covestro.com

EcoVadis - Sustainability Performance Assessment of your Company

Version 3

From CSR (Corporate Social Responsibility)

to Sustainable Supply Chain

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

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

GLOBAL TRENDS

R&D portfolio aligned w/UN Sustainable Development Goals

100% supplier transparency and sustainability assurance

50% specific CO2 emissions reduction

Innovation

Procurement

Production

Markets

10 million people in underserved markets reached through our solutions

Maximum value from carbon employed

Value chain

http://www.covestro.com/en/sustainability/targets/targets

Covestro’s 2025 Sustainability Targets

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.

monitoring

As a result, knowing their environmental and social performance, and Suppliers’

it over the years is becoming of outmost importance for your clients.

What are the benefits for your company?

ü Embrace a continuous improvement process With a periodic re-evaluation of your CSR performance

ü Access up-to-date information on your CSR performance

ü 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

ü Benchmark your performances with sector practices Learn about best practices and how you are positioned in comparison to your competitors

ü 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

ü Use advanced communication tools to highlight your good practices e.g. your company detailed report or CSR commitment logo [Premium service only]

ü Prioritize your improvement areas and actions with a Scorecard that highlights your main opportunities for improvement

ü Manage improvement plans directly online share them with your clients and get their feedback

Improve

Communicate

Understand

Update

EcoVadis - a recognized and independent Sustainability Rating Provider

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?

ü Avoid multiple questionnaires ü Identify improvement areas ü Benchmark practices with sector

ü Manage risks ü Access reliable information ü Identify opportunities with suppliers

Suppliers Buyers

ü Robust methodology based on major international standards and tested on thousands of companies ü Smart, modular questionnaire that asks the right questions depending on purchasing categories, countries and

size of company

What is the EcoVadis assessment process?

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/

Support & Help

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

à Online process customized to your size, your industry sector and countries

of operation

à Provide check your company basic information

(activity, contact person, etc.)

1 2 3 4

+

à Performed by Sustainable Development

experts

à Access & share your results directly online

Platform Registration Register directly online

EcoVadis speaks

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

àCollaborative: create accounts for your colleagues and they will be able to answer at the same time as you

à Secure: access the interface with your personal login & password

à 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

Providing documents a key point for your CSR evaluation !

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.

• 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, Ø All formats accepted: text, PDFs, web links, images,

etc.

Please be aware of the importance of providing supporting / evidence documents to get a realistic rating result.

Examples of documents collected *

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

I. ENVIRONMENT III. ETHICS II. SOCIAL

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.

Your CSR monitoring platform

Access your platform using a simple web link:

no installation or hardware investment

required

Reuse your results for several 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

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

Ø 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.

Ø 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

Ø Ecovadis fee varies depending on the company size, the selected service and the period of engagement

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

covestro.com

Backup

About EcoVadis

“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 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.

EcoVadis Assessment Process

Sustainability Assessments – Sourcing Manager Information

Why your data are safe with EcoVadis

EcoVadis commitments to confidentiality • Compliant with the DPA (Data Privacy Act) 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

EcoVadis benefits

Covestro Supplier Code of Conduct (SCoC)

Ø SCoC describes our expectations on the supplier‘s behavior regarding sustainability in the supply chain

Ø SCoC consists of four chapters: - Ethics - Labor - Health, Safety, Environment and Quality - Management Systems

Ø Covestro expects its suppliers to respect all principles of SCoC

Ø SCoC is automatically referenced in every purchase order and on eAuction registration

www.supplier-code-of-conduct.covestro.com

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

covestro.com

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

Forward-looking statements

This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG.

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.