Sustainability Governance & Reporting
Sustainability @ Clariant
Responsible corporate management plays a key role in helping us to run our company, our ability to treat customers, employees, neighbors and the environment in a responsible fashion. Sustainability is a strategic pillar of Clariant’s Business Strategy. We have initiated Sustainability@Clariant for this purpose that comprises all our sustainability activities. As a strong driver of our profitable growth strategy, “Sustainability@Clariant” is becoming more and more an integral part of the way we work. Many of our products are excellent examples of our having successfully transferred sustainability and innovation into a competitive portfolio in the marketplace.
We at Clariant take responsibility for the environment, our employees, customers, shareholders, stakeholders, and society, in order to achieve a sustainable, profitable long term business development.
Our Commitment to Sustainability
Clariant commits itself to ethical and sustainable operation and development in all business activities according to the Responsible Care® Global Charter as well as its own Sustainability Policy. Clariant strives for a business culture of continuous improvement as well as for sustainable competitiveness and top performance in consideration of Clariant’s ethical standards. Clariant is committed to international initiatives, monitors and communicates its progress on a regular basis.
Clariant has given its support to the Responsible Care® Global Charter with the signing of the Responsible Care® declaration by CEO Hariolf Kottmann.
The Responsible Care® Global Charter is the result of an agreement of the members of the International Council of Chemical Associations (ICCA) to create a global vision and highlight the commitment of the industry to continuous improvement in the environmental, health and safety performance of the chemical producers worldwide. The Charter is promoted by the 54 national chemical manufacturers’ associations around the world running Responsible Care programs. In January 2011, 159 CEOs of international companies had signed the charter.
Key elements of the Responsible Care® Global Charter are
With the signing of the Responsible Care® Global Charter, Clariant has underlined its strong commitment to sustainable chemistry and the leadership role in our activities and businesses.
- Adopt global Responsible Care® core principles
- Implement fundamental features of national Responsible Care® programs
- Commit to advancing sustainable development
- Continuously improve and report performance
- Enhance the management of chemical products worldwide – Product Stewardship
- Champion and facilitate the extension of Responsible Care® along the chemical industry’s value chain
- Actively support national and local Responsible Care® Governance processes
- Address stakeholder expectations about the chemical's industry's activities and products
- Provide appropriate resources to effectively implement Responsible Care®
The key elements of the Responsible Care® Global Charter are also considered in Clariant’s business strategy. A comprehensive Product Stewardship program for our customers and an open dialog with our stakeholders is part of Clariant's commitment. Clariant is also very active in the various national Responsible Care working groups and has been well recognized for its efforts in different regions.
In 2013 Clariant has signed the UN Global Compact. In doing so, we are emphasizing our all-round commitment to sustainable development and being a good corporate citizen based on the UN initiative’s ten general principles in human rights, labor, environmental protection and anti-corruption.
Clariant undertakes, within its scope of influence, to advocate the safeguarding of human rights, create working conditions at minimum in line with the law, conserve the environment, and take measures against corruption. The company recognizes and reaffirms that these principles mark out the future scope of action for its strategy, corporate culture, and daily work.
Membership also permits a dialogue with other stakeholders toward further developing their own sustainability performance. Clariant submits an annual communication on progress (COP) on the ten principles of the UN Global Compact.
Clariant’s Sustainability Policy reflects the company’s commitment to ethical and sustainable operations. It encompasses a comprehensive range of environment and safety requirements and management initiatives that extend beyond our sites to our supply chain partnerships and due diligence activities. It includes environmental topics like energy, water, emissions and waste, among others.
Commitment & Clariant Excellence
Clariant commits itself to ethical and sustainable operations and development in all business activities according to Responsible Care® and Clariant's own Code of Ethics. Clariant strives for a business culture of continuous improvement as well as for sustainable competitiveness and top performance in consideration of Clariant’s ethical standards.
Clariant bears an ethical responsibility for sustainable, economic and ecological, as well as fair, business practices. Corporate Social Responsibility is therefore an integral component of our companys’ philosophy. All Clariant employees are educated and trained to assume responsibility in line with their function, level of authority and qualification.
Clariant's Management System
Clariant’s certified Management System adheres to all internal and external standards to which Clariant subscribes and forms the company’s documented structural framework as the basis for objectives and programs. The system complies with ISO 9001, ISO 14001, ISO 45001, ISO 50001 and Responsible Care®. Achieving and maintaining a high level of quality across all aspects of our businesses, our Environment, Saftey & Health related activities, Social Responsibility and Responsible Care®, is our understanding of Corporate Sustainability.
Compliance with laws, international standards, internal regulations, and Clariant’s Code of Conduct is a basic requirement for all our activities. Clariant appreciates voluntary initiatives and provides adequate support to develop effective and efficient safety, health, environmental and energy regulations.
Safety, Security and Environment
Among Clariant’s most important objectives are the safety and security of its worldwide activities and the protection of people and the environment. We set protection goals which are valid throughout the entire Group and monitor and evaluate all aspects of our activities.
Risk and Emergency Management
Comprehensive assessment of risks related to our operations and products are prerequisite to our business processes. Local and global emergency organizations are in place to ensure comprehensive emergency management and response.
Innovation and Product Stewardship
We are convinced that it will be essential to understand our customers’ needs. Innovation and customer focus is the key to our business. We permanently develop better and new products and services to add value to our customers and to our environment. Concurrently we ensure that our products can be used over their entire life cycle in a safe manner for employees, customers, the public and the environment.
Sustainable Operation and Processes
We undertake initiatives to reduce environmental, safety and health risks in production, storage, distribution and the usage of our products as well as the disposal of waste. This includes the efficient use of energy and resources and the continuous improvement of our processes to minimize the impact of our activities on the environment by increasing our environmental and energy performance.
Third Party Management
Our aim is to establish mutually beneficial relationships with our third party suppliers and contractors in order to support our services on the basis of our internal Environment, Safety, Health and Quality standards, which include Corporate Social Responsibility and Responsible Care®. We encourage our suppliers and service providers to adopt standards comparable to Clariant’s policies.
Clariant fosters a culture of proactive and transparent communication as key to trusting and reliable relationships. All stakeholders are regularly informed about our activities, our targets and our ESHQ and energy performance. We identify the concerns and expectations of our stakeholders systematically.
Monitoring and Review
We monitor and review all business aspects and processes including Responsible Care® issues at regular intervals. Observing our quality and performance is an integral component of our business processes, our top priorities and our strategic planning.
Identification and Prioritization of Key Sustainability Aspects
Clariant has defined key areas of sustainability activities following an intensive dialogue with various stakeholders. Over 150 internal and external stakeholders helped to identify and prioritize material areas by analyzing external market trends and business drivers. These areas include employment opportunities, environmental targets, emission, resource and water management, as well as efforts in the community as part of the company’s commitment to corporate responsibility. These topics are regularly reviewed by Clariant’s Sustainability Council and adapted where necessary.
The below materiality matrix shows the key issues for Clariant in terms of sustainability. This matrix is the result both of a comprehensive stakeholder and trend analysis carried out by Clariant itself and by external experts, and the evaluation of survey data from customers and other interest groups (»stakeholders«). The materiality matrix shows not only the topics of fundamental or even great interest for Clariant and its stakeholders, but it also shows (in the right half of the matrix) the sustainability fields that have a relative impact on Clariant.
Clariant conducts these market analyses and stakeholder surveys regularly. The results and analyses are used in prioritizing the themes identified and in designing the respective measures. The Clariant Sustainability Council, the central steering committee for sustainability chaired by the CEO, evaluates the results and determines those sustainability issues and fields that currently have relevance or that are important for the company in order to ensure the company objectives and strategy, and that projects accordingly are aligned and carried out. Regional sustainability committees ensure that the sustainability strategy is adopted accordingly in the regions and uniformly implemented.
Several programs and projects are thus carried out in accordance to the material matrix. Clariant aims to integrate sustainability throughout the company business, functions and activities and ensure that sustainability opportunities and risks are well managed within its business processes. Sustainability opportunities are thus considered in the company and the particular business strategies.
For particular sustainability risks, Clariant ensures that risk assessments are performed according to the Enterprise Risk Management framework.
An example of important medium and long-term emerging risk (3-5 years +) is the trend of increasingly stricter regulations and standards globally and the growing public concern about human health and environment. Clariant is subject to many rules and regulations as well as compliance standards. These include chemical industry, country, government and customer requirements as well as the
European Union’s (EU) Regulations on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). Clariant uses certain compounds, of which some are hazardous to the environment and health, in product development programs and manufacturing processes. The company may be exposed to risks of policy changes and market trends, unless such are properly anticipated and mitigating actions developed.
To this end, Clariant has clear and comprehensive guidelines on Environment, Health and Safety as well as Product Stewardship, which are regularly reviewed. Internal workshops and audits are carried out to continuously ensure a high level of safe management and use, process safety as well as product safety.
In addition, Clariant adopts a proactive approach aiming to develop innovative processes and steps to turn threats into opportunities. Clariant’s Portfolio Value Program was established to further add value with sustainability, drive continuous improvement of our product portfolio and allow us to continuously identify and strengthen opportunities for innovation and value chain collaboration. So far 80% of the company’s product portfolio has been screened. Products have been classified accordingly in relation to their sustainability performance, while also taking into account potential mid-/long term risks and improvement and innovation opportunities. Strategies are then developed accordingly in order to draw attention to our EcoTain® products or to align with market and sustainability expectations and developments. Our EcoTain® Label with its ambitious benchmark distinguishes products that significantly exceed market standards in general, have best-in-class performance in one or several criteria, and make overall sustainability contributions.
Another example of a sustainability risk in the mid/long term is the increasingly global supply chains, and thereby the increasing importance of ensuring sustainability and compliance with certain standards and regulations in sourcing and in the supply chain. In Europe, the EU REACH regulation poses particular requirements for chemical products to access the EU market. While Clariant ensures the proper registration of all the relevant chemicals it puts itself on the EU market, it also recognizes the importance of the efforts on the side of its suppliers as non-compliance/registration with REACH may lead to loss of strategically important raw materials. Clariant’s manufacturing operations would suffer from interruption of supply chain if raw materials would no longer or only be available at higher costs.
As mitigating actions, Clariant has developed an extensive framework for ensuring that its suppliers are part of its sustainability framework and that they meet regulatory and sustainability requirements set by authorities as well as by Clariant. Activities carried out by Clariant include proactive information activities up and down the supply chain, e.g. the organization of supplier REACH workshops in several important regions, continuous monitoring of particular supplier activities, and the inclusion of suppliers to the EcoVadis assessments as part of the company’s supply chain activities under Together for Sustainability.
For more information on how we manage sustainability in the supply chain, please see Sustainable Supply Chains.
Clariant has set itself ambitious qualitative and quantitative targets in the field of sustainability. These targets are regularly reviewed and in case necessary adapted to changing environments.
In the field of environmental protection and resource efficiency Clariant has set sustainability targets with the ambition to significantly reduce its energy and water consumption, waste and waste water generation, air emissions, as well as indirect and direct greenhouse gas emissions by the year 2030.
One of Clariant’s most important objectives is the safety of its worldwide activities and the protection of people and the environment. For this purpose Clariant has set protection goals which are valid throughout the group. Clariant is aiming at an overall goal of zero accidents.
Continuous development of Clariant’s workforce is a cornerstone of the company’s success. One of the aims of the 360-degree feedback process and the annual performance dialog is to reflect the ongoing development potential of employees and agree on appropriate development goals and activities. Clariant considers the continuous training of employees within the framework of the internal talent management process important as it ensures well-functioning succession planning within the company. Clariant is gradually introducing the performance management system and aims at full coverage in the upcoming years.
In addition, Clariant aims to ensure and improve social performance in its supply chain. Clariant is a member of the chemical industry initiative “Together for Sustainability” (TfS) and deploys a rigoruous standard process for assessing and auditing suppliers and their performance in social dimensions. To steer the social performance of its suppliers, Clariant aims to have 70% of its direct spend (raw materials) covered by a third party sustainability assessment that includes an extensive social chapter. Further information about the indicator can be found under “Sustainable Supply Chain Indicators”.
A global organization to manage sustainability
Sustainability is deeply anchored in Clariant’s business strategy. We recognize the need to evaluate and steer the sustainability activities on a strategic corporate level with a dedicated Sustainability Council.The Sustainability Council fosters the sustainable development of the company in a holistic approach according to Clariant’s Sustainability Policy. It evaluates the global challenges and megatrends and sets long- and midterm Group goals to initiate projects and activities in the field of sustainability. It can define specific working groups and approves and reviews their projects.
Clariant’s Sustainability Council is chaired by the Chief Executive Officer who underlines the importance of sustainability for the company. Members of the Council are key representatives of Business Units, Functions and Regions. The sustainability council meets twice a year.
Corporate Sustainability and Regulatory Affairs
The Corporate Sustainability and Regulatory Affairs (CSRA) organization deals with all sustainability issues that are relevant to the company. CSRA establishes the group policy, strategy and standards, coordinates and monitors their implementation, and provides service and support for the business. This includes, for example, providing information and advice on environment and safety matters, monitoring environmental Key Performance Indicators, the development and implementation of safety and health programs and campaigns, the development and maintenance of databases, and the coordination of the group-wide emergency management system.
The Basis for Sustainable Value Creation
Clariant has implemented an integrated and highly efficient global management system for successful implementation of its sustainability strategy and objectives. Various internationally acknowledged requirements and their control mechanisms are used to improve our management system performance in accordance to our cultural behavior.
Clariant’s certified and integrated global Management System adheres to all internal and external standards to which Clariant subscribes and forms the company’s documented structural framework as the basis for our sustainable value creation. The system complies worldwide with the Management System Standards ISO 9001 (Quality), ISO 14001 (Environment), ISO 50001 (Energy) and ISO 45001 (Health and Safety) and thus makes Clariant a step maker amongst its competitors. Clariant is one of the first one thousand companies in the world who could successfully be certified according to the Energy Management System standard.
Read more about Clariant's dedication to environmental protection here.
Ongoing compliance reviews, and internal/external auditing of processes, procedures and measures verify that actual business development complies with internal and external regulations Clariant subscribes. Furthermore Clariant’s production plants around the world are scrutinized for potential risks and optimization opportunities, and we work with customers, outsourcing partners and service providers to improve the entire process chain and check for compliance with our standards.
With global guidelines for ensuring product and production safety as an essential component, the system involves an extensive body of regulations, maintenance and improvement programs and a Group-wide risk measurement system to limit the impact of business on the environment, health and safety to the greatest extent possible. Our sustainability management system covers the extension or closure of existing installations, continuous maintenance and improvement projects, and new investment projects includingour due diligence process for acquisitions. We support all employees in their responsibility to ensure proper operation of the system through regular training sessions and incentives linked to sustainability targets.
Our Management and Risk Measurement System performance is continuously monitored, verified during our yearly Management Review and evaluated to identify and to determine improvement potential.
Achieving and maintaining a high level of quality across all aspects of our businesses, our ESH related activities, Social Responsibility and Responsible Care® is our understanding of holistic/integral Sustainability.
Building Reliable Relationships
Clariant is an open company and therefore fosters a culture of proactive and transparent communication that includes all of the relevant interest groups, looking to their concerns and expectations. This communication is key to forming reliable relationships based on trust. All interest groups are regularly informed of our activities, targets, and sustainability performance. Detailed information is provided in the Annual Report, the Sustainability Report, numerous corporate and product information documents, and our Internet presence.
Dialog with our stakeholders builds a basis for defining the material issues of Clariant’s key sustainability activities that are reflected in our materiality matrix.
One Voice – Company-Wide
As for Clariant it is important to address sustainability in a pro-active and transparent way it has developed several position papers. These position papers that are complemented continuously ensure a company-wide position and a one-voice approach.
The documents are approved by Clariant’s responsible Executive Committee member for Corporate Sustainability and Regulatory Affairs. The position papers are binding globally and represent the company-wide position on the topics covered.
Supplier Code of Conduct