Assurance Report on the Non-Financial Performance Reporting
To the Board of Directors of Clariant Ltd, Muttenz
We have been engaged to perform assurance procedures to provide limited assurance on the non-financial performance reporting of Clariant Ltd and its consolidated subsidiaries (›Clariant‹) for the year ended 31 December 2017.
Scope and Subject matter
Our limited assurance engagement focused on the 2017 non-financial performance indicators published in the online version of the Integrated Report of Clariant:
- The »Intellectual Capital« indicators, the »Manufactured Capital« indicators, the »Raw Material Procurement according to Regions« indicators, the »Human Capital« indicators, the »Occupational Health, Safety and Well-being« indicators, the »Relationship Capital« indicators, the »Sustainable Value Chain« indicators and the »Natural capital« indicators as disclosed in the respective tables in the online version and marked with the label “ PwC”; and
- The management and reporting processes to collect and aggregate the data as well as the control environment in relation to the data aggregation of these data.
The reporting criteria used by Clariant are described in the internal reporting guidelines and define those procedures, by which the non-financial performance indicators are internally gathered, collated and aggregated. The internal guidelines are based on the GRI Sustainability Reporting Standards (GRI Standards) published by the Global Reporting Initiative (GRI).
The accuracy and completeness of non-financial performance indicators are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. Our assurance report should therefore be read in connection with Clariant’s internal guidelines, definitions and procedures on non-financial performance reporting.
The Board of Directors of Clariant is responsible for both the subject matter and the criteria as well as for selection, preparation and presentation of the information in accordance with the criteria. This responsibility includes the design, implementation and maintenance of related internal control relevant to this reporting process that is free from material misstatement, whether due to fraud or error.
Our responsibility is to form an independent conclusion, based on our limited assurance procedures, on whether anything has come to our attention to indicate that the non-financial performance indicators are not stated, in all material respects, in accordance with the reporting criteria.
We planned and performed our procedures in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (revised) ›Assurance engagements other than audits or reviews of historical financial information‹. This standard requires that we plan and perform the assurance engagement to obtain limited assurance on the identified non-financial performance indicators.
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement.
Independence and quality controls
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
Our firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Summary of work performed
Our limited assurance procedures included, but were not limited to the following work:
- Reviewing the application of Clariant’s internal guidelines
- Interviewing Clariant representatives at Group level responsible for the data collection and reporting
- Interviewing Clariant representatives in Indonesia, India and Brazil responsible for the data collection and reporting by phone
- Performing tests on a sample basis of evidence supporting the non-financial performance indicators as outlined in the scope and subject matter section concerning completeness, accuracy, adequacy and consistency
- Inspecting the relevant documentation on a sample basis
- Reviewing and assessing the management reporting processes for non-financial performance reporting and consolidation and their related controls
We have not carried out any work on data other than outlined in the scope and subject matter section as defined above. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusions.
Limited Assurance Conclusion
Based on the procedures we performed, nothing has come to our attention that causes us to believe that
- The 2017 non-financial performance indicators of Clariant as described in the scope and subject matter section are not prepared and disclosed in all material respects in accordance with Clariant’s internal guidelines and procedures; and
- The management and reporting processes to collect and aggregate the data as well as the control environment in relation to the data aggregation are not functioning as designed.
Dr. Marc Schmidli
Basel, 21 February 2018
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