Operating an
Integrated
Business Model
Creating long-term
value for all stakeholders
Clariant’s business model shows how the company creates long-term value for all stakeholders – customers, employees, shareholders, and the environment. It offers a detailed overview of the company’s multidimensional approach to value creation, covering both tangible and intangible, financial and nonfinancial aspects of the business.
Business Model
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External environment
Clariant’s integrated business model provides a strong foundation for the company to successfully navigate the current market dynamics in the specialty chemicals market, including the challenges posed by COVID-19.
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Stakeholder engagement
Continuous dialog with key stakeholders allows Clariant to stay attuned to their needs and gain insight into changing market requirements, future trends, and global developments. This helps Clariant understand the value stakeholders are seeking and respond quickly with corresponding solutions.
More about our engagement with stakeholders
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Multicapital approach
to value creationClariant’s business model is designed to create innovative, sustainable solutions that benefit all stakeholders by drawing on six types of capital categorized under its brand values of Performance, People, and Planet.
See an example of how these capitals interactBrand Values
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Performance
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People
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Planet
Capital Types
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Brand Value
Performance
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Brand Value
People
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Brand Value
Planet
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Input (Continuing operations)
Clariant draws upon a variety of resources and relationships for its business activities. For each of the six types of capital, Clariant identified key performance indicators to monitor its performance.
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Performance
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1901R&D spend in CHF m
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> 320Active innovation projects
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72Production facilities
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1 479Raw material procurement in CHF m
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> 1001Scientific collaborations
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2.69Raw material procured in m t
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People
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802New employees hired
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1322Client interviews
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101 758Training hours
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86%Raw material supply base by spend covered by sustainability evaluation
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Planet
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2 512Energy consumption in m kWh
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24.1Water consumption in m m3
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Five-pillar strategy for ambitious objectives and targets
Based on a clear vision, mission, and strong corporate values, Clariant fulfills its five-pillar strategy to achieve ambitious corporate objectives and financial targets.
More about our Strategy
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Leadership
Strong leadership and a commitment to continuous professional development, a collaborative workplace, and a culture of appreciation drive value creation at Clariant.
More about our Leadership
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Core Processes for Value Creation
Three key value-creation processes lie at the core of Clariant’s business model: Idea to Market, Market to Customer, and Customer to Cash. Underpinned by Clariant’s Innovation Excellence, Commercial Excellence, and Operational Excellence initiatives, these processes turn customer needs into innovative and sustainable solutions that create value for all stakeholders.
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Idea to Market
This process involves scouting global trends, identifying business opportunities, exploring unmet customer needs, developing products, and commercializing and monitoring business performance. It is essential for developing a well-filled product and service pipeline that delivers marketable innovations.
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Market to Customer
This process includes assessing market attractiveness, developing clear value propositions, and capturing the value created through the relationship-building and sales processes. To achieve a seamless customer experience, these steps are well connected and focused on customer needs.
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Customer to Cash
This process balances supply and demand, optimizing sourcing for spend effectiveness, monitoring production effciency, and delivering finished goods to customers on-time and in-full in order to achieve safe, reliable, and efficient operations that support profitable growth.
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Value Creation in
the Business AreasBy following the three value-creation processes – Idea to Market, Market to Customer, and Customer to Cash – Clariant’s Business Areas ensure excellence in execution throughout all business activities and create customer-oriented products and solutions that enhance the company’s growth and profitability.
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Care Chemicals
is a leading provider of specialty chemicals and application solutions for consumer care and industrial markets.
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Catalysis
focuses on innovation, proximity to customers, and digital approaches to offer high-performing catalytic and biofuel solutions.
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Natural Resources
offers high-performing products and customer-tailored solutions for mineral, foundry, oil, and gas extraction businesses, as well as for food, plastics, coatings, adhesives, and inks applications.
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Output (Continuing operations)
Clariant identified key performance indicators to monitor its performance for each of the six types of capital.
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Performance
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3 860Sales in CHF m
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-5 %Growth in local currencies
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3.90Production volume in m t
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15.0 %EBITDA margin
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7.0 %Return on Invested Capital (ROIC)
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24Products awarded the EcoTain® label
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>2.0 %3Growth through innovation
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>5 100Patents at year-end
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People
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11 342Staff in FTE at year-end
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0.16Lost time accident rate (LTAR)
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42 %2Net Promoter Score (NPS)
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Planet
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0.69Greenhouse gas emissions (scope 1 & 2) in m t
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6.5Wastewater in m m3
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Reviewing value creation
By drawing on these various resources, Clariant creates tangible and intangible, financial and nonfinancial value for its stakeholders. Clariant monitors its multicapital value creation by tracking key performance indicators that are associated with its material topics, grouping them under each of the six types of capital. The material topics were identified through a comprehensive materiality assessment.
- Clariant aims for »Growth and Profitability« as reflected by two of the five pillars of the corporate strategy.
- Clariant measures its progress regarding the material topics of »Innovation and Technological Advances« as well as »Digitalization.«
- Clariant monitors its procurement and production as well as its progress regarding its material topic »Product Stewardship/Sustainable Chemistry.«
- Clariant focuses on its performance regarding its material topics »Talent Attraction and Development,« »Employee Engagement,« and »Occupational Health, Safety, and Well-being.«
- Clariant evaluates how it performs on the material topics of »Customer Relationships,« »Ethics and Compliance,« »Policy and Stakeholder Relations,« »Sustainability Performance in the Supply Chain,« and »Human Rights.«
- Clariant pays attention to its performance regarding its material topics »Environmental Protection and Resources,« »Climate Change,« and »Circular Economy.«
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Impact on global sustainable development
Clariant evaluates the impact of its business activities in relation to the United Nations Sustainable Development Goals (SDGs) by reviewing the positive and negative impacts of its products and services, operations, value chain, corporate citizenship activities, and collaborations.
While Clariant contributes to all 17 SDGs in varying degrees, six priority SDGs were identified. Four of the relevant goals are paired (SDG 3 and SDG 12; SDG 7 and SDG 13), as their relevance to Clariant cannot be evaluated independent of the other.
Six Priority Sustainable Development Goals
The pool of funds available to the company for use in the production of goods or the provision of services. This can include funds obtained through financing, such as debt, equity, or grants, and funds generated by the company, for example through sales or investments. View entire glossary
Knowledge-based intangibles used and created by the company, often in collaboration with partners. This can include intellectual property, such as patents, trademarks, copyrights, software, rights, and licenses, and »organizational capital« such as tacit knowledge, systems, procedures, and protocols. View entire glossary
Manufactured physical objects such as buildings, equipment, and products. These can include objects that are available to the company for use in the production of goods or the provision of services, or that the company produces for sale to customers or for its own use. View entire glossary
The company’s staff and its composition, competencies, capabilities, experience, and motivation to innovate. This can include employees’ alignment with corporate values and their ability to understand and implement the company’s strategy. View entire glossary
Key relationships, including those with significant groups of stakeholders and other networks. This can include shared values, the trust and willingness to engage, and related intangibles associated with the company’s brand and reputation. View entire glossary
Renewable and nonrenewable environmental resources and processes that support the past, current, or future prosperity of the company or are affected by it. Examples can include resources related to air, water, and land that are utilized or impacted by emissions. View entire glossary