| Invested through |
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|---|---|
| Asset Classes | Listed equity, Corporate bonds & Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | DE000A185QA5 |
| Industry group | Materials |
| Aligned with SDGs |
Evonik is the second largest chemicals company in Germany, and one of the largest specialty chemicals companies in the world. With a little over 33,000 employees, the company is active in four segments:
- Specialty Additives: offers key ingredients that improve the characteristics of coatings and foams to reduce the need for maintenance and limit energy consumption of appliances, buildings and vehicles.
- Nutrition & Care: products that contribute to higher nutritive value of food, enable medicines to be better absorbed by the body and personal care products.
- Smart Materials: solutions that make Industrial companies more energy efficient and environmentally friendly. Examples of products include silica (recyclable insulator) and silane (anti-corrosion).
Investment rationale
Evonik contributes to the transition to a more sustainable planet and society, and is transitioning itself to become a more sustainable company.
The Nutrition & Care segment supplies specialty chemicals for use in animal nutrition, medicines and personal care products. The key product for animal nutrition is methionine, which is an additive for of animal feed. Methionine enables a substantial reduction in the use of soybeans, which lowers emissions. So, methionine contributes to a more sustainable way of farming. In addition, Evonik's chemicals also contribute to a better absorption of medicines in the body. This contributes to a healthier society. Finally, Evonik's products are used in shampoo, shower gel and cosmetics. Personal care products also contribute to a healthier society but are also more frequently based on bio-based ingredients. So, nearly the entire Nutrition & Care segment contributes to the transition themes Sustainable Food & Agriculture and Prosperous and Healthy People.
The Specialty Additives and Smart Materials segments focus on resource-saving and energy-efficient solutions for a wide range of applications. In these segments, it's more difficult to link Evonik’s products to specific products. Silica, for example, lowers the rolling resistance of tires (reducing fuel consumption) and that cross linkers are used in blades of windmills. Both segments contribute to the Sustainable Mobility & Infrastructure theme.
In total 39% of the revenues of the company is aligned with one or more Triodos Transitions. 23% of revenues is aligned with the Resource transition, 8% of revenues is aligned with the Energy transition, 5% of revenues is aligned with the Food transition and 2% of revenues is aligned with the Well-being transition.
- The contribution to the Food transition comes from 5% of revenues related to the impact objective Sustainable Agriculture & Food.
- The contribution to the Well-being transition comes from 2% of revenues related to the impact objective Health Care.
- The contribution to the Resource transition comes from 12% of revenues related to the impact objective Circular Economy, 7% of revenues related to Green Buildings, 2% of revenues related to Sustainable Water & Wastewater Management , and 2% of revenues related to Pollution Prevention & Control.
- The contribution to the Energy transition comes from 5% of revenues related to the impact objective Clean Transport, and 3% of revenues related to Renewable Energy.