Despite the progress that has been made to reduce poverty, more than 700 million people, or 11% of the world population, still live in extreme poverty. Extreme poverty means having to survive on less than USD 1.90 per day.
Companies are a significant engine of economic growth and can help reduce poverty by creating jobs or buying locally. Companies that ensure compliance with social standards can make a positive contribution towards achieving this goal, especially in the economic sectors where most of the world's poor work.
Examples of our contribution
- Evonik employees at all sites are paid fairly; the framework guidelines for remuneration and ancillary benefits apply worldwide. We also offer our employees voluntary social benefits. As a consequence, more than 99 percent of our employees are covered by a statutory or company pension scheme and health insurance.
- We expect that our suppliers “pay remuneration and provide benefits that, with regard to an appropriate standard of living, correspond to the applicable national statutory minimum standards or minimum standards of the industry”(Evonik Code of Conduct for Suppliers).
- We also check this within the scope of our membership of Together for Sustainability, the initiative of the chemical industry to promote sustainability in the supply chain
- In 2019, we procured 77 percent of our purchasing volume of €9.4 billion locally and thus ensure valued adding, employment, and fiscal effects throughout the supply chains. Our Impact Analysis shows that, on average, one job with Evonik secures 7.9 further jobs worldwide. Each euro of value adding at Evonik leads to public finance receipts of €1.82.
- We also promote numerous social and ecological projects at our sites.
- Within the scope of our strategy for profitable growth, we create direct and indirect jobs and generate public finance receipts that countries can use to combat poverty.
- We want to gain a deeper understanding of the effects of our business activities. Therefore we will extend the monetary assessment of the effects of our business (impact analysis) throughout the value chain to other regions and indicators.