Discover Value through sustainability at all levels

In 2015, the first Clariant Sustainability Dialog was held in Frankfurt at the Clariant Innovation Center. More than 150 participants from companies, the media, the capital market and politics held an intensive discussion on general trends and the increasing importance of sustainability for the chemical industry and its customers in the value chain worldwide. In connection with this, Clariant announced new, company-wide commitments. These included, for example, that palm oil should be obtained only from sustainable sources. Furthermore, regarding the procurement of raw materials, the company commits to following a guideline helping to avoid deforestation, to ensure traceability along the entire value chain, and to meet the criteria for certification by the Roundtable on Sustainable Palm Oil (RSPO). Strategically, the cooperation along the value chain with customers, suppliers and other parties is proactively promoted to strengthen its own sustainability and that of the customers (see Sustainability Report 2015).

Alignment of the product portfolio with sustainability

Since 2012, the entire Clariant product portfolio goes through a systematic, detailed review process as part of the »Portfolio Value Program« (PVP). This applies 36 sustainability criteria in all three sustainability areas, considering all aspects of the product life cycle. In doing so, company-wide product groups are identified where there is need for change in terms of their sustainability – whether through innovation, replacement or phase-out. For instance, in the near future, the phase-out of heavy-metal-based pigments in masterbatches and the replacement of Chromium(VI) catalysts will take place gradually. In this example, Clariant underscores the readiness to phase out products that have been identified as non-sustainable. All future innovations at Clariant will also be measured against these criteria. In order to make development projects comparable and assess their advantageousness, Clariant has also introduced the Corporate Sustainability Index for Research and Development Projects (CSIR&D).

THE 36 CRITERIA of the Clariant Portfolio Value Program

PEOPLE

Safe Use, Transparency and Information

• SVHC ¹ profile
• CMR ² substance profile
• Hazard classification level
• Level of solvents and VOCs ³ in the use phase
• Available information on performance and impacts across the life cycle

Addressing Megatrends and Societal Needs

• Solutions meeting societal/environmental needs or megatrends:

– Food and nutrition
– Health and safety of people
– Environmental issues, societal challenges
– Green and sustainable living
– Climate change

PERFORMANCE

Integrated Sustainable Business

• Value chain collaboration
• Value-adding product-related services and product service systems

Performance Advantages

• Additional performance features and benefits for the customer
• Third-party certification of product

PLANET

Raw Materials and Sustainable Sourcing

• Material use effciency in the production
• Material effciency in the use phase
• Raw material scarcity
• Use of renewable raw materials
• Use of non-food competing renewable raw materials
• Sustainability certification of renewable raw materials
• Use of recycled material in the production
• Support of recycling opportunities in the value chain
• Impact on biodiversity

Environmental Protection

• Water footprint of raw material production
• Water consumption in the production
• Water consumption in the use phase
• Energy footprint of raw material production
• Energy consumption in production
• Energy consumption in the use phase
• GHG ⁴ footprint of raw material production
• GHG ⁴ emissions in production
• GHG ⁴ emissions in the use phase
• Emissions in the use phase
• Hazardous waste classification in production
• Hazardous waste classification in the use phase
• Waste generation in production
• Waste generation in the use phase
• Biodegradability/compostability of product
• Effect on aquatic environment
• Waste water formation at use phase

EcoTain® label recognizes the most sustainable products

To date, Clariant has aligned more than 80% of the portfolio with sustainability criteria. Of these, 76% meet the definition of sustainability. More than 80 products from all Business Areas, including more than 30 products from the Business Area Care Chemicals alone, have been certified with the company’s own EcoTain® label at the end of 2015. This label identifies products whose sustainability standards significantly exceed those of the market, that have excellent product characteristics and advance the overall sustainability efforts of the company and its customers. As an example, GlucoTain®, a Personal Care product, received the EcoTain® label in 2015. The sugar-based surfactant is used in shampoos, shower gels and shaving cream (see Business Area Care Chemicals).

Ethical and sustainable operational principles

Discover Value through sustainable management generates added value and benefits for all interest groups – economically, environmentally and socially. In addition to sales and earnings growth and adjustment of the product portfolio, the focus is also on the public reputation of Clariant and its customers. The basic prerequisite for this is the commitment to an ethical and sustainable approach, be it in relation to the environment, social responsibility, governance criteria, health and safety, sustainability in the value chain, product responsibility or personnel development. These include, for example, the signing of the Responsible Care® Global Charter and the UN Global Compact, which act as central operational principles for sustainability worldwide. In 2014, Clariant joined the chemical industry’s Together for Sustainability initiative for supplier management to work together to improve sustainability in the industry’s supply chain. As part of this, supplier evaluations and audits are performed by independent experts, and all participating companies have access to their results. In addition, Clariant has self-imposed obligations under the Code of Conduct and the Code of Conduct for Suppliers – and thus a binding framework for business conduct for all employees and suppliers.

Sustainability is more than just environment protection

Clariant’s commitment to sustainability goes far beyond the efficient use of resources and environmental protection. Charitable initiatives as part of the company’s commitment to corporate responsibility and occupational safety issues are just as important as the high value placed on compliance. In this regard, employees worldwide are regularly trained on the compliance policy against corruption and bribery. A variety of training programs are held in the Clariant Academy in order to optimally prepare employees for their tasks. The company’s proprietary product stewardship organization on its own part ensures that the entire product portfolio complies with international safety and environmental criteria such as REACH (Registration, Evaluation, Authorization of Chemicals) or the Global Product Strategy (International Council of Chemical Associations, ICCA).

All issues regarding sustainable action are reviewed regularly by the Clariant Sustainability Council and adjusted where necessary. The Materiality Matrix of the key areas of Clariant’s sustainability activities is developed based on this.

MATERIALITY MATRIX by Clariant

Clariant advanced to the top tier in DJSI

In 2015, Clariant was successful in advancing to the top tier of the most sustainable specialty chemicals companies worldwide in economic, environmental and social terms. This was confirmed by the analysts of RobecoSAM, who ranked the company among the top four of the industry in one of the world’s most prestigious sustainability indexes, the Dow Jones Sustainability Index (DJSI). Clariant first achieved inclusion in one of the DJSI indices in 2013.

As a result of its track record in sustainability, Clariant was recognized with a Silver Class distinction in the RobecoSAM Sustainability Yearbook 2016, for the first time.