Portfolio transformation
“Portfolio transformation” is one of the material topics from our double materiality assessment. By transforming our portfolio, we want to make Evonik even more resilient and gain access to new, high-growth business opportunities. At the same time, our innovative products and technologies improve our customers’ sustainability performance and we aim to use them to strengthen customer loyalty. Evonik has integrated sustainability into the strategic management process. A key tool for the strategic management and development of our portfolio is the sustainability analysis of our business. This gives us important insights into the quality of our portfolio, from determining the proportion of sales generated by our Next Generation Solutions to showing which products we classify as Transitioners or Challenged. We apply the industry standard of the World Business Council for Sustainable Development (WBCSD), which takes account of the continuously expanding level of ambition in the markets.
In our view, one of Evonik’s particular strengths is its close working partnership with customers. Most are industrial companies that use our products for further processing. The innovative solutions and technologies provided by our businesses offer important additional benefits for our customers compared with competitors in their end-markets.
Evonik strives to be integrated into customers’ value chains wherever possible. This enables us to align our research and development, production, marketing, and distribution workflows closely with customer requirements. We also seek extensive contact with our stakeholders to enable the timely identification of relevant developments and help us understand their market impact.
Targets
- Increase the proportion of sales generated with Next Generation Solutions to >50 percent by 2030
- Proportion of sales from Challenged products should be permanently < 5 percent
- Generate € 1.5 billion in additional sales from innovation growth engines by 2032
We aim to achieve this, on the one hand, through the ongoing development of existing Next Generation Solutions. And, on the other, by aligning our research and development in order to generate additional sales with new Next Generation Solutions. At the same time, we are reducing the proportion of sales from products classified as Transitioners or Challenged through selective reformulation of chemical compositions or withdrawal from specific businesses.
SUSTAINABILITY ANALYSIS OF THE BUSINESS: METHODOLOGY
The market signals identified by Evonik as significant form the core of our sustainability analysis. These include anticipated regulatory trends such as those relating to chemical safety along the value chain, ecological and social performance compared with alternative solutions, and major sustainability ambitions in our markets. The evaluation is aligned with the WBCSD framework. This lets us take account of different market signals in the various end-markets for our business.
The unit of evaluation is defined through a differentiated assessment of the relevant products in specific product-application-region combinations (PARCs). For each PARC, we also evaluate the sustainability performance of the products during their usage phase. This evaluation starts with a qualitative expert assessment that is then gradually refined and quantified using life cycle assessments. We dynamically extend the PARC approach to include new requirements, for example, in the areas of circularity and product stewardship. The sustainability analysis of our business provides us with timely signals in case key Evonik products or services are subject to prohibitions in certain markets. This is currently not the case.
ANALYSES FOR MEASURABILITY OF SUSTAINABILITY
| Type of Analysis | Questions addressed |
|---|---|
| Sustainability Analysis of our Business | What are the strengths and weaknesses of our business and the products in our portfolio with regard to sustainability requirements? (Inside-out perspective and outside-in perspective) |
| Life Cycle Assessments | What are the environmental impacts ofour products due to their production (cradle-to-gate) or including their application by our customers (cradle-to-grave)? (Inside-out perspective) |
| Value chain analysis | What are the opportunities and risks associated with our products from a stakeholder perspective in their own value chains? (outside-in perspective) |
| Earnings per carbon emitted | How resilient is our business when it comes to carbon prices?
|
Analysis for identifying sustainable development goals relevant to the group | Which products and solutions for our customers address the challenges facing society? How do we contribute to meeting the 17 SDGs? (Inside-out perspective) |
FINDINGS 2025
In 2025, we examined 518 PARCs, covering the total sales generated by Evonik with chemicals in the fiscal year. The slight decline in the number of PARCs compared with the previous year is due to portfolio adjustments and divestments.
The following are the most important findings are:
- Evonik generated 91 percent of sales with products and solutions whose sustainability performance was at least in line with the market reference level (Leader, Driver, and Performer categories). The figure for 2024 was likewise 91 percent.
- Forty-eight percent of Evonik’s sales came from Next Generation Solutions. These are products and solutions with a positive sustainability profile that is above—or even well above—the market reference level (Leader and Driver categories).
- Slightly negative market signals were identified for 7 percent of sales (Transitioner category), while clearly negative signals were identified for 2 percent (Challenged category). We are addressing these in dialogue with our customers and suppliers through innovation or active portfolio management.
The EPCE of Evonik’s portfolio in 2025 was €431/metric ton of CO2eq.
Quantifying the handprint of selected Evonik Next Generation Solutions
Evonik markets a range of products whose use has a positive sustainability profile (handprint) compared with conventional alternatives. We use the metric of CO2eq savings in the usage phase to quantify this effect. The savings are generated over the life cycle of the applications produced with the quantities of Evonik products sold. The calculation employs an in-house handprint evaluation methodology based on the new Guidance on Avoided Emissions published by the WBCSD in 2025. Both primary data for Evonik products and secondary data such as information from life cycle databases and market studies of reference products and their applications are used for calculation purposes. The assumptions for quantifying the sustainability impacts of our products during their usage phase are examined specifically by way of sensitivity analyses.
A total of seven product applications were analyzed in the reporting period. The data used and the data quality are documented for both the Evonik product application and the reference product application for each example and are published on our website. Our calculations show that, in 2025, application of the seven products analyzed—with which we generated sales of €1.5 billion—avoided greenhouse gas emissions of 44 million metric tons of CO2eq.
LIFE CYCLE ASSESSMENT
Evonik’s sustainability commitment is supported by three central pillars: increasing handprint, reducing footprint, and creating value.
We continuously work to improve the sustainability of our product and technology portfolio. One proof of this is the growing share of “next generation” solutions with a clear sustainability profile. Measuring and evaluating environmental impacts is essential for achieving our environmental goals. For this purpose, the Life Cycle Assessment (LCA) method is applied.
IMPACT CATEGORIES CONSIDERED IN THE CONTEXT OF LIFE CYCLE ASSESSMENT AT EVONIK
In addition to the carbon footprint, Life Cycle Assessments provide results for a large number of further environmental impacts. We conduct Life Cycle Assessments using the Environmental Footprint 3.1 method as standard. On request, results for numerous other impact assessment methods such as CML, ReCiPe, TRACI etc. can be provided.
Evonik quantifies the environmental impact of its products and technologies in the form of footprints and handprints. For this purpose, the Life Cycle Inventory (LCI) is linked to numerous impact categories and their indicators using current characterization factors. The most important indicators are described below: