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Material Topics

Our Material Topics

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.

We have formulated specific goals for all key topics. Some of the variable compensation of the first and second management level below the Board of Management depends on the extent to which certain sustainability targets are achieved.

Presentation and description of our main topics
LANXESS
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Circular and Sustainable Sourcing

At LANXESS, raw materials, other materials, equipment and services are subject to globally standardized requirements with regard to safety and environmental protection. Their procurement is the responsibility of our Global Procurement & Logistics (GPL) Group function, the head of which reports directly to the Board of Management member Dr. Hubert Fink. In close coordination with our business units, this administrative unit organizes Groupwide procurement, establishes corresponding guidelines, and initiates measures to promote purchasing synergies and sustainable behavior by our suppliers.
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Safe and Sustainable Sites

LANXESS manufactures sustainable products at competitive and sustainable chemical sites. Continuous process improvements and investments are fundamental for our success. We care about the communities of which our sites are a part. Our commitment is to make our production safe and sustainable in every respect, thus ensuring our long-term competitiveness. Embracing intelligent process optimization and maintenance practices at our sites is essential for us to achieve highly efficient and safe operations with low resource consumption and energy costs. This translates into significant cost savings as well as reduced risk of supply chain disruptions, lost revenue, unexpected maintenance expenses and compensation. Our understanding of sustainable sites also includes being a strong and reliable partner for the people around us and taking responsibility for the development of the social environment, which also helps us to attract and retain skilled talent as employees.
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Climate Protection and Energy Efficiency

For us, climate protection based on energy efficiency is the right thing to do for society and a key to long-term financial performance. LANXESS aims to be a climate neutral company in 2040.

With our commitment to the Paris Climate Agreement, we live up to our societal responsibility – and by integrating climate protection measures into our business strategies, LANXESS benefits from cost savings, mitigation of physical climate risks, stays ahead of regulation and ensures long-term success and sustainability. As the world transitions to a low-carbon economy, there will be a growing demand for environmentally friendly products and services – and LANXESS is well-positioned to take advantage of these new market opportunities. With our “Net Zero Value Chain” initiative we aim for a climate-neutral supply chain by 2050.
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Good Governance and Energized Employees

We aim to be an attractive employer and to develop people's potential throughout their professional lives. To achieve this we create a motivating work environment for all employees, and strive for high engagement and impact. We foster and promote a value-based, performance-driven culture.

Energized employees and performing, diverse teams are a fundamental precondition for our success. Motivated, skilled and engaged  employees working in safe and healthy work environments unlock their full potential leading to increased productivity, outstanding work quality, improved customer service, and loyalty with our company. We foster a corporate culture with clear values in which responsible and morally irreproachable actions and striving for performance complement each other.

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Sustainable Products

We see the constant improvement of product safety, which is enshrined as a core aspect of our corporate policy and in the Group-wide management system, as part of our product responsibility. We have undertaken to avoid risks for humans and the environment across all phases of the product lifecycle through safe research, manufacturing, storage, logistics, use and disposal. 


Products for climate protection and the circular economy 
A full picture of our product portfolio is obtained only when assessing the benefit and the positive environmental impact that our products have when used. Here, we prioritize solutions that contribute to climate protection or enable a circular economy. 

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