Limited Assurance Report of the Independent Auditor regarding the supplementary sustainability information1
1The English language text is a translation provided for information purposes only. The original German text shall prevail in the event of any discrepancies between the English translation and the German original. We do not accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may arise from the translation.
To the Board of Management of Covestro AG, Leverkusen
We have performed a limited assurance engagement on the sections marked as “Supplementary Information” in the “Covestro Annual Report 2022” of Covestro AG, Leverkusen, for the period from January 1 to December 31, 2022 (hereinafter the “supplementary information”).
Responsibilities of Management
The Management of the Covestro AG is responsible for the preparation of the supplementary information in accordance with the reporting criteria. As reporting criteria, Covestro AG applies the “with reference to” option of the Sustainability Reporting Standards (SRS) of the Global Reporting Initiative (GRI) in conjunction with the Corporate Accounting and Reporting Standard (Scope 1 and 2) of the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) (hereinafter: “Reporting Criteria”).
This responsibility includes the selection and application of appropriate non-financial reporting methods and making assumptions and estimates about individual non-financial disclosures of the group that are reasonable in the circumstances. Furthermore, management is responsible for such internal control as they consider necessary to enable the preparation of the supplementary information that is free from material misstatement, whether due to fraud or error.
Independence and Quality Assurance of the Assurance Practitioner’s firm
We have complied with the independence and quality assurance requirements set out in the national legal provisions and professional pronouncements, in particular the Professional Code for German Public Auditors and Chartered Accountants (in Germany) and the quality assurance standard of the German Institute of Public Auditors (Institut der Wirtschaftsprüfer, IDW) regarding quality assurance requirements in audit practice (IDW QS 1).
Responsibility of the Assurance Practitioner
Our responsibility is to express a conclusion with limited assurance on the supplementary information based on our assurance engagement.
We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical Financial Information” and the International Standard on Assurance Engagements (ISAE) 3410 “Assurance Engagements on Greenhouse Gas Statements”, issued by the IAASB. This standard requires that we plan and perform the assurance engagement to obtain limited assurance about whether any matters have come to our attention that cause us to believe that the company’s supplementary information, are not prepared, in all material respects, in accordance with the reporting criteria.
In a limited assurance engagement, the procedures performed are less extensive than in a reasonable assurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection of the assurance procedures is subject to the professional judgment of the assurance practitioner.
In the course of our assurance engagement we have, among other things, performed the following assurance procedures and other activities:
- Inquiries of personnel responsible for materiality analysis at Group level to gain an understanding of the approach used to identify material topics and corresponding reporting boundaries of Covestro AG.
- A risk assessment, including a media analysis, of relevant information on Covestro AG’s sustainability performance in the reporting period.
- An assessment of the design and implementation of systems and processes for determining, processing and monitoring sustainability performance of disclosures and indicators within the scope of the audit, including the consolidation of data
- Inquiries of group level personnel responsible for determining the information on concepts, due diligence processes, results and risks, performing internal control procedures and consolidating the information
- Inspection of selected internal and external documents
- Analytical assessment of data and trends of quantitative disclosures reported for consolidation at Group level from all sites
- Assessment of the local data collection, validation and reporting processes as well as the reliability of the reported data through a sample survey at nine production sites
- Assessment of the overall presentation of the data and indicators of the sustainability performance and the supplementary sustainability information
Based on the assurance procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the as “supplementary information” identified sections in the “Covestro Annual Report 2022” of Covestro AG, Leverkusen, for the period from January 1 to December 31, 2022 has not been prepared, in all material respects, in accordance with the principles and disclosures set out in the Global Reporting Initiative (GRI) Universal Standards 2021 on sustainability reporting (“with reference to” option).
Restriction of Use
This assurance report is solely addressed to the Board of Management of Covestro AG, Leverkusen.
Our assignment for the Board of Management of Covestro AG, Leverkusen, and professional liability is governed by the General Engagement Terms for Wirtschaftsprüfer (German Public Auditors) and Wirtschaftsprüfungsgesellschaften (German Public Audit Firms) (Allgemeine Auftragsbedingungen für Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) in the version dated January 1, 2017 (https://www.kpmg.de/bescheinigungen/lib/aab_english.pdf). By reading and using the information contained in this assurance report, each recipient confirms having taken note of provisions of the General Engagement Terms (including the limitation of our liability for negligence to EUR 4 million as stipulated in No. 9) and accepts the validity of the attached General Engagement Terms with respect to us.
Cologne, February 27, 2023
[Original German version signed by:]