Mitigating climate change

Climate change is increasingly causing damage as a result of extreme weather events. This is a challenge that Evonik, too, has to face. It is also necessary to reduce CO₂ emissions worldwide. For this reason, we not only seek to avoid increasing our CO₂ and other emissions that contribute to climate change, but also to reduce them. In 2022, Evonik set new targets as part of its strategy (Next Generation Evonik). Investment decisions may result in higher costs if there is no carbon pricing. This is why we use carbon pricing as an additional planning criterion. Along the value chain, we are working on innovative solutions to reduce emissions—often in collaboration with our direct suppliers and customers.

In the reporting period, we worked on refining the Evonik transition plan. Our risk analysis has reinforced our commitment to implementing our portfolio transformation toward Next Generation Solutions as well as to reducing our Scope 1 and 2 emissions through Next Generation Technologies and also our Scope 3 emissions. The scenarios assessed in the risk analysis are based on theoretical parameters. This is why we track the actual development of external conditions and regularly adapt the characteristics and focus of the transformation to reflect these. Our climate transition plan initially involves reducing our CO₂ emissions in line with our validated SBTi targets by 2030. We are planning to reduce the remaining greenhouse gas (GHG) emissions in the period from 2030 to 2050.

Targets

• Reduce absolute Scope 1 and Scope 2 emissions by 25 percent between 2021 and 2030
• Reduce absolute Scope 3 emissions by 11.07 percent between 2021 and 2030

Evonik’s science-based carbon reduction targets cover 100 percent of our Scope 1 and Scope 2 emissions and more than two-thirds of our Scope 3 emissions. Our climate targets form part of our climate transition plan and contribute to achieving the Paris Agreement goals. We aspire to be climate-neutral by 2050. Our SBTi targets and roadmap up to 2030 were approved by the executive board.

Actions

To achieve our ambitious climate targets, a number of GHG reduction levers are available to us.

Actions for implementing our climate transition plan: Scope 1 and Scope 2 emissions up to 2030

The chart “Our roadmap 2030” shows our action plan for achieving our Scope 1 and Scope 2 target. It consists of the three pillars “exiting coal-fired power generation”, “Next Generation Technologies”, and “renewable energies”. We exited coal-fired power generation at the Marl site in spring 2024. The ongoing global development of production processes and infrastructure is bundled under our Next Generation Technologies. Additionally, we are gradually switching over to renewable energies. Our efforts will be supported by digital process technologies and the integration of sustainability data into existing business processes.

We are expediting our Scope 1 and 2 targets by investing in optimized processes such as enhancing energy efficiency and waste heat upcycling for heat integration, or in process redesign—for example, electrification. To do this, we implemented the EAGER project in 2022 to pinpoint the potential for reducing GHG emissions at our sites. In the period to 2030, we plan to invest € 700 million in Next Generation Technologies—in other words, in the ongoing development of production processes and infrastructure to reduce GHG emissions. In the reporting period, Evonik was in the process of planning and implementing projects that will reduce CO₂eq emissions by approximately 450,000 metric tons annually in the years ahead. The investment volume for these projects amounted to around € 56 million in 2025.

In addition, we intend to switch our externally purchased or acquired electricity completely to green energy in order to achieve our Scope 1 and 2 target by 2030.

Carbon pricing

Investment projects that help achieve our CO₂ reduction target and hence our climate transition plan are part of the annual  financial resource planning and investment allocation process, including approval by the executive board and supervisory board. For instance, we apply internal carbon pricing when planning major capital projects. The aim is to harness this planning criterion so that developments in carbon-intensive investments can be reliably and consistently reflected in all investment applications worldwide. In addition, the expected development of carbon prices is factored into our impairment tests. When estimating useful lives, these are generally included in our profitability calculations. Our current assumption is that a price of € 131/metric ton of CO₂ will be used in the EU Emissions Trading System (EU ETS) by 2030. In all other regions relevant to Evonik, we forecast an average of € 37/metric ton of CO₂ by no later than 2030. This reflects the development of the political framework in key emerging markets and developing countries, which does not currently indicate an increase in carbon pricing. In view of regional differences in the baseline situation, we have developed scenarios for the development of carbon pricing—differentiated by country and region— showing the rise to the assumed final global price. Here, we take into account both direct CO2 emissions (Scope 1 emissions) from production and energy generation and indirect CO₂ emissions from the purchase of secondary fuels (Scope 2  emissions). This generally applies to all of our Scope 1 and 2 emissions (100 percent). Specific calculations are made solely for investment planning. To support the departments affected, we use a CO₂ cost calculator that allows efficient and systematic  calculation of the carbon costs to be factored into every investment. Location and fuel-specific emission factors, as well as regional carbon price development scenarios, are applied. This enables harmonized evaluation of investments with regard to carbon cost throughout the group.

Actions for implementing our climate transition plan: Scope 3 emissions up to 2030

Reducing Scope 3 emissions is especially challenging for the entire value chain because these emissions are outside their direct sphere of influence and are affected by many external factors. This calls for in-depth cooperation with partners at every link in the value chain. Our action plan for achieving our Scope 3 target is based on reducing emissions of purchased raw materials, using alternative sources of raw materials, and cutting emissions in logistics and packaging.

We need reliable data on our suppliers’ emissions to reduce the emissions associated with purchased raw materials. To this end, we have been gathering supplier-specific product carbon footprints for all key raw materials suppliers since 2019. Furthermore, a data exchange platform enabling the direct sharing of supplier-specific emissions data was established as part of the Together for  Sustainability (TfS) Initiative. Alongside acquiring primary emissions data, we discuss additional mitigation actions with our suppliers. These include the use of renewable energies, optimizing processes, and using alternative raw materials. We cooperate with our suppliers to agree on targets that support our customers’ sustainability goals.

Given the limited availability of lower-carbon raw materials, we take a variety of approaches to reducing our Scope 3 emissions. For example, we use biomass-balanced materials, or inorganic raw materials produced using green electricity. We are currently looking at expanding this to other groups of raw materials. The contribution of circular materials to reducing emissions is likewise growing. Working closely with our suppliers, we are able to identify process improvements and translate these into specific mitigation actions. By factoring product carbon footprints into the tendering process, we can target our selection based on environmental impacts. At the same time, the inclusion of mediumand long-term scenarios means we are able to secure access to climate-friendly raw materials at an early stage and help strengthen our supply chains.

We have systematically reduced CO₂ emissions in the  procurement of logistics services and packaging since 2023. To achieve this, Evonik has expanded its use of tracking, intermodal transportation, optimized full truckload consignments, and the use of alternative fuels such as hydrotreated vegetable oil. In 2025, we incorporated CO₂ intensity 1 as a contract award criterion in the  transportation tender process.

Actions for implementing our climate transition plan: Emissions 2030 – 2050

In the period after 2030, the remaining Scope 1 and 2 emissions will be reduced through further energy efficiency and heat integration actions. In the reporting period, we conducted a group-wide, top-down evaluation and bottom-up analysis of our businesses with the highest emissions in order to identify longterm pathways to transitioning to climate neutrality by 2050. The findings point to technological options as well as potential investment needs. We are already engaged in broad-based screening of our technology portfolio for Scope 3 emissions. This identifies potential circular (bio-based, recycled, or CO₂-based) raw material sources for our production processes and considers how our production processes could be adapted to circular raw materials. In the period up to 2030, this screening will be completed and we will forge ahead with the requisite research into modified or new manufacturing processes.

Generally speaking, for the period beyond 2030, we regard broadening our technology and raw material portfolios as well as globally rising costs for CO₂ emissions as the main drivers of our transformation. From 2035, we expect new technologies to reach maturity, one example being the widespread availability of green hydrogen. As for the following years, we anticipate the breakthrough of processes such as carbon capture and storage (CCS) as well as carbon capture and utilization (CCU). Carbon capture and utilization technologies pave the way to reducing the consumption of fossil fuels and cutting CO₂ emissions. Together with partners, we are engaged in research in this field to deepen our understanding of how such technologies interact with our portfolio under market conditions. For instance, our expertise in catalyst research offers the possibility of using the stable CO₂ molecule in combination with green hydrogen and renewable energies to generate a higher quality product. Following chemical conversion, CO₂ counts as a raw material and no longer as waste. This could enable the production of methanol and other hydrocarbons for use in products such as solvents, polymers, and liquid e-fuels. The use of CO₂ for e-fuels will be further boosted by the ReFuelEU regulations for aviation. We are supporting such projects and are in close contact with those involved at the relevant stages of the value chain.

A wealth of actions for achieving net zero by 2050 are already known today, but in many areas they cannot yet be implemented economically. In the reporting period, carbon pricing mechanisms with what are assumed to be very high global prices for CO₂ emissions represent the largest single risk in the net zero scenario.

As of 2025, Evonik’s portfolio includes no GHG emissions that cannot be technically reduced by 2050. At this time, it is not possible to forecast the economic viability of actions that are technically feasible by 2050. Potentially locked-in GHG emissions (Scopes 1 to 3) primarily result from the generation of heat and electricity using fossil fuels, notably in power plants, parts of  production facilities, and raw materials.

Further information can be found in the Financial and Sustainability Report:

Progress in 2025

In the reporting period, Evonik continued implementing its EAGER projects as part of the company’s climate transition plan. The following projects are among the initiatives contributing to our Scope 1 and Scope 2 target: In Singapore, we completed our new alkoxide plant, which will enable us to produce alkoxides carbon-neutrally going forward. We also began work on restructuring the steam supply at our site in Antwerp (Belgium) as part of the Ecluse project. In place of the previous combined steam and power supply from natural gas, steam is to be sourced from the neighboring waste incineration plant starting in 2027. About 50 percent of the plant’s heat energy is generated from biomass. Future electricity requirements will be covered by our long-term green power purchase agreements. We additionally focused on operating and ongoing process improvements to increase energy efficiency and reduce emissions. Examples included the use of exhaust heat to preheat process streams as well as energy-optimized plant operation.

In the reporting period, we made further progress with regard to reducing our Scope 3 emissions in the upstream value chain. Requesting primary data from our raw materials suppliers has led to a significant increase in the data coverage for our Scope 3 emissions since 2024. Following up on process improvements at our suppliers has also helped reduce our Scope 3 emissions. At the same time, we enhanced our criteria with regard to tenders for selected, strategic raw materials to include CO₂ intensity. This contributed to additionally reducing Scope 3 emissions through the targeted supplier switching. Moreover, the quantities of some biomass-balanced and recycled raw materials were further increased compared with previous years.

Metrics

Since 2008, we have reported an extensive GHG emissions balance—from the extraction of raw materials through production to disposal of the products. The key metric is the carbon footprint (CO₂eq footprint). The data cover Evonik’s direct energy and process emissions (Scope 1), emissions from purchased or acquired electricity and heat (Scope 2) as well as upstream and downstream emissions (Scope 3).These include emissions from the production of purchased raw materials, services, and capital goods, fuel- and energy-related emissions not included in Scope 1 and Scope 2, emissions from inbound and outbound shipments, from the disposal of waste, emissions caused by business trips and employee commuting, energy requirements for leased administrative buildings and company vehicles, and emissions from the use and disposal of sold products. By contrast, we do not report emissions from the processing of Evonik products, from franchises or downstream leasing activities, or from investments. The method is closely based on the GHG Protocol Standard of the World Resources Institute (WRI) and the WBCSD as well as the Guidance for Accounting & Reporting Corporate GHG Emissions in the Chemical Sector Value Chain published by the WBCSD. Purchased or acquired electricity (Scope 2) is calculated by the market-based method using the relevant power suppliers’ individual emission factors. Evonik does not use carbon offsets outside its own value chains in its carbon footprint accounting.

Total gross Scope 1 GHG emissions and gross market-based Scope 2 GHG emissions decreased by more than 10 percent year on year. This is attributable to the sale of the superabsorbents business, which was completed in August 2024, as well as the decommissioning of the coal-fired power plant in Marl at the end of March 2024. From this point in time, the two new, highly efficient gas and steam turbine power plants in Marl became fully operational. Other effects resulted from the implementation of EAGER projects, the higher proportion of green electricity, and the decline in production volumes due to reduced demand.

In 2025, Scope 3 GHG emissions calculated using the fast-close approach decreased to 19.5 million metric tons of CO₂eq compared with 21.6 million metric tons of CO₂eq in 2024. The ongoing weak economy in 2025 compared with the previous year led to a reduction in the volumes of purchased raw materials as well as sold products and energy. The effects of this extended beyond the directly affected categories to additionally influence, for instance, logistics emissions. Furthermore, the emissions of the sold superabsorbents business were still included for an eight-month period in 2024, as this is when they were generated. None of these emissions were included for any Scope 3 categories in 2025.

Relative to the base year 2021, which is relevant for measuring our target achievement, we recorded a 31 percent reduction in our Scope 1 and 2 GHG emissions in 2025. Efficiency improvements in energy generation—especially due to substitution of the coal-fired power plant at Marl Chemical Park with the new gas and steam turbine power plants—were a major contributing factor. Added to this were the consistent expansion of the proportion of green electricity used and investments in Next Generation Technologies. The reduction was increased by the decline in our production volumes due to sustained weak demand and portfolio measures.