Systematic prioritization of sustainability topics

Everything LANXESS does must have due regard for our strategic guidelines, the relevant interests of our stakeholders, and the material effects of our actions on our company and society. A materiality assessment in line with our reporting requirements helps us to systematically prioritize the wide range of action areas and use resources as effectively as possible. It is based on four principles: sustainability context, materiality, completeness, and inclusion of stakeholders.

Materiality process and annual review

Our last extensive materiality assessment was conducted in 2021 and responded to the ongoing, dynamic transformation of our company and the business and societal environment. As a result, we condensed the number of our sustainability topics from seven to five, sharpening the focus on important new topics such as the circular economy. 

As of now, we are currently conducting a complete materiality assessment that takes into account the new requirements of the Corporate Sustainability Reporting Directive, which is our relevant reporting standard for the Annual Report 2025. As part of this evaluation, we also sought a direct exchange with internal and external stakeholders.

The material topics are reviewed annually by the Sustainability Committee, which also includes the full Board of Management. Our materiality process also considers the double materiality perspective. This shows how our activities impact different sustainability aspects and respective stakeholders (“inside-out perspective” or “impact materiality”) and how sustainability topics influence LANXESS (“outside-in perspective” or “financial materiality”).

We use various sources to examine (potential) impacts, such as:

• Our impact valuation concept, which provides an overall view of key “inside-out” impact dimensions and impact factors
• Our enterprise risk management system, which is interlinked with the materiality process and includes potential impacts on society and the environment (e.g climate-related risks) and the “financial materiality” perspective
• Our “LANXESS Product Sustainability Monitor” that examines product impacts on company, society/stakeholders and the environment
• Topics and impacts of our activities identified in engagement processes with our stakeholders

Stakeholder engagement and -dialogue

In addition to our internal evaluation, the dialogue with our stakeholders is key for determining the material sustainability issues for LANXESS.

We have established various formats to engage with external and internal stakeholders – from day-to-day stakeholder interaction with company representatives, stakeholder surveys to specialized roundtable formats. Topics and impacts identified in these processes inform our materiality assessment.

Further information on our stakeholder dialogue processes can be found here.

Prioritizing topics, settings goals and reporting on progress

Our materiality assessment also serves to prioritize topics and sub-topics with goals and strategies in our internal management perspective. It structures our external reporting on the topic of sustainability. The materiality assessment process is verified by a third-party assurance provider with the Independent Practitioner’s Report on Non-financial Reporting within the Annual Report.