Disclosures on Sustainability Reporting

Nonfinancial Group statement

We publish the nonfinancial Group statement pursuant to Sections 315b and 315c in conjunction with Sections 289c through 289e as an integrated part of 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, including the processes followed and measures implemented, as well as the outcomes of these strategies.

We applied the standards as a framework for preparing the nonfinancial Group statement.

Key topics relevant to the nonfinancial Group statement are identified in an internal process and in consideration of their significance and implementation within the company. The starting point for this is the and the material topics identified or updated as a result, i.e., the topics of high or very high relevance for Covestro. The following table provides an overview of the key sustainability topics with an eye to the relevant aspects and contains references to the specific sections in the Group Management Report. In order to identify and address current developments and sustainability-related opportunities and risks at an early stage, we also review whether there are any new findings relevant to opportunity and risk management.

Key sustainability topics of the Group’s nonfinancial statement (HGB)

 

 

 

 

 

Key topics of the Group’s nonfinancial statement (German Commercial Code)

 

Relevant aspects in accordance with the Group’s nonfinancial statement (German Commercial Code)

 

Section reference in the Group Management Report

Alternative raw materials

 

Environmental matters, social matters

 

Strategy,”
Management,”
Circular Economy,”
Innovation.”

Compliance

 

Environmental matters, fighting corruption and bribery, respect for human rights

 

Opportunities and risks report,”
Compliance.”

Employer attractiveness

 

Employee matters

 

Employees.”

Equality, diversity, and inclusion

 

Social matters, employee matters, respect for human rights

 

Employees.”

Greenhouse gas emissions

 

Environmental matters

 

Management,”
Circular Economy,”
Environmental protection.”

Health and safety of our workforce

 

Employee matters

 

Integrated management system for health, safety, environment, energy, and quality,”
Safety.”

Human rights due diligence

 

Social matters, respect for human rights

 

Management,”
Social responsibility.”

Inclusive business

 

Social matters

 

Management,”
Social responsibility.”

Process and plant safety

 

Environmental matters, social matters

 

Integrated management system for health, safety, environment, energy, and quality,”
Safety.”

Product safety

 

Social matters

 

Product safety.”

Recyclability and end-of-life solutions

 

Environmental matters

 

Strategy,”
Circular Economy.”

Renewable energy

 

Environmental matters, social matters

 

Strategy,”
Circular Economy,”
Innovation.”

SDG-conform product portfolio

 

Environmental matters, social matters

 

Management,”
Innovation.”

Sustainability in sourcing

 

Environmental matters, social matters, fighting corruption and bribery, respect for human rights

 

Procurement,”
Management,”
Sustainability in the supply chain.”

Sustainable innovation portfolio

 

Environmental matters, social matters

 

Management,”
Innovation.”

As an integral part of the Group Management Report, the nonfinancial Group statement was audited by the financial statement auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, as part of the audit of the consolidated financial statements based on an expansion of the audit engagement.

A nonfinancial statement or nonfinancial report does not have to be provided at this time for Covestro AG.

HGB/German Commercial Code
Comprises much of the German accounting legislation
Due diligence
Information on the processes for identifying, preventing, and mitigating the actual or possible negative impact on nonfinancial aspects.
GRI/Global Reporting Initiative
Guidelines for the preparation of sustainability reports by companies, governments and non-governmental organizations (NGOs)
Materiality analysis
A materiality analysis enables companies to systematically identify the most important sustainability issues from the internal and external perspective.