From CSR to Sustainable Supply Chain

1. Version 3
covestro.com
From CSR
(Corporate Social Responsibility)
to Sustainable
Supply Chain
EcoVadis - Sustainability
PerformanceAssessment
of your Company

2. Agenda Covestro's commitment to sustainability
From CSR to Sustainable Supply Chain
Benefits for your company
EcoVadis Introduction and Assessment Process
EcoVadis Plans & Pricing - Service levels options
Finding Support
Back-up

3. Covestro’s guiding principles
3
People Prosperity
Planet
Serve people
• Improve well-being
• Enhance safety
• Support social progress
Use resources responsibly
• Reduce impacts
• Improve product life cycles
• Close material cycles
Create value
• Focus on needs
• Sustain growth & jobs
• Create scalable solutions

4. GLOBAL TRENDS
R&D portfolio aligned w/UN Sustainable Development Goals
100% supplier transparency and sustainability assurance
Innovation
Procurement
Production
50% specific CO2 emissions reduction
Value chain
Maximum value from carbon employed
Markets
10 million people in underserved markets reached through our solutions
http://www.covestro.com/en/sustainability/targets/targets
Covestro’s 2025 Sustainability Targets

5. From CSR to Sustainable Supply Chain
- Sustainability performance monitoring
Sustainable
Procurement
For your clients, it means also
integrating CSR into their Supply Chain
and Procurement process.
This is called
All over the world, companies are faced with
Sustainable Development challenges.
CSR or Corporate Social Responsibility, is
how Businesses integrate Sustainable Development
issues into daily business.
As a result, knowing their
Suppliers’ environmental and social performance, and
monitoring it over the years is becoming of outmost
importance for your clients.

6. What are the benefits for your company?
 Embrace a continuous improvement process
With a periodic re-evaluation of your CSR performance
 Access up-to-date information on your CSR performance
 Get an independent evaluation and clear picture of your sustainability practices with ratings on 4
themes (environment, social, ethics and supply chain), and the detail of your strengths and opportunities
for improvement
 Benchmark your performances with sector practices
Learn about best practices and how you are positioned in comparison to your competitors
 Reuse and share recognized EcoVadis results for all your clients’ requests
Shared approach of the TfS initiative avoids double audits and assessments to different customers (also
Non-TfS) and report on a continuous basis
 Use advanced communication tools to highlight your good practices
e.g. your company detailed report or CSR commitment logo [Premium service only]
 Prioritize your improvement areas and actions
with a Scorecard that highlights your main opportunities for improvement
 Manage improvement plans directly online
share them with your clients and get their feedback
Improve
Communicate
Understand
Update

7. EcoVadis - a recognized and independent Sustainability
Rating Provider

8. EcoVadis provides effective
CSR Monitoring Services
EcoVadis offers a user-friendly and actionable platform to monitor continuous
improvements of your CSR practices
Understand &
Communicate
Improve
Update
CSR assessment
Initial assessment
Why EcoVadis?
 Identify improvement areas
 Benchmark practices with sector
 Manage risks
 Access reliable information
 Identify opportunities with suppliers
Suppliers
 Avoid multiple questionnaires
Buyers
 Robust methodology based on major international standards and tested on thousands of companies
 Smart, modular questionnaire that asks the right questions depending on purchasing categories, countries
and size of company

9. What is the EcoVadis assessment process?
Support & Help
EcoVadis is available to give you advice and answer your
questions throughout the whole process, with their multilingual
hotline, support email or chat: http://support.ecovadis.com/
Analysis
EcoVadis analyzes your answers
and audits your documents
Results
Access your results online in
the form of a Scorecard
Data collection
Answer CSR questions and
upload required documents
 Provide check your
company basic information
(activity, contact person,
etc.)
2 3 4
+
 Online process
customized to your size, your
industry sector and countries
of operation
 Performed by
Sustainable Development
experts
 Access & share your
results directly online
1
Platform Registration
Register directly online
EcoVadis speaks

10. The Data collection phase
Answer our customized dynamic
questionnaire: 20 to 50 questions
adapted to your size, your industry
sector and your countries of
operation
Upload directly online the required
documents to support your answers
 Collaborative: create accounts for your colleagues
and they will be able to answer at the same time as
you
 Secure: access the interface with your personal
login & password
 Personalized: our questionnaire is available in
English, French, Chinese, German, Spanish,
Brazilian Portuguese, Italian, Dutch, Japanese and
Russian
EcoVadis gathers additional relevant information:
• 360°watch: EcoVadis collects stakeholders’ information
based on more than 400 reliable sources (NGOs, press,
trade unions, etc.)
• Public information: e.g. your company website
All data, in particular your documents, will be analyzed in order to create your company’s CSR rating

11. Providing documents
• ISO 14001 Certificate
• Eco-label certification
• CSR report
• QHSE Charter
• RoHS Declaration for ML600G
• Internal Safety inspection report
• Business code of conduct
• Environmental impact assessment
• Health & Safety plan
• Quality Manual
• Accident Incident Rate Scorecard
• Supplier Audit Report (Factory X)
• REACH Declaration
• Employee Handbook 200X
• Any type of supporting documents: e.g. policies,
reports, action plans, certificates,
 All formats accepted: text, PDFs, web links, images,
etc.
a key point for your CSR evaluation !
Please be aware of the importance of providing supporting / evidence
documents to get a realistic rating result.
In order to rate your CSR performance, EcoVadis needs evidence to demonstrate your company’s practices.
You can upload any type of document that can reflect your company’s commitment to CSR.
The documents provided will be kept strictly confidential and will not be shared or distributed unless specifically
authorized by suppliers.
Examples of documents collected *

12. Which criteria are taken into account in the
EcoVadis evaluation?
Energy consumption & GHG (CO2)
Water
Biodiversity
Local Pollutions
Materials, Chemicals, Waste
Product Use
Product End-of-Life
Customers Health & Safety
Sustainable Consumption
Employee Health & Safety
Working Conditions
Social Dialog
Career Management & Training
Child & Forced Labor
Discrimination
Fundamental Human Rights
Corruption & Bribery
Anti-Competitive practices
Responsible Marketing
Suppliers Environmental performance
Suppliers Social practices
IV. SUPPLY CHAIN
The EcoVadis methodology relies upon CSR international standards (e.g. Global Compact, ISO 26000).
It includes 21 criteria, divided into 4 themes. Only criteria that are relevant for your sector specific challenges are
taken into account.
I. ENVIRONMENT II. SOCIAL III. ETHICS

13. Your CSR monitoring platform
Access your platform
using a simple web link:
no installation or
hardware investment
required
client’s requests (included in the
annual fees)
Client A
Client B
Client C
Your company Scorecard:
result of your CSR assessment
Corrective Action Plan
CSR document management
Additional monitoring services
(depending on your subscription level)
One unique interface to access :
Assessment Results and all your CSR monitoring services
are available on the EcoVadis CSR monitoring Platform
Reuse your results for several

14. EcoVadis Scorecard
CSR Performance
Rating by theme of your CSR performance,
(Environment, Social, Ethics, Suppliers) on a
scoring scale out of 100
Benchmark*
Allows you to compare your performance with
other companies in your industry sector
Strengths and Weaknesses
Detailed presentation of your strong CSR
practices and your weaknesses. They are divided
into 4 categories that are the four themes used in
the CSR rating (environment, social, suppliers and
ethics)
360° Watch*
Keep an eye on information from up to 300
stakeholders (NGOs, Trade unions…) concerning
your company
* Premium and Corporate only

15.  Ecovadis fee varies depending on the company size, the selected service and the period of engagement
 Further details under EcoVadis Help Center , FAQ 8.1 How much does the EcoVadis subscription cost?
Plans & Pricing - Service levels options
Types of one- or multiple-year Subscriptions
 For Covestro a one-year basic subscription is fine
and the validity of the scorecard is of 3 years for Covestro when an acceptable performance
(>44/100) has been achieved.

16. Any questions, need support?
http://support.ecovadis.com
EcoVadis Help Center supports you and answers your questions throughout the whole
process - via their multilingual hotline, support email or chat.
EcoVadis speaks

17. covestro.com
Backup

18. About EcoVadis
criteria”
United Nation report « Unchaining Value » - sept 2008
International
Recognition
• Company monitoring in 95 countries
• Service available in 5 different languages
Worldwide
presence
• Working with EcoVadis to improve the methodology
with DJSI, GRI, INSEAD, HEC…
International
Scientific
Committee
Partnerships &
membership
with leading
organizations
EcoVadis operates the 1st collaborative online platform allowing companies to monitor the environmental and social performance of their
suppliers on a global basis. EcoVadis combines technology and Corporate Social Responsibility (CSR) expertise to deliver simple and
reliable Supplier Scorecards.
“Companies should use databases such as EcoVadis that collect supplier audit data and
provide buyers with a one-stop tool for evaluating suppliers against a set of sustainability

19. EcoVadis Assessment Process

20. Why your data are safe with EcoVadis
EcoVadis commitments to confidentiality
• Compliant with the DPA (Data PrivacyAct) UK regulation: your data are
kept strictly confidential, and will be used only for the purpose of the
EcoVadis service.
• Confidentiality of your commercial relationships: your Scorecard will only
be made available to the customers you formally approve
Safe storage
All data are stored in data center that are ISO/IEC 27001 compliant
Secure connections
• Our Platforms use a secure https:// connection, with personal login &
password
• All online payments are secured using PayPal

21. EcoVadis benefits

22. Covestro Supplier Code of Conduct (SCoC)
 SCoC describes our expectations on the supplier‘s
behavior regarding sustainability in the supply
chain
 SCoC consists of four chapters:
- Ethics
- Labor
- Health, Safety, Environment and
Quality
- Management Systems
 Covestro expects its suppliers to respect all
principles of SCoC
 SCoC is automatically referenced in every
purchase order and on eAuction registration
www.supplier-code-of-conduct.covestro.com

23. Selected Information Sources
Covestro Supplier Code of Conduct
Covestro Procurement
Covestro Sustainability Goals
Together for Sustainability (TfS)
o TfS online Trainings and Downloads
EcoVadis (general website)
o EcoVadis fees overview
o EcoVadis FAQs (Help Center)
United Nations Global Compact
Responsible Care Global Charter
Universal Declaration on Human Rights
Declaration of Helsinki
International Labour Standards (ILO)
OECD Guidelines for Multinational Enterprises

24. covestro.com
Thank you for
your kind collaboration!
sustainability.procurement@covestro.com

25. Forward-looking statements
This presentation may contain forward-looking statements based on current assumptions and
forecasts made by CovestroAG.
Various known and unknown risks, uncertainties and other factors could lead to material differences
between the actual future results, financial situation, development or performance of the company and
the estimates given here. These factors include those discussed in Covestro’s public reports, which
are available on the Covestro website at www.covestro.com.
The company assumes no liability whatsoever to update these forward-looking statements or to adjust
them to future events or developments.