ADR/American Depositary Receipt

A depositary receipt issued by U.S. banks that documents ownership of a certain number of deposited shares of a foreign company and is traded on U.S. stock markets as representation of the original shares

AktG/German Stock Corporation Act

Regulates the legal provisions pertaining to German stock corporations


Comprises all countries in the Asia and Pacific region in which Covestro is active

Capital Employed

Capital employed is the sum of noncurrent and current assets less non-interest-bearing liabilities such as trade accounts payable.

Carbon Productivity

The value generated per carbon unit used (e.g. in the form of fossil raw materials such as coal, oil and natural gas). Measuring carbon productivity is intended to promote a sustainable and optimal use of carbon.

Circular economy

A regenerative economic system in which resource input, waste production, emissions and energy consumption are minimized based on long lasting and closed material and energy cycles

Core volume growth

Core volume growth refers to the core products in the Polyurethanes, Polycarbonates and Coatings, Adhesives, Specialties segments. It is calculated as the percentage change in externally sold volumes in thousand metric tons compared with the prior year. Covestro also takes advantage of business opportunities outside its core business, for example the sale of precursors and by-products such as hydrochloric acid, sodium hydroxide solution and styrene. These transactions are not included in core volume growth.

Corporate Social Responsibility

The responsibility companies assume for and the actions taken as a result of the effects of their activities on environmental and social well being


Stock participation program in which approximately 75% of all employees worldwide can acquire Covestro shares at a discount

DCGK/German Corporate Governance Code

A set of regulations compiled by the Government Commission on the German Corporate Governance Code in respect of responsible corporate governance, which contains recommendations and suggestions for the management and oversight of listed corporations in Germany

DRS/German Accounting Standards

Pronouncements of the German Accounting Standards Committee e.V., which substantiate the HGB requirements in reference to the application of the Group accounting principles

Due diligence

Investigation and analysis of a company, especially in respect of its economic, legal, tax and financial position

Earnings per share

Net income divided by the weighted average number of outstanding shares in the reporting period

EBITDA/earnings before interest, taxes, depreciation and amortization

EBIT plus depreciation and amortization of property, plant, equipment, and intangible assets

EBIT/earnings before interest and taxes

Income after income taxes plus financial result and income tax expense

EHS/environment, health and safety

Environment, health and safety


Comprises all countries in Europe, the Middle East, Africa and Latin America (excluding Mexico) in which Covestro is active


A European stock index that tracks the performance of the 50 most important and most actively traded companies in the eurozone

FOCF/free operating cash flow

Operating cash flows (pursuant to IAS 7) less cash outflows for additions to property, plant, equipment and intangible assets

GHG Protocol/Greenhouse Gas Protocol

International accounting system for greenhouse gas emissions developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD)

GPS/Global Product Strategy

Initiative of the International Council of Chemical Associations (ICCA) with the aim of anchoring uniform global standards for product safety in the chemical industry

GRI/Global Reporting Initiative

Guidelines for the preparation of sustainability reports by companies, governments and non-governmental organizations (NGOs)

HDI/ hexamethylediisocyanate

A chemical compound from the class of aliphatic isocyanates, primarily used in polyurethane coating systems

HGB/German Commercial Code

Comprises much of the German accounting legislation

HSEQ/health, safety, environment, quality

Health, safety, environment and quality

IASB/International Accounting Standards Board

The International Accounting Standards Board is an independent, private sector body that develops and approves the International Financial Reporting Standards (IFRSs).

IAS/International Accounting Standards

International accounting standards as endorsed by the European Union

ICS/internal control system

Internal control system to ensure compliance with directives by means of technical and organizational rules

IDW/Institut der Wirtschaftsprüfer in Deutschland e.V.

A professional association of German Public Auditors and German Public Audit Firms that represents the interests of its members and supports their work

IFRSs/International Financial Reporting Standards

International accounting standards as endorsed by the European Union

IPDI/isophorone diisocyanate

A chemical compound from the class of aliphatic isocyanates, primarily used in polyurethane coating systems

LoPC/loss of primary containment

Leaks of chemicals in amounts above defined thresholds leaking from their primary containers, such as pipelines, pumps, tanks and drums

LTRIR/lost time recordable incident rate

Rate of the reportable workplace accidents to days of absence

MDI/diphenylmethane diisocyanate

A chemical compound from the class of aromatic isocyanates, primarily used in polyurethane foams


Region comprising the United States, Canada and Mexico in which Covestro is active

Net financial debt

Interest-bearing liabilites (excluding pension obligations) less liquid assets

Net income

Income after income taxes that is attributable to the stockholders

NOPAT/net operating profit after taxes

Operating result (EBIT) after taxes

PMDI/Polymeric diphenylmethane diisocyanate

A chemical compound from the class of aromatic isocyanates, primarily used in polyurethane foams

PO/propylene oxide

A chemical compound from the class of epoxies used in the production of polyurethanes


Prisma is a stock-based compensation program with a four-year performance period for senior executives and other managerial employees.

PSP/Profit Sharing Plan

Covestro PSP is the Group’s short-term variable compensation system. It is based exclusively on the target achievement of the relevant Covestro performance indicators (core volume growth, FOCF, ROCE).

REACH Regulation

Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation (EC) No. 1907/2006 which came into force in 2007 and harmonizes EU chemicals legislation

Responsible Care initiative

Initiative by the German Chemical Industry Association (VCI) aimed at continuously improving health, environmental protection and safety in its member states

RIR/recordable incident rate

Total number of workplace accidents per 200,000 working hours

ROCE/return on capital employed

Ratio of operating result after taxes to the capital employed


Internal and external interest groups which are directly or indirectly impacted by the company’s corporate activities and/or may be so in the future

STOXX® Europe 600 Chemicals

A sector index provided by STOXX®. The STOXX® Europe 600 is comprised of 600 companies across Europe.

TDI/toluylene diisoycanate

A chemical compound from the class of aromatic isocyanates, primarily used in polyurethane foams and coating systems

TfS/Together for Sustainability

An initiative undertaken by various companies in the chemical industry to standardize supplier assessments globally in order to improve sustainability practices in the supply chain

UN Global Compact

The world’s largest responsible corporate governance initiative. The member companies undertake to implement ten universal principles and regularly document their progress.

VCI/Verband der chemischen Industrie – German Chemical Industry Association

German chemical industry association

VC/value contribution

The difference between the operating result after taxes and the cost of capital. A positive value contribution means that value has been created.

WACC/weighted average cost of capital

Weighted average cost of capital reflecting the expected return on the company’s equity and debt capital

World-scale plants

Covestro defines worldscale plants in terms of their permitted production capacity in kilotons per year:
  • TDI plants from 300 kilotons per year
  • MDI plants from 400 kilotons per year
  • Polyether polyol plants from 300 kilotons per year
  • Polycarbonate plants from 240 kilotons per year
  • HDI plants from 40 kilotons per year