Materiality analysis

SDG 3 Good Health and Well-Being SDG 4 Quality Education SDG 5 Gender Equality SDG 6 Clean Water and Sanitation SDG 7 Affordable and Clean Energy SDG 8 Decent Work and Economic Growth SDG 9 Industry, Innovation and Infrastructure SDG 10 Reduced Inequalities SDG 11 Sustainable Cities and Communities SDG 12 Responsible Consumption and Production SDG 13 Climate Action SDG 14 Life Below Water SDG 15 Life on Land SDG 16 Peace, Justice and Strong Institutions SDG 17 Partnerships for the Goals

Which topics – in terms of our corporate responsibility – are of particular significance to our long-term success? What expectations do our various stakeholders have of us? And in which areas do we contribute to a more sustainable development? In an effort to answer these questions, in 2018, we again conducted a materiality assessment, thereby fulfilling the requirements of the Global Reporting Initiative (GRI) and the German CSR Directive Implementation Act.

Realignment

To decide which topics to include in our report, we regularly conduct comprehensive materiality assessments. With our 2018 Corporate Responsibility (CR) Report, we took this process a step further: Looking at a broad range of issues, we considered the topics on which the business activities of our company have a material impact and, conversely, the impact these topics have on our business activities.

Identifying our topics

We first assessed the topics from previous materiality assessments in terms of their relevance before comparing them against the United Nations Sustainable Development Goals to determine the impact they have on these goals. As a next step, we discerned which additional sector-specific issues to include.

Analyzing external expectations and requirements

For each of the identified issues, we evaluated various external factors and assessed the impact they have on our business. Such aspects include relevant regulations, our competitors, the financial market, new requirements of non-governmental organizations (NGOs) on the chemical and pharmaceutical industries, and our economic setting. In conducting this analysis, we drew on relevant legislation, NGO reports and ESG ratings.

Analyzing our own impacts

As well as analyzing external factors, we also evaluated our company’s contribution to sustainable development. For each of the topics identified, we reviewed the following:

the influence of the industries in which we operate
our own positioning as a company
the number of value chain steps affected
the importance for our worldwide sites

Results of the analysis

We identified 35 topics that are of significance to our CR strategy and reporting and weighted them according to their relevance. The results were then discussed, validated and adopted by our CR Committee.

The issues rated as material form the focus of this CR Report. Since our stakeholders also expect information and transparency from us regarding less significant issues, we also report on these, albeit in less detail.

Identifying topics for non-financial disclosure

The German CSR Directive Implementation Act obliges us to review the “double materiality” of topics according to Section 289 (3) of the German Commercial Code. The principle of double materiality requires companies to disclose non-financial information when the following two criteria are met: Firstly, the information is necessary to understand the company’s business performance, business results and financial situation. And secondly, the information makes it possible to understand how the company’s business activities affect non-financial aspects.

We have reviewed the double materiality of the topics identified. Those that fall within the scope of this definition are marked in the materiality matrix. The topics are linked to the respective chapters in this report.