LANXESS management makes sustainability
its business
- Board of Management compensation tied to sustainability goals
- All sustainability activities bundled and assigned to Board of Management members’ portfolios
CologneMarch 04, 2021
LANXESS is embedding sustainability even more firmly in the company. A new system of compensation for the Board of Management has been in place since the beginning of the year. Roughly one-third of the variable compensation is now linked to achievements of its sustainability goals. More specifically, the company's performance in the areas of climate protection and occupational health and safety will be factored into the system for 2021.
Eighty percent of the short-term variable compensation now depends on the operating result (EBITDA pre exceptionals) and 20 percent on occupational health and safety, as measured in terms of lost time injuries.
Roughly 60 percent of the long-term variable compensation is based on the performance of the LANXESS stock price relative to the MSCI World Chemical Index and roughly 40 percent on the reduction in greenhouse gas emissions. In 2019, LANXESS set itself the goal of becoming climate-neutral by 2040.
The new compensation system will be proposed to LANXESS stockholders for approval at the Annual Stockholders' Meeting on May 19, 2021.
Sustainability as responsibility of the Board of Management
The specialty chemicals company has also assigned the topic of sustainability directly to the members of its Board of Management. This covers climate protection and energy, occupational health and safety, environmental protection, products and circular value chains, employees and corporate culture, and transparent reporting on achievement of sustainability. Through its newly created Sustainability Committee, all member of the Board of Management will make joint decisions on major sustainability projects.
“We are very aware of our corporate responsibility, which is why sustainability is a guiding principle of our actions. But it is also increasingly becoming a competitive advantage - with customers, talents and on the capital market. By adapting our incentive systems and our structures, we are anchoring sustainability even more firmly in the company,” explains Matthias Zachert, Chief Executive Officer of LANXESS.
Eighty percent of the short-term variable compensation now depends on the operating result (EBITDA pre exceptionals) and 20 percent on occupational health and safety, as measured in terms of lost time injuries.
Roughly 60 percent of the long-term variable compensation is based on the performance of the LANXESS stock price relative to the MSCI World Chemical Index and roughly 40 percent on the reduction in greenhouse gas emissions. In 2019, LANXESS set itself the goal of becoming climate-neutral by 2040.
The new compensation system will be proposed to LANXESS stockholders for approval at the Annual Stockholders' Meeting on May 19, 2021.
Sustainability as responsibility of the Board of Management
The specialty chemicals company has also assigned the topic of sustainability directly to the members of its Board of Management. This covers climate protection and energy, occupational health and safety, environmental protection, products and circular value chains, employees and corporate culture, and transparent reporting on achievement of sustainability. Through its newly created Sustainability Committee, all member of the Board of Management will make joint decisions on major sustainability projects.
“We are very aware of our corporate responsibility, which is why sustainability is a guiding principle of our actions. But it is also increasingly becoming a competitive advantage - with customers, talents and on the capital market. By adapting our incentive systems and our structures, we are anchoring sustainability even more firmly in the company,” explains Matthias Zachert, Chief Executive Officer of LANXESS.
LANXESS is a leading specialty chemicals company with sales of EUR 6.7 billion in 2023. The company currently has about 12,400 employees in 32 countries. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives and consumer protection products. LANXESS has achieved leading positions in the Dow Jones Sustainability Index and the MSCI ESG and ISS ESG ratings, among others, for its commitment to sustainability.
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
Information for editors:
All global LANXESS news releases and their accompanying photos can be found at http://press.lanxess.com.
Recent photos of the Board of Management and other LANXESS image material are available at http://photos.lanxess.com.
