Evonik

No leading practices were identified for the company in the governance and strategy measurement area

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area

Sustainable development strategy
Evonik discloses a materiality matrix which provides an overview of most material sustainability issues for the company. Moreover, Evonik discloses ten sustainability targets which address issues covered by at least two of the benchmark measurement areas (environment and social inclusion). However, the company does not disclose relevant nutrition targets, presenting an opportunity for the company to do so in future reporting.

Governance and accountability for sustainable development
Evonik discloses that the executive board, as the company’s highest governance body, bears overall responsibility for the company’s sustainability strategy. Moreover, the company reports that the highest level of direct responsibility for climate change topics lies with the member of the Board of Management responsible for Human Resources, Sustainability and HSEQ (Health, Safety, Environment and Quality). However, there is a lack of public information available regarding whether the highest governance body’s remuneration is linked to sustainability performance, presenting an opportunity for the company going forward.

Stakeholder engagement
Evonik discloses that it undertakes stakeholder engagement activities and provides an overview of the issues raised via these activities. This includes reporting on how it prioritises and engages with the different stakeholder groups it has identified. However, while these stakeholder engagement activities cover sustainability topics across two of the measurement areas (environment and social inclusion), they do not cover nutrition. This presents an opportunity for the company going forward.

Scope 1 and 2 greenhouse gas emissions
Evonik reports on its scope 1 and 2 emissions and discloses a time-bound reduction target. The company commits to a reduction in absolute scope 1 and 2 emissions of 50% by 2025 (using 2008 as a baseline). However, this target has not been approved as science based and is not aligned with a 1.5 degree warming scenario, offering an opportunity for the company going forward.

Protection of terrestrial natural ecosystems
Evonik discloses that, by 2023, it aims to ensure only palm oil and palm kernel oil certified by the Roundtable on Sustainable Palm Oil (RSPO) are used in its products. As of 2019, more than 50% of the palm-based raw materials used by Evonik’s Care Solutions line were already RSPO-certified. Nonetheless, while Evonik has a deforestation target for its high-risk commodity palm oil, it can improve by disclosing the exact proportions of commodities that are deforestation-free. Moreover, Evonik should disclose the regions where it sources its commodities from.

Water use
While Evonik discloses its water consumption, it does not demonstrate quantitative reductions in water withdrawals across its operations.

Availability of healthy foods
Evonik does not disclose a commitment or activities to increase the availability of healthy and nutritious foods.

Accessibility and affordability of healthy foods
Evonik does not disclose a commitment to address food insecurity by improving the accessibility and affordability of healthy and nutritious foods.

Food safety
The company demonstrates that its sites and operations are compliant with national regulations and the hazard analysis and critical control point (HACCP) system. While one site in Germany is referenced as being certified to a food safety scheme recognised by the Global Food Safety Initiative (GFSI), no percentage is disclosed which indicators that the rest of the company’s operations and sites are certified, presenting a risk for the company.

Child labour
While Evonik commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Forced labour
While Evonik commits to prohibiting forced labour in its own operations and supply chain, it has an opportunity to disclose a requirement that prohibits its suppliers from retaining workers’ personal documents and to not restrict workers’ freedom of movement.

Farmer and fisher productivity and resilience
Evonik does not disclose a commitment or examples of activities to support the resilience, productivity and access to markets for farmers or small-scale producers in its supply chain.

Evonik discloses a commitment to respect human rights and the rights of its workers, in line with the United Nations Global Compact, the OECD guidelines and the standards of the International Labor Organization (ILO), as well as details on its grievance mechanisms for both workers and third parties and stakeholders. While Evonik discloses statements on how it engages with potentially affected stakeholders in its operations and business relationships, the company could improve further by disclosing multiple examples of its engagement with stakeholders whose human rights have been, or may be, affected by its activities. Moreover, while Evonik has disclosed a risk map highlighting potential human rights and labor law risks, the company could improve further by reporting on its global system to take action to prevent, mitigate or remediate its most salient human rights issues, including a description of how its global system applies to its supply chain.

Evonik reports on the protection of the health and safety of workers in both its operations and supply chain but could improve further by disclosing on the types of work-related injuries that may, or have, occurred. Furthermore, while the company discloses commitments and statements regarding regulating working hours, workforce diversity and gender equality, it could increase its disclosure in these areas. For example, on regulating working hours in its supply chain, Evonik should disclose a commitment that suppliers shall not require workers to work more than 48 hours in a regular work week, or 60 hours including overtime. While Evonik reports on the percentage of employees who are covered by collective bargaining agreements in some regions, it could be clearer on the proportion who meet this criteria regarding its worldwide figures. Similarly, the company could increase its disclosure on how it works to support the practices of its business relationships in relation to freedom of association and collective bargaining fundamentals. On wages, Evonik should describe how it determines a living wage for the regions where it operates as well as how it works to support the payment of a living wage throughout its supply chain.

Evonik discloses a public commitment to protecting personal data as well as a global publicly available privacy statement in relation to the collection, sharing and access to personal data. Moreover, Evonik discloses a publicly available policy statement prohibiting bribery and corruption within the company and extends this to its supply chain also by including anti-bribery and anti-corruption clauses in its supplier code of conduct. While Evonik discloses a publicly available global tax strategy, which has been approved by the highest governance body, it can increase the level of disclosure on this topic by reporting on the tax paid for each tax jurisdiction where it is a tax resident. Regarding responsible lobbying and political engagement activities, while Evonik discloses its donations to political parties in Germany, the company could improve further by disclosing the total amount of its expenditures on lobbying activities.