The Path to Our Sustainability Goals

Our Sustainability Targets: Decisive Action Towards a Sustainable Future

Our "Sustainable Future” strategy drives concrete action. In 2026, we defined sustainability targets that transform sustainability ambitions into measurable commitments, structured around three pillars:

• Climate Neutrality: reducing emissions across all scopes
• Circular Economy: making circular business a reality
• Sustainable Solutions: transforming our product portfolio

These targets define our clear path through 2030 and beyond.

Climate Neutrality: Our climate targets remain unchanged and are aligned with the 1.5°C pathway of the Paris Agreement. We are targeting a 60% reduction in Scope 1 and 2 greenhouse gas emissions by 2030, with a net-zero target by 2035. For Scope 3 emissions, we aim to reduce emissions by 10 million metric tons of CO₂e by 2035, reaching net-zero by 2050. Find out more about our climate neutrality journey.

Circular Economy: We are committed to advancing our vision of becoming fully circular by setting three specific targets for this pillar. Learn more about our approach to circular economy.

• By 2030, Covestro will position its circular economy product offering in all relevant industries and markets.
• By 2030, Covestro will establish Design for Circularity as part of the innovation portfolio assessment.
• By 2030, Covestro will conduct comprehensive end-of-life route assessments for its products across its segments.

Sustainable Solutions: By 2030, Covestro will maintain or grow the share of Sustainable Solutions within our core volume sold. We define Sustainable Solutions as products that incorporate alternative raw materials or carry a reduced carbon footprint. Learn more about our Sustainable Solutions.

Our Commitment to the UN SDGs

In 2015, the United Nations’ Agenda 2030 united 193 countries, companies, and civil society around 17 SDGs, marking a global commitment to address pressing challenges like climate change, environmental stewardship, and social equity. At Covestro, we draw inspiration from this shared vision, integrating sustainability into our strategy to create a brighter world through our expertise.

As a member of the UN Global Compact (UNGC) since 2015, Covestro has committed not only to adhering to the UNGC Principles but also to actively contributing to the 17 UN SDGs. With our new approach, we link the SDGs directly to our reporting. Our sustainability reporting according to the Corporate Sustainability Reporting Directive (CSRD) also serves as the UNGC Communication on Progress (CoP). The starting point is our Double Materiality Assessment (DMA), which forms the basis of our sustainability reporting and defines the material topics for Covestro. Our mapping of the SDGs to our material topics makes the connection explicit and transparent.

Taking Action: How We Actively Shape the UN SDGs

Our engagement with the 17 SDGs is reflected in our sustainability reporting but also in a wide range of activities and initiatives all around the world. From innovative materials and social engagement to global partnerships, we actively drive positive impact. As a result, we found that Covestro contributes to all 17 SDGs and various sub-targets to differing degrees and in different areas. Our sustainability engagement spans all regions globally. The following examples represent a selection of our activities around the world:

Approaches to stabilizing the income of small-scale farmers

Small-scale farmers and fisherfolk face significant income losses due to post-harvest waste, with 30-40% of produce typically lost after harvest. Our solar-powered post-harvest solutions directly address this economic vulnerability by enabling rural communities to process and preserve their production locally.

Solar greenhouse dryers and cold storage systems reduce dependency on grid-based infrastructure while enabling access to premium markets. These durable solutions create sustainable income streams for farmers by preventing distress sales and spoilage-related losses. By extending product shelf life and enabling value addition, we help farmers negotiate better prices and build resilient agricultural businesses that help improve their livelihood.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS S1 Own Workforce

Increase productivity with food safety solutions

India faces a critical nutrition crisis with average consumption of fruits and vegetables at only 280g/day which is significantly below 400g/day as recommended by the WHO and fish consumption at just 13kg per capita annually versus the recommended 20.5kg. This nutritional deficit is further worsened by post-harvest losses that reduce food availability when 30-40% of produce is wasted after harvest.

Our food security solutions address both production and preservation challenges through climate-smart infrastructure. Solar greenhouse dryers enable hygienic processing while maintaining nutritional value, extending shelf life from days to months. Solar cold storage systems preserve fresh produce without grid dependency, crucial for remote areas lacking infrastructure.

By preventing one-third of typical harvest losses, we increase food availability of nutritious produce. These decentralized, solar-powered solutions operate independently of traditional infrastructure, making quality food accessible across diverse geographic contexts while directly addressing malnutrition through improved food security.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E2 Pollution & Annual Report – ESRS S1 Own Workforce

Bright Minds for a Brighter World in Thailand

Bright Minds for a Brighter World serves as our overarching educational and environmental empowerment platform in Thailand, designed to inspire the next generation through knowledge, creativity, and sustainable action. As part of our long-standing commitment to youth education, we develop and support initiatives such as the Bright Minds for a Brighter World learning materials for children that teach waste separation under circular economy principles. This initiative anchors our youth-focused sustainability programs.

Under this umbrella, we run two flagship programs:

1. Learning Center of Plastic Innovation for Sustainability

   Launched at our Map Ta Phut site in Thailand in 2022, the Learning Center of Plastic Innovation for Sustainability offers primary school students a hands-on environment to explore plastic waste management and circular economy principles. The center is divided into four interactive zones: plastic journey, waste management, waste-to-value transformation, and 3D printing.
   
   Students engage in waste sorting games, quizzes, and recycling demonstrations. For the future, we also plan Augmented Reality modules. To date, the center has welcomed more than 800 students from Rayong province, with activities led by Covestro volunteers.
   
   

2. Green Guardians

   Green Guardians extend the impact of the Learning Center of Plastic Innovation for Sustainability in Thailand by empowering students to become sustainability ambassadors in their schools and communities. The program transforms classroom learning into real-world action through, among others, teacher engagement and training or mentorships by Covestro volunteers.
   
   Through Green Guardians, Covestro ensures that learning does not end with a single visit. Students become active changemakers who practice and promote circular behaviors year-round. The program strengthens partnerships with local schools and deepens the community engagement of Covestro around Map Ta Phut.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS S2 Workers in the Value Chain & Annual Report – ESRS G1 Business Conduct

Further information on our contribution to this SDG can be found here: Annual Report – ESRS S1 Own Workforce

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E2 Pollution & Annual Report – ESRS E3 Water and Marine Resources

Advancing clean energy through the Solar Roof project

Covestro is advancing its decarbonization agenda step by step: most recently with the launch of the Solar Roof Project at the Map Ta Phut site in Thailand. This initiative strengthens our commitment to clean energy and directly contributes to our global climate targets.

Developed in a partnership, the solar rooftop system marks a significant operational shift toward renewable electricity, reducing approximately 2,000 tons of Scope 2 emissions every year once fully operational.

The solar panels are installed across six main buildings — including the Administration Building, Technology Building, Specialty Films Plant, Canteen, and two car park structures — maximizing the site’s footprint for renewable energy generation. The system is supported by newly installed inverter stations and metering units to ensure efficient power conversion, safety, and reliable performance.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E1 Climate Change

Further information on our contribution to this SDG can be found here: Annual Report – ESRS S1 Own Workforce & Annual Report – ESRS S2 Workers in the Value Chain

Further information on our contribution to this SDG can be found here: Annual Report – Environmental Matters: Sustainable Solutions

Brighter Vision for All campaign

Covestro is committed to reducing inequalities by improving access to essential services and empowering underserved communities.

Launched in Thailand in June 2019, our “Brighter Future, Better Vision” initiative addressed both social inequality and environmental challenges by transforming plastic waste into recycled polycarbonate eyeglass frames. Originally donated to elementary school students in Rayong province, these frames help improve vision, support learning, and promote equal educational opportunities.

Building on this success, Covestro is extending the initiative by donating approximately 400 eyeglass frames to the Thai Red Cross Optometrist and Eyeglasses Center. Patients — many from low-income or vulnerable groups — receive these frames free of charge and pay only for the lenses, improving access to affordable eye health services.

Through this effort, Covestro contributes to reducing inequalities by supporting inclusive healthcare access, enhancing the social value of sustainable materials, and strengthening partnerships with trusted national institutions.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS S1 Own Workforce

Protecting marine ecosystems through coastal cleanup and marine life restoration

In Thailand, we actively contribute to preserving coastlines through regular coastal cleanup activities organized in partnership with, for example, government agencies, local municipalities, schools, and neighboring companies. These initiatives take place at various beaches along the more than 100-kilometer shoreline, helping maintain the cleanliness and natural beauty of these important community spaces.

Through these recurring events, Covestro volunteers join hundreds of participants from the wider industrial community to remove marine debris and improve local waste management awareness. The activities also support global data collection on coastal litter and align with broader initiatives such as Operation Clean Sweep®, reflecting our commitment to preventing plastic leakage into the ocean.

Efficient construction and climate-friendly mobility

Besides, Covestro demonstrates that new construction methods and innovative building materials play a vital role in enhancing the quality of life in our cities. Affordable living space must be created to ensure fair living conditions. Covestro is engaged in innovation in the field of modular construction. Together with industry partners, government agencies and society, the company is developing models of affordable housing and carrying out specific projects locally.

The future of mobility

By manufacturing innovative plastics for automotive construction, Covestro is contributing to a healthier and smarter future of mobility. We are working to create the latest materials for smart, eco-friendly vehicles such as high-tech polymers which are a lightweight and aerodynamic alternative to metal and glass. Our materials help us to optimize and expand specialized vehicle designs: from autonomous driving to electro-mobility, from batteries to interiors to car bodies. These and other smart automotive solutions can make traffic safer and support achieving climate neutrality of the mobility sector.

Further information on our contribution to this SDG can be found here: Annual Report – Environmental Matters: Sustainable Solutions

Greenhouse technology for extreme climate conditions

Traditional farming faces increasing challenges due to extreme climatic conditions, leading to greater seasonal constraints and weather vulnerabilities. In harsh climate regions like northern India, where temperatures drop below 0°C, open-field cultivation has historically been extremely limited during winter months, forcing communities to combine short-season farming with imported food from nearby regions.

Our greenhouse cultivation technology enables year-round cultivation in extreme climates, transforming challenging conditions into sustainable production opportunities. These climate-controlled structures allow fresh vegetable production even in severe weather conditions, supporting responsible production patterns by reducing dependency on long-distance food transportation and enabling local food security.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E5 Resource Use and Circular Economy

AdiP technology: innovation meets sustainability

The Covestro technology AdiP (Adiabatic Isothermal Phosgenation) delivers exceptional energy efficiency improvements with quantifiable environmental benefits. The innovative process achieves remarkable reductions of up to 40% in steam consumption and 25% in electricity usage per ton of MDI (Methylene Diphenyl Diisocyanate) produced compared to conventional production methods.

These substantial energy savings directly translate into a significant reduction in CO₂ emissions: up to 35% lower carbon footprint per ton of MDI produced. This dramatic improvement positions AdiP technology as a game-changer for sustainable chemical manufacturing, enabling Covestro to meet increasingly stringent environmental targets while maintaining operational excellence.

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E1 Climate Change

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E2 Pollution & Annual Report – ESRS E4 Biodiversity and Ecosystems

Further information on our contribution to this SDG can be found here: Annual Report – ESRS E4 Biodiversity and Ecosystems

Further information on our contribution to this SDG can be found here: Annual Report – ESRS G1 Business Conduct

Joint solutions for innovation in the name of sustainability

We know that achieving the UN SDGs requires collective action. Our open innovation culture is strengthened by a global network of partnerships with universities, institutions, and companies across five continents. This sets the stage for bringing new ideas to life.

Creative Solutions for Circularity Awareness study program

In Thailand, Covestro partners with several universities to deliver the Creative Solutions for Circularity Awareness initiative, a collaboration designed to inspire young designers to adopt circular thinking and sustainable design practices. As part of these activities, Covestro experts deliver lectures and we organize field trips to our site, providing first-hand insights into the practical application of circularity principles and our innovative materials. In addition, we hosted the Creative Design for Sustainability Contest, showcasing projects that demonstrate how circular design can address real environmental challenges.

Further information on our contribution to this SDG can be found here: Annual Report – Environmental Matters: Sustainable Solutions