Reporting Profile

Forward-looking statements

This Annual Report may contain forward-looking statements based on current assumptions and forecasts made by the management of Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the Group and the estimates given here. These factors include those discussed in Covestro’s public reports, which are available at www.covestro.com. The Group assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Combined Management Report of the Covestro Group and Covestro AG

The Combined Management Report pertains to both the Covestro Group and Covestro AG. The presentation of the business performance as well as the position of and the forecast for key data refer to the Covestro Group, except where otherwise indicated. Information that applies to Covestro AG only is identified accordingly. In the Report on Economic Position, the information disclosed pursuant to the German Commercial Code (HGB) with regard to Covestro AG is provided in a separate section. In addition, the nonfinancial statement pursuant to Section 315b HGB is an integrated part of the Group Management Report. A nonfinancial statement for Covestro AG does not have to be provided at this time.

Nonfinancial reporting

Covestro provides comprehensive and transparent information on issues that are material to the company and our stakeholders. We measure our sustainability performance using both financial metrics and material nonfinancial indicators, all of which are published in the Group Management Report. Through this process, we aim to illustrate how environmental and societal considerations are closely linked to our long-term business success.

The Group Management Report and the supplementary sustainability information comprise our annual sustainability reporting. The reporting period covers the period from January 1 to December 31, 2019. The Covestro Group’s nonfinancial statement (NFS) in accordance with Sections 315b and 315c in conjunction with Sections 289c through 289e of the German Commercial Code (HGB) is integrated into the Group Management Report. The respective sections include the strategies we pursue in addressing environmental, labor and social issues as well as protecting human rights and fighting corruption and bribery, the due diligence processes followed, as well as the outcomes of these strategies. Nonfinancial performance indicators are reported only when these are important to the Covestro Group. As an integral part of the Group Management Report, the Group’s NFS was audited with reasonable assurance by the auditor, KPMG AG Wirtschaftsprüfungsgesellschaft. The supplementary sustainability information that is identified separately contributes additionally to the transparent reporting which enables us to meet the requirements of the “Core” option of the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards (SRS). The supplementary sustainability information was the subject of a separate audit conducted by KPMG AG Wirtschaftschaftsprüfungsgesellschaft with limited assurance in accordance with ISAE 3000.

The supplementary sustainability information, which does not form part of the statutory audit of the annual financial statements but was the subject of a separate audit conducted by KPMG AG Wirtschaftschaftsprüfungsgesellschaft with limited assurance in accordance with ISAE 3000, is identified as follows in this document:

In this reporting period, we have separately referenced content that follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). A corresponding overview immediately precedes the GRI Index.

Rounding

As the indicators in this report are stated in accordance with commercial rounding principles, totals and percentages may not always be exact.

Percentage deviations

Percentage deviations are only calculated and reported if they are no more than 100%. Larger deviations are reported as >100%, >200%, etc. If a deviation changes from positive to negative or vice versa, or if it is greater than 1,000%, this is shown by a period.

Effects of new financial reporting standards

Comparative information relating to the 2018 fiscal year was not restated according to the new accounting standards. For more information, see note 2.1 “Financial reporting standards applied for the first time in the reporting period” in the Notes to the Consolidated Financial Statements.

Equal treatment

We consider equal treatment to be important. To ensure legibility, this Annual Report avoids gender-specific wordings. All terms should be taken to apply equally to all genders.

Key

Reference to content in the Group Management Report or Consolidated Financial Statements

Reference to online content not in the Group Management Report, supplementary sustainability information or Consolidated Financial Statements The content of the information to which reference is made was not audited by KPMG AG Wirtschaftschaftsprüfungsgesellschaft.

The Annual Report including the supplementary sustainability information was published on February 19, 2020. It is available in German and English. Only the German version is binding.