About this Report
Covestro aims to help protect the environment, conserve limited resources, advance society, and create value, all by firmly integrating sustainability into our Group strategy and management. Covestro reports comprehensively and transparently about topics important from the company’s perspective and for our stakeholders. We measure our sustainability performance using financial indicators as well as key nonfinancial indicators published in the Group Management Report. In this way, we want to demonstrate how closely environmental, social, and governance (ESG) factors are linked to our long-term business success.
Reporting Format
Our sustainability report presents the material sustainability topics, broken down into environmental, social, and governance matters. These disclosures are supplemented with the general information on our reporting provided in this section, with sustainability topics across all ESG matters, and with disclosures under the European Union’s Taxonomy Regulation (EU Taxonomy).
Our sustainability reporting in this context is based on recognized standards. We report on material topics and nonfinancial performance indicators pursuant to Section 315 (3) of the German Commercial Code (HGB) and supplement the information with additional content, which also meets the requirements of the “with reference to” reporting option of the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards (SRS) and is identified separately. We voluntarily report the management approaches for material topics in accordance with GRI 3-3 (2021).
This report covers the period from January 1 to December 31, 2023.
Nonfinancial Group Statement
We publish the nonfinancial Group statement pursuant to Sections 315b and 315c in conjunction with Sections 289c through 289e HGB as an integrated part of the Group Management Report. The respective sections of the sustainability report 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 due diligence processes followed and measures implemented, as well as the outcomes of these strategies. We applied the GRI standards as a framework for preparing the nonfinancial Group statement.
Key topics relevant to the nonfinancial Group statement are identified in an internal process, in consideration of their significance within the company. The starting point for this is the materiality assessment and the material sustainability topics identified or updated as a result, i.e., the topics that are at least of medium financial materiality to Covestro and at least of medium materiality in relation to impacts on people and the environment. Nonfinancial performance indicators are reported only when these are important to the Covestro Group.
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.
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Key topics of the Group’s nonfinancial statement (German Commercial Code) |
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Relevant aspects in accordance with the Group’s nonfinancial statement (German Commercial Code) |
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Section reference in the Group Management Report |
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Business conduct (compliance) |
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Environmental matters, fighting corruption and bribery, respect for human rights |
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Circular economy |
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Environmental matters, social matters |
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“Strategy,” |
Climate neutrality |
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Environmental matters, social matters |
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“Strategy,” |
Diversity, equity & inclusion in our own workforce |
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Employee matters, respect for human rights, social matters |
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Environmental responsibility in the supply chain |
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Environmental matters, social matters |
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Health and safety at our own sites |
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Employee matters, environmental matters, social matters |
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Health and safety at the sites of our suppliers |
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Environmental matters, social matters |
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Inclusive business |
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Social matters |
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Product stewardship |
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Environmental matters, social matters |
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Sustainable solutions |
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Environmental matters, social matters |
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“Strategy,” |
Working conditions of our own workforce |
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Employee matters |
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Working conditions at the sites of our suppliers |
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Environmental matters, respect for human rights |
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Worst forms of human rights violations at the sites of our suppliers |
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Respect for human rights, social matters |
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Worst forms of human rights violations at our own sites |
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Respect for human rights, social matters |
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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. No material risks have been identified in connection with Covestro’s own business activities, business relationships, or products that have or are very likely to have a severely negative impact on the nonfinancial aspects of the company’s business.
A nonfinancial statement or nonfinancial report in accordance with Sections 289c through 289e of the HGB does not have to be provided for Covestro AG at present.