Covestro (1COV) investor relations material

Strategic vision and sustainability goals

• Aims to be fully circular and climate neutral, aligning with the UN Sustainable Development Goals and Paris Agreement 1.5°C target.

• Targets climate neutrality for scope 1 and 2 GHG emissions by 2035, with a 60% reduction by 2030 and net-zero for scope 3 by 2050.

• Integrates sustainability into R&D, with 61% of 2025 project expenditures aligned to SDGs and a goal to improve living conditions for 10 million people in underserved markets.

• Implements a comprehensive ESG strategy, including responsible sourcing, diversity, and transparent governance.

• Maintains strong ESG ratings, ranking in the top 10% of the chemical industry.

Circular economy and product innovation

• Develops circular business models, closing material and carbon loops through renewable energy, alternative raw materials, and innovative recycling.

• Offers CQ-labeled products made from at least 25% alternative raw materials, including biomass and recycled plastics.

• Employs mass-balance methodology and ISCC+ certification for global supply of sustainable products.

• Advances chemical recycling for polyurethane foams and invests in non-fossil aniline production from biomass.

• Collaborates with partners to convert waste into valuable raw materials, reducing CO2 emissions by up to 70%.

Climate action and emission reduction measures

• Reduces GHG emissions through sustainable manufacturing, renewable electricity, and renewable steam.

• Secures major PPAs for renewable energy, targeting 60% GHG reduction by 2030 and 80% renewable electricity share globally.

• Scope 3 emission reduction leverages supplier engagement, MAKE projects, and alternative raw materials.

• Implements green logistics, increased recycling, and strategic waste feedstock access.

• Roadmap includes offsetting unavoidable emissions and adapting to external energy mix changes.