Investor Relations

Sustainable Investment (SRI)

Methodology for sustainability analysis of Evonik's Business

We are convinced that sustainable and responsible business activities are vital for the future of companies.

We have further developed the methodology for analyzing the sustainability of our businesses and subjected it to external validation. The findings of our sustainability analysis will supplement established internal strategic business analyses. They will cover our entire portfolio of chemical businesses. Transparent and quantifiable evaluation of sustainability aspects is necessary to include this perspective in business decisions. By taking these sustainability aspects into consideration when analyzing our businesses, we are able to identify both opportunities and risks in the value chain. Thus, the analysis supports our operating units in product and business development in their markets.

A sustainability analysis of all Evonik’s chemicals businesses is performed at the level of PARCs (product-application-region combinations; a PARC comprises a product or group of products used for a defined application in a specific region). The criteria of the analysis take into account sustainability aspects from the supply chain through production to subsequent use. The core elements of our analysis are sustainability criteria relating to the ecological and social issues along the value chain, which Evonik classifies as material.

The findings are used in a structured overall evaluation of the sustainability performance of our businesses, resulting in allocation to the performance category A++, A+, B, C –, or C -- based on the analyzed PARCs. In this way, the whole portfolio of PARCs should be analyzed for each strategic business entity. The results of our sustainability analysis provide a transparent insight into:

Abstract of the metholdology

  • our contribution to reducing our ecological footprint and maximizing our handprint along the various value chains
  • the extended possibilities of product development (e.g., the sustainability profiles expected by customers and end-markets).
  • the benefits of our products and solutions in overcoming the social challenges of population growth (addressed, for example, in the UN Sustainable Development Goals)
  • the exposure of our businesses to issues that are critical for their reputation (e.g., product stewardship, regulatory trends).