainability aspects.
In these cases, as well, corrective action was initiated. 25 suppliers

Minor shortcomings

Major or critical shortcomings

Draw up a corrective action plan

Sustainableprocurement

3.1

Labor practices
and human rights

10.8

Ethics

49.5

28.7

46.7

31.2

10.8 0.6

45.6

31.8

6.8

0.2

18.4

15.4

0.4

Implement the corrective action plan within 12 months
Environment

No/minor shortcomings

3.0

21.9

53.8

0.5

Major/critical shortcomings a
Total

Audit valid for 36 months

Re-audit after 12 months

4.5

29.2

41.0

0.0
0 – 24 points

25 – 44 points

20

40

45 – 64 points

60
65 – 84 points

a No. of suppliers assessed: 4,091 as of December 31, 2023.

The results of the audits and assessments by EcoVadis and TfS were outside the scope of the auditor’s limited assurance engagement.

22.5

2.8

68.2

Target range(45 – 100 points)a If the shortcomings are particularly serious and no improvement can be identified, we reserve the right to end our collaboration with the supplier.

1

20.8

80

100

85 – 100 points

132 Governance and compliance

T29

EVONIK SUSTAINABILITY REPORT 2023

Responsibility within the supply chain

showed an improvement in the follow-up to the previous audit/
assessment. In particular, shortcomings in the implementation ofenvironmental measures and potential for improvement in
occupational safety were identified at suppliers audited by TfS.
None of the suppliers evaluated had significant negative impacts
on the environment or on social aspects. There were no cases of
discrimination or restriction of the freedom of association.
406-1, 407-1, 408-1, 409-1

In 2023, we evaluated 1,548 new suppliers. That comprised
audits, assessments, and supplier validations performed by TfS
and directly by Evonik.

Conflict minerals

The Dodd-Frank Act requires companies listed on the US stock
market to disclose whether or not their products containpotential conflict minerals. These are mineral raw materials fromthe Democratic Republic of Congo and its neighboring countries
that are often used to finance armed conflicts. In addition, humanrights are often violated in the production of conflict minerals.
Evonik is not listed on US stock exchanges and therefore has nolegal obligation to comply with the reporting requirements of the
US stock market regulator. Nevertheless, we believe we have a
responsibility to check the origin of such substances sourced
from established suppliers. The minerals checked include tin,tungsten, tantalum, gold, and cobalt. We continuously evaluate
whether further critical raw materials should be included. As aresult, mica was added in 2023. Furthermore, we require new
suppliers to provide evidence of origin in the validation process.
In 2023, we screened 1,440 new suppliers and did not identify
any use of conflict minerals.

1
2

Supplier validation, assessments, and audits, including corrective action

No. of new suppliers evaluatedaNo. of new and established suppliers evaluated a
No. of suppliers audited where a need for corrective action was identified	thereof suppliers where significant actual or potentiallynegative impacts were identified b (in %)thereof suppliers with whom corrective action plans were agreed (in %)	thereof suppliers where the supply relationship was terminatedas a result of the evaluation (in %)308-1, 308-2, 414-1, 414-2

T29
2022

2023

1,754

1,804

1,440

1,946

2,054

1,548

34

34

25

22

–

–

–

–

–

100

100

100

100

100

–

–

–

–

–

2019

2020

2021

2,049

2,055

2,192

2,272

26

a Based on environmental and social criteria.

b Zero percent environmental impacts, zero percent social impacts.

Responsibility within the supply chain: progress in2023

During the reporting period, we continued to improve theprocesses used to evaluate and validate suppliers. In particular,that included analyzing supplier risks in the context of humanrights requirements. In addition, we refined our monitoring of
raw material risks by examining regional and geopolitical dependencies in greater detail than before p. 133. Consequently, we
can now respond faster in volatile conditions. Following thevalidation of our SBTi targets, we extended our communication
with suppliers and drew attention to the high significance of
product carbon footprints for a sustainable business relationship.
We also established product carbon footprints in the procurement process as a possible criterion for decisions and integrated
them into decisions about awarding contracts. Moreover, we
openly inform our significant suppliers that we expect them totfs-initiative.com/how-we-do-it/scope-3-ghg-emissions
tfs-initiative.com/news/chemical-industry-to-partner-with-siemens-for-pilot-to-decarbonize-its-supply-chain

provide data on the carbon footprint of their products by the endof 2025 at the latest.
In keeping with our climate targets, we took the next major stepon the basis of the guideline on the uniform calculation of
product carbon footprints issued by the TfS initiative in October
2022. This involves pilot trials with a software solution to shareproduct carbon footprints, which could possibly be rolled out in
2024 1,2. Furthermore, we systematically analyze the reduction
targets of our significant raw material suppliers, for example, on
the basis of CDP or SBTi commitments. More than 84 percent of
our suppliers already have their own sustainability targets. We
have signed the first contractual agreements with suppliers on a
specific reduction in scope 3 emissions relating to the specific raw
material procured. For further aspects of the reduction in scope 3
emissions, see “The environment” p. 49.

133 Governance and compliance

EVONIK SUSTAINABILITY REPORT 2023

Our targets

In 2023, we implemented analyses and activities relating to theGerman Act on Corporate Due Diligence Obligations in Supply
Chains, based on the concept developed in 2022. Criticalsuppliers were identified and appropriate steps taken (see“Responsible corporate management and human rights” p. 111).
We extended our activities under our supplier diversity program.
The focus here is on the USA and indirect procurement.
Internally, we evaluate the quantities procured from “diversity
suppliers,” while we also identify further potential suppliers toincrease the proportion of such suppliers. We define “diversity
suppliers” as companies that are, for example, run by persons
who belong to a minority or classified within their industry as
small businesses.

Supply chain resilience in times of geopolitical change

As an overarching goal, our procurement strategy includes securing the availability of raw materials on the best possible terms.
Restrictions on the availability of starting products andintermediates in the short- or intermediate-term represent
potential risks. In addition to preparations to substitute suppliersin emergencies, we closely monitor the business situation of
selected suppliers of key raw materials in order to anticipate
bottlenecks and mitigate risks. At the same time, we identify thepossible impacts of present and potential crises and geopoliticalconflicts on Evonik’s supply situation and introduce timely andspecific mitigation measures where possible. We do this, forinstance, by weighting the country of origin of materials in ourrisk assessment and using scenario analyses to assess relevant
events. This procedure proved effective for the supply risks
resulting from the coronavirus pandemic and Russia’s invasion of
Ukraine and the related disruption. In this way, we were largely
able to maintain supply and avoid negative impacts despite
production stoppages and logistics constraints.

Our targets
Below is an overview of the targets set for our governance and compliance area of action.
Target attainment in 2023

Targets for 2024 and beyond

Governance

Governance

30 percent women at both the first and the second
management level below the executive board by
year-end 2024 (status at year-end 2023: 38.5 percent
at the first management level and 33.3 percent
at the second management level)

Compliance

Regular risk analyses on compliance aspects▯ Human rights in 2023
▯	Antitrust law, fighting corruption and preventionof money laundering by year-end 2024

Responsibility within the supply chain
100 percent of all raw materials suppliers whereannual procurement volume is >€100 thousand to
be covered by TfS assessments by year-end 2025
(status at year-end 2023: 66.7 percent)Target not achieved
Target partially achieved or target horizon extends beyond 2023Target
achieved

30 percent women at both the first and the second managementlevel below the executive board by year-end 2024

Compliance
Regular risk analyses of human rights, antitrust law, fighting
corruption, and anti-money laundering by year-end 2025

Identify antitrust risks using an IT-based compliancemanagement tool by year-end 2024

Responsibility within the supply chain
100 percent of all raw materials suppliers where annual
procurement volume is >€100 thousand to be covered by TfS
assessments by year-end 2025

134 Further elements of our sustainability management

134

Further elements of our sustainability management

135

Organization and management

136

Engaging with our stakeholders

138

Donations and sponsorship

138

Advocacy

140

Sustainability Focus Areas (SFAs)

140

Impact valuation

142

Basis of reporting 2-9, 2-12, 2-14, 2-23, 2-29, 3-2, 303-1, 306-1 2-2, 2-3, 2-4, 2-5, 2-7, 2-22, 3-1, 3-2, 302-1, 302-4, 303-1,
303-2, 303-3, 303-4, 303-5, 305-1, 305-2, 305-3, 305-4,
305-5, 305-6, 305-7, 306-1, 306-2, 306-3, 306-4, 306-5

142Consolidated sustainability indicators for the Evonik Group

146

Status of our sustainability targets for 2023

147

About this report

151

TCFD index

153

SDG index

154

GRI content index

162

SASB content index

164

Independent Practitioner’s Limited Assurance Report

166

Further information
 2-1

166

History of sustainability at Evonik

167

Principal locations

168

Ratings and indices, sustainability awards

169

List of tables and charts

170

List of abbreviations

171

Credits

EVONIK SUSTAINABILITY REPORT 2023

1: € 4.67

1

Every €1 value added by Evonikcreates a total of €4.67
added value for society 2, 3

1: 11.6 jobs

1

1 Evonik employee
secures an average of 11.6 jobs
in the value chain 2, 3

1: € 1.70

1Every €1 value added by Evonik
results in public revenue of €1.70 2, 3

1 Since the high inflation in 2022 is not yet adequately reflected in the statistics-based models used for the impact valuation, the calculationsfor 2023 contain some uncertainty. (2021: Every €1 value added by Evonik created €4.12 added value for society; one Evonik employee
secured 10.5 jobs; every €1 value added by Evonik resulted in public revenue of €1.90.)

2 Disclosures outside the scope of the auditor’s limited assurance engagement.
3 The total includes Evonik’s direct impact.

C45

C46

135 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Organization and management

Organization and management

The executive board bears overall responsibility for sustainability
and all climate-related aspects at Evonik. Direct responsibility is
assigned to the chief human resources officer. Responsibility forsustainability management is defined in a corporate policy. The
supervisory board also regularly addressed sustainability issues in2023 (see “Governance and compliance” p. 113).
2-9, 2-14

Sustainability governance structure at Evonik
Executive board: overall responsibility for sustainability
Chief human resources officer (CHRO):
responsible executive board member

CHRO

Sustainability council a
Steering and decision-making;
Ensures close collaboration
with the operating business

Stakeholder groups and their influence on Evonik

Sustainability circle
Includes functions and units
relevant to sustainability

a Since fall 2022, part of an extended executive board meeting.

Indirect influence

CEO

C45

In view of the increasing relevance of sustainability for the
management of the Evonik Group, ESG aspects are inte­
grated into our governance framework. Since 2022, oursustainability council has met at the executive board level,
chaired by the chairman of the executive board. To strengthen
the alignment with our businesses, alongside the executive
board, members include the heads of the divisions. The sustainability council is responsible for the management of sustainabilityrelated aspects and the associated decisions. Following approvalby the executive board, the measures are implemented by theoperational units in close consultation with the relevant
functions, for example, Strategy, Sustainability, Research,
Development & Innovation, and Procurement. The decisions
taken by the sustainability council are prepared by the sustain-

Direct influence

Further elements of oursustainability management

ability circle, which comprises representatives of the functions
and departments of relevance for sustainability. The sustainability
circle is chaired by the chief human resources officer, who is theexecutive board member responsible for sustainability. Aspects
discussed by the sustainability circle in the reporting period
included Next Generation Solutions, the EAGER project toreduce greenhouse gas emissions, and the preparations forreporting in accordance with the European Sustainability Reporting Standards (ESRS).
Moreover, Evonik integrated further sustainability aspects into
the long-term remuneration of the executive board and senior
executives from 2023 (see “Strategy and growth” p. 18).

C46

2-29

Customers
Employees

Shareholders

Legislators

Suppliers

Lenders

Authorities

Local residents

The business

Financial markets

Legislators

Scientific community

Contractors’ employees

Analysts/rating agencies

Politicians

Scientific community

Associations/trade unions

Non-governmental organizations

Competitors

Media
Future generations

C47

136 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Engaging with our stakeholders

Engaging with our stakeholders

We are convinced that only companies that act responsibly, enjoy
people’s trust, and are open to continuous improvement can be
successful. That includes listening very carefully to how we areperceived by our stakeholders. In this way, we want tostrengthen the trust of our most important stakeholders—for
example, customers, suppliers, and shareholders.
2-29.

Dialogue with our stakeholders is important to give us a better
understanding of different perspectives and regularly review ourown positions. It enhances our understanding of present andfuture societal challenges. In addition, we use our stakeholder
engagement to improve our insight into the impact of newmarket trends and developments on our business. That makes it
easier for us to identify possible opportunities and risks at an

early stage and position Evonik more resiliently. We use thefollowing criteria to define and prioritize our stakeholder groups:

C47

Chart C46 p. 135 shows the stakeholder groups of relevance for
Evonik and their influence on our company.

Stakeholder communication channels a
Personal
or remotediscussions

Customers
Suppliers, contractors,
business partners
Employees
Local residents,
general public
Investors and shareholders
Authorities, legislators,
regional andnational politiciansa Stakeholders with direct influence.

Townhallmeetings,
workplace/staff meetings

Open days,site visits

Whistleblower
system(compliance,
human rights)

Surveys

Sustainability
reportingEvonikwebsite,social media• Type of influence (direct, indirect)• Impact cluster (for example, business, financial market)• Characterization (for example, suppliers, employees,
customers).

In our extensive new materiality analysis in 2022, we reviewed
the stakeholder groups we had defined and added contractors’
employees, future generations, and trade unions. This was partly
in connection with the recommendations of the new GRI 3
Material Topics 2021. Our dialogue with stakeholders is a continuous process—both in the operating business and at grouplevel—and includes a wide range of topics and events. Chart C47
provides an overview of the main communication channels we
use for this.
Every year, our dialogue with stakeholders takes place through awide range of topics and events (“Stakeholder engagement2023” C48 p. 137). The insights gained are shared within thecompany. Our approach to engaging with our stakeholders
includes the involvement of the Evonik regions. In general, we
take care to achieve the widest possible coverage of operational,
political, social, and community perspectives. More .

C48

137 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Engaging with our stakeholders

Stakeholder engagement 2023
Stakeholder groups a

Customers

Mitarbeiter
Employees

Suppliers

Shareholders
Aktionäre

C48

2-12, 2-29, 3-1

Stakeholder groups a

Most important material topics b

Examples of stakeholder engagement• Portfolio transformation• Circular economy• Cybersecurity• Mitigating climate change• Product stewardship• Responsibility within the supply chain• Responsible management/human rights• Discussions with customers on topics such as- The sustainability agenda and eCO product series- Product carbon footprints/life cycle assessments- Sustainable recycling of polyurethane- Sustainability of siliconized films• Exchange with sustainability working groups
in various industry associations, e.g.,- Additive Technical Committee- UEIL d/ATIEL e on the development of productcarbon footprint methodology for lubricants• Portfolio transformation• Occupational and plant safety• Attractiveness as an employer• Health protection and promotion• Mitigating climate change• Employee satisfaction• Responsible management/human rights• Diversity and equal opportunity• Internal social media platforms (“communities”)• Evonik learning sessions on various subjects toshare experience internally• Workplace/staff meetings (“meet & greet”)• Regular dialogue with Evonik regions on various
sustainability topics• Training for procurement staff on CO2 incentives
to reduce scope 3 emissions• Portfolio transformation• Circular economy• Mitigating climate change• Responsibility within the supply chain• Responsible management/human rights• Dialogue with suppliers:- Renewable raw materials and bioacetone- Low carbon roadmap for bio-isopropanol• Workshops with suppliers:- Secondary silicon- Carbon footprint of sodium silicates• Green energy• Portfolio transformation• Circular economy• Occupational and plant safety• Cybersecurity• Mitigating climate change• Responsible management/human rights• Virtual shareholders’ meeting• Roadshows, conferences such as the Société
Générale ESG European Conference in Paris(France)• Site visits for RAG-Stiftung, e.g., Wesselingand Rheinfelden (Germany), Schörfling (Austria)

a Only includes stakeholder groups with a direct influence. | b Most important material topics for stakeholders from Evonik’s perspective C07

Legislators

Authorities

Local residents c

Lenders

Most important material topics b

Examples of stakeholder engagement• Green energy• Circular economy• Biodiversity• Cybersecurity• Mitigating climate change• Product stewardship• Responsibility within the supply chain• Responsible management/human rights• Diversity and equal opportunity• Water management• Dialogue with members of the European
Parliament• Dialogue with regional and national politiciansin Germany• Site visits by German and European politicians,
e.g., Marl and Hanau (Germany)• Occupational and plant safety• Health protection and promotion• Mitigating climate change• Product stewardship• Responsible management/human rights• Diversity and equal opportunity• Water management• Regular dialogue, e.g., with the environment
ministry in the federal state of Hesse on water
management and permits• Dialogue with authorities, e.g., on environmental
impacts in connection with permitting applications• Green energy• Occupational and plant safety• Attractiveness as an employer• Biodiversity• Mitigating climate change• Responsible management/human rights• Water management• Support for local projects and activities, e.g.,- Visit to the Hanau site by the not-for-profit
Leadership Network- Digital apprenticeship fairs- Regular dialogue on hydrogen with the
H2Hanau advocacy group• Green energy• Portfolio transformation• Circular economy• Anlagen- und Arbeitssicherheit• Occupational and plant safety• Cybersecurity• Mitigating climate change• Responsible management/human rights• Diversity and equal opportunity• Continuous dialogue on sustainability issues

p. 25. | c Around Evonik sites. | d UEIL = Union of the European Lubricants Industry. | e ATIEL = Technical Association of the European Lubricants Industry.

138 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Advocacy

achieved. We use our expertise to play a constructive role inpolitics and society. Assuming our corporate political responsibility
comes naturally to us. Democracy, an open society, and an
efficient state are competitive factors and the basis of ourprosperity. We are therefore determined to put to use ourstrengths—in Germany, Europe, and globally.

Heaquarters of the European Commission: Evonik takes part in consultation procedures.

Our offices in Berlin and Brussels play an important role in ourwork. Our employees network with politicians, the generalpublic, and industry associations. They provide input to shapepolitical conditions and are actively involved in consultations,hearings, and discussions. The areas of strategic relevance for
Evonik are environmental policy, environmental regulation,energy, the climate, circular economy, industrial policy, agri­
culture, and the bioeconomy. They are closely meshed with the
top 3 topics identified in our materiality analysis.

We have developed various formats for social dialogue. These
help us engage with both direct and indirect stakeholders. Ourlarge annual stakeholder conference, Evonik Perspectives, hasbeen held digitally since 2021. Evonik Perspectives, which isorganized with our cooperation partner DENEFF, the German
enterprise initiative on energy efficiency, has become established
as an expert forum and a platform for informed debate on key
aspects of sustainable development.

We have set up extensive monitoring on issues of strategic
importance. We have entries in the German and European lobby
registers to safeguard transparency. In 2023, Evonik renewed andrefined its entry in the European Transparency Register and thelist of lobbyists maintained jointly by the European Commission
and European Parliament and its entry in Germany’s national
lobby register. Since 2022, Evonik has no longer made donations
to political parties.
415-1

Donations and sponsorship

The executive board defines the aims and conditions for the
Evonik Group’s donations and sponsorship. It has delegatedcoordination and monitoring to the Board Office and Communications functions on the basis of specific policies and guidelines.
For example, the approval of the executive board is required forindividual donations of supra-regional significance and sponsor-

ship from a threshold of €100,000. The divisions and regions candecide on regional and site-specific activities within an annual
budget approved by the executive board. At the EvonikFoundation, the management is responsible for coordinating
and supervising donations. The executive board of the EvonikFoundation defines the areas of focus.
The Evonik Group made many donations and was involved inmany sponsorship projects in the reporting period. Information
can be found on our website. More .

Advocacy

We refined our management approach in 2023 and issued apolitical mission statement. At its heart is the conviction thatbusiness must act politically. Companies are part of society. And
only in partnership with the chemical industry can the sustainabletransformation of the economy and energy production be

The consequences of the war in Ukraine and rising energy prices
were at the center of our advocacy activities, especially in theareas of the environment, the climate, and energy policy.
Together with the German chemical industry association VCI, we
are therefore campaigning, among other things, for an industrial
electricity price. At the same time, we are pressing for businessconditions that strengthen the social market economy and industry
in this crisis and beyond.
2-15

139 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Advocacy

Our positionshydrogen market. In view of the complexity of our supply
chains, it is important for Evonik that the chemical industry
is excluded from the CBAM. The revision of the EU ETS
directive will further reduce the availability of emission
allowances. The price of these allowances could become asignificant driver of technologies and investment decisions
in the EU in the future.

Through the planning modernization task force, we advocate
for amendment of planning and permitting legislation toincrease the speed, digitalization, and efficiency of existing
workflows. Similarly, we are campaigning for the development of an “Online Access Act 2.0.”

Electricity is a vital production input for the chemical industry.
As it transitions to climate-neutral operation, the chemicalindustry will need considerably more electricity in the future,both for the production of hydrogen and for the electrificationof processes. A competitive electricity price and further relief
measures are therefore necessary. That is why we are
advocating for an industrial electricity price. In this context,
we have discussed various concepts with members ofparliament, and ideas have been put forward in talks given
by members of our executive board.

In the area of environmental policy and regulation, our interaction with politicians covers the digitalization of permitting
processes, especially the implementation of the pact toaccelerate this and legislation to ensure a reliable planningbase. Here, the priorities are safeguarding know-how andprotection against cyberattacks.

Another aspect that remains relevant for us is the possibleclassification of certain silicones as persistent organic
pollutants, which we are addressing together with theEuropean chemical industry council Cefic. In addition, theEuropean Commission has published a proposal to restrict
the use of PFAS. Alongside the consultation process, weare engaged in advocacy activities.
Evonik supports the objectives of the Paris Agreement on
Climate Change. As the EU and Germany move toward
climate neutrality by 2050 and 2045, respectively, we are
actively engaged in the process of shaping European climate,energy, and industrial policy. Important political frameworks
for the transformation process include the dossiers on the
carbon border adjustment mechanism (CBAM), the European
emissions trading system (EU ETS), the Renewable Energy
Directive (RED III), and the gas package for the future gas andTo make climate-neutral production viable, Evonik’s sites willneed climate-neutral hydrogen in the future. Our site in
Rheinfelden (Germany) is a case in point. This site currently
needs 8,000 metric tons of hydrogen a year. Since the plans
for long-distance pipelines in the federal state of BadenWürttemberg for the period up to 2040 only extend to
Karlsruhe, we are engaged in talks with politicians on theextent to which the hydrogen network could be extended
and whether on-site projects for electrolyzers could be
realized under the more stringent conditions of EU legislation(RED II, delegated act). To that end, we are engaged in talks
with the prime minister of Baden-Württemberg and membersof the German parliament.

In the area of resource efficiency, we want to help drive
forward the transformation to a circular economy with our
products and solutions. In this context, we are advocating,among other things, for a legal framework based on open
technology that includes and allows a variety of recycling
technologies. Our activities focus on establishing the massbalance approach as a method of measuring chemicallyrecycled products.
Following the German Act on Corporate Due Diligence
Obligations in Supply Chains (LkSG), which came into effecton January 1, 2023, upcoming legislation includes the EU’s
Corporate Sustainability Due Diligence Directive (CSDDD).
The three EU institutions aim to reach a final agreement
before the elections to the European Parliament (EP) in May
2024. The German supply chain due diligence legislation
introduced on January 1, 2023 would have to be adapted
when the new EU provisions are transposed into national law.
The draft adopted by the EP on June 1, 2023 goes well beyond
the proposal put forward by the EU Commission. In our view,
it would create bureaucratic hurdles that could threaten theviability of many companies, especially small and mid-sizedenterprises (SMEs). Other critical aspects from our perspective
are the lack of legal clarity and the lack of a clear limitation of
liability. Companies should only be held liable for matterswithin their sphere of influence, otherwise there is a risk thatthey will be exposed to multiple lawsuits. Based on the present
status, there is a risk that companies’ business options could
be curtailed by incalculable liability risks and the resulting lackof legal clarity. That would damage both their competitivenessand Europe as a business base.

140 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Impact valuation

Sustainability Focus Areas (SFAs)

Our contributions to a sustainable transformation are bundled infour SFAs: fight climate change, drive circularity, safeguard ecosystems, and ensure health & wellbeing. That sharpens ourbusinesses’ awareness of the most important sustainability
requirements in their markets and facilitates dialogue withcustomers on these aspects.
Each SFA addresses specific sustainability requirements anddescribes our contribution to the Sustainable Development Goals(SDGs). In this context, we examine both positive and negative
impacts of Evonik’s business activities. These impacts are
examined for each product-application-region combination(PARC) as part of our sustainability analysis p. 20.

Fight climate changeThis SFA bundles all contributions to reducing our scope 1, 2, and3 emissions, increasing energy efficiency, and the use of renewable energies. We also consider the greenhouse gas emissions
avoided along the value chain by using our products.
Drive circularity
Here, we bundle all contributions from the use of renewable andcircular raw materials, the reduction in production waste, and the
production of products that enable circular solutions.

1

VOC = volatile organic compounds.

2 The impact analysis was outside the scope of the auditor’s limited assurance engagement.

Safeguard ecosystems
This SFA brings together all contributions in connection with
Evonik products and solutions that support deforestation-free
supply chains and biodiversity. Moreover, it covers environmentally friendly products that do not involve the use of chlorine orsolvents and avoid polluting nature with persistent substances.
Ensure health & wellbeing
This SFA bundles all contributions made by Evonik products thatavoid exposing people to volatile organic compounds (VOCs) 1,
microparticles, or dangerous chemicals during the application
phase and those that allow access to safe food and water. Further,
this SFA describes the contribution made by our solutions for
efficient pharmaceutical active ingredients and medical therapies.
In our innovation activities, the four SFAs support selective
optimization of business-related processes and products and theongoing development of new business models. The threeclusters at our strategic research unit Creavis—Defossilation, Life
Sciences, and Solutions Beyond Chemistry—are also focused onhigh-growth solutions aligned with our SFAs.
In the coming years, our businesses will be quantifying andimproving their handprint in the four SFAs, reducing their footprint, and generally creating additional value with sustainable
solutions.
2-6

Impact valuation 2

Since Evonik is an industrial company, it is important to monitor
the impact of our business activities. We use an impact valuation
to regularly measure and analyze the direct and indirect impacts
from an economic, ecological, and social perspective. This
supplements our established analytical approaches. We anticipate
that this will allow early identification of potential future
opportunities and risks, make our business model more resilient,and improve our understanding of the long-term value that ourbusiness activities create for society.
2-12This procedure provides an insight into
• the scale of the positive and negative ecological, social, andmacroeconomic impact of our corporate activities;• Evonik’s benefits for society as a whole; and• the key levers to reduce negative impacts and maximize
positive impacts along our value chain.
Our impact valuation is based on the input-output-outcomeimpact (IOOI) model, which takes account of the input of
resources and the measurable outcomes of corporate activity. In
addition, short- and long-term impacts are identified, measured
along the value chain, and evaluated.

C49

141 Further elements of our sustainability management

EVONIK SUSTAINABILITY REPORT 2023

Impact valuation

Monetary impact valuation
We aim to assign a monetary value to individual indicators suchas vocational training and continuing professional developmentof employees, employment impacts, and global warming so they
can be compared. Most of the factors used for this are publicly
available. They are based on the work of the relevant economic,
environmental, and social research institutes.
Chart C49 “Monetary impact valuation of our business activities”
shows the results of the impact valuation, based on the figuresfor 2023. Our business activities are associated with ecologicalimpacts at many points. The main negative impacts are greenhouse gas emissions and water consumption in the supply chain.
These are countered by strongly positive macroeconomic
impacts, both along the supply chain and by our own production
activities.
303-1, 306-1
Evonik markets a range of products whose use makes a positive
ecological and social contribution compared with conventional
alternatives. Examples of the avoidance of greenhouse gas
emissions with our products are outlined in “Strategy andgrowth”
p. 24. The impact analysis presented here only looks
at the absolute impact of our business activities. It does notinclude the impact of the use of our products or a comparison
with alternatives.

Monetary impact valuation of our business activities a,bAreas of action

SDGs of relevance for Evonik

C49
Impact type

Supply chain
Negative

Positive

EvonikNegative

Positive

End of life cycle
Negative

Positive

Value added

Strategy and growth
thereof taxes
Greenhouse gas
emissionsWater
consumption

Value chain
and products

Use ofresources c

The environment

Acidification

Eutrophication
Ozone
formation

Employees
SafetyEmployeeabsences
Vocational
training and CPD
Negative Positive Type and scope of impact
High (over €1 billion)
Medium (€100 million to €1 billion)
Low (up to €100 million)
Not calculated

a The impact analysis was outside the scope of the auditor’s limited assurance engagement. This chart shows Evonik’s impact along the value chain, excluding induced effects,
which were calculated separately. | b It is not possible to calculate all monetary impacts along the value chain as not all data are available. | c The impact of raw materials andsupplies used in production is taken into account in supply chain/raw materials “upstream.”142 Basis of reporting

T30

EVONIK SUSTAINABILITY REPORT 2023

Consolidated sustainability indicators for the Evonik group

Consolidated sustainability indicators for the Evonik group

2-22

The following tables are an overview of Evonik’s principal company-specific KPIs. The structure is aligned with Evonik’s six areas of action. The 15 material topics are highlighedin color. For more detailed information, please go to the relevant chapters in this report.
Sustainability indicators 2023 a

Strategy and growth

T30

Unit of measurement

2021

2022

2023

in million metric
tons

9.5

8.4

7.5

n

102

104

104

Sales

in € billion

14.9

18.5

15.3

Adjusted EBITDAin € million

2,383

2,490

1,660

Net incomein € million

746

540

– 465

p. 13

Unit of measure

Production
Production sites worldwide

Portfolio transformation
Proportion of sales from Next Generation Solutions
CO2e avoided by using Evonik products b

Value chain and products

p. 28

in %

41

43

43

in million metrictons CO2e

39

44

48

Unit of measurement

2021

2022

2023

Research & development
R&D expenses
Ratio of R&D expenses to sales
No. of new patent applications filedin € million

464

460

443

in %

3.1

2.5

2.9

n

280

256

227

in %

9.7

11.1

12.0

Circular economy
Proportion of renewable raw materials
Proportion of RSPO-certified palm (kernel) oilin the RSPO accounting period(September 1, 2022 through August 321, 2023)

in %

–

–

60

The environmentn0

a Differences between the data and totals are due to rounding.

b	In 2021, 4 products with sales of €1.8 billion were evaluated.
c

In 2023, 5 further products were added, bringing the total evaluated to 11 products with sales of €1.3 billion.
For details, see ”The environment“ p. 53.

d Emissions from production and energy generation.

e Emissions of ozone-depleting substances calculated in accordance with the Montreal Protocol.

00Unit of measurement

2021

2022

2023

in million metrictons CO2e

4.4

4.2

3.8

Mitigating climate change
Evonik Carbon Footprint c
Scope 1: Direct energy- and process-related emissions

in thousand metrictons CO2e

13

22

21

Scope 2: Indirect emissions from purchased energy(gross, market-based approach)in million metrictons CO2e

1.9

1.8

1.5

Scope 3: Upstream and downstream emissions

in million metrictons CO2e

23.4

20.5

19.2

	thereof upstream

in million metrictons CO2e

15.3

14.4

13.3

thereof downstream

in million metrictons CO2e

6.3

6.1

5.9

in million metrictons CO2e

29.7

26.5

24.6

Carbon monoxide (CO)in metric tons

1,096

800

803

Sulfur oxides (SOx/SO2)

in metric tons

1,530

1,185

1,027

Nitrogen oxides (NOx/NO2)

in metric tons

3,799

3,192

2,803

Heavy metals (As, Cd, Cr, Cu, Hg, Ni, Pb, Zn)

in metric tons

0.82

0.31

0.26

Non-methane volatile organic compounds (NMVOC)

in metric tons

939

994

741

Ozone-depleting substances ein metric tons
CFC-11equivalents

0.20

0.30

0.29

thereof methane d

GHG emissions Evonik Carbon Footprint(sum of scope 1, 2, and 3)
Other emissions into the air

Product stewardship
Breaches of product labeling regulations

p. 46

143 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

Consolidated sustainability indicators for the Evonik group

Green energy

Unit of measurement

2021

2022

2023

EnergyGross energy input apetajoules

80.55

74.96

71.82

Net steam required b

petajoules

41.32

38.29

37.09

Net electricity required

petajoules

15.73

14.32

13.31

Steam sold bpetajoules

10.86

9.51

9.64

Elictricity soldpetajoules

0.85

0.83

2.41

Internal steam generation b,cpetajoules

37.66

34.03

33.88

Internal electricity generation

petajoules

6.00

4.44

4.78

Purchased electricity dpetajoules

10.58

10.70

10.94

in %

–

27

35

Purchased steam bpetajoules

14.52

13.78

12.85

Net energy input e

petajoules

68.84

64.63

59.77

in %

6

0

–8

petajoules

7.22

7.71

7.97

in %

–1

6

10

c

218

380

–f

thereof renewable energy

Change in net energy input versus 2020
Specific net energy input
per million metric tons production
Change in specific net energy input versus 2020
Savings due to measures to enhance efficiency
Sites certified as compliant with ISO 50001
energy management

n

45

48

57

in million m³ p.a.

460

444

403

thereof freshwaterin million m³ p.a.

256

248

224

thereof salt water (seawater)in million m³ p.a.

204

197

179

Total discharges

in million m³ p.a.

454

439

397

Total water consumption

in million m³ p.a.

6

5

6

a Fuel inputs plus purchased eletricity and steam.
b Conversion factor: 2.8 * 10–6 PJ/t steam.
cIncluding process heat, e.g. from acrolein production.

d Excluding trading and excluding supply of purchased electricity to third parties in Germany.

e Fuel inputs plus purchased electricity and steam less electricity and steam supplied to third parties.
fn

Sites with water risk classification of highnSites with water risk classification of medium
or moderate
Total wastewater load (direct discharges only)

Figures for 2023 will only be available in summer 2024.
g Calculated using the AWARE (Available WAter REmaining) method recommended by the EU Commission.
h Determined using the WWF Risk Filter, based on an analysis of various physical risk aspects, e.g., water stress, flooding, water quality.
i Chemical production + building + demolition rubble.

0h

10g

13g

n

9g

12g

47h

in metric tons

1,597

1,612

1,541

Hazardous waste, reprocessed iin 1,000 metric tons

134

128

100

Non-hazardous waste, reprocessed iin 1,000 metric tons

88

113

82

Hazardous waste, disposal iin 1,000 metric tons

143

102

89

Non-hazardous waste, disposal iin 1,000 metric tons

86

84

79

Total waste

in 1,000 metric tons

451

427

348

in 1,000 metric tons

222

241

182

in %

49

56

52

in km2

–

–

19.8

n

–

–

34

in km2

–

–

2.0

n

–

–

11

Unit of measurement

2021

2022

2023

5h

Waste management

thereof total reprocessed waste
Waste reprocessing rate
Biodiversity
Area of production sites adjacent to conservation areas
Production sites adjacent to conservation areas
Area of production sites adjacent to
key biodiversity areas
Production sites adjacent to key biodiversity areas

Employees

Water management
Total water intake

Sites with water risk classification of extreme orvery highp. 85

Key data
Total employeesn33,00434,02933,409in € million

3,408

3,487

3,254

Women as a proportion of the total workforce

in %

26

26

27

Men as a proportion of the total workforce

in %

74

74

73

Full-time employees as a proportion of
the total workforce

in %

93

93

93

Part-time employees as a proportion of
the total workforce

in %

7

7

7

Proportion of women working full-time

in %

80

80

80

Proportion of men working full-time

in %

97

97

97

Total personnel expenses

144 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

Consolidated sustainability indicators for the Evonik group

2021

2022

2023

in %

20

20

20

Participation in pulse checks

Proportion of men working part-time

in %

3

3

3

No. of pulse checks

Agency staff a

n

506

583

229

Employees with disabilities a

n

1,735

1,752

1,695

Proportion of employees with disabilities a

in %

8.4

8.2

8.2

n

1,569

1,510

1,668

in € million

62

61

Employees covered by collective pay agreements

in %

71

Employees covered by collective agreements
on work timein %Employees aged under 21 years

8,655

10,562

n

50

30

27

Turnover rate

in %

7.0

6.7

6.6

Early turnover rate c

in %

2.2

1.9

2.2

14.5

14.1

13.9

n

2,317

2,204

2,260

64

No. of employees who left the company - women

n

560

545

566

70

70

No. of employees who left the company - men

n

1,757

1,657

1,694

74

74

74

Employment terminated by employee

n

884

1,080

1,190

in %

2.2

2.2

2.5

Employees aged 21-30 years

in %

16.3

16.7

16.4

Employees aged 31-40 years

in %

25.8

26.4

Employees aged 41-50 years

in %

23.7

Employees aged 51-60 years

in %Employees aged over 60 years

in %Employees who receive performance appraisals (total)
Expenditure for CPD
Average learning time on the LILY and
LinkedIn Learning digital platforms

–

1

– 6.6

26.5

in € ‘000

3,561

2,521

3,501

23.3

23.8

Average remuneration of total workforce (in Germany)in € ‘000

89

85

85

27.2

26.4

25.5

Ratio d

n

40

30

41

4.8

5.1

5.4

Women in management (total)

in %

27.9

29.1

29.6

Female executives e

in %

17.7

20.3

22.2

Women in senior management f

in %

17.6

17.1

18.5

Women in other management levels g

in %

28.7

29.9

30.3

Unit of measurement

2021

2022

2023

0.25

0.21

80

80

88

in € million

11.2

18.3

12.4

in €

338

538

371

hours

5.4

3.5

3.8

Participation in “Evonik learning sessions”

n

39,09023,181

17,664

No. of “Evonik learning sessions”

n

109

94

74

a In Germany.

b Evonik apprentices (1,112) and apprentices being trained in cooperation with other companies (556).

Employment terminated by new employees within the first year.

d Total remuneration of the highest paid person in the company/average total remuneration of the workforce in Germany.
e Executives = executive functions, i.e., top management functions in the Evonik Group.

f	Senior management = senior management functions, i.e., key functions in the divisions, regions, service units, and corporate divisions.
g	Other management levels = further management functions.

h No. of work-related accidents per 200,000 working hours. Upper limit ≤ 0.26.

No. of work-related accidents relating in absence per 200,000 working hours.
No. of incidents per 200,000 working hours. Upper limit ≤ 0.40.
k Lower limit ≥ 5.0. Upper limit 6.0.
l ODR for 2023 not available by the editorial deadline.

Diversity and equal opportunity
in %

in %

Expenditure for CPD per employee

Average length of service

Total remuneration of highest paid personin the company

Attractiveness as an employer

j

9,638

in years

Expenditure for vocational training ainNo. of employees who left the company - total

Apprentices a, bc

Employee satisfaction

Unit of measurement

Proportion of women working part-time

Gender pay gap

Safetyp. 102

Occupational and plant safety
LTI-R

nh

0.19

LTI-R contractors’ employees

ni

0.67

0.43

0.79

PSI-R

nj

0.48

0.49

0.43

Health protection and promotion
Workforce represented by safety committees

in %

> 99

> 99

> 99

Occupational health performance index k

n

5.6

5.5

5.5

Occupational disease rate (ODR)

n

0.28

1.11

–l

145 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

Consolidated sustainability indicators for the Evonik group

Governance and compliancep. 110

Unit of measurement

2021

2022

2023

Responsible management/human rights
Executive board members

n

4

4

4

Supervisory board members

n

20

20

20

Women on executive board

in %

25

25

25

Women on supervisory board

in %

30

30

30

Women at first management level a

Cybersecurity
Locations certified under ISO 27001 or equivalent c

in %

–

–

100

Cybersecurity training participation rate

in %

–

96

95

n

14

8

8

in %

85

–

81

Phishing test drives
Data protection
Training rate: data protection
Responsibility within the supply chain

in %

26.9

38.5

38.5

Procurement volume

in € billion

10.4

13.6

11.3

Women at second management level a

in %

29.2

31.0

33.3

Local sourcing d

in %

76

76

75

Training rate: code of conduct

in %

89

89

92

Training rate: fighting corruption

in %

92

91

86

Raw materials and suppliers of total procurement
volume

in %

57

53

47

Training rate: anti-money laundering

in %

96

97

98

Training rate: antitrust law

in %

83

85

89

Petrochemical feedstocks of total procurement
volume

in %

62

61

65

Training rate: human rights (new 2023)

in %

–

–

90

n

35,00035,00034,000Locations with a certified anti-corruption
management system

in %

100

100

100

Discrimination cases

n

7

4

12

Alleged breaches of human rights

n

–

1

2b

Corruption cases (current year)

n

5

8

8

Reported cases

n

168

162

126

Reported internal investigations

n

136

142

110

Reported action

n

152

168

86

Total suppliers
Suppliers validated by TfS audits and assessments

n

1,629

1,923

1,788

n

284

378

492

		 thereof Evonik audits

n

16

11

17

thereof Tfs assessments

thereof Tfs audits

n

1,345

1,545

1,296

		 thereof Evonik assessments

n

176

108

91

Newly-validated suppliers

n

1,754

1,804

1,440

Suppliers where corrective action is required

n

34

25

22

t hereof suppliers where a corrective action plan
has been agreed

in %

100

100

100

a At Evonik Industries AG.

Procurement employees trained in sustainability aspects

in %

–

–

99

c Locations with more than ten IT employees.

Suppliers with sustainability reporting or
sustainability targets

in %

–

–

84

b Suspected cases that were not substantiated.
d For us, local sourcing means deliberate procurement from sources close to our production sites.

146 Basis of reporting

T31

EVONIK SUSTAINABILITY REPORT 2023

Status of our sustainability targets for 2023

Status of our sustainability targets for 2023

2-22This table shows the targets we set for the reporting period. The traffic lights show progress towards achieving the targets.
You can find details of the exact status in the relevant chapters and the table “Sustainability indicators for the Evonik Group“

p. 142.

Target attainment in 2023

T31

Strategy and growth



p. 13

p. 85

▯

Increase the proportion of sales generated with Next Generation Solutions to over 50 percent by 2030▯

Proportion of women in top and senior management should be 23 percent at each level by 2023▯

Proportion of sales from challenged products should be permanently below 5 percent▯

Intercultural mix at executive level should be 20 percent by 2023

Value chain and products

Safetyp. 28

p. 102▯

Generate more than €1 billion in additional sales a a in our six innovation growth fields by 2025▯

Lost time injury rate (LTI-R) ≤ 0.26▯

Generate more than €350 million in additional sales with solutions for the circular plastics economy from 2030▯

Process safety incident rate (PSI-R) ≤ 0.40▯

Solutions for around 400,000 metric tons of recyclable plastics by 2025

Occupational health performance index ≥ 5.0▯▯

Add substances/products from acquisitions b to CMS/CMSPLUS and process them by the end of 2023

The environment

Governance and compliance
p. 46

▯

Reduce absolute scope 1 and scope 2 emissions by 25 percent between 2021 and 2030▯

Reduce absolute scope 3 emissions c by 11 percent d between 2021 and 2030▯

Reduce both absolute and specific energy consumption by 5 percent between 2020 and 2025▯

Switch purchased electricity to 100 percent green electricity by 2030▯

Reduce specific freshwater intake by 3 percent relative to production volume
between 2021 and 2030▯

Reduce the specific volume of production waste by 10 percent relative to production volume
between 2021 and 2030

a With products introduced in or after 2015.
b Since 2017.
c

Employees

Scope 3 emissions comprise all upstream categories and the category “Downstream transportation and distribution.”d Exact target: 11.07 percent.

p. 110▯30 percent women at both the first and the second management level below the executive board
by year-end 2024▯

Regular risk analyses▯ Human rights in 2023
▯ Antitrust law, fighting corruption, and prevention of money laundering by year-end 2024▯

100 percent of all raw materials suppliers where annual procurement volume is >€100 thousand
to be covered by TfS assessments by year-end 2025
Target not achieved
Target partially achieved or target horizon extends beyond 2023
Target achieved147 BASIS OF REPORTINGEVONIK SUSTAINABILITY REPORT 2023

About this report

About this report
Sustainability report 2023

This is the 16th full sustainability report published by Evonik. It
supplements the financial report 2023 and the combined nonfinancial statement in the management report by reporting on
further material ecological and social issues. The aim is to giveour stakeholders an insight into how we run our business anddrive forward sustainability in the Evonik Group. The reportcovers the period from January 1 to December 31, 2023, except
where otherwise indicated. Our previous sustainability report on
2022 was published in March 2023.
2-3

MethodThis report continues our focused, digital, and strategic approachto sustainability reporting. In last year’s extensive new materiality
analysis, we identified 15 material topics for Evonik. These arebundled in six areas of action, which define the structure anddepth of this report. Taking the ESRS requirements as our starting point, in the reporting period, we conducted a gap analysis of
the impacts on which our materiality analysis is based. In
addition, we divided our positive impacts into existing andpotential. Moreover, we checked whether sufficient attention
had been paid to human rights impacts. We also used a peergroup and media analysis to check that our material topics arecomplete and up-to-date. The outcome of these activities relating
to the materiality analysis is that there has been no change in thevalidity of our 15 material sustainability topics. (See “Strategy andgrowth”
p. 24).

The strategic messages on sustainability are contained in thechapter headed “Strategy and growth.” The chapter titled “Further
elements of our sustainability management” contains details of
our sustainability governance, our stakeholder management
concept, and a description of our Sustainability Focus Areas.
The central theme of this report is the implementation of transformation steps at Evonik, hence the title IMPLEMENT! We
made further substantial progress with this in 2023, ranging fromthe validation of our greenhouse emissions reduction targets by
SBTi and expanding our business with Next Generation Solutions
through investing in reducing greenhouse gas emissions to integrating sustainability targets into the remuneration of the executive board and other executives. A chart on p. 9 in the chapter“At a glance” shows milestones in the transformation of Evoniksince 2015. A special magazine section features four practicalexamples of how we are working closely with partners on thethree most important topics identified in our materiality analysis:green energy, portfolio transformation, and circular economy
p. 66. The other twelve material topics are illustrated by comments from employees.
To further enhance the user-friendliness of this report, we havestreamlined the chapter titled “At a glance.” Information on ourbusiness model and our business performance in 2023 can now
be found in “Strategy and growth.” We have also condensed thedescription of our materiality analysis: The content formerly
contained in the sections headed “New materiality analysis” and“Procedure for the materiality analysis” can now be found in thechapter titled “Strategy and growth.” The focus on our top 3
topics is also reflected in the structure of this report: The
chapters “Strategy and growth” (portfolio transformation), “Value
chain and products” (circular economy), and “The environment”(green energy) are now presented consecutively. They arefollowed by “Employees,” “Safety,” and “Governance andcompliance.”
We link our six areas of action to the Sustainable Development
Goals (SDGs) and our own targets. The most important sustainability targets and their status are summarized in a table at the
beginning of the report and highlighted in a chart at the end ofeach chapter. Evonik supports the SDGs and has systematicallytaken them into account for years. We have mapped the GRI
content index to the 17 SDGs, and the section titled “Basis ofreporting” contains an index with the most important SDGs for
the Evonik Group, including relevant sub-targets. In addition, we
disclose the proportion of sales with which our chemicals
businesses contribute to achieving the four SDGs of relevance toEvonik (SDG 3, SDG 6, SDG 12, SDG 13; see “Strategy andgrowth” p. 20).
In recent years, we have systematically optimized the processes
used to compile our sustainability data. Following the adaptationof the processes for the simultaneous publication of the sustainability report and the financial report (2018), we accelerated thecollection of data on the Evonik Carbon Footprint (2020), theimpact valuation (2021), and the sustainability analysis of ourbusiness (2022). In 2023, we continued to switch from the fast
close method to reporting actual environmental data. That gives
our stakeholders an even more up-to-date view of our sustainability performance.
Transparency, rapid access to data, and a clear structure areimportant to us. In view of this, we have included overviews of
our key sustainability indicators, target attainment, and futuretargets. In the report on 2023, we have greatly extended the148 BASIS OF REPORTINGEVONIK SUSTAINABILITY REPORT 2023

About this report

overview “Sustainability indicators for the Evonik Group.” Whenselecting the data, we were guided by the requirements of
selected financial and sustainability ratings. About 150 indicatorsfrom the sustainability report provide an overview of Evonik’s
performance, structured by areas of action and the 15 material
topics identified in our materiality analysis. In addition, theinformation content has been further enhanced by revised charts
and the addition of further charts. These include, for example,
the extended chart titled “Materiality analysis process”(C07 p. 25) and the new charts on the management of tax risks
and tax compliance (C39
p. 127 and C40
p. 128). The charts“Resources and value contributed by Evonik” C03
p. 12 and“Monetary impact valuation of our business” C49 p. 141 contain
information on the impact of business activities.
At Evonik, the executive board bears overall responsibility forsustainability, and direct responsibility is assigned to the chief
human resources officer. He approved the content of this reportand confirmed that it addresses all material sustainability topics ofrelevance for Evonik and its stakeholders.
You can find additional information about our commitment tosociety (corporate citizenship) on our Sustainability website.
More

Data capture, scope of reporting, and reporting
boundaries

Our data cover the relevant companies worldwide that were
included in the scope of consolidation 1 for the consolidated
financial statements of Evonik Industries AG for the period fromJanuary 1 through December 31, 2023. The consolidated financial
statements are prepared in accordance with the International
Financial Reporting Standards (IFRS). Alongside Evonik
Industries AG, the relevant companies include all material
German and foreign subsidiaries directly or indirectly controlled
by Evonik Industries AG. Material associates and joint ventures
are recognized at equity if Evonik is able to exert a significant
influence. Initial consolidation or deconsolidation takes place asof the date on which the company gains or loses its controllinginfluence.
2-2
In 2023, the Evonik Group comprised 30 German and 123 foreigncompanies. Relevant data on personnel and social indicators are
based largely on the global SAP HR information system. To
obtain supplementary information, we use a structured,qualitative global process. The focus of our reporting and thereporting boundaries are based principally on the sustainability
topics derived from our materiality analysis.
2-7.

This report is published in English and German and is available
solely in electronic form. It can be downloaded from the Sustainability section of Evonik’s website. More . A multimedia versionof the report is also available. More .
2-4, 3-2, 302-1, 302-4, 305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7, 306-1,

The ecological data in this report comprise emissions andconsumption data for 104 production sites in 27 countries. From2016 until 2021, the data were compiled and evaluated using
sustainability reporting software developed specifically for thispurpose (SuRe software 2.0). In 2022, the SuRe software wasonly used to compile the data. For data analysis and reporting, weused the environmental module of our global ESTER software(Evonik Standard Tool ESHQ and Reporting). For this purpose,the data for the period 2020 through 2022 were transferred from
SuRe to ESTER. As a further step forward, starting in 2023,
ESTER has also been used to compile the data. SuRe is no longer
used. Occupational safety data include further small production
sites and non-production locations (mainly administration sites),so the data here cover 272 locations in 53 countries.
2-1
Since the sustainability report and the financial report are
published on the same date, the global closing date for the
supplementary HR data was September 30, 2023. Only the
number of hours of continuing professional development has
been projected for a twelve-month period.
All reporting units are clearly coded to allocate them to organizational and business entities and geographical region. This allows
consolidation at management and legal entity levels as well as amore detailed regional analysis of the data. The key data in thisreport are rounded in line with standard commercial practice. In
some cases, this may mean that individual values do not add up
exactly to the totals given, and percentages are not an exactreflection of the values stated.

Material portfolio changes

The site in Lülsdorf (Germany) and the related cyanuric chloridebusiness in Wesseling (Germany) were sold to International
Chemical Investors Group (ICIG) as of June 30, 2023. The otherportfolio changes, including acquisitions and divestments, did nothave a material impact on the environmental data for 2023.
2-4

306-2, 306-3, 306-4, 306-5

1

An overview of all companies included in the consolidated financial statements and all shareholdings pursuant to section 313 paragraph 2 of the German Commercial Code (HGB) is presented in the list of shareholdings. More.

149 BASIS OF REPORTINGEVONIK SUSTAINABILITY REPORT 2023

About this report

Principles of environmental data collection andcorrections

Since the financial report and the sustainability report are
published on the same date, we used a “fast close” process forour environmental reporting from 2018 until 2022. The annual
data for our report were calculated centrally on the basis of thequarterly reporting for the first three quarters. The data on
emissions into the air (excluding greenhouse gas emissions) andwater were compiled once a year as of September 30. For thispurpose, the emissions data were collected on a decentralizedbasis, then calculated and entered into the software.
As a result of the full introduction of the ESTER environmental
module in 2023 and the simultaneous optimization of our internalreporting processes, we were able to replace the fast close
process with a standard ESHQ report as of year-end 2023. The
closing date for the key environmental data is now December 31,
2023. To this end, the internal submission date for the Q4 data
was brought forward to early January 2024. The data reported
for 2023 are therefore based for the first time on environmental
data for four full quarters.
The closing date for data that are only reported once a year
(emissions into the air, excluding greenhouse gas emissions;water) has been altered from September 30 to the beginning ofDecember. Therefore, we have been able to switch almost
entirely to actual figures. The actual data for these emissions in
2022 were calculated in mid-2023 and have replaced the fast
close data for these emissions in 2022.

Similarly, the 2022 data from the quarterly reports were recalculated on the basis of four quarters and updated. All of thesechanges relating to 2022 are reflected in the data published in thesustainability report 2023, irrespective of the extent of the variation from the data published in the sustainability report 2022.

published detailed strategies, data, and development paths on
climate change. In this sustainability report, an overview of key
climate-related information is presented using the TCFD
structure, divided into the categories governance, strategy, risk
management, and metrics and target p. 151.

The fast close process outlined above was still used to compile
the scope 3 emissions data for 2023 for all categories except for
category 3 (energy-related activities not included in scope 1
and 2) and category 5 (disposal and recycling of waste).

External assurance

In addition to data validation in connection with the annual
reporting process, our ESHQ KPIs are subject to a wide range ofinternal performance analyses, benchmarks, internal and external
audits, and oversight by various authorities during the year.

The chapters titled “Strategy and growth,” “Value chain andproducts,” “The environment,” “Employees,” “Safety,” “Governance and compliance,” “Further elements of our sustainability
management,” and “Basis of reporting,” including “TCFD index,”“SDG index,” “GRI content index,” and “SASB content index”
were subject to a limited assurance review by KPMG AG
Wirtschaftsprüfungsgesellschaft—with the exception of theinformation indicated as being outside the scope of this review.
The non-financial statement, which forms an integral part of the
management report in the financial report, is based on selected
data from this sustainability report. More
. As part of theseparate assurance engagement for the non-financial statement,
the sections in the non-financial statement on employees andsafety were also subject to a reasonable assurance review. This
covered the following key performance indicators/content:

303-1, 303-2, 303-3, 303-4, 303-5

GRI

This report has been prepared in accordance with the GRI
Sustainability Reporting Standards.

SASB

In addition, for fiscal 2023, we include a separate index based on
the SASB Chemicals Sustainability Accounting Standard p. 162.

TCFD

We closely follow the objectives of the Task Force on Climaterelated Financial Disclosures (TCFD). In keeping with ourparticipation in CDP Climate Change, in 2023, we again

To ensure that this report is up-to-date, we have included
all relevant data available to us as of the editorial deadline on
February 26, 2024.

The independent practitioner’s limited assurance report is printed
on p. 164.
2-5

150 BASIS OF REPORTINGEVONIK SUSTAINABILITY REPORT 2023

About this report

Section/topic in non-financial
statement 2023

Text/Qualitative information a

Key figures a

Employees

Employees are the foundations of
our success; Global management;
Reduction in the headcountEmployees

Employees

Attractiveness as an employer

Attractiveness as an employer

Attractiveness as an employer

Systematic talent management

Attractiveness as an employer

Creative onboarding

Attractiveness as an employer

Culture initiative

Attractiveness as an employer

An extensive performance
management system

Attractiveness as an employer

Addressing the shortageof skilled workers

Attractiveness as an employer

Long-term jobs

Employee satisfaction

Employee satisfaction

Employee satisfaction

Employee survey 2021

Participation rate, commitment index,
questions, improvement measures,“pulse checks”

Employee satisfaction

Employee retention

Employee turnover rate, early turnoverrate, average length of service

Employee satisfaction

Global remuneration policies

Collective agreements on remuneration,
participation rate in the employee share
program

Employee satisfaction

Work-life balance

Proportion of employees with access toinitiatives to improve work-life balance

Employee satisfaction

Well@Work

Employee satisfaction#SmartWork project

Diversity and equal opportunity

Diversity and equal opportunity

Diversity and equal opportunity

Diversity enriches

Diversity and equal opportunity

Age structure in the Evonik Groupa

Employees by division, Evonik employees,
personnel expenses, personnel expenses
as a percentage of sales

Employees; of which employees
on long-term/limited-term contracts;of which apprentices/trainees

Percentage of mobile worktime, percentage of registered employees worldwide

Age structure by age group, average age,
age of new hires

Section/topic in non-financial
statement 2023

Text/Qualitative information a

Key figures a

Diversity and equal opportunity

High proportion of women,
key data on diversity

Women as proportion of the total workforce, female managers, female managers
as a proportion of top management/
middle management/other managementlevels, proportion of non-German
employees in management roles

Diversity and equal opportunity

Training and continuing professional
development

Diversity and equal opportunity

Learning strategy for continuing
professional development

LinkedIn Learning courses, no. of
Evonik apprentices, no. of apprentices
being training in cooperation withother companies

Diversity and equal opportunity

Training ratio remains highNo. of young people trained in thereporting period, training locations,training courses, training ratio,
investment in vocational training,
expenses for CPD total and per
employee, no. of Evonik Explorers,
participants in Evonik learning sessions

Occupational and plant safety

Safety as a management task

Occupational and plant safety

Lost time injury rate below the upper limit LTI-R for Evonik employees, LTI-R for
contractors’ employees, fatal accidents
at work or during commuting

Occupational and plant safety

Process safety incident rate above theupper limit

PSI-R

Occupational and plant safety

Targets for 2024

LTI-R, PSI-R

Health protection and promotion Health protection and promotion
Health protection and promotion

Healthy employees are our goal

Health protection and promotion

Emergency medical management

Health protection and promotion

Corporate health promotion

No. of employees with access to healthprotection and protection measures,
occupational health performance index

Further disclosures in the sustainability report subject to a reasonable assurance engagement that are includedin the management report
Research and development

Research and development

Research and development

Our goal: leading in innovation

Breakdown of R&D expenses

Research and development

Global research network

R&D locations, R&D employees,
ratio of R&D expenses to sales,
government grants, no. of new patentapplications filed, patents held/pending,R&D expenses

Research and development

Our progress in 2023

Subject to a reasonable assurance engagement.

151 BASIS OF REPORTING

T32

EVONIK SUSTAINABILITY REPORT 2023

TCFD-Index

TCFD index
We continue to closely follow the objectives of the Task Force on Climate-related Financial Disclosures (TCFD). 1 A cross-functional working group regularly examines the TCFD requirements. In keeping with
its participation in CDP Climate Change, in 2022 Evonik again published detailed strategies, data, and development paths on climate change.
www.evonik.com/CDP-ClimateChange. Key climate-related information
is presented in the following overview using the TCFD structure, divided into the categories governance, strategy, risk management, and metrics and targets.


Climate-related information by category

You can find further information here:

Governance
Climate change is a matter of the utmost importance for the entire executive
board. Direct responsibility for implementing our group-wide sustainability
and climate strategy, monitoring, and reporting is assigned to the member ofthe executive board responsible for sustainability. The head of the Environment,
Safety, Health and Quality function regularly reports to the executive board
on climate-related issues.
Our most important sustainability bodies are the sustainability council and thesustainability circle. The sustainability council is responsible for the management of sustainability-related aspects and the associated decisions. It is chairedby the chairman of the executive board. Other members, alongside theexecutive board members, are the heads of the divisions to ensure close alignment with the businesses. The decisions taken by the sustainability council areprepared by the sustainability circle, which comprises representatives of thefunctions and departments of relevance for sustainability.
The supervisory board addressed sustainability issues at several meetings in
2023, including climate-related aspects and the related disclosures on the EU
taxonomy and the introduction of the Corporate Sustainable Reporting
Directive. In 2023, the supervisory decided that the finance and investmentcommittee would also address sustainability in the future and renamed it theinvestment and sustainability committee.
The ongoing strategic development of sustainability management at Evonik isalso reflected in the remuneration of the executive board and corporate
executives: From 2023, the attainment of sustainability targets, such as the
reduction in our scope 1 and 2 emissions, is included as an additional long-term
component.

T32

Climate-related information by category

You can find further information here:

Strategy
Combined management report,
section 5.5 The environment
Financial report, p. 63 ff.

Sustainability report,
chapter The environmentp. 46 ff. andchapter Further elements of oursustainability strategy
p. 135 ff.

2023 CDP Climate Change ­response,
chapter Governance;
evonik.com/CDP-ClimateChange

Climate and sustainability aspects are integrated into all aspects of ourcorporate strategy—portfolio management, innovation, and corporate culture.
In 2023, we adopted a climate policy, which is available on our website. Our
aim is to improve the efficient use of energy and raw materials in production
and along our upstream and downstream value chains. For example, we are
increasing the use of green electricity, include carbon pricing as an additional
planning criterion in investment decisions, and perform scenario analyses thatreflect climate-related opportunities and risks as part of our strategy process
at executive board level. We are also committed to the independent SBTi andits target of “well below 2° C.” Our climate targets are in conformance with
the Paris Agreement on Climate Change. The SBTi undertook a scientificassessment of the targets and confirmed them in July 2023.
In the upstream value chain, we consider both our “raw material backpack”
and scope 1 and 2 emissions from our production facilities. Measures to reduce
our scope 1 and 2 emissions include exiting coal-fired power generation at
our site in Marl (Germany), ongoing global development of production processes and infrastructure (Next Generation Technologies), and the transition
to renewable energies. Downstream, our products improve our customers’
CO2 profile. In view of the increasing climate awareness, we expect demand
to rise further, with a correspondingly positive impact on our business. Our
goal is to increase the proportion of our products with a pronounced sustainability profile (Next Generation Solutions) from 43 percent in 2023 to over
50 percent by 2030.
Climate change involves considerable opportunities and risks for Evonik. We
have identified short-, mid- and long-term transformation risks and physicalrisks. You can find an extensive description of the individual risks in our CDP
Climate Change response.

1 In October 2023, TCFD considered that it had fulfilled its purpose and was therefore disbanded. In the future, companies’ progress will be monitored by the IFRS Foundation.

Combined management report,
section 1.2 Principles and objectives,
Financial report, p. 19 f.

Evonik Carbon Footprint
evonik.com/sustainability

Sustainability report,
chapter The environmentp. 46 ff. and chapter Strategy
and growth p. 13 ff.
2023 CDP Climate Change response,
chapter Business Strategy evonik.com/CDP-ClimateChange

152 BASIS OF REPORTINGEVONIK SUSTAINABILITY REPORT 2023

TCFD-Index

Climate-related information by category

You can find further information here:

Risk management

You can find further information here:

Metrics and targets

In keeping with the executive board’s overall responsibility, the chief financial
officer (CFO) is responsible for ensuring the correct functioning of risk
management. To ensure this, we use an integrated, multidisciplinary
opportunity and risk management system, which explicitly includes climate-­
related opportunities and risks. The short- and mid-term opportunities andrisks are taken into account in our financial planning. Our risk management
system also includes extreme risks, which are partly due to climate change.
Opportunities and risks are identified and evaluated group-wide, and measures
are taken to control and monitor them.
The risk committee chaired by the CFO meets quarterly. The corporate risk
officer reports regularly to the executive board on the opportunities and risks
for the Evonik Group, including climate-related opportunities and risks.
To strengthen the focus on sustainability-related risks and opportunities in ourrisk identification and reporting, we use our annual risk coordinator conference
to raise the awareness of our risk coordinators of the rising significance of
these aspects. In many cases, the time horizon for sustainability risks goes wellbeyond the mid-term period used in our conventional risk management. Therefore, we are currently working on an approach to identify long-term sustainability-related risks and opportunities so that we can define adequate targets
and measures to address them. We want to include these opportunities andrisks even more effectively in our portfolio and innovation management andour investment activity in the future.
a Exact target: 11.07 percent.

Climate-related information by category| b CO2 equivalents.

Combined management report,
section 6. Opportunity and risk report
Financial report, p. 86 ff.

2023 CDP Climate Change response,
chapter Risks and opportunities
evonik.com/CDP-ClimateChange
Sustainability report,
chapter Governance and compliance(Opportunity and risk management)
p. 114 ff.

Evonik and its predecessor companies have defined ambitious environmental
targets since 2004. As a member of SBTi, we have given a commitment to
reduce absolute scope 1 and 2 emissions by 25 percent between 2021 and2030. To achieve our ambitious targets, a wide range of measures
are planned. We also aim to reduce scope 3 emissions by 11 percent a by 2030.
Furthermore, we want to reduce both absolute and specific energy consumption by 5 percent between 2020 and 2025.
Calculation of our CO2e b emissions is based on the Greenhouse Gas Protocol.
In 2023, our CO2e emissions were:
Scope 1: 3.8 million metric tons
Scope 2: 1.5 million metric tons
Scope 3: 19.2 million metric tons

Combined management report,
section 1.2 Principles and objectives,
Financial report, p. 19 f.
Sustainability report,
chapter The environmentp. 46 ff.

2023 CDP Climate Change ­response,
chapter Targets and performance evonik.com/CDP-ClimateChange

153 BASIS OF REPORTING

T32

EVONIK SUSTAINABILITY REPORT 2023

SDG index

SDG index
Reporting on the targets for the SDGsof relevance for Evonik

Evonik supports the United Nations 17 Sustainable
Development Goals (SDGs). Using our own methodology(see “Strategy and growth” p. 20) we have identified
the four SDGs that are especially relevant for Evonik.

Targets for the SDGs of relevance for Evonik
Relevant targets

T33
Reference in sustainability report 2023

SDG 3—Ensure healthy lives and promote well-being for all at all ages
3.9:		By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals
and air, water, and soil pollution and contamination▯ Strategy and growth p. 13, 20▯ Value chain and products p. 28▯ The environment p. 46, 48, 60

SDG 6—Ensure availability and sustainable management of water and sanitation for all

An SDG is relevant for us if there is a significant positiveor negative influence on or by Evonik. Our products andsolutions help to achieve the relevant SDGs. We are always
aware that our business activities can have critical impacts
in some cases. The most relevant SDGs for Evonik are:

6.3:		By 2030, improve water quality by reducing pollution, eliminating dumping, and minimizing
release of hazardous chemicals and materials, halving the proportion of untreated wastewater,and substantially increasing recycling and safe reuse globally▯ The environmentp. 46, 57

6.4:		By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable
withdrawal and supply of freshwater to address water scarcity and substantially reduce the numberof people suffering from water scarcity▯ The environmentp. 46, 57

6.6:		By 2030, protect and restore water-related ecosystems, including mountains, forests,
wetlands, rivers, aquifers, and lakes

p. 46, 24▯ The environment

SDG 12—Ensure sustainable consumption and production patterns
12.2:	By 2030, achieve the sustainable management and efficient use of natural resources▯ Strategy and growth p. 13, 20, 23, 24▯ Value chain and products   p. 28, 37, 39▯ The environment
12.4:	By 2020, achieve the environmentally sound management of chemicals and all wastes
throughout their life cycle, in accordance with agreed international frameworks, and significantly
reduce their release to air, water, and soil in order to minimize their adverse impacts on humanhealth and the environment
12.5:	By 2030, substantially reduce waste generation through prevention, reduction, recycling,
and reuse
12.6:	Encourage companies, especially large and transnational companies, to adopt sustainable practices
and to integrate sustainability information into their reporting cyclep. 46, 48, 54, 57, 60▯ Strategy and growth p. 13, 20▯ Value chain and products p. 28, 39▯ The environment p. 46, 48, 54, 57, 60▯ Value chain and products p. 28, 39▯ The environment p. 46, 60▯ Strategy and growth p. 13, 20▯ Governance and compliance p. 110, 117▯ Value chain and products p. 23, 28

SDG 13—Take urgent action to combat climate change and its impacts
13.1:	Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters
in all countries
13.2: Integrate climate change measures into national policies, strategies, and planning
13.3:	Improve education, awareness-raising, and human and institutional capacity on climate change
mitigation, adaptation, impact reduction, and early warning▯ Governance and compliance p. 110▯ Strategy and growth p. 13, 20▯ The environment p. 46, 48▯ Strategy and growth p. 12,13▯ The environment p. 46, 48

154 Basis of reporting

T34

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

GRI content index, including the 17 UN Sustainable Development Goals
The following GRI content index is based on the topics of material relevance to Evonik andtherefore on the structure of the chapters in this report. The aim is to enhance readability andensure that topics can be located easily. In the description of the management approaches, wehave also increased the focus on topics of relevance to us. Consequently, the GRI indicators are
not necessarily presented in ascending order. Instead, they are presented on the basis of our areasof action: strategy and growth, value chain and products, the environment, employees, safety, andgovernance and compliance (including an additional management approach on human rights).

This report has been prepared in accordance with the GRI Sustainability Reporting Standards.
For the Content Index – Essentials Service, GRI Services reviewed that the GRI content index has
been presented in a way consistent with the requirements for reporting in accordance with the
GRI Standards, and that the information in the index is clearly presented and accessible to thestakeholders. The review by GRI was based on the German version of this report. Since 2019,
we have mapped the 17 UN Sustainable Development Goals to the GRI disclosures.

GRI content index

T34

Statement of use

Evonik Industries AG has reported in accordance with the GRI Standards for the period January 1, 2023 to December 31, 2023.

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)None

Relevant SDG

Disclosure

GRI Standard/Other Source

Location a

Omission
Requirement(s)omittedReasonExplanation

General Disclosures
GRI 2: General Disclosures 2021

8, 10

2-1

Organizational details

8, 148, 167, 171

2-2	Entities included in the organization’s sustainability reporting

148. More

2-3

Reporting period, frequency, and contact point

147, 171

2-4

Restatements of information27, 148

2-5

External assurance

149, 164, 165

2-6

Activities, value chain, and other business relationships

14, 128, 140, 166

2-7

Employees

20, 89, 91, 93, 148

2-8Workers who are not employees

89, 107

a Page no. in sustainability report (page no. in financial report. More.

).

Basis of reporting155 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omitted

5, 16

2-9

Governance structure and composition94, 113, 135

5, 16

2-10

Nomination and selection of the highest governance body

113

16

2-11

Chair of the highest governance body

113

16

2-12	Role of the highest governance body in overseeing the management of impacts

113, 137, 140, (86, 103 , 111, 112)

2-13

Delegation of responsibility for managing impacts

113

2-14

Role of the highest governance body in sustainability reporting

5, 25, 27, 135, 148

2-15

Conflicts of interest

113, 138, (103, 115)

2-16

Communication of critical concerns

119, 124

2-17

Collective knowledge of the highest governance body113, (117, 119)2-18

Evaluation of the performance of the highest governance body

113. More

2-19

Remuneration policies

18, 88, 114. More

16

16

2-20

Process to determine remuneration

18, 91, 114. More

2-21

Annual total compensation ratio

91, 1142-22

Statement on sustainable development strategy

5, 7, 17, 146

2-23

Policy commitments

17, 111, 117, 131

2-24

Embedding policy commitments

111, 118, 120, 123

2-25

Processes to remediate negative impacts

118, 119, 120, 121, 122

16

2-26

Mechanisms for seeking advice and raising concerns

25, 117, 118, 119, 120, 122

16

2-27

Compliance with laws and regulations

123, 124

2-28

Membership of associations

12, 111, 112

2-29

Approach to stakeholder engagement

135, 136, 137

2-30

Collective bargaining agreements

91, 9416

8

Material topics
GRI 3: Material Topics 2021

3-1

Process to determine material topics

24, 25, 26, 27, 137

3-2

List of material topics

12, 25, 27, 148

a Page no. in sustainability report (page no. in financial report. More).

ReasonExplanation

156 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omittedReasonExplanation

Confidentiality
constraints

We only reporton financial
assistancereceived fromthe EU andGermany.
(201-4 a. iii.)

Strategy and growthMaterial topic: Portfolio transformation
Economic performance
8, 9
13

GRI 3: Material Topics 2021

3-3

GRI 201: Economic
Performance 2016

201-1 Direct economic value generated and distributed

Management of material topics

16, 111, 112, 113, 114, 135, 136, 137
16

201-2 Financial implications and other risks and opportunities due to climate change

20, 51, (86, 96)

201-3 Defined benefit plan obligations and other retirement plans92

201-4 Financial assistance received from government30

GRI 3: Material Topics 2021

3-3

90, 111, 112, 113, 114, 135, 136, 137

GRI 202: Market Presence 2016

202-1	Ratios of standard entry level wage by gender compared to local minimum wage91

202-2 Proportion of senior management hired from the local community

99

GRI 3: Material Topics 2021

3-3

20, 111, 112, 113, 114, 135, 136, 137

GRI 203: Indirect Economic
Impacts 2016

203-1 Infrastructure investments and services supported

12, 20203-2 Significant indirect economic impacts

12, 20, (30)

GRI 3: Material Topics 2021

3-3

32, 111, 112, 113, 114, 135, 136, 137

GRI 301: Materials 2016

301-1 Materials used by weight or volume34

301-3 Reclaimed products and their packaging materials

34

GRI 3: Material Topics 2021

3-3

39, 111, 112, 113, 114, 135, 136, 137

GRI 416: Customer Health and
Safety 2016416-1	Assessment of the health and safety impacts of product and service categories

39416-2	Incidents of non-compliance concerning the health and safety impacts of products
and services

39, (86, 112)

Market presence
1, 5, 8
8Management of material topics

Indirect economic impacts
5, 9, 11
1, 3, 8

Management of material topics

Value chain and products
Material topic: Circular economy
Materials
8, 128Management of material topics

Material topic: Product stewardship
Customer health and safety

16

a Page no. in sustainability report (page no. in financial report. MoreManagement of material topics).

157 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omittedReasonExplanation

Marketing and labeling
12
16

GRI 3: Material Topics 2021

3-3

GRI 417: Marketing and Labeling2016417-1 Requirements for product and service information and labelingManagement of material topics

39, 111, 112, 113, 114, 135, 136, 13739417-2	Incidents of non-compliance concerning product and service information and labeling39, (86, 112)

GRI 3: Material Topics 2021

3-3

47, 54, 111, 112, 113, 114, 135, 136,
137

GRI 302: Energy 2016

The environment
Material topic: Green energy
Energy7, 8, 12, 13Management of material topics

302-1 Energy consumption within the organization

55, 56, 57

7, 8, 12, 13

302-3 Energy intensity

57

7, 8, 12, 13

302-4 Reduction of energy consumption

55, 56, 57

7, 8, 12, 13,

302-5 Reductions in energy requirements of products and services

57

GRI 3: Material Topics 2021

3-3

47, 57, 111, 112, 113, 114, 135, 136,
137

GRI 303: Water and Effluents 2018Material topic: Water management
Water and effluents

6, 12Management of material topics

303-1 Interactions with water as a shared resource

58, 59, 1416

303-2 Management of water discharge-related impacts

58, 596

303-3 Water withdrawal

58, 59Points b and c

Information
unavailable/
incomplete

Data are notavailable

6

303-4 Water discharge

58, 59Points b and c

Information
unavailable/
incomplete

Data are notavailable

6

303-5 Water consumption

58, 59Points b and c

Information
unavailable/
incomplete

Data are notavailable

GRI 3: Material Topics 2021

3-3

47, 62, 111, 112, 113, 114, 135, 136,
137

GRI 304: Biodiversity 2016

304-1	Operational sites owned, leased, managed in, or adjacent to, protected areas andareas of high biodiversity value outside protected areas

Material topic: Biodiversity
Biodiversity

6, 14, 15a Page no. in sustainability report (page no. in financial report. MoreManagement of material topics).

63158 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omittedMaterial topic: Mitigating climate change
Emissions3, 12, 13, 14, 15

GRI 3: Material Topics 2021

3-3

GRI 305: Emissions 2016

Management of material topics

47, 48, 111, 112, 113, 114, 135, 136,137

305-1 Direct (Scope 1) GHG emissions

49, 51, 55

3, 12, 13, 14, 15

305-2 Energy indirect (Scope 2) GHG emissions

49, 51, 55

3, 12, 13, 14, 15

305-3 Other indirect (Scope 3) GHG emissions

49, 53, 55

13, 14, 15

305-4 GHG emissions intensity

51, 5513, 14, 15

305-5 Reduction of GHG emissions

51, 53, 55

3, 12305-6 Emissions of ozone-depleting substances (ODS)

51, 54, 55

3, 12, 14, 15

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

51, 54, 55

GRI 3: Material Topics 2021

3-3

47, 60, 111, 112, 113, 114, 135, 136,
137

GRI 306: Waste 2020

Waste

3, 6, 11, 12

Management of material topics

306-1 Waste generation and significant waste-related impacts

48, 61, 141

3, 6, 11, 12

306-2 Management of significant waste-related impacts

37, 48, 61

3, 11, 12306-3 Waste generated

61

3, 11, 12306-4 Waste diverted from disposal

60, 613, 11, 12306-5 Waste directed to disposal

60

GRI 3: Material Topics 2021

3-3

86, 87, 90, 95, 111, 112, 113, 114,
135, 136, 137

GRI 401: Employment 2016

401-1 New employee hires and employee turnover

90, 91, 96, 97, 98

401-2	Benefits provided to full-time employees that are not provided to temporary or
part-time employees

91, 93, 106

401-3 Parental leave

93

Employees
Material topic: Employee satisfaction
Employment

5, 8, 103, 5, 85, 8Management of material topics

Material topic: Attractiveness as an employer
Labor/management relations

8

GRI 3: Material Topics 2021

3-3

GRI 402: Labor/
Management Relations 2016402-1 Minimum notice periods regarding operational changes

a Page no. in sustainability report (page no. in financial report. MoreManagement of material topics).

86, 87, 90, 95, 111, 112, 113, 114,
135, 136, 137
94

ReasonExplanation

159 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omittedReasonExplanation

Point b,iii to iv andpoints c. and d.

Confidentiality
constraints

We do notgive figures for
accidents andhours worked
by contractors’
employees.

Training and education

4, 5, 8, 10
8

GRI 3: Material Topics 2021

3-3

GRI 404: Training and
Education 2016404-1 Average hours of training per year per employee

101404-2	Programs for upgrading employee skills and transition assistance programs

100

404-3	Percentage of employees receiving regular performance and career development
reviews

88

5, 8, 10

Management of material topics

86, 99, 111, 112, 113, 114, 135, 136,
137

Material topic: Diversity and equal opportunity
Diversity and equal opportunity

5, 8
5, 8, 10

GRI 3: Material Topics 2021

3-3Management of material topics

86, 95, 111, 112, 113, 114, 135, 136,
137

GRI 405: Diversity andEqual Opportunity 2016405-1 Diversity of governance bodies and employees

97, 98, 113 (117, 119)405-2	Ratio of basic salary and remuneration of women to men

91

SafetyMaterial topics: Occupational and plant safety and health protection and promotion
Occupational health and safety
GRI 3: Material Topics 2021

3-3

GRI 403: Occupational Health and
Safety 2018403-1 Occupational health and safety management system

104, 105, 106

403-2 Hazard identification, risk assessment, and incident investigation

107, 117, 118

8403-3 Occupational health services

106

8, 16

403-4	Worker participation, consultation, and communication on occupational healthand safety

104, 1068403-5 Worker training on occupational health and safety

104, 106, 1073403-6 Promotion of worker health92, 1088

403-7	Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships

106, 1078

403-8	Workers covered by an occupational health and safety management system106

3, 8, 16403-9 Work-related injuries

105

3, 8, 16403-10	 Work-related ill health

107

8
8

a Page no. in sustainability report (page no. in financial report. MoreManagement of material topics).

90, 103, 104, 105, 106, 111, 112, 113,
114, 135, 136, 137

160 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omittedReasonExplanation

Legal
prohibitions

For data protection reasons, it is
not possible for
us to make all
the disclosureson 406-1 b iv.
required by the
GRI.

Governance and compliance
Material topic: Responsibility in the supply chain
Procurement practices
GRI 3: Material Topics 2021
8

3-3Management of material topics

GRI 204: Procurement Practices 2016 204-1 Proportion of spending on local suppliers

111, 112, 113, 114, 128, 135, 136, 137
129

Material topic: Responsible management/human rights
Anti-corruption
GRI 3: Material Topics 2021

3-3

GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related to corruption

117, 118, 123

205-2	Communication and training about anti-corruption policies and procedures123

205-3 Confirmed incidents of corruption and actions taken

125

GRI 3: Material Topics 2021

3-3111, 112, 113, 114, 135, 136, 137

GRI 206: Anti-competitive
Behavior 2016

206-1	Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

123

GRI 3: Material Topics 2021

3-3111, 112, 113, 114, 127, 135, 136, 137

GRI 207: Tax 2019

207-1 Approach to tax

127

1, 10, 17

207-2 Tax governance, control, and risk management127

1, 10, 17

207-3 Stakeholder engagement and management of concerns related to tax

127

16
16

Management of material topics

111, 112, 113, 114, 135, 136, 137

Anti-competitive behavior
16

Management of material topics

Tax b
1, 10, 17Management of material topics

Material topic: Responsibility in the supply chain
Supplier environmental assessment
GRI 3: Material Topics 2021

3-3

GRI 308: Supplier
Environmental Assessment 2016308-1 New suppliers that were screened using environmental criteria

Management of material topics

111, 112, 113, 114, 128, 135, 136, 137
131, 132308-2 Negative environmental impacts in the supply chain and actions taken

131, 132

Material topic: Responsible management/human rights
Non-discrimination
5, 8

GRI 3: Material Topics 2021

3-3

GRI 406: Non-discrimination 2016406-1 Incidents of discrimination and corrective actions taken

a Page no. in sustainability report (page no. in financial report. MoreManagement of material topics).

95, 111, 112, 113, 114, 135, 136, 137
99, 132| b Voluntary disclosure because this is not a material topic according to the latest materiality analysis.

161 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

GRI content index

Relevant SDG

GRI Standard/Other Source

Disclosure

Location a

Omission
Requirement(s)omittedFreedom of association and collective bargaining

8

GRI 3: Material Topics 2021

3-3Management of material topics

90, 111, 112, 113, 114, 128, 135, 136,
137

GRI 407: Freedom of Association
and Collective Bargaining 2016407-1	Operations and suppliers in which the right to freedom of associationand collective bargaining may be at risk

93, 112, 113, 118, 131, 132

GRI 3: Material Topics 2021

3-3111, 112, 113, 114, 120, 135, 136, 137

GRI 408: Child Labor 2016408-1	Operations and suppliers at significant risk for incidents of child labor93, 112, 113, 118, 131, 132

GRI 3: Material Topics 2021

3-3111, 112, 113, 114, 120, 135, 136, 137

GRI 409: Forced orCompulsory Labor 2016409-1	Operations and suppliers at significant risk for incidents of forced
or compulsory laborChild labor
8, 16Management of material topics

Forced or compulsory labor
8Management of material topics

93, 131, 132

Material topic: Responsibility in the supply chain
Supplier social assessment
5, 8, 16
5, 8, 16

GRI 3: Material Topics 2021

3-3

GRI 414: SupplierSocial Assessment 2016414-1 New suppliers that were screened using social criteria

Management of material topics

111, 112, 113, 114, 128, 135, 136, 137
131, 132414-2 Negative social impacts in the supply chain and actions taken

131, 132

GRI 3: Material Topics 2021

3-3111, 112, 113, 114, 126, 135, 136, 137

GRI 418: Customer Privacy 2016418-1	Substantiated complaints concerning breaches of customer privacy
and losses of customer data

126, (86, 112)

3-3

111, 112, 113, 114, 125, 135, 136, 137

Customer privacy
16

Management of material topics

Further material topic: Cybersecurity
GRI 3: Material Topics 2021

Management of material topics

Further elements of our sustainability management
Material topic: Responsible management/human rights
Public policy
16

GRI 3: Material Topics 2021

3-3

GRI 415: Public Policy 2016415-1 Political contributions

a Page no. in sustainability report (page no. in financial report. MoreManagement of material topics).

111, 112, 113, 114, 135, 136, 137, 138
138

ReasonExplanation

162 Basis of reporting

T35

EVONIK SUSTAINABILITY REPORT 2023

SASB content index

SASB content index
Evonik uses the Sustainability Accounting Standards Board (SASB) Content Index to provide structured information for investors on SASB-relevant topics. In the industry classification system provided
by SASB, Evonik is assigned to the SASB Resource Transformation Chemicals industry standard. The SASB content index refers to Evonik’s sustainability report, which has been prepared in accordancewith the GRI Standards p.154
SASB content index
SASB topic & accounting metric

T35
SASB code

Category

GRI disclosure number

Reference point sustainability report

Gross global scope 1 emissions, percentage covered under emissions-limiting regulations

RT-CH-110a.1

Quantitative

305-1

Greenhouse gas emissions

Discussion of long-term and short-term strategy or plan
to manage scope 1 emissions, emissions reduction targets,and an analysis of performance against those targets

RT-CH-110a.2

Discussion andanalysis305

Strategy and management p. 47, Environmental targets 2021 – 2030
Climate change p. 48, Our targets p. 65

RT-CH-120a.1

Quantitative

305-7

Other emissions into the air

RT-CH-130a.1

Quantitative

302-1-7

Energy data

p. 56, Energy inputs

1. Total water withdrawn
2. Total water consumed, percentage of each in regions with highor extremely high baseline water stress

RT-CH-140a.1

Quantitative

303-3, 303-5

Water data

p. 59, Water intake by source

Number of incidents of non-compliance associated withwater-quality permits, standards, and regulations

RT-CH-140a.2

Quantitative

307-1, 419-1

Fines and other sanctions p. 123,
Internal investigations into compliance violations

Description of water management risks and discussionof strategies and practices to mitigate those risks

RT-CH-140a.3

Discussion andanalysis

303

Water management

RT-CH-150a.1

Quantitative

306-2

Waste

Greenhouse Gas Emissions
p. 48 – 51

Air Quality
Air emissions of the following pollutants:
1. NOX (excluding N2O)
2. SOX
3. Volatile organic compounds (VOC) and4. Hazardous air pollutants (HAPs)

p. 54

Energy Management
1. Total energy consumed
2. Percentage grid electricity
3. Percentage renewable
4. Total self-generated energy

p. 57

Water Management

p. 57 – 60

Hazardous Waste Management
Amount of hazardous waste generated, percentage recycled

p. 61, Waste management

p. 60

p. 58

p.124

p. 48,

163 Basis of reporting

EVONIK SUSTAINABILITY REPORT 2023

SASB content index

SASB topic & accounting metric

SASB code

Category

GRI disclosure number

Reference point sustainability report

RT-CH-210a.1

Discussion andanalysis413-1 und 413-2

How we create value for society p. 12,
Sustainability analysis of our business p. 20 – 22,
Impact valuation p. 140, Stakeholder engagement p. 137,
Voluntary commitments p. 111,
Biodiversity p. 62 – 64, Product stewardship p. 39 – 45,
Responsibility within the supply chain p. 128 – 135

1. Total recordable incident rate TRIR and2. Fatality rate for a) direct employees and b) contract employees

RT-CH-320a.1

Quantitative

403-9

Lost time injury rate

Description of efforts to assess, monitor, and reduce exposureof employees and contract workers to long-term chronic health risks

RT-CH-320a.2

Discussion andanalysis403-1, 403-2, 403-3,
403-4, 403-5, 403-6,
403-7, 403-8, 403-10

Health protection and promotion p. 106 – 108,
Product stewardship p. 39, Safety p. 102 – 109

RT-CH-410a.1

Quantitative

2023 findings p. 22, CO₂e avoided by quantifying the handprint
p. 23,
Portfolio transformation
Sustainability analysis of our business p. 20 – 22,
Circular economy p. 32, Efficient use of scarce resources p. 37

1. Percentage of products that contain Globally Harmonized System of Classification andLabelling of Chemicals GHS Category 1 and 2 Health and Environmental Hazardous Substances
2. Percentage of such products that have undergone a hazard assessment

RT-CH-410b.1

Quantitative

Product stewardshipp. 39

Discussion of strategy to
1. Manage chemicals of concern and
2. Develop alternatives with reduced human and/or environmental impact

RT-CH-410b.2

Discussion andanalysis

Product stewardshipp. 39

RT-CH-410c.1

Quantitative

Product stewardshipp. 45

RT-CH-530a.1

Discussion andanalysis

Our positions p. 139, Opportunity and risk management
p. 86
Opportunity and risk report in the financial report

Process Safety Incidents Count PSIC, Process Safety Total Incident Rate PSTIR,
and Process Safety Incident Severity Rate PSISR

RT-CH-540a.1

Quantitative

Number of transport incidents

RT-CH-540a.2

Quantitative

Transportation safety and logistics

RT-CH-000.A

Quantitative

Production volume

Community Relations
Discussion of engagement processes to manage risks
and opportunities associated with community interests

Workforce Health & Safety
p. 104 andp. 105

Product Design for Use-Phase Efficiency
Revenue from products designed for use-phase resource efficiency

Safety & Environmental Stewardship of Chemicals

Genetically Modified Organisms
Percentage of products by revenue that contain geneticallymodified organisms GMOs

Management of the Legal & Regulatory Environment
Discussion of corporate positions related to government regulations and/or policy proposals that
address environmental and social factors affecting the industry

Operational Safety, Emergency Preparedness & Response
306-2

Process safety incident rate

Activity metrics
Production output by reportable segments

p. 12

p. 105
p. 108

p. 114,

p. 24,

164 Basis of reporting

Independent Practicioner’s
Limited Assurance Report 1
2-5

Independent assurance practitioner’s report
To the Executive Board of Evonik Industries AG, Essen

We have performed a limited assurance engagement on the
Chapters and Sections marked
in the Sustainability Report(hereinafter, “SR”) of Evonik Industries AG, Essen, (hereinafter
the “Company”) for the period from January 1, 2023 to December 31, 2023.
The contents of the Sub-Section „Impact Valuation“ contained in
the Section “Further elements of our sustainability management”
are excluded from the assurance engagement and are marked
accordingly as “non-audited” in the SR.

Responsibilities of Management

The Company’s legal representatives are responsible for the
preparation of the SR in accordance with the reporting criteria.
The reporting criteria comprise in particular:• The principles and disclosures set out in the Global Reporting
Initiative (GRI) Sustainability Reporting Standards• The Corporate Accounting and Reporting Standard (Scope 1
and 2) of the World Resources Institute (WRI)EVONIK SUSTAINABILITY REPORT 2023

• The GHG Protocol Standard of the WRI and the World
Business Council for Sustainable Development (WBCSD), in
which the methodology for accounting for greenhouse gas
emissions along the value chain (Scope 3) is closely aligned• Article 8 of REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of June 18,
2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU)2019/2088 (hereinafter the “EU Taxonomy Regulation”)
and the supplementing Delegated Acts, as well as theinterpretation by the Company of the wording and terms contained in the EU Taxonomy Regulation and the supplementing
Delegated Acts, as set out in the Chapter “Strategy and
Growth” of the SR
The responsibility of the legal representatives includes theselection and application of appropriate methods to prepare theSR and the use of assumptions and estimates for individual
disclosures which are reasonable in the circumstances. Furthermore, the legal representatives are responsible for the internal
controls they deem necessary for the preparation of the SR thatis free of – intended or unintended – material misstatements.
The EU Taxonomy Regulation and the supplementing DelegatedActs contain wordings and terms that are still subject tosubstantial uncertainties regarding their interpretation and forwhich not all clarifications have been published yet. Therefore,
the legal representatives have included a description of theirinterpretation in the section “Sustainable finance” in the SR. They
are responsible for the validity of this interpretation. Due to theinnate risk of diverging interpretations of vague legal concepts,
the legal conformity of the interpretation is subject touncertainty.

Responsibility of the Assurance Practitioner

It is our responsibility to express a conclusion with limited assurance on the Chapters and Sections marked with, except forthe disclosures marked as “non-audited” in Evonik’s SR.
We conducted our work in the form of a limited assurance
engagement in accordance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised): “Assurance
Engagements other than Audits or Reviews of Historical Financial
Information”, published by IAASB. Accordingly, we have to planand perform the assurance engagement in such a way that we
obtain limited assurance as to whether any matters have come toour attention that cause us to believe that the Chapters andSections marked(except for the disclosures marked as“non-audited”) in the SR for the reporting period from January 1,
2023 to December 31, 2023, have not been prepared, in allmaterial respects, in accordance with the reporting criteria.
As the assurance procedures performed during a limited
assurance engagement are less comprehensive than in areasonable assurance engagement, the level of assurance
obtained is substantially lower. The determination of the assurance procedures is subject to the auditor’s own judgement.

1	The English language text below is a translation provided for information purposes only. The original German text shall prevail in the event of any discrepancies between the English translation and the German original. We do not accept any liability for the use of,or reliance on, the English translation or for any errors or misunderstandings that may arise from the translation.

165 Basis of reporting

Within the scope of our engagement, we performed, among
others, the following assurance procedures:• Inquiries of group-level personnel who are responsible for themateriality analysis in order to understand the processes fordetermining material topics and respective reporting boundaries for Evonik• Inquiries of personnel responsible for the methodology andprocesses of the Sustainability Analysis of Evonik’s
Businesses, tracing the main process steps at decentralized
and centralized company level, testing the application of themethodology at selected business lines within the scope of asample• A risk analysis, including media research, to identify relevant
information on Evonik’s sustainability performance within thereporting period• Evaluation of the design and the implementation of systems
and processes for the collection, processing and monitoring of
disclosures, including data consolidation• Inquiries of group-level personnel who are responsible fordetermining disclosures on concepts, due diligence processes,
results and risks, performing internal control functions andconsolidating disclosures• Inspection of selected internal and external documents• Analytical procedures for the evaluation of data and of thetrends of quantitative disclosures as reported at group level by
all sites

EVONIK SUSTAINABILITY REPORT 2023

• Evaluation of local data collection, validation and reporting
processes as well as the reliability of reported data based on asample of sites at seven locations• Evaluation of the process for the identification of taxonomyeligible and taxonomy-aligned economic activities and thecorresponding disclosures in the SR• Assessment of the overall presentation of the disclosures
The legal representatives have to interpret vague legal concepts
in order to be compile the relevant disclosures in accordance with
Article 8 of the EU Taxonomy Regulation. Due to the innate
risk of diverging interpretations of vague legal concepts, thelegal conformity of these interpretations and, accordingly, ourassurance thereof are subject to uncertainty.
In our opinion, we obtained sufficient and appropriate evidence
for reaching a conclusion for our assurance engagement.

Independence and Quality Assurance of the Assurance
Practitioner’s Firm

In performing the engagement, we applied the national legal
provisions and professional pronouncements regarding
independence and quality assurance, in particular theProfessional Code for German Public Auditors and Chartered
Accountants (in Germany) and the IDW Standard on Quality
Management 1: Requirements for Quality Management in Audit
Firms (IDW QMS 1 (09.2022)).

Assurance Opinion

Based on the assurance procedures performed and the evidence
obtained, nothing has come to our attention that causes us tobelieve that the Chapters and Sections marked, except for thedisclosures marked as “non-audited”, in the Sustainability Reportof Evonik Industries AG, Essen, for the period from January 1,
2023 to December 31, 2023 have not been prepared, in allmaterial respects, in accordance with the reporting criteria.
2-5

Restriction of Use/General Engagement Terms

This assurance report is issued for the purposes of the Executive
Board of Evonik Industries AG, Essen only.
Our assignment for the Executive Board of Evonik Industries AG,
Essen, as described above was governed by the General
Engagement Terms for Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (Allgemeine Auftragsbedingungen fürWirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in
the version dated January 1, 2017 (https://www.kpmg.de/bescheinigungen/lib/aab_english.pdf). By reading and using theinformation contained in this assurance report, each recipientconfirms having taken note of the provisions of the General
Engagement Terms (including the limitation of our liability for
negligence to EUR 4 million as stipulated in No. 9) and accepts
their validity with respect to us.
Düsseldorf, February 27, 2024

KPMG AG
Wirtschaftsprüfungsgesellschaft[Original German version signed by:]Brandtppa. Dietrich
Wirtschaftsprüferin[German Public Auditor]

Further information

C50

History of sustainability at Evonik

166 Further information

EVONIK SUSTAINABILITY REPORT 2023

History of sustainability at Evonik

Responsibility—an integral part of our business for more than 140 years
Sustainability has deep roots in thecommitment of our predecessor
companies. At first, the focus was onsocial policy and codetermination.

1884
1886

Establishment of a pension fund a

Extensive governance andcompliance activities.

Dialogue with stakeholders is
becoming increasingly important.

1979 Introduction of an environmental hotline for
employees and local residents c

2004 Code of Conduct e

20171995 Joined Responsible Care® a2016 Executive Board Policy
Statement on Human Rights

Since 2011, various formats havebeen introduced for
dialogue with stakeholders
2016 Start of the Evonik
Perspectives stakeholder
conferences• First impact valuation of
our businessIn the 1970s, the focus shifted toenvironmental protection and safety.

1875 Insurance coverage for sickness andpermanent incapacity to work aIntroduction of the eight-hour workday a

C50

2-6

2014 Code of Conduct for Suppliers

2002 All executives in operating units agree
targets for occupational safety d2017 Externally run whistleblower
system2004 Ambitious environmental targets since 2004 d
2013 Start of Safety at Evonik to establish
a safety culture

1898 First staff committee a

Evonik’s first fullsustainability report

1939

1979

1994 1995

2007

2009

2011

2013

Introduction of mailboxes
for suggestions on
improvements b2009 – 1,100 ideas submitted
2019 by our employees lead tosavings of € 15 million in
the cost of energy, wastewater, waste disposal,
and raw materials

a Former Degussa AG (Frankfurt am Main).

| b Evonik Röhm GmbH.
All elements of this chart are provided as examples.

2016

2017

2018

2019

2020

2021

2022

2023

Sustainability integrated
into the strategic management
process

Employee engagement
and creativity have always
been important.
1939

Executive board adopts theSustainability Strategy 2020+,
including ambitious
environmental targets

Founding memberof the Together for
Sustainability initiative

Strategy and Status 2007

1884 1886 1898

2019

2011

Corporate
Responsibility

1875• First analysis of Evonik’s contribution to the UN Sustainable
Development Goals (SDGs)

Sustainability becomes abusinesas activity and unlocks
opportunities for growth.

Evonik is involved in major
sustainability networks
and initiatives.

1994 Rising demand for productswith a reduced environmental
impact such as hydrogen
peroxide or silica and silanes
for “green” tires a

2002 Member of the World
Business Council for
Sustainable Development

2016 First sustainability analysis of
our business2013 Start of involvementin the Chemie3 initiative| c Former Hüls GmbH.

2009 Signature of the
UN Global Compact| d Former “new” Degussa AG (Düsseldorf).

2020
Start of implementation of thesustainable corporate strategy

2022
Next Generation Evonik—
Start of the next phase of thestrategic transformation| e Replaced the previous Compliance Rules.

2023• Science Based Target initiative
validates Evonik’s climate targets• Sustainabiity targets included inremuneration of the executive
board and other executives

Further information

167 Further information

T36

EVONIK SUSTAINABILITY REPORT 2023

Principal locations

Principal locations a
No. of employees



2-1

2021

2022

2023

Europe, Middle East & Africa

T36

No. of employees

Dombivli

India

Marl

Germany

6,996

7,143

7,139

IBP

Singapore

Hanau

Germany

3,271

3,335

3,340

Changchun

China

Essen (Goldschmidtstr.)

Germany

1,934

2,074

2,097

TaoyuanDarmstadt

Germany

1,282

1,351

1,378

Mumbai (Bombay)

Rheinfelden

Germany

1,176

1,146

1,131

Antwerp

Belgium

1,049

1,065

Wesseling

Germany

1,016

Essen (Rellinghauser Str.)

Germany

836

Krefeld

Germany

Herne

Germany

Slovenská Ľupča
Witten

2021

2022

2023

274

265

256

216

214

133

154

162

Taiwan

159

161

156

India

152

158

145

Tokyo

Japan

138

143

138

1,063

Nanjing

China

113

130

133

1,020

985

Yokkaichi

Japan

140

136

131

859

860

Liaoyang

China

138

137

473

495

492

Qingdao

China

108

102

396

405

417

Singapore

Singapore

613

Slovakia

229

242

265

North America

Germany

253

258

255

Mobile, AL

USA

745

745

Ham

France

216

222

238

Lafayette, IN

USA

679

681

SteinauGermany

228

236

235

Piscataway, NJ

USA

Lenzing

Austria

187

210

233

Allentown, PA

USA

239

260

279

Dossenheim

Germany

179

186

191

Birmingham, AL

USA

171

220

223

Offenbach

Germany

169

175

169

Greensboro, NC

USA

159

171

173

ArifiyeTurkey

123

131

142

Mapleton, IL

USA

160

142

143

Weiterstadt

Germany

116

115

124

Etowah, TN

USA

137

138

136

KünsebeckGermany

102

107

107

Blair, NE

USA

105

118

125

Weißenstein

Austria101

Richmond, VA

USA

109

129

113

Lülsdorf

Germany

Tonawanda, NY

USA

106

114

Little Rock, AR

USA

527

562

Asia-Pacific

754
707
377

112
107

Shanghai Xingzhuang

China

734

831

841

Parsippany, NJ

USA

218

263

Shanghai MUSC

China

413

429

423

Hopewell, VA

USA

122

104

Nanning

China

351

355

334

Central & South America

Banyan Ave

Singapore

339

330

São Paulo

Brazil

189

197

201

Costa Rica

117

141

160

139

139

Selangor

Malaysia

277

306

320

San José

Nanping

China

335

327

307

Americana

Brazil131

Castro - Parana

Brazil103

As of December 31 of the respective year.
a Based on Evonik’s region model. Contains locations with >100 employees and covers 86 of the workforce.

102

Ratings and indices, sustainability awards

168 Further information

EVONIK SUSTAINABILITY REPORT 2023

Ratings and indices, sustainability awards

Ratings and indicesSustainability awards
Evonik was runner-up at the ESG InvestingAward 2023, gaining second place in the category BEST COMPANY FOR SUSTAINABILITYREPORTING: INDUSTRIALS.

Morgan Stanley Capital International (MSCI)
has awarded Evonik an AA rating for its sustainability performance. Evonik is therefore in
the leader category. We scored particularly
highly on corporate governance.

Evonik is a member of the FTSE4Good Europe
Index and the FTSE4Good Developed Europe
Index. These index families of the Londonbased FTSE Group rate companies in cate­gories such as environmental management,
human and labor rights, health and safety,
sustainability in the supply chain, andcorporate governance.

An analysis by the Morningstar Sustainalytics
rating agency ranks Evonik’s sustainability
performance among the top 5 percent of theroughly 600 chemical companies evaluated.

CDP Climate Change again awarded us a gradeof A- and CDP Water Security awarded us agrade of B. We also participated in CDP Forest,
where we were awarded a grade of B-.
In addition, Evonik participated in the CDP
Supplier Engagement Leader. 1

Our Herne and Rheinfelden sites in Germany
both won first place in Germany’s national
Responsible Care competition on sustainable
and economical use of energy with projects
on exhaust heat.

2022/2023

Evonik is listed in the STOXX® Global ESG
Leaders Index. This index lists the best 25 percent of sustainable companies in the investment
universe on transparency in environmental,social, and governance performance.

The League of American Communications
Professionals (LACP) presented Evonik with
the Vision Award in gold for its sustainability
report 2022.

www.evonik.com/CDP-ClimateChange

Since 2023, Evonik has been listed in the
DAX® 50 ESG index.
Evonik’s sustainability performance is rated
B- by ISS-ESG. Evonik therefore retains its
prime status, the highest level awarded, ranking it among the top 15 percent of companies
in the chemical sector.

As a founding member of the Together for Sustainability (TfS) initiative, Evonik drives forward
transparency and sustainability in the supply
chain and is subject to annual assessments.
In 2023, the EcoVadis rating agency, a partner of
TfS, also awarded us gold status for our sustainability performance.
As of: February 2024.

|

1

In the Euronext index family of VigeoEiris,which evaluates corporate ESG performance,
Evonik is included in the Europe 120 and Eurozone 120 indices. The evaluation is based on
up to 330 indicators covering 38 sustainability
criteria.

Evonik is listed in the Solactive Europe
Corporate Social Responsibility Index.
The composition of this index is reviewed
every six months using the Vigeo Eiris ESG
methodology. This covers ecological andsocial aspects and corporate governance.

The results of the CDP Supplier Engagement Leader 2023 were not available at the time of publication.

At the ARC Awards, Evonik’s sustainability
report 2022 was awarded bronze in the PDF
category and silver in the microsite category.

Evonik´s sustainability report 2022 wongold in the FOX Finance awards andsilver in the FOX Visuals awards.

169 Further information

EVONIK SUSTAINABILITY REPORT 2023

List of tables and charts

List of tables and charts
TablesPage

TablesPage

ChartsPage

T01

Breakdown of value added

16

T30

Consolidated sustainability indicators for the Evonik group

142

C21

External hires by gender 2023

97

T02

Analysis of the measurability of sustainability

22

T31

Status of our sustainability targets for 2023

146

C22

Employees by region 2023

98

T03

Table illustrating the assessment of our list of
impacts by category and impact type

26

T32

TCFD index

151

C23

External hires by region 2023

98

T04

Recycling rates by packaging categories

34

T32

SDG index

153

C24

External management hires by region 2023

99

T05

Greenhouse gas emissions

51

T34

GRI content index

154

C25

ESTER targets

104

T06

Evonik Carbon Footprint

53

T35

SASB content index

162

C26

Lost time injury rate

104

T07

Other emissions into the air

54

T36

Principal locations

167

C27

Lost time injury rate, contractors’ employees

105

T08

Energy inputs

57

C28

Process safety incident rate

105

T09

Water intake by source

58

C29

Occupational health performance index

106

T10

Wastewater loads

60

C30

Voluntary commitments

111

T11

Waste management

60

C31

The risk management process at Evonik

114

T12

Waste

61

C32

House of Compliance

117

T13

Evonik production sites adjacent to conservation areas 2023

63

C33

Compliance management system

118

C34

Evonik’s whistleblower system

119

C35

Business partner assessment at Evonik

121

C36

Reports of suspected compliance violations

124

C37

Internal investigations reported

124

C38

Action taken

124

C39

Elements of our tax compliance management system

127

C40

Examples of risk-mitigating measures for tax compliance

128

C41

Evonik’s procurement organization

129

T14

ChartsPage

C01

Implementing our top 10 sustainability targets

7

C02

Shareholder structure

8

C03

Resources and value contributed by Evonik in 2023

12

C04

Corporate structure

15

C05

Transformation requirements and core processes

17

C06

Sustainability analysis of our business: methodology

21

Evonik production sites adjacent to key biodiversity areas
2023

63

T15

Employees by contractual status, region, and gender 2023

89

C07

Materiality analysis process

25

T16

Length of service

90

C08

Employee turnover 2023

91

Result of the validation: complete refocusing of
three material topics

26

T17
T18

Personnel expense

91

T19

Employee participation in #SmartWork

92

T20

Parental leave in Germany

93

T21

Ability to take extended periods of leave

93

T22

Diversity targets: gender

97

T23

Percentage of women in management

98

T24

Diversity targets: intercultural mix

98

T25

Outgoing shipments of hazardous goods

108

T26

Outgoing shipments of other goods

108

T27

Uniform group-wide training concept

118

T28

Compliance training and training rate 2023

123

T29

Supplier validation, assessments, and audits,
including corrective action

132

C09
C10

Breakdown of R&D expenses
Circular economy

30
32

C11

European chemicals regulation REACH

39

C12

Sustainability analysis of our business

42

C13

Our levers to reduce GHG emissions along the value chain

48

C14
C15

Ambitious climate targets
Evonik’s energy data 2023

49
56

C16

Evonik’s water data 2023

59

C17

ONE Culture

87

C18

Performance management

88

C19

Age structure in the Evonik Group 2023

96

C20

External hires by age 2023

96

C42

Supplier validation and evaluation

130

C43

Audit escalation process

131

C44

Sustainability performance of Evonik suppliers

131

C45

Sustainability governance structure at Evonik

135

C46

Stakeholder groups and their influence on Evonik

135

C47

Stakeholder communication channels

136

C48

Stakeholder engagement 2023

137

C49

Monetary impact valuation of our business activities

141

C50

History of sustainability at Evonik166

170 Further information

EVONIK SUSTAINABILITY REPORT 2023

List of abbreviations

List of abbreviations
CAP

Cyberattack protection

GHG

Greenhouse gas

RD&I

Research, Development & Innovation

Cefic

Conseil Européen des Fédérations
de l’Industrie Chimique

GHS

Global harmonized system

REACH

CLP

Classification, Labelling and Packaging
of substances and mixtures

GPS

Global Product Strategy

Registration, Evaluation, Authorisation,
and Restriction of Chemicals

GRI

Global Reporting Initiative

RSPO

Roundtable on Sustainable Palm Oil

CMS

Chemicals Management System

ICCA

SASB

Sustainability Accounting Standards Board

CSRD

Corporate Sustainability Reporting Directive

International Council of Chemical
Associations

SBTi

Science Based Targets initiative

CSS

Chemicals Strategy for Sustainability

IDW

German institute of auditors

SDG

UN Sustainable Development Goal

DEnMS

Digital energy management system

IED

Industrial Emissions Directive

SFA

Sustainability Focus Area

EAGER

Evonik Assessment ofGreenhouse Gas Emission Reduction

ILO

International Labour Organization

SSbD

Safe and Sustainable by Design

Input-output-outcome-impact model

TCFD

EFRAG

European Financial Reporting Advisory GroupIOOImodel

Task Force on Climate-related Financial
Disclosures

ESG

Environmental, social, governance

LILY

Learning and Individualized Library

TfS

Together for Sustainability

ESHQ

Environment, Safety, Health & Quality

MAF

Mixture allocation factor

TNFD

ESHQE

Environment, Safety, Health, Quality
and Energy

MTBE

Methyl-tert-butylether

Task Force on Nature-related Financial
Disclosures

OT

Operational technology

VCI

German chemical industry association

ESPR

Ecodesign for Sustainable Products Regulation

PARC

Product-application-region combination

VOC

Volatile organic compounds

ESRS

European Sustainability Reporting Standards

PPA

Power purchase agreement

WBCSD

ESTER

Evonik Standard Tool ESHQ and Reporting

PSA

Portfolio Sustainability Assessment

World Business Council for Sustainable
Development

171 Further information

EVONIK SUSTAINABILITY REPORT 2023

Credits

Credits 2-1, 2-3

Publisher

Evonik Industries AG
Rellinghauser Strasse 1 – 1145128 Essen
Germany
www.evonik.com

Contact

Sustainability Relations
Sabine Kuznik
sabine.kuznik@evonik.com
Kathrin-Maria Beermann
kathrin-maria.beermann@evonik.com
Michaela Hauberg
michaela.hauberg@evonik.com
Dr. Torsten Stojanik
torsten.stojanik@evonik.com

Consultant

PB Consulting GmbH

Picture credits

Page 3
Page 6, 8,
35, 43, 50, 58, 64,
89, 92, 93, 94, 95,
96, 97, 100, 105,
107, 119, 126, 129
Page 23, 33, 68,
69 (left), 70 –72,
73 (left), 74, 75,
76 (top, bottom),77 – 84
Page 31
Page 38
Page 44
Page 55, 69 (right)
Page 76 (right)
Page 138
1

Carsten Strübbe/EnBW 1/Siemens Energy
EvonikCarsten Strübbe

Evonik/SuperC
WWF Deutschland
Adobe Stock/Grispb
EnBW 1Siemens Energy
Adobe Stock/gb27photo

Energie Baden-Württemberg

Concept, design, and realization

HGB Hamburger Geschäftsberichte GmbH & Co. KG
www.hgb.de

Concept, design, and realization of thespecial magazine section
Hilbig Strübbe Partner
Büro für Design und Kommunikationwww.hilbig-struebbe-partner.deThis report contains forward-looking statements based on the present expectations, assumptions, and forecasts made by the executive board and the information available to it.
These forward-looking statements do not constitute a guarantee of future developments and earnings expectations. Future performance and developments depend on a wide variety
of factors which contain a number of risks and unforeseeable factors and are based on assumptions that may prove incorrect.
As of: February 26, 2024.

EVONIK INDUSTRIES AG
Rellinghauser Strasse 1   –  1145128 Essen, Germany
www.evonik.com