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  1. Version 3 From CSR (Corporate Social Responsibility) to Sustainable Supply Chain EcoVadis - Sustainability PerformanceAssessment of your Company
  2. Agenda Covestro's commitment to sustainability From CSR to Sustainable Supply Chain Benefits for your company EcoVadis Introduction and Assessment Process EcoVadis Plans & Pricing - Service levels options Finding Support Back-up
  3. Covestro’s guiding principles 3 People Prosperity Planet Serve people • Improve well-being • Enhance safety • Support social progress Use resources responsibly • Reduce impacts • Improve product life cycles • Close material cycles Create value • Focus on needs • Sustain growth & jobs • Create scalable solutions
  4. GLOBAL TRENDS R&D portfolio aligned w/UN Sustainable Development Goals 100% supplier transparency and sustainability assurance Innovation Procurement Production 50% specific CO2 emissions reduction Value chain Maximum value from carbon employed Markets 10 million people in underserved markets reached through our solutions Covestro’s 2025 Sustainability Targets
  5. From CSR to Sustainable Supply Chain - Sustainability performance monitoring Sustainable Procurement For your clients, it means also integrating CSR into their Supply Chain and Procurement process. This is called All over the world, companies are faced with Sustainable Development challenges. CSR or Corporate Social Responsibility, is how Businesses integrate Sustainable Development issues into daily business. As a result, knowing their Suppliers’ environmental and social performance, and monitoring it over the years is becoming of outmost importance for your clients.
  6. What are the benefits for your company?  Embrace a continuous improvement process With a periodic re-evaluation of your CSR performance  Access up-to-date information on your CSR performance  Get an independent evaluation and clear picture of your sustainability practices with ratings on 4 themes (environment, social, ethics and supply chain), and the detail of your strengths and opportunities for improvement  Benchmark your performances with sector practices Learn about best practices and how you are positioned in comparison to your competitors  Reuse and share recognized EcoVadis results for all your clients’ requests Shared approach of the TfS initiative avoids double audits and assessments to different customers (also Non-TfS) and report on a continuous basis  Use advanced communication tools to highlight your good practices e.g. your company detailed report or CSR commitment logo [Premium service only]  Prioritize your improvement areas and actions with a Scorecard that highlights your main opportunities for improvement  Manage improvement plans directly online share them with your clients and get their feedback Improve Communicate Understand Update
  7. EcoVadis - a recognized and independent Sustainability Rating Provider
  8. EcoVadis provides effective CSR Monitoring Services EcoVadis offers a user-friendly and actionable platform to monitor continuous improvements of your CSR practices Understand & Communicate Improve Update CSR assessment Initial assessment Why EcoVadis?  Identify improvement areas  Benchmark practices with sector  Manage risks  Access reliable information  Identify opportunities with suppliers Suppliers  Avoid multiple questionnaires Buyers  Robust methodology based on major international standards and tested on thousands of companies  Smart, modular questionnaire that asks the right questions depending on purchasing categories, countries and size of company
  9. What is the EcoVadis assessment process? Support & Help EcoVadis is available to give you advice and answer your questions throughout the whole process, with their multilingual hotline, support email or chat: Analysis EcoVadis analyzes your answers and audits your documents Results Access your results online in the form of a Scorecard Data collection Answer CSR questions and upload required documents  Provide check your company basic information (activity, contact person, etc.) 2 3 4 +  Online process customized to your size, your industry sector and countries of operation  Performed by Sustainable Development experts  Access & share your results directly online 1 Platform Registration Register directly online EcoVadis speaks
  10. The Data collection phase Answer our customized dynamic questionnaire: 20 to 50 questions adapted to your size, your industry sector and your countries of operation Upload directly online the required documents to support your answers  Collaborative: create accounts for your colleagues and they will be able to answer at the same time as you  Secure: access the interface with your personal login & password  Personalized: our questionnaire is available in English, French, Chinese, German, Spanish, Brazilian Portuguese, Italian, Dutch, Japanese and Russian EcoVadis gathers additional relevant information: • 360°watch: EcoVadis collects stakeholders’ information based on more than 400 reliable sources (NGOs, press, trade unions, etc.) • Public information: e.g. your company website All data, in particular your documents, will be analyzed in order to create your company’s CSR rating
  11. Providing documents • ISO 14001 Certificate • Eco-label certification • CSR report • QHSE Charter • RoHS Declaration for ML600G • Internal Safety inspection report • Business code of conduct • Environmental impact assessment • Health & Safety plan • Quality Manual • Accident Incident Rate Scorecard • Supplier Audit Report (Factory X) • REACH Declaration • Employee Handbook 200X • Any type of supporting documents: e.g. policies, reports, action plans, certificates,  All formats accepted: text, PDFs, web links, images, etc. a key point for your CSR evaluation ! Please be aware of the importance of providing supporting / evidence documents to get a realistic rating result. In order to rate your CSR performance, EcoVadis needs evidence to demonstrate your company’s practices. You can upload any type of document that can reflect your company’s commitment to CSR. The documents provided will be kept strictly confidential and will not be shared or distributed unless specifically authorized by suppliers. Examples of documents collected *
  12. Which criteria are taken into account in the EcoVadis evaluation? Energy consumption & GHG (CO2) Water Biodiversity Local Pollutions Materials, Chemicals, Waste Product Use Product End-of-Life Customers Health & Safety Sustainable Consumption Employee Health & Safety Working Conditions Social Dialog Career Management & Training Child & Forced Labor Discrimination Fundamental Human Rights Corruption & Bribery Anti-Competitive practices Responsible Marketing Suppliers Environmental performance Suppliers Social practices IV. SUPPLY CHAIN The EcoVadis methodology relies upon CSR international standards (e.g. Global Compact, ISO 26000). It includes 21 criteria, divided into 4 themes. Only criteria that are relevant for your sector specific challenges are taken into account. I. ENVIRONMENT II. SOCIAL III. ETHICS
  13. Your CSR monitoring platform Access your platform using a simple web link: no installation or hardware investment required client’s requests (included in the annual fees) Client A Client B Client C Your company Scorecard: result of your CSR assessment Corrective Action Plan CSR document management Additional monitoring services (depending on your subscription level) One unique interface to access : Assessment Results and all your CSR monitoring services are available on the EcoVadis CSR monitoring Platform Reuse your results for several
  14. EcoVadis Scorecard CSR Performance Rating by theme of your CSR performance, (Environment, Social, Ethics, Suppliers) on a scoring scale out of 100 Benchmark* Allows you to compare your performance with other companies in your industry sector Strengths and Weaknesses Detailed presentation of your strong CSR practices and your weaknesses. They are divided into 4 categories that are the four themes used in the CSR rating (environment, social, suppliers and ethics) 360° Watch* Keep an eye on information from up to 300 stakeholders (NGOs, Trade unions…) concerning your company * Premium and Corporate only
  15.  Ecovadis fee varies depending on the company size, the selected service and the period of engagement  Further details under EcoVadis Help Center , FAQ 8.1 How much does the EcoVadis subscription cost? Plans & Pricing - Service levels options Types of one- or multiple-year Subscriptions  For Covestro a one-year basic subscription is fine and the validity of the scorecard is of 3 years for Covestro when an acceptable performance (>44/100) has been achieved.
  16. Any questions, need support? EcoVadis Help Center supports you and answers your questions throughout the whole process - via their multilingual hotline, support email or chat. EcoVadis speaks
  17. Backup
  18. About EcoVadis criteria” United Nation report « Unchaining Value » - sept 2008 International Recognition • Company monitoring in 95 countries • Service available in 5 different languages Worldwide presence • Working with EcoVadis to improve the methodology with DJSI, GRI, INSEAD, HEC… International Scientific Committee Partnerships & membership with leading organizations EcoVadis operates the 1st collaborative online platform allowing companies to monitor the environmental and social performance of their suppliers on a global basis. EcoVadis combines technology and Corporate Social Responsibility (CSR) expertise to deliver simple and reliable Supplier Scorecards. “Companies should use databases such as EcoVadis that collect supplier audit data and provide buyers with a one-stop tool for evaluating suppliers against a set of sustainability
  19. EcoVadis Assessment Process
  20. Why your data are safe with EcoVadis EcoVadis commitments to confidentiality • Compliant with the DPA (Data PrivacyAct) UK regulation: your data are kept strictly confidential, and will be used only for the purpose of the EcoVadis service. • Confidentiality of your commercial relationships: your Scorecard will only be made available to the customers you formally approve Safe storage All data are stored in data center that are ISO/IEC 27001 compliant Secure connections • Our Platforms use a secure https:// connection, with personal login & password • All online payments are secured using PayPal
  21. EcoVadis benefits
  22. Covestro Supplier Code of Conduct (SCoC)  SCoC describes our expectations on the supplier‘s behavior regarding sustainability in the supply chain  SCoC consists of four chapters: - Ethics - Labor - Health, Safety, Environment and Quality - Management Systems  Covestro expects its suppliers to respect all principles of SCoC  SCoC is automatically referenced in every purchase order and on eAuction registration
  23. Selected Information Sources Covestro Supplier Code of Conduct Covestro Procurement Covestro Sustainability Goals Together for Sustainability (TfS) o TfS online Trainings and Downloads EcoVadis (general website) o EcoVadis fees overview o EcoVadis FAQs (Help Center) United Nations Global Compact Responsible Care Global Charter Universal Declaration on Human Rights Declaration of Helsinki International Labour Standards (ILO) OECD Guidelines for Multinational Enterprises
  24. Thank you for your kind collaboration!
  25. Forward-looking statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by CovestroAG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports, which are available on the Covestro website at The company assumes no liability whatsoever to update these forward-looking statements or to adjust them to future events or developments.