Action points 🔍

1. Increase transparency

Although Covestro has responded to our requests for more information regarding the company’s chemicals management, much is still unknown about the company’s production and use of hazardous chemicals. To demonstrate a commitment to transparency, Covestro should disclose the share of both its revenue and production volume of products that are, or contain, hazardous chemicals. This information should cover all operations, including subsidiaries, worldwide. SABIC provides a good example, as it has disclosed its full chemicals portfolio, including production volumes and locations.

2. Map and phase out persistent chemicals

Covestro is responsible for placing at least four persistent chemicals on the US/EU market, including PFAS substances. The risks linked to these “forever chemicals” are becoming increasingly clear, not only for human health and the environment but also for companies and their shareholders. Regulatory tightening, high-profile lawsuits and rising consumer awareness make business models based on persistent chemicals increasingly risky. Covestro should first identify all uses and the share of its total revenue derived from products that are or contain persistent substances. Then, the company should publish a time-bound plan to phase out persistent chemicals from each product group or business segment. Sika and LyondellBasell have both published the share of revenue that is generated from products containing PFAS. 3M has also published those numbers and committed to exiting the manufacture of PFAS by 2025.

3. Develop safer solutions

Covestro currently lacks a strict policy for limiting hazardous chemicals in its new product development. As a result, both its existing and future product lines are dependent on substances that run the risk of becoming regulated. The company may therefore face growing challenges in maintaining profitability in the long term. Covestro should set a 2030 target to grow its share of revenue generated by products free from hazardous chemicals and develop a strategy to achieve it. A first step, similarly to Lanxess, should be to publicly state that it will not develop or market new end-products containing more than 0.1% of substances that have the characteristics of a Substance of Very High Concern (SVHCs).