Due to our extensive product portfolio, we source a variety of different raw materials. For raw materials, the availability of which is essential for our production processes, we have implemented strategic procurement concepts and management systems.
EFFICIENT USE OF SCARCE RESOURCES
Alternative and renewable raw materials
One ongoing challenge is the limited availability of circular raw materials. These include renewable or bio-based, recycled, and CO2-based raw materials. Of these, Evonik almost exclusively uses renewable raw materials. We are endeavoring to increase the proportion of circular raw materials. For example, we make use of bio-based raw materials in our fermentative production processes, with sugars such as dextrose and saccharose used as substrates for the production of amino acids, rhamnolipids, and sophorolipids. Additionally, natural fats and oils and their derivatives are used to produce precursors for the cosmetics, detergents, and cleaning agents industries as well as in technical processing aids. Renewable raw materials are among the goods that are to be given particularly careful consideration in the procurement process, especially with a view to ecology and the reliability of supply. Consequently, they are subject to special examination. At the same time, Evonik views the circular economy as an opportunity to switch its procurement of critical raw materials, as defined in the EU Critical Raw Materials Act, to circular sources.
Palm oil, palm kernel oil, and their derivatives make up the largest proportion of renewable raw materials. At Evonik, these materials are primarily used to produce ingredients for the cosmetics, detergents, and cleaning agents industry (Care Solutions business line) as well as to produce polymers used to improve the viscosity index and reduce the pour point of lubricants (Oil Additives business line). Specific strategies, targets, and actions with regard to palm oil are defined by the operational management teams in the Care Solutions and Oil Additives business lines. Evonik’s annual requirements are around 82,000 metric tons. We are critical of the establishment of new palm oil plantations and the associated land use change. This is why we pay special attention to the ecological and sociopolitical developments relating to this market. For many years, Evonik has supported the use of sustainable palm oil in the supply chain. The focus here is on internationally recognized certification standards. Evonik has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2010. In our annual RSPO progress report, we outline our activities and targets to foster sustainable palm oil production. In keeping with our commitment to ensuring the responsible use of palm oil, we network with NGOs, customers, and other stakeholders in the value chain. Recommendations for the sustainable procurement and use of palm oil, palm kernel oil, and their derivatives can be found on our website. In this way, we aim to heighten our employees’ awareness around responsible palm oil use and procurement. Furthermore, Evonik advocates the responsible use of woodland and forests as well as protection of the soil. Our Care Solutions and Oil Additives business lines are founding members of Action for Sustainable Derivatives (ASD). The goal of the ASD initiative is to ensure the traceability of palm (kernel) oil derivatives to mills and plantations. Its risk analysis methods and joint action plans aim to help counter progressive deforestation and promote human rights considerations. Within ASD, Care Solutions and Oil Additives report annually on the degree of transparency in the supply chain and at the oil mills involved. In the future, ASD will broaden its scope to cover raw materials such as coconut derivatives in addition to palm oil. If there are (possible) human rights violations by our indirect suppliers in our palm oil supply chains, we ask our direct suppliers to clarify the matter reported to us and, in the case of actual violations, to initiate corrective measures. Due to the widespread and fragmented nature of palm oil supply chains, it is frequently impossible for us to trace whether the relevant indirect supplier is actually part of our own supply chains. We are aware that we need greater transparency in our deeper supply chains to be able to agree and implement appropriate and effective corrective measures with suppliers also in this area. We are already in contact with relevant providers and other stakeholders regarding this matter, which we also address in our biodiversity policy.
Through our global circular economy program, we are expediting our business activities toward a circular economy by integrating all business lines at Evonik. We review both the circularity of raw materials of all types and the value chains in all of Evonik’s markets.