Renewable Raw Materials
In its production processes, Evonik uses dextrose and saccharose, mainly as substrates in the fermentative production of amino acids. Natural fats and oils and their derivatives are used to produce precursors for the cosmetics, detergents, and cleaning agents industries and in technical processing aids. Renewable raw materials are classed as critical raw materials for procurement purposes, especially with a view to reliability of supply. Consequently, they are subject to a special examination.
We endeavor to raise the proportion of renewable raw materials wherever this makes sense from a technical, economic, ecological, and social perspective. In view of the rising significance of renewable raw materials for our customers and in public debate, this topic is discussed by our specialists in our internal expert circle on renewable raw materials.
In 2019, renewable raw materials accounted for 7.9 percent of production inputs (2018: 9.7 percent). This is attributable to a reduction in the use of sugar by Animal Nutrition at the site in Blair (Nebraska, USA).
Palm oil plantations can have negative effects on the environment and local inhabitants. In view of this, Evonik supports the use of sustainable palm oil in the supply chain. We therefore use internationally recognized certification standards. We have been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2010. In cooperation with customers, our Care Solutions business line has defined additional supply chain criteria such as traceability to palm oil plantations or refineries. Strategy, objectives, and activities such as Evonik’s palm oil roadmap are discussed internally by our expert circle. We publish our activities and our targets to promote sustainable palm oil production in the RSPO’s annual progress report.
Evonik uses small amounts of palm oil, palm kernel oil, and their derivatives in production processes, for example, to produce ingredients for the cosmetic and consumer goods industries. 20 production sites that use palm oil derivatives have already been certified 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 to certified raw materials. We are extending our portfolio of RSPO-certified products in collaboration with our customers and suppliers.
You find more information on palm oil in our Sustainability Report.
The Dodd-Frank Act requires companies listed on the US stock market to disclose whether their products contain potential conflict minerals. These are mineral raw materials from the Democratic Republic of Congo and its neighboring countries that are often used to finance armed conflicts. In addition, human rights are often violated in the production of conflict minerals.
Evonik is not listed on US stock exchanges and therefore has no legal 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. In addition, we require new suppliers to provide evidence of origin in the validation process. In 2019, we screened around 2,000 new suppliers and did not identify any use of conflict minerals.