A substance added to products in small quantities to achieve certain properties or to improve a product.
Usually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.


Business Area
For the financial reporting, Clariant grouped its businesses in three core Business Areas: Care Chemicals, Catalysis, and Natural Resources. As of 1 January 2023, the Group conducts its business through the three newly formed Business Units Care Chemicals, Catalysts, and Adsorbents & Additives and will report accordingly as of the first quarter of 2023.
Business Model
The business model illustrates how a company draws on various capitals as inputs and converts them into outputs, such as products and services, through its business activities. The company’s activities and outputs lead to outcomes that affect the capitals, thus impacting the company and its stakeholders.


According to the International <IR> Framework, the capitals are stocks of value on which all organizations depend for their success as inputs to their business model, and which are increased, decreased, or transformed through the organization’s business activities and outputs. The capitals are categorized in the <IR> Framework as financial, manufactured, intellectual, human, social and relationship, and natural. The <IR> Framework does not require an integrated report to adopt the categories, or if it does, organizations may categorize the capitals differently.
Cash flow
Economic indicator representing the operational net inflow of cash and cash equivalents during a given period.
A substance that lowers the activation energy, thereby increasing the rate of a chemical reaction without being consumed by the reaction itself.
Clariant Excellence (CLNX)
Clariant Excellence was an initiative launched in March 2009 with the aim of establishing a culture of continuous improvement. The four elements of Clariant Excellence were: Operational, Commercial, People, and Innovation Excellence. Clariant has adapted and refocused its organization post divestments, Clariant Excellence in its former composition does no longer exist. The Excellence approach is focused on Operational Excellence.
Code of Ethics
The Code of Ethics is laying down Clariant’s commitments and is intended to be a guide with ethical principles and examples to enable all personnel and associated parties to act with the highest standards of integrity.
Compliance is a key element of Corporate Governance. It refers to compliance with the law and directives as well as with company codes and ethical business practices and behaviors.
Customer to Cash
Idea to Market, Market to Customer, and Customer to Cash – these are the three value-creation processes at the core of Clariant’s business model. Customer to Cash balances supply and demand, optimizing sourcing for spend effectiveness, monitoring production efficiency, and delivering finished goods to customers on time and in full to achieve safe, reliable, and efficient operations that support profitable growth.


Earnings before interest and taxes.
Earnings before interest, taxes, depreciation, and amortization.
EBITDA margin
The EBITDA margin is calculated based on the ratio of EBITDA to sales and shows the return generated through operations from sales before depreciation and amortization.
Exceptional items
Exceptional items are defined as non-recurring costs or income that have a significant impact on the result, for example expenses related to restructuring measures.
Executive Committee
Until 30 June 2022, the Executive Committee was mainly responsible for implementing and monitoring the Group strategy, for the financial and operational management of the Group, and for the efficiency of the Group’s structure and organization. Effective 1 July 2022, the Executive Committee was replaced by the Executive Steering Committee (ESC).
Executive Steering Committee
The Executive Steering Committee (ESC) is authorized by the Board of Directors to steer the company. It has overall strategic and financial responsibility, including for our profit and loss statement. The ESC consists of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the three Business Presidents.
Executive Leadership Team
The Executive Leadership Team (ELT) consists of the Executive Steering Committee (ESC) along with the Chief Human Resources Officer, the Chief Technology & Sustainability Officer, the Chief Corporate Development Officer, and the General Counsel. By bringing all key functions together, Clariant ensures fast decision-making while incorporating all internal stakeholders’ needs. The ELT supports the ESC by promoting dialogue among its members, exchange of information and enabling awareness of the Group’s environment.


Free cash flow
Free cash flow is the cash flow from operating activities minus expenditure for property, plant, and equipment, and intangible assets.
FCF Conversion
Cash generated from operating activities minus CAPEX, divided by EBITDA.


Gearing is an indicator of the indebtedness of a company and reflects a company’s ratio of long-term debt to equity capital.
Clariant's Global Management Team


Idea to Market
Idea to Market, Market to Customer, and Customer to Cash – these are the three value-creation processes at the core of Clariant’s business model. Idea to Market involves scouting global trends, identifying business opportunities, exploring unmet customer needs, developing products, as well as commercializing and monitoring business performance. It is essential for developing a well-filled product and service pipeline that delivers innovations to address customer needs.
The International Financial Reporting Standards (IFRS) are international accounting standards.
Integrated Reporting
Reporting that extends traditional formats of corporate disclosure in order to communicate the full range of factors that significantly affect an organization’s ability to create value through its business model. An integrated report provides insight about the resources used and impacted by the company and their interdependence. It reflects and supports integrated thinking and decision-making that focuses on the creation of value over the short, medium, and long term.


Joint venture
Joint ventures are all activities in which Clariant is involved with another partner. The accounting method applied for joint ventures depends on the specific conditions of the participation.


Market to Customer
Idea to Market, Market to Customer, and Customer to Cash – these are the three value-creation processes at the core of Clariant’s business model. Market to Customer 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.
These are plastic additives in the form of granules with dyestuffs or other additives used to dye or alter the properties of natural plastic.
Materiality Matrix
Clariant continually evaluates and prioritizes economic, environmental, and social issues by assessing their materiality – the extent to which they impact our business and society. In 2021, Clariant conducted a comprehensive materiality assessment, which identified the issues that are most relevant to the company and its stakeholders. Both internal and external stakeholders were involved in the process which assessed the relevance of 28 topics spanning economic, governance, environmental and social dimensions. The material topics identified include employment opportunities, climate protection, product stewardship, as well as diversity, equity and inclusion. Clariant makes use of regular stakeholder interactions and market monitoring to make necessary adjustments to its materiality matrix.Clariant's materiality matrix shows the topics of most relevance to the company (vertical axis) and its stakeholders (horizontal axis). The assessment will be carried out again in 2023.


Net working capital
Net working capital is the difference between a company’s current assets and its current liabilities.


Performance, People, and Planet
Comprises a discussion of Clariant’s material topics previously provided in the Multicapital Review.
Pigments are substances used for coloring; they are used in a technical manner, for example in the manufacture of dyes, varnishes, and plastics. In 2020, Clariant launched the divestment process of its Pigments business, which was completed on 3 January 2022.
Purpose-led strategy
Clariant aims to move toward top-quartile results in specialty chemicals in terms of growth, profitability, sustainability, and people. Based on its purpose, »Greater chemistry – between people and planet,« Clariant unveiled a purpose-led strategy with four dimensions, accompanied by new financial and non-financial targets. The strategy reflects Clariant’s ambition to create value with innovative chemistry and a sustainability focus, putting customers, employees, and the planet at the center of all activities.


ROIC – return on invested capital
ROIC is the total return on assets or the return on capital invested by a company. It is calculated as the ratio of earnings before interest expenses, less adjusted taxes and invested capital (total capital employed). ROIC clarifies the return on capital with which a company is working.


The Sustainability Accounting Standards Board (SASB) Standards guide the disclosure of financially material sustainability information by companies to their investors. Available for 77 industries, the Standards identify the subset of environmental, social, and governance (ESG) issues most relevant to financial performance in each industry. More information:
The Science Based Targets initiative (SBTi) is a partnership between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The SBTi is the lead partner of the Business Ambition for 1.5°C campaign - an urgent call to action from a global coalition of UN agencies, business and industry leaders, mobilizing companies to set net-zero science-based targets in line with a 1.5°C future. More information:
Scope 1, 2, 3 emissions
Greenhouse gas (GHG) emissions are categorized into three groups or 'Scopes' by the most widely-used international accounting tool, the Greenhouse Gas (GHG) Protocol. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain. More information:
A spin-off refers to the creation of an independent company through the divestment of a business unit from a company. Clariant was created through the spin-off and subsequent IPO of the Chemicals Division of Sandoz.
Stakeholders are people or groups whose interests are linked in various ways with those of a company. They include shareholders, business partners, employees, neighbors, and the community.
Strategic Management Process
Clariant’s Strategic Management Process (SMP) is conducted by the business units in collaboration with Corporate Planning & Strategy. The SMP ensures Group level and business unit strategies are connected and are updated together. Clariant refreshed its SMP in 2021.


The Task Force on Climate-related Financial Disclosures (TCFD) was created by the Financial Stability Board to improve and increase reporting of climate-related financial information. The Task Force developed recommendations for more effective climate-related disclosures that promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system's exposures to climate-related risks. More information:


UN Global Compact
The UN Global Compact is a corporate sustainability initiative that supports companies to do business responsibly by aligning their strategies and operations with ten principles on human rights, labor, environment and anti-corruption, and take strategic actions to advance broader societal goals, such as the UN Sustainable Development Goals, with an emphasis on collaboration and innovation.