Scope 1 Emissions
2022 Communication on Progress
Solvay S.A.
Published date
May 23, 2022
No. of questions
61
Supplemental files
US - Code of conduct 2019 A5 print.pdfSolvay 2021 Annual Integrated Report.pdfSolvay 2021 Annual Integrated Report.pdfGFA - IndustriALL Global Union and Solvay - signed copy 31 March 2022.pdfCEO Statement
Signed
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
2. Does the company have a publicly stated commitment regarding the following sustainability topics?
Optional commentSolvay's code of business integrity.3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
Optional commentSolvay's code of business integrity, available here: https://www.solvay.com/en/investors/corporate-governance4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Prevention
6. Does the company have a process or processes to assess risk?
7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
Concerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Lessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Executive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Board Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
13. Do you produce sustainability reporting according to:
Data Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Optional commentThe assurance report is available in Solvay's Annual Integrated Report (pages 324-331)Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Solvay’s Human Rights in Business Policy, published on our website, sets out Solvay’s commitment to respecting human rights and acting with due diligence to avoid any infringement of human rights or any adverse impact on or abuses of such rights. The policy emphasizes Solvay’s commitments to our stakeholders, namely our employees and business partners, the communities and environment in which we operate, and children. Solvay has a Global Human Rights Committee (GHRC), which oversees implementation of the policy, ensures compliance and monitors the Group’s performance. Members of the Global Human Rights Committee include the heads of the following Solvay business service activities and/or their delegates: General Counsel, Compliance, Human Resources, Procurement, Communication, Internal Audit and Risk Management, and Sustainable Development. The GHRC is chaired by the Group General Counsel, who is the head of the General Counsel Function. Members of Solvay’s Global Business Units and other business service activities contribute to the work of the GHRC on an ad hoc basis, as necessary. The GHRC discusses its activities before the Group’s annual report is issued, and also validates any human rights reporting made in conjunction with the report. Upon request, the Chair of the GHRC may be called upon to provide an annual report to the Audit Committee. Two parallel processes are used to assess human rights risks at Solvay sites. These focus on Solvay employees, based on internal data, or on our business partners, namely suppliers and contractors identified according to the risk associated with the country they operate in. Six human rights dimensions are considered: child labor; forced labor; trafficking in persons; human development; freedom of association; and collective bargaining. The assessment is used by Solvay’s internal auditors to identify priorities for their work on the subject. The assessment was suspended during the Covid-19 crisis, as priorities shifted to protecting the most vulnerable employees and local communities from the impact and consequences of the pandemic.Labour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentThe Solvay Global Forum (SGF) held its annual meeting earlier this month at the Solvay Brussels Campus, and during the meeting, Solvay CEO Ilham Kadri signed the renewal of the Solvay Global Forum agreement and the Global Framework Agreement with IndustriALL Global Union in the presence of its Secretary General Alte Hötje. “Social dialogue is the cornerstone of our Group’s beliefs - it is precious to me and the company,” said Ilham Kadri. “During the last few years, we have created a high level of transparency, maturity and trust and this relationship and now we can look forward to the next stages of the Group's development - because good social dialogue and being profitable go hand in hand.” With this renewed and strengthened agreement, Solvay commits to respecting the international social standards defined by the International Labor Organization and the principles of the UN Global Compact, including in countries that have not ratified it. It also includes Solvay's commitment to the OECD Guidelines for Multinational Enterprises. Finally, it allows us to suspend contracts with any suppliers that fail to remedy human rights and environmental abuses.1.1. For each labour rights policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
4. Who receives training for the following labour rights issues?
Optional commentMandatory Code of Business Integrity training, both live and web-based, is organized for all employees to ensure understanding and to address behavioral risks such as anti-bribery and corruption, conflict of interest and harassment. As part of this training, employees are also trained on the Speak Up Helpline. Specific anti-corruption training is tailored to management. Special campaigns to maintain and enhance the level of awareness within the Group are identified and adopted annually. In 2020-2021, 100% of the target population was trained on the Code of Business Integrity and 96% on the Anti-Bribery and Anti-Corruption Policy.5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Performance
6. What is the percentage of employees covered under collective bargaining agreements?
Optional comment100% of Solvay employees are covered by a collective agreement. This is the Solvay Cares collective agreement with the global employee representative body, the Solvay Global Forum.7. What is the percentage of employees in a trade union or other workers' organization?
Optional commentTrade unions are present at a majority of Solvay sites around the world. Union membership is estimated at 20% in Europe, 25% in South America, 30% in North America and 70% in Asia.8. In the course of the reporting period, what was the percentage of women in:
9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
Optional commentSolvay discloses the ratio of basic salary of women to men by management category for the main countries of operation in the Annual Integrated Report (page 191)10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentThe number of reportable injuries and illnesses in 2021 was 131 for 61,589,000 hours worked, including contractors11. In the course of the reporting period, what was the company’s incident rate?
Optional commentSolvay's Reportable Injuries and Illnesses Rate in 2021 was 0.43 per 200,000 hours worked, including contractorsResponse and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
Optional comment14 claims of discrimination were recorded in Solvay's "Speak Up" program.13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
Through the Speak Up program, any concern regarding a breach is investigated by the Ethics and Compliance Function. In keeping with our commitment to transparency, the Speak Up tool is used to report progress on investigations and is used to communicate the results of investigations directly to those concerned when concluded. Posters and an online brochure are available to employees and advertise the website and toll-free numbers needed to access this tool in their regions. The Board’s Audit Committee oversees the running of Speak Up. In 2021: · 137 cases opened: - 25 cases still in progress; - 112 cases resolved. These include: - 33 substantiated cases - 51 unsubstantiated cases - 6 insufficient information - 21 misdirected - 1 referredEnvironment
Commitment
1. Does the company have a formal policy on the following environmental topics?
Optional commentSolvay announced in February 2020 a new 2030 sustainability program, Solvay One Planet. An integral element of the Group’s G.R.O.W. strategy, the plan is directly aligned with Solvay’s purpose of bonding people, ideas and elements to reinvent progress. The plan outlines ten ambitious targets to drive progress across three key pillars: climate, resources and better life. To meet these goals, Solvay pledges to reallocate investments to promote sustainability within its portfolio, operations and workplace. Solvay's climate ambition was updated in October 20211.1. For each environmental policy, is it:
Prevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
Optional commentFrom April 2021 to March 2022, over 200 suppliers took part in the Solvay Supplier Engagement Programme, designed to foster innovation and the creation of shared value for all. The Programme, launched by the Belgian multinational company in collaboration with CSR Europe, rallied suppliers across the whole value chain in a common effort to meet the ambitious sustainability objectives set out in the company’s holistic sustainability strategy - Solvay One Planet.3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Optional commentRosignano and Spinetta sites: criminal preliminary investigations are pending before the Criminal Court of Livorno and of Alessandria respectively, regarding the contamination of certain areas outside these industrial sites. PFAs: Solvay Specialty Polymers USA, LLC (SpP) is a defendant in 25 separate lawsuits in the US relating to SpP’s use of per- and polyfluoroalkyl substances (PFAS). The vast majority of these cases are in the federal and state courts in New Jersey, in the US, and the majority are claims by private plaintiffs seeking medical monitoring or compensation for personal injury or other economic loss. Two of the cases involve civil claims by separate US State governmental authorities - New Jersey and Michigan - seeking various damages, including natural resource damages. The lawsuit brought by the State of New Jersey also seeks the environmental cleanup of PFAS pollution caused by SpP’s lone operating facility in New Jersey.Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentScope 1 emissions: 9,590,000 tCO2e; Scope 2 emissions: 1,400,000 tCO2e; Scope 3 emissions: 28,800,000 tCO2e7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Energy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Technology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentSolvay's water withdrawals also include sea water (79.5 mega-liters), third party water (130.6 freshwater, 13.5 other water) and some other sources. Solvay's water discharges may mix different sources (groundwater, surface water), and mixes of sea water and freshwater may be released in estuaries, complicating the assessment of water consumption per category. Solvay's target focuses on total freshwater intake.13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Air pollution
17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.
Optional commentOther: Ozone depleting substancesSector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
Optional commentIn addition to the total industrial waste reported above, Solvay also generates 618,000 tons of mining waste.19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Overall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
In 2021, we made further advances in our sustainability journey, in line with the targets set out in our Solvay One Planet roadmap - an integral part of our G.R.O.W. strategy and company Purpose. Building on stakeholder feedback, we continued to take actions toward becoming a low-carbon and more inclusive company. This includes reallocating resources to growth and sustainable businesses and further integrating sustainability into all of our key strategic decisions, including on research and innovation, capital expenditure, mergers and acquisitions activities, and investment. Climate - Unveiling our plans to reach carbon neutrality on Scope 1 and 2 emissions before 2040 for all businesses except soda ash, and before 2050 for soda ash. As a consequence, we upgraded our 2030 target for greenhouse gas emissions from -26% to -30%, as compared to the 2018 baseline. Our Scope 3 target shall at least meet the 2°C criteria of the Science Based Targets initiative. - Achieving a 14% (11% structural) reduction in Scope 1 and 2 emissions since 2018. - Accelerating the energy transition in our plants, with 36 projects underway globally that will save 2.5 million tons of CO2 emissions per year. - Launching a strategic initiative to mobilize suppliers in working together to transform the value chain. As part of this, we called on our 400 strategic suppliers to join us in our climate journey. - Continuing our efforts to phase out the use of coal for energy production by 2030 at a second soda ash plant, in Dombasle, France. The plant is transitioning to primarily refuse-derived fuel. - Improving our CDP Climate rating from B to A-, which is higher than the chemical sector average of B. - Receiving recognition for our progress in reducing our pressure on biodiversity. Our Paulinia site in Brazil was awarded the Wildlife Habitat Council’s (WHC) Gold Certificate, a first for a chemical company in this country. - Mobilizing 15,000 employees and more than 7,500 people from local communities and NGOs to participate in actions promoting biodiversity, as part of our annual Citizen Day. Resources - Equalling our 2019 record of 53% of Group sales generated by sustainable solutions. We are focusing resources on developing more sustainable solutions that meet higher performance requirements. We have a clear roadmap for developing the solutions for the next generation of battery technologies and, as the European leader for this new technology, we are investing to create the most advanced pilot plant in Europe. - Reinforcing our portfolio of bio-based solutions, with the acquisition of a bio-based seed care portfolio and the development of new bio-sourced solutions for home and personal care. - Partnering to create circular businesses. This includes partnering with Bridgestone and Arlanxeo to launch TECHSYN, a new technology that gives tires unrivaled strength and environmental performance, and advancing our tripartite partnership with Veolia and Renault to establish a sustainable supply source for strategic battery raw materials. - Surpassing our 2030 target to reduce industrial waste not treated in a sustainable way by 30%. Better life - Launching Solvay One Dignity, committing to nine objectives and action plans to drive diversity, equity and inclusion at Solvay. - Diversity: we are accelerating efforts to achieve gender equity at all mid and senior levels by 2030. In 2021, the number of women working at these levels reached 25%. Our upcoming Gender Impact Assessment will help us identify where current policies may be negatively impacting the advancement of female employees. Three new employee resource groups (ERGs) were also launched in 2021, helping to encourage employees to bring their “whole self” to work. - Equity: we are working to ensure fair recruitment. This includes collecting data to help us identify any unjustified pay inequities across Group profiles and publishing the results in this report for the most significant countries, in an effort to promote transparency. We also launched a new mentoring program for women, which almost 25% of our female junior managers volunteered to take part in. - Inclusion: we launched a global survey assessing inclusive culture at Solvay, the results of which will be used to track our progress. - Launching Solvay’s first employee share purchase program to promote an ownership mindset among employees by encouraging deeper engagement and driving value creation. - Extending the scope of our Solvay Solidarity Fund to provide support for employees and local communities facing hardship in a variety of different situations, in addition to the pandemic. - Hazardous materials: we closely monitor the Substances of Very High Concern (SVHC) listed in the EU REACH Candidate list and EU REACH Authorization list, by identifying all marketed products sold in the EU and worldwide containing a concentration of those substances above 0.1%. We go beyond what is required by regulation, screening our own broader internal reference list of SVHC for our products marketed worldwide. Our target is to phase out all SVHCs present in our marketed products at a concentration above 0.1% by 2030, wherever feasible. - EU Taxonomy eligible activities: we identified Solvay activities eligible for the EU Taxonomy, an EU classification system aimed at establishing a list of environmentally sustainable economic activities to help the EU to scale up sustainable investment.Anti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Prevention
3. Who receives training on anti-corruption and integrity?
3.1. How often is such training provided?
4. Does the company monitor its anti-corruption compliance programme?
Response and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
Optional commentWe are continuing to build a stronger Speak Up culture and actively encouraging employees to report misconduct in order to detect and address issues. We are following up on each reported incident, providing feedback and addressing root causes.6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
7. Does your company engage in Collective Action against corruption?
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
Solvay’s Code of Business Integrity expressly states that the Group prohibits bribery in any form. Solvay and our employees do not use gifts or entertainment to gain competitive advantage. Facilitation payments are not permitted by Solvay and disguising gifts or entertainment as charitable donations is also a violation of the Code of Business Integrity. The Code is supported by more detailed policies. At the end of 2020, Solvay split our Gifts, Entertainment and Anti-Bribery Policy into two separate policies: an Anti-Bribery and Anti-Corruption Policy and a Policy on Gifts, Entertainment, Charitable Donations, and Sponsorship. The Group employs an internal tracking system to record gifts and entertainment that exceed the acceptable reasonable value applicable in each region, as well as charitable donations and sponsorship with charitable purpose and requires manager approval for accepting or giving them. The use of the Gift and Entertainment Tracking System (“GETS”) is part of Solvay’s Internal Audit review process. Solvay is also a member of Transparency International Belgium.