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 analysis in line with the requirements of the Global Reporting Initiative (GRI) 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.

In 2021, we the responded to the ongoing, dynamic transformation with an extensive materiality analysis. 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.

The material topics are reviewed annually by the Sustainability Committee, which also includes the full Board of Management. They also influence the structure of our external reporting on the topic of corporate responsibility. Our review of the material topics also considers the double materiality perspective. This shows how our activities how our activities impact different sustainability aspects and respective stakeholders (“inside-out perspective”) and how sustainability topics influence LANXESS (“outside-in perspective”).

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

Our impact valuation concept
Our risk management system that includes potential impacts on society and the environment
Our “LANXESS Product Sustainability Monitor” that examines product impacts on company, society/stakeholders and the environment.

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

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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

Product responsibility
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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