The Enterprise Risk Management process assesses financial, operational, reputational impact against likelihood to produce scores and rankings. The risk management includes sustainability risks such as climate change driven risks, e.g. natural hazards. Clariant uses risk maps but also refines the detail when compared to typical risk maps by incorporating reputational and operational risk assessments into the overall assessment and scoring process. The ERM process assesses financial, operational, reputational impact against likelihood to produce scores and rankings. Risk criteria (quantitative and qualitative) are used. Measures are reported and monitored until 'risk' is closed. The annual assessments and updates to the Board of Directors are based on the threat and opportunities to the business target for the following year. Risk categories used are Strategic, Operational, Financial, Legal & Regulatory, Human Capital and Technology. Under these categories, there are a number of sub-categories. The assessments are undertaken each year with quarterly updates. Assessments are done by Business Units (BU's), Business Services and Regions.

Opportunities arise from financial savings (e.g. lower operational costs, energy savings, reduced transportation costs), product development and innovation. Clariant has a comprehensive sustainability program ("Portfolio Value Program") and a strong tool at hand to assess, manage and prioritize its product portfolio in regard of sustainability, to take advantage of opportunities that arise from the market, addressing solutions in the fields of e.g. environment protection and climate protection.

Sustainability Strategy
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