Annual Report 2022

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GRI Index

General Disclosures

GRI 1 – Foundation (2021)

GRI 2 – General Disclosures (2021)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

2-7

 

Information on employees and other workers

 

 

 

 

 

2-8

 

Workers who are not employees

 

 

 

 

 

Around the world, Covestro has about 350 temporary employees, corresponding to approximately 2.0% of our workforce.
In addition, a number of people work for Covestro externally through contracts for work or service agreements.
It is not possible to determine the precise number, since performance is defined via trades or in service-level agreements rather than by the number of people or the hours worked.

2-22

 

Statement from the most senior decision-maker

 

 

 

 

 

2-23

 

Policy Commitments

 

 

 

The policies applicable throughout the Group have been approved by the Board of Management. Communications are conducted via the internet, intranet, and site-specific communication channels.

2-27

 

Compliance with laws and regulations

 

 

 

 

In fiscal 2022, no significant administrative or court-ordered sanctions (fines, nonmonetary sanctions) for noncompliance with laws and regulations were reported through internal reporting.

2-28

 

Membership of associations

 

 

 

 

2-29

 

Approach to stakeholder engagement

 

 

 

 

2-30

 

Collective bargaining agreements

 

 

 

 

Specific Standard Disclosures

GRI 200 – Economic topics

GRI 201 – Economic Performance (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

201-1

 

Direct economic value generated and distributed

 

 

 

 

 

GRI 204 – Procurement Practices (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

204-1

 

Proportion of spending on local suppliers

 

 

 

 

Since our locations in Germany, the United States and China cover most of our procurement volume, the sites located in these countries are referred to as main sites within the meaning of the GRI terminology. Local procurement is regarded as purchasing from suppliers located in the same country as the legal entity they supply.

GRI 205 – Anti-corruption (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

205-1

 

Operations assessed for risks related to corruption

 

 

 

 

A risk analysis was conducted for every country/every company in the year 2022.
Definition of location of operations as a legal entity.

GRI 206 – Anti-competitive Behavior (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

206-1

 

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

 

 

 

 

 

No actions were reported through internal reporting in fiscal 2022.

GRI 207 – Tax (2019)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

207-1

 

Approach to tax

 

 

 

 

 

207-2

 

Tax governance, control, and risk management

 

 

 

 

207-3

 

Stakeholder engagement and management of concerns related to tax

 

 

 

 

207-4

 

Country-by-country reporting

 

 

 

 

 

A country-by-country report is not currently provided.

GRI 300 – Environmental topics

GRI 302 – Energy (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

302-1

 

Energy consumption within the organization

 

 

 

 

 

302-3

 

Energy intensity

 

 

 

 

 

302-4

 

Reduction of energy consumption

 

 

 

 

In 2005, Covestro began to introduce a certified energy management system. This requires that we compare our performance with a designated base year, and that year was 2005.

GRI 303 – Water (2018)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

303-1

 

Interactions with water as a shared resource

 

 

 

 

303-2

 

Management of water discharge-related impacts

 

 

 

The standards to be applied are oriented to local laws.

303-3

 

Water withdrawal

 

 

 

Water withdrawal is measured in m3 (cubic meters) since this is the more common approach to measurement. Here, 1 megaliter (ML) corresponds to 1,000 m3.
Usage of other than fresh water <1,000 mg TDS/l: Pursuant to ISO 14046, Covestro uses no water from sea water sources, thus there is no figure for this in the water balance. At some facilities, it is possible that brackish water >1,000 mg TDS/l is used as cooling water. These amounts are included in the water balance and not reported separately. This water can be returned to the water cycle without further treatment in line with the relevant official permits.

GRI 305 – Emissions (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

305-1

 

Direct (Scope 1) GHG emissions

 

 

 

 

Biogenic CO2 emissions are not reported because they are irrelevant.

305-2

 

Energy indirect (Scope 2) GHG emissions

 

 

 

 

 

305-3

 

Other indirect (Scope 3) GHG emissions

 

 

 

 

 

305-4

 

GHG emissions intensity

 

 

 

 

Disclosure as CO2 equivalent of specific GHG. Emissions of sulfur hexafluoride (SF6) have been recorded.

305-5

 

Reduction of GHG emissions

 

 

 

 

Greenhouse gas emissions are reported separately for Scopes 1 and 2. When considering GHG reductions, the specific greenhouse gas emissions are calculated using the total emissions for Scopes 1 and 2 because otherwise any shifts between the categories would lessen the informative value of the results.

305-7

 

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

 

 

 

 

Reporting focuses on significant air emissions; persistent organic pollutants (POPs) and hazardous organic pollutants (HAPs) are not reported.
Air emissions are generally measured directly at the source of the emission or are calculated from the stoichiometric determination of the formula mass.

GRI 306 – Waste (2020)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

306-1

 

Waste generation and significant waste-related impacts

 

 

 

 

306-2

 

Management of significant waste-related impacts

 

 

 

 

306-3

 

Waste generated

 

 

 

 

 

306-5

 

Waste diverted from disposal

 

 

 

 

The distinction of hazardous and non-hazardous waste is only drawn for landfill waste; no differentiation is made for other disposal methods.

GRI 308 – Supplier Environmental Assessment

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

308-2

 

Negative environmental impacts in the supply chain and actions taken

 

 

 

 

GRI 400 – Social topics

GRI 401 – Employment (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

401-1

 

New employee hires and employee turnover

 

 

 

 

In fiscal 2022, the gender distribution of new hires and the attrition rate was broken down into male and female, as the company was not aware of any employees with other gender identities. Reference is made in the footnote to the small number of employees who did not state their gender. If this should change, the tables will be adjusted accordingly in future.

GRI 403 – Occupational Health and Safety (2018)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

403-1

 

Occupational health and safety management system

 

 

 

 

A list of the legal requirements has been dispensed with. The integrated management system for occupational health and safety covers all our employees across the Group and in some cases also our contractors, regardless of the type of work environment or activity performed.

403-2

 

Hazard identification, risk assessment, and incident investigation

 

 

 

 

Every employee, contractor or – as appropriate – visitor must comply with the applicable occupational safety procedures, rules, and relevant protective measures. Employees are authorized to withdraw from work situations that seem to them to represent a direct and serious threat to their lives or health. They are obligated to report such situations to their supervisors immediately. Employees may not be sanctioned for such actions.

403-3

 

Occupational health services

 

 

 

 

Depending on site-specific local circumstances, there are dedicated occupational health staff or occupational health services are provided in conjunction with external parties. A country-specific description of the functions of the occupational health services has been dispensed with.

403-4

 

Worker participation, consultation, and communication on occupational health and safety

 

 

 

 

Depending on legal requirements, some sites have formal employer-employee committees for occupational health and safety that hold regular meetings. In Germany, for instance, this is the occupational safety and health committee as legally required by Section 11 of the Act on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists (AsiG). All sites are networked in corresponding regional HSE communities. A country-specific list and a description of the committees has been dispensed with.

403-5

 

Worker training on occupational health and safety

 

 

 

 

Our employees receive the applicable statutorily required training as well as further training that exceeds these requirements depending on the individual circumstances at our sites. Our contractors receive site-specific safety instructions.

403-6

 

Promotion of worker health

 

 

 

 

Voluntary services for the promotion and maintenance of health are made available only to Covestro employees.

403-7

 

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

 

 

 

 

 

403-9

 

Work-related injuries

 

 

 

 

We record the most important types and frequency of work-related injuries for all employee groups according to the ASTM standard E2920-14, “Severe Incidents and Fatalities” (A. deaths, B. life-changing/life-altering cases, C. other).

GRI 404 – Training and Education (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

404-2

 

Programs for upgrading employee skills and transition assistance programs

 

 

 

 

GRI 405 – Diversity and Equal Opportunity (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

405-1

 

Diversity of governance bodies and employees

 

 

 

At the end of the year 2022, the Supervisory Board consisted of six women (50%) and six men (50%). The age structure is as follows: 0% are 30–50 years old, and 100% are over 50. Membership in a minority is not recorded for legal reasons. In fiscal 2022, the gender distribution of employees was broken down into male and female, as the company was not aware of any employees with other gender identities. Reference is made in the footnote to the small number of employees who did not state their gender. If this should change, the tables will be adjusted accordingly in future.

GRI 406 – Non-discrimination (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

406-1

 

Incidents of discrimination and corrective actions taken

 

 

 

 

 

For confidentiality reasons, we do not disclose the type and scope of the incidents reported.

GRI 407 – Freedom of Association and Collective Bargaining

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

407-1

 

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

 

 

 

In fiscal 2022, no significant cases were reported using formal grievance mechanisms. There was no high risk for the sites in the year 2021, as the local heads of Human Resources and the local managing directors are required by internal rules to maintain a regular exchange of information with unions and employee representatives.

GRI 414 – Supplier Social Assessment (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

414-2

 

Negative social impacts in the supply chain and actions taken

 

 

 

 

GRI 415 – Public Policy (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

415-1

 

Political contributions

 

 

 

 

 

GRI 416 – Customer Health and Safety (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

416-2

 

Incidents of non-compliance concerning the health and safety impacts of products and services

 

 

 

 

No significant incidents were reported through internal reporting in fiscal 2022.

GRI 417 – Marketing and Labeling (2016)

 

 

 

 

 

 

 

 

 

Disclosure number

 

Disclosure title

 

Section in Annual Report

 

Section in supplementary information on sustainability

 

Explanation/omission

3-3

 

Management Approach

 

 

 

 

 

417-1

 

Requirements for product and service information and labeling

 

 

 

 

 

417-2

 

Incidents of non-compliance concerning product and service information and labeling

 

 

 

 

No significant incidents were reported through internal reporting in fiscal 2022.

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