Evonik Industries : drives forward sustainability analysis of its business

• In 2016, half of sales came from products for resource-efficient applications
• Clear progress towards achieving environmental targets
• Sustainability in the supply chain: gold rating from EcoVadis again

Specialty chemicals company Evonik is driving forward the sustainability analysis of its business. This involves examining the contribution made by its products to resource efficiency in the application phase, including energy savings and reducing greenhouse gas emissions, water consumption, and waste. The analysis covers Evonik's entire operating chemicals business. The results of the sustainability analysis for 2016 confirm that around 50 percent of the sales generated by Evonik's chemical segments already come from products that make a measurable contribution to improving resource efficiency in the use phase. Examples are amino acids for animal nutrition, additives for hydraulic fluids, and functional silanes to protect building facades. The method used for this analysis was validated by an external auditor in spring 2017 and then published by Evonik.

Sustainable business activities and responsible conduct are cornerstones of Evonik's business model. Thomas Wessel, the Executive Board member responsible for sustainability at Evonik: 'We experience the close relationship between ecologically and socially responsible conduct on the one hand and business success on the other on a daily basis in our interaction with employees, customers, investors and business partners.' Sustainability has been a growth driver at Evonik for many years and is an important criterion in customers' purchasing decisions.

'Safety at Evonik' initiative firmly established

Occupational safety and plant safety, in other words, protecting employees, local inhabitants and the environment, have priority over sales and profits at Evonik. Thomas Wessel: 'Our initiative to strengthen our safety culture provides binding guidance for our employees on how individual conduct contributes to ensuring top safety standards.' In 2016, the accident frequency indicator for Evonik employees was 1.2. That was within the ceiling of 1.3 set by the company but slightly above the previous year's figure of 1.0. The accident frequency rate shows the number of accidents involving Evonik employees and contractors' employees under Evonik's direct supervision per 1 million working hours. Thanks to the safety initiative, Evonik has also greatly improved the process safety of its production facilities.

In Singapore, the DL-methionine production plant on Jurong Island has set a good example of maintaining a safe and productive workplace. In 2016 they have accomplished 1 million safe working hours since the start of its operation in 2014 with zero lost-time accident. As testament of its safety and environmental standards, the production plant was also awarded three of the highest industrial quality standard systems in 2015.

Recognition of sustainability performance

2016 was a good year for Evonik's sustainability activities. The company was included in the prestigious 'Dow Jones Sustainability Index (DJSI) World' and 'DJSI Europe'indices for the first time. In addition, it received two accolades from the German Sustainability Award-as a prize-winner in the 'research' category and as one of Germany's five most sustainable large corporations.

While the 2 production plants in Thailand, Evonik Thai Aerosil Co. Ltd (ETAC) and Evonik United Silica (Siam) Ltd (EUSSL) were presented the 'Gold Star' and 'Green Star' awards from the Industrial Estate Authority of Thailand for their continual efforts in environmental sustainability in 2016. ETAC and EUSSL have been receiving these awards since 2010 and 2011 respectively.

The Sustainability Report 2016 is available in the internet at www.evonik.com/reponsibility. A summary of the method used for the sustainability analysis of the business can be found at www.evonik.com/sustainability-analysis.