Evonik Industries : Nachhaltigkeit bei Evonik

Sustainability at

Evonik.

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2024

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Sustainability fully integrated in corporate strategy

Next phase of transformation in all three strategic levers

Three major strategic levers…		… with sustainability fully integrated …

… delivering on ambitious targets

Next Generation Portfolio

Exit Performance Materials

Sustainability

ESG Targets 2030

>50% sales share of

Full focus on three attractive growth divisions

Innovation

-25% CO2 emission reduction1, e.g. via

Next Generation Innovation

€1 bn new sales well on track

Portfolio

Growth areas beyond 2025 already launched

Next Generation Culture

Culture

Diversity as key to successful strategy execution ESG targets integrated into mgmt. compensation

1. SBTi confirmed target on Scope 1 & 2 emissions
2. | Sustainability at Evonik

Financial Targets

Organic growth >4%

EBITDA margin 18-20%

ROCE ~11%

FCF Conversion >40%

Sustainability as backbone of Evonik's purpose and strategy

Setting the frame

CHANGE IN MINDSET

INCREASING DEMAND,

ABOVE-AVERAGE GROWTH,

HIGHLY PROFITABLE

AMBITIOUS SUSTAINABILITY

TARGETS AND COMMITMENTS

3 | Sustainability at Evonik

Ambitious commitments on handprint and footprint

In line with Science Based Targets

Sales by 2030

CO2 reduction 2030

Next Gen Solution

(Leaders + Drivers)

Challenged Products

>50%	Scope 1+2
(Well below 2 degrees)

<5%

Scope 31

-25%

-11%

1. Exact target for Scope 3: -11.07 percent

1. | Sustainability at Evonik

Handprint: "Next Generation Solutions"

43% of Evonik's portfolio with superior sustainability benefits

Result of PSA analysis

Best-in-class products in Evonik's portfolio which…

		…address increasing
…deliver above-	customer demand for
average growth	sustainable solutions

External

sales

~91%

products above or on

market reference

NGS: "Next Generation Solutions" include "Leader" (A++) and "Driver" (A+) products and solutions

5 | Sustainability at Evonik

…deliver superior sustainability benefits to our customers

Handprint: "Next Generation Solutions" to grow beyond 50% by 2030

Market-driven transformation

Increase "Next Generation Solutions"

€3 billion of growth investments1 until 2030

1. Capex for selected projects between 2022 and 2030

1. | Sustainability at Evonik

Three levers to increase the share of NGS

1	Superior sales growth rates of
	existing "Next Generation Solutions"

2	New sales from innovations
	becoming "Next Generation Solutions"

3	"Challenged" and "Transitioner"
	products exiting or with new formulations

Handprint: Superior sales growth rates of existing "NGS"

Portfolio circled around our four "Sustainability Focus Areas"

ENSURE HEALTH

& WELL-BEING	DRUG DELIVERY SYSTEMS
	Advanced oral & parenteral
	drug delivery systems
	(e.g. mRNA LNP)

	FIGHT
FUTURE MOBILITY	CLIMATE CHANGE

Green tires Lightweight solutions

Solutions for hybrid & full battery cars

SPECIALTY ADDITIVES

for environmentally-friendly solutions, e.g. water-based artificial leather

CIRCULAR ECONOMY

Circular plastic &

PU additive solutions

Specialty hydrogen peroxides solutions

DRIVE

CIRCULARITY

WE GO BEYOND

TO ENABLE

TRANSFORMATION

BIO-BASED SOLUTIONS

Bio-based & fully biodegradable surfactants

Natural active cosmetics ingredients

ENVIRONMENT & UTILITIES

Membranes for

biogas separation / hydrogen

New process catalysts

SUSTAINABLE NUTRITION

Omega-3 fatty acids from natural marine algae

Gut health solutions

SAFEGUARD

ECOSYSTEMS

7 | Sustainability at Evonik

Footprint: Our commitments to reaching the Paris Climate Agreement

Site-driven transformation

Next Generation Technologies		Key levers

1 Strong Sites

2 Process Efficiency

3 Renewable energy

€700 million of investments1 until 2030

1. Capex for selected projects between 2022 and 2030

1. | Sustainability at Evonik

Footprint: "Next Generation Technologies"

Site-driven transformation: Example Antwerp as blueprint for other sites

Reduction1 by economically attractive measures

"Next Generation Technologies" (selected examples)

-30%

Reduction

potential

1. Gross emissions in kt CO2e

1. | Sustainability at Evonik

530

~65

~65

~30

370

Advanced levers	2a

Innovative waste heat

2b

up-cycling

Process redesign

2c

• Advanced Process Control (APC) ensuring production at ideal operating point
• Heat exchangers for improved heat integration
• High temperature heat pumps for vaporization of waste heat
• Mechanical vapor recompression
• CO2 reuse in production processes
• Adaptation of reaction conditions for increased energy efficiency

Footprint: Reduction targets in all our sustainability focus areas

Measurable set of KPIs in place

Footprint reduction

Fight Climate Change		Drive Circularity		Safeguard Ecosystems		Ensure Health & Wellbeing

KPI

Ambitions

20301

-25%

reduction of Scope 1 and

Scope 2 emission

• -11%reduction of Scope 3
• Be climate neutral2 by 2050
• Targeting 100% share of renewable sourced electricity
• Total saving of 1,200 GWh energy until 2030

-10%

Reduce specific3 production waste

• Reduce amount of non- hazardous waste sent to landfill
• Significant increase in bio- based and circular raw materials

-3%

Reduce specific3 freshwater intake

• Site-specificaction plans for water-stress production sites
• 100% RSPO MB4 certified palm oil and derivatives by 2025

-20%

reduction of other

emissions to air

• Maintain low risk exposure to
  "Hazardous Chemicals of High Concern"

1. Reference year 2021; 2. On all scopes 1, 2, 3; 3. Corresponding to the production volume; 4. RSPO MB: Roundtable on Sustainable Palm Oil Mass Balance

1. | Sustainability at Evonik