Covestro

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

Solid and air pollution 
Covestro reports some activities to reduce plastic use and waste in its own operations. Such as actively ensuring the circularity of its products and management of the final life cycle of materials.

No leading practices were identified for the company in the social inclusion and community impact  area

Sustainability strategy and accountability 
Covestro discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. However, it does not disclose group-wide targets on key sustainability topics for the most material parts of its value chain. Nevertheless, it reports consistently against all its targets. While the company links performance criteria of GHG emissions with senior executive remuneration policies, there was no evidence that it links it to targets which also cover social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement
Covestro discloses how often and through which channels it engages with various stakeholder groups, but does not disclose an overview of the issues raised during its stakeholder engagement activities.

Lobbying 
Covestro does not disclose a list of trade associations of which it is a member. It also does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment 
Covestro has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species 
Covestro does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration 
No evidence was found regarding the Covestro’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity 
No evidence was found regarding Covestro’s efforts to work towards a circular economy or which organisms it exploits. As such, it has an opportunity to develop a strategy and publicly report on specific, time-bound targets for this purpose. The company does not disclose efforts to improve soil health.

Water 
No evidence that Covestro reduces water withdrawal across the company’s own operations. It has an opportunity to disclose a time-bound target to reduce water withdrawal across its own operations. The company reports how much water is withdrawn for its own operations in water-stressed areas. However, it does not engage with suppliers to reduce water withdrawal. The company does not report a decrease in water pollution and it does not disclose its processes for managing and monitoring discharge water quality. It also does not regularly report on water pollution or disclose targets to reduce water pollution. The company does not disclose a commitment to respect the right to water and as such does not show any processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation of their neighbouring communities.

Solid and air pollution 
No evidence that Covestro is reducing the production of hazardous waste. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company reports regularly on air quality parameters of emissions of harmful air pollutants but does not report any time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions
Covestro is reducing its scope 1 and 2 greenhouse gas emissions and has a time-bound target to reduce its scope 1 and 2 emissions. The company also reports progress against its scope 1 and 2 emissions target. However, no evidence that the it’s scope 1 and 2 emissions target is aligned with a 1.5-degree trajectory. No evidence that the company reduces its scope 3 emissions and does not disclose a time-bound target to reduce its scope 3 emissions. As such, it does not report progress against its scope 3 emissions target or that its scope 3 emissions target is aligned with a 1.5-degree trajectory was found.

Invasive species 
Covestro has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, healthy, clean environment 
Covestro does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous peoples’ and land rights 
Covestro does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.

Covestro describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. It also describes its process for accessing its human rights risks and also discloses what it considers to be its potential human rights risks. The company describes its global system to take action to prevent, mitigate or remediate salient human rights issues, and this includes a description of how its global system applies to its supply chain. The company discloses categories of stakeholders whose human rights have been or may be affected by its activities. However, while the company provides general examples of engagement with stakeholders, it has an opportunity to clarify if these stakeholders are those whose human rights have been or may be affected by its activities.

The company has a publicly available policy statement which shows it is committed to respecting the health and safety of workers. It also has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. Covestro has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. It also has an opportunity to describe how it determines a living wage for the regions where it operates. Nevertheless it discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. No evidence that the company describes how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining was found.

Covestro discloses a global tax strategy and takes steps to identify and address bribery and corruption. However, no evidence that the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships. Nonetheless, in a public policy statement, the company discloses its approach to lobbying and political engagement. It also specifies that it does not make political contributions.