Sustainability Reporting and Governance
Transparency and Accountability at Our Core
Sustainability is at the heart of Avantium’s operations. Our goal is a fossil-free world, realized through innovation and robust governance.
Materiality
We engage with our stakeholders regularly to ensure our activities cover the areas that really matter to these different groups. To determine the scope of Avantium’s sustainability focus, Avantium conducts an annual materiality assessment which helps us to identify which economic, social and environmental topics we should prioritize to further improve the way we do business and drive sustainable progress in society. Material topics of very high priority are:
Applying Avantium’s expertise to improve the efficiency of existing chemical processes and invent new technologies with an improved environmental impact versus fossil-based incumbents.
Aligning Avantium’s business with a 1.5°C future by reducing carbon emissions in line with the Paris Agreement and working to remove stubborn emissions through credible offsetting.
Optimizing the recovery, re-use and recycling of our technologies, mitigating Avantium’s impact on natural resources.
Using plant-based feedstocks including agricultural crops, residues from agriculture or forestry or waste material that would otherwise be incinerated.
Implementing strong safety management practices, as defined by ISO 45001, in our workplaces to safeguard employees’ health.
Ensuring employee health and well-being through our culture and programmes focusing on work-related stress, work–life balance and mental health.
Accelerating the industry transition to fossil free by helping our customers and partners embrace the essential technologies and products of tomorrow.
Engaging proactively and continuously with various stakeholders in a two-way dialogue, understanding their priorities and reflecting them in our collaboration, advocacy and ESG strategy.
Reporting
Our Annual Report follows the Global Reporting Initiative (GRI) Standards, ensuring full transparency and accountability. The report covers:
– General Disclosures: Information on our organizational profile, strategy, ethics, and integrity.
– Material Topics: Our identified significant economic, environmental, and social impacts.
– Economic Performance: Financial implications, market presence, and economic impacts.
– Environmental and Social Impact: Our contributions to sustainability, covering areas such as energy, water, emissions, and social responsibility.
2-1 Organizational details
See the Avantium corporate website https://avantium.com/
2-2 Entities included in the organization’s sustainability reporting
Avantium N.V, including all our consolidated entities,
See annual report section 2.2.1 Subsidiaries for more details.
2-3 Reporting period, frequency and contact point
1 January until 31 December 2023
2-5 External assurance
The financial data is covered by external assurance by PwC.
See Independent Auditor’s Report
2-6 Activities, value chain and other business relationships
See section Who We Are
2-7 Employees
288 FTEs
For details see section Our People
2-8 Workers who are not employees
See section Our People
2-9 Governance structure and composition
See section Corporate Governance
2-10 Nomination and selection of the highest governance body
See corporate website Corporate Governance
2-11 Chair of the highest governance body
See section Corporate Governance
2-12 Role of the highest governance body in overseeing the management of impacts
See section Corporate Governance
2-13 Delegation of responsibility for managing impacts
See section Corporate Governance
2-14 Role of the highest governance body in sustainability reporting
2-15 Conflicts of interest
See corporate website Code of Business Conduct section Conflicts of Interest
2-16 Communication of critical concerns
See section Risk and Opportunity Management
2-17 Collective knowledge of the highest governance body
See section Corporate Governance
2-18 Evaluation of the performance of the highest governance body
See section Corporate Governance
2-19 Remuneration policies
See section Remuneration Report 2023
2-20 Process to determine remuneration
See section Remuneration Report 2023
2-21 Annual total compensation ratio
See section Remuneration Report 2023
2-22 Statement on sustainable development strategy
See section Message from CEO
2-23 Principles and Policies
See corporate website Principles & Policies
2-24 Embedding policy commitments
See corporate website Principles & Policies
2-25 Processes to remediate negative impacts
See section Risk and Opportunity Management
2-26 Mechanisms for seeking advice and raising concerns
See corporate website Corporate Governance
2-27 Compliance with laws and regulations
See corporate website Code of Business Conduct section Standard Conduct
2-28 Membership associations
See corporate website Partnerships & Memberships
2-29 Approach to stakeholder engagement
Stakeholder Engagement and Materiality assessment performed in 2022
For more details see section Materiality Assessment and Stakeholder Engagement
2-30 Collective bargaining agreements
None
3-1 Process to determine material topics
Stakeholder Engagement and Materiality assessment performed in 2022
For more details see section Materiality Assessment and Stakeholder Engagement
3-2 List of material topics
Technology:
– Environmental Impact of our technologies
– Circularity
– Product Stewardship
– Sustainable Feedstock
Operations:
– Occupational Health and Safety
– Greenhouse Gas Emissions of our Operations
– Waste
People
– Talent Attraction and Retention
– Health & Well-Being
– Diversity, Equality & Inclusion (DEI)
– Next Generation of Scientists
Leadership & Governance
– Climate advocacy
– Corporate partnerships
For more details see section Materiality Assessment and References to Sustainability Frameworks
3-3 Management of material topics
See section The Value We Created
201-1 Direct economic value generated and distributed
Not deemed material for sustainability reporting
See section Financial Performance 2023
201-2 Financial implications and other risks and opportunities due to climate change
See section Risk and opportunity Management on Sustainability-Feedstock and Sustainability-Climate Change Risks
201-3 Defined benefit plan obligations and other retirement plans
Not deemed material for sustainability reporting
See section 2.18 Employee Benefits
201-4 Financial assistance received from government
Not deemed material for sustainability reporting
18 government grants,
See section Financial Performance 2023
202-1 Ratios of standard entry level wage by gender compared to local minimum wage
Not deemed material for sustainability reporting and not reported
202-2 Proportion of senior management hired from the local community
Not deemed material for sustainability reporting
See section Employee Diversity in 2023 for proportion of Dutch/Non-Dutch and other diversity factors reported by seniority level
203-1 Infrastructure investments and services supported
Not deemed material for sustainability reporting
See section The Value We Created in 2023
203-2 Significant indirect economic impacts
Not deemed material for sustainability reporting and not reported
204-1 Proportion of spending on local suppliers
Not deemed material for sustainability reporting and not reported
205-1 Operations assessed for risks related to corruption
Not deemed material for sustainability reporting and not reported
205-2 Communication and training about anti-corruption policies and procedures
Not deemed material for sustainability reporting and not reported
205-3 Confirmed incidents of corruption and actions taken
Not deemed material for sustainability reporting and not reported
No incidents were reported, see section Responsible Business
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
Not deemed material for sustainability reporting
No incidents were reported, see section Responsible Business
207-1 Approach to tax
Not deemed material for sustainability reporting
See section 25. Income Tax Expense
207-2 Tax governance, control, and risk management
Not deemed material for sustainability reporting
See section 25. Income Tax Expense
207-3 Stakeholder engagement and management of concerns related to tax
Not deemed material for sustainability reporting and not reported
207-4 Country-by-country reporting
Not deemed material for sustainability reporting and not reported
301-1 Materials used by weight or volume
Not deemed material for sustainability reporting and not reported
301-2 Recycled input materials used
Not deemed material for sustainability reporting and not reported
301-3 Reclaimed products and their packaging materials
Not deemed material for sustainability reporting and not reported
302-1 Energy consumption within the organization
Sustainable electricity – 2.455 MWh
Fossil-based electricity – 406 MWh
Gas heating – 81.522 m3
Steam – 1.221 GJ
Reported as Scope 2 Emissions, for more details see section Emissions from our Operations
302-2 Energy consumption outside of the organization
Data not available yet
302-3 Energy intensity
Not deemed material for sustainability reporting and not reported
302-4 Reduction of energy consumption
Reported as emissions saving activities, for more details see section Emissions from our Operations
302-5 Reductions in energy requirements of products and services
Reported with our goal of reducing industry CO2 emissions, see section Reducing Industry CO2 emissions
303-1 Interactions with water as a shared resource
Not deemed material for sustainability reporting and not reported
303-2 Management of water discharge-related impacts
Not deemed material for sustainability reporting and not reported
303-3 Water withdrawal
Not deemed material for sustainability reporting and not reported
303-4 Water discharge
Not deemed material for sustainability reporting and not reported
303-5 Water consumption
Not deemed material for sustainability reporting and not reported
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
Not deemed material for sustainability reporting and not reported
304-2 Significant impacts of activities, products and services on biodiversity
Not deemed material for sustainability reporting and not reported
304-3 Habitats protected or restored
Not deemed material for sustainability reporting and not reported
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations
Not deemed material for sustainability reporting and not reported
305-1 Direct (Scope 1) GHG emissions
0.448 tonnes CO2e
For more details see section Emissions from our Operations
305-2 Energy indirect (Scope 2) GHG emissions
369 tonnes CO2e
For more details see section Emissions from our Operations
305-3 Other indirect (Scope 3) GHG emissions
In 2023 Avantium collaborated with an external party and completed Scope 3 baseline assessment based on financial data from 2022. We have identified five focus categories:
· purchased goods and services
· capital goods
· upstream transportation and distribution
· waste generated in operations
· business travel
Going further systems will be set in place to measure and be able to report emissions in these categories.
For more details see section Reducing Emissions from our Operations
305-4 GHG emissions intensity
Not deemed material for sustainability reporting and not reported
305-5 Reduction of GHG emissions
Reported as emissions saving activities, for more details see section Reducing Emissions from our Operations
305-6 Emissions of ozone-depleting substances (ODS)
Not deemed material for sustainability reporting and not reported
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
See section Reducing Emissions from our Operations
306-1 Waste generation and significant waste-related impacts
See section Managing Waste from Our Operations
306-2 Management of significant waste-related impacts
See section Managing Waste from Our Operations
306-3 Waste generated
See section Managing Waste from Our Operations
306-4 Waste diverted from disposal
See section Managing Waste from Our Operations
306-5 Waste directed to disposal
See section Managing Waste from Our Operations
308-1 New suppliers that were screened using environmental criteria
All key feedstock suppliers
For more details see section Using Sustainable Feedstocks
308-2 Negative environmental impacts in the supply chain and actions taken
See section Using Sustainable Feedstocks
401-1 New employee hires and employee turnover
95 new joiners, workforce increase of 15.15%
For more details see section Promoting Diversity, Equality and Inclusion
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees
None
401-3 Parental leave
In 2023, 26 colleagues used the right for parental leave, and 3 returned from parental leave
For more details see section Celebrating Our Differences
402-1 Minimum notice periods regarding operational changes
According to the Works Council Act
See section Work Council
403-1 Occupational health and safety management system
See corporate website Safety section, and section Providing Safe and Healthy Workplaces
403-2 Hazard identification, risk assessment, and incident investigation
See section Providing Safe and Healthy Workplaces
403-3 Occupational health services
See section Health and Well-Being
403-4 Worker participation, consultation, and communication on occupational health and safety
See section Providing Safe and Healthy Workplaces
403-5 Worker training on occupational health and safety
See section Providing Safe and Healthy Workplaces
403-6 Promotion of worker health
See section Health and Well-Being
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
Not deemed material for sustainability reporting and not reported
403-8 Workers covered by an occupational health and safety management system
All
403-9 Work-related injuries
See section Accidents and Incidents in 2023
403-10 Work-related ill health
See section Accidents and Incidents in 2023
404-1 Average hours of training per year per employee
The members of our different operational teams spent 2714.5 hours in trainings in 2023, representing an average of 30.8 hours per employee
For more details see section Safety Culture and Trainings
404-2 Programs for upgrading employee skills and transition assistance programs
See section Performance Management and Training
404-3 Percentage of employees receiving regular performance and career development reviews
All employees
For more details see section Performance Management and Training
405-1 Diversity of governance bodies and employees
See diversity table in Employee Diversity in 2023
405-2 Ratio of basic salary and remuneration of women to men
See section Promoting Diversity, Equality and Inclusion
406-1 Incidents of discrimination and corrective actions taken
No incidents were reported
For more details see section Responsible Business
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe where the social and labor-related risks are low.
408-1 Operations and suppliers at significant risk for incidents of child labor
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe where the social and labor-related risks are low.
See section Using Sustainable Feedstocks for more information
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe where the social and labor-related risks are low.
See section Using Sustainable Feedstocks for more information
410-1 Security personnel trained in human rights policies or procedures
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe where the social and labor-related risks are low.
411-1 Incidents of violations involving rights of indigenous peoples
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe where the social and labor-related risks are low.
413-1 Operations with local community engagement, impact assessments, and development programs
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe, no activities involve entering or leaving local communities.
413-2 Operations with significant actual and potential negative impacts on local communities
Not deemed material for sustainability reporting and not reported
Most of Avantium’s operations and suppliers are located in Europe, no activities involve entering or leaving local communities.
414-1 New suppliers that were screened using social criteria
See section Using Sustainable Feedstocks
414-2 Negative social impacts in the supply chain and actions taken
See section Using Sustainable Feedstocks
415-1 Political contributions
None
Not deemed material for sustainability reporting
416-1 Assessment of the health and safety impacts of product and service categories
Not deemed material for sustainability reporting and not reported
Avantium does not provide consumer goods or services
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services
Not deemed material for sustainability reporting and not reported
Avantium does not provide consumer goods or services
417-1 Requirements for product and service information and labeling
Not deemed material for sustainability reporting and not reported
417-2 Incidents of non-compliance concerning product and service information and labeling
Not deemed material for sustainability reporting
None
417-3 Incidents of non-compliance concerning marketing communications
Not deemed material for sustainability reporting
None
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
None
Ratings
Ecovadis
Avantium was awarded a Gold Medal by EcoVadis, after a thorough audit of our performance in four categories: environment, labor and human rights, ethics, and sustainable procurement.
Sustainalytics
Sustainalytics recognized Avantium as having medium risk for material financial impacts driven by ESG factors.
Upholding High Standards
Sustainability Governance
The Sustainability Steering Board steers the execution of Chain Reaction 2030. It approves plans and courses of action. The Sustainability Steering Board is chaired by the Chief Sustainability Officer, who reports directly to Avantium’s CEO. Members of the Sustainability Steering Board are Avantium’s CFO, the Managing Director of Avantium R&D Solutions, the HR Director and the Communications Directors.
For the implementation of the ten sustainability targets, we have four sustainability task forces (one for each pillar of Chain Reaction 2030) in place, ensuring representation from across Avantium’s business units and departments.
We maintain high standards in ethical business practices:
Code of Good Business Conduct
Outlines our commitment to ethical and responsible business practices.
Speak-Up Policy
Provides a mechanism for employees to report concerns.
Bilateral Contacts Policy
Ensures transparent and ethical interactions with stakeholders.
We also emphasize the importance of confidentiality agreements and the protection of our innovative technologies. For more on our governance and sustainability practices, explore our Annual Report 2023.
