Chemnovatic ESG Strategy

ESG banner leaves

ESG compliance at Chemnovatic

Chemnovatic ESG strategy defines a set of environmental, social, and management objectives, which we plan to accomplish in order to develop in a more sustainable way.

ESG approach introduces non-financial indicators for the companies’ evaluation. While financial indicators are important, non-financial ones provide a broader picture of the company, which may be important for some stakeholders.

We have introduced an ESG strategy to improve environmental, and social standards and company management. We believe that improving the company’s non-financial performance will not only make us grow more sustainably but also will help us increase the value we deliver to the customers.

Our goal is to enhance our practices in a way that aligns with ESG standards and adheres to world-class methodologies. In pursuit of this goal, we have not only implemented an ESG strategy but also partnered with KPMG experts to ensure its effective implementation.

A specially established project team under the supervision of Board Member Bartłomiej Gęca has prepared the ESG strategy and now is responsible for its effective implementation, KPIs monitoring, and communication.

UN Sustainable Development Goals which we implement as part of the ESG strategy

The United Nations Sustainable Development Goals (SDGs) are a set of 17 global objectives aimed at eliminating poverty, protecting the planet, and ensuring prosperity by 2030. Chemnovatic is committed to achieving 9 of these goals, contributing to global sustainable development.

Learn more about the UN goals here: Sustainable Development Goals (un.org)

ESG Chemnovatic

Chemnovatic ESG Strategy for 2023-2025

Our ESG strategy covers all three ESG areas – Environmental, Social, and Governance. We have set six areas that we focus on, with specific objectives. Objectives have specific KPIs (quantitative and qualitative), calculation methodology, and defined time frames.

esg infographic 6 segments

1.1. Prevention of corrupt practices

KPI Methodology Deadline
Development of the Anti-Corruption Policy Drafting and implementation of the anti-corruption policy document 2023, completed

1.2. Ensuring compliance with minimum ESG standards

KPI Methodology Deadline
Successful completion of ESG compliance audit – 2024 Receiving a score of at least 45% or another client-defined benchmark in the relevant program 2023, completed

1.3. Ensuring compliance with minimum ethical standards

KPI Methodology Deadline
Development of the Code of Ethics and Compliance Drafting, publishing, and implementation of the document 2023, completed

1.4. ESG risk management

KPI Methodology Deadline
Identification and monitoring of key ESG risk factors relevant to the business Identification of key opportunities and risks in the ESG area, along with the tools used to mitigate them 2023, completed

1.5. Ensuring minimum preventive standards

KPI Methodology Deadline
Creation of a mechanism for reporting violations Number of recorded signals 2024,
completed

1.6. Building and ensuring a corporate culture supporting employee engagement in adhering to ethical principles

KPI Methodology Deadline
By 2025, 100% of employees, and by 2024, 90% of employees, certified in knowledge of Chemnovatic compliance policies % of certificates awarded to employees after familiarization with policies and passing a test on the knowledge and application of the policies in practice. Number of employees participating in training / total number of employees * 100%

*Intended for employees with more than 6 months of service

2024-2025
(2024 completed)

1.7. Education and management in anti-corruption and fraud prevention

KPI Methodology Deadline
Education on existing Chemnovatic anti-corruption regulations: 100% of managerial staff trained by 2025 and 100% of employees trained by 2025 Number of employees participating in training / total number of employees * 100%

*Intended for employees with more than 6 months of service

2025

1.8. Ensuring compliance with minimum ESG standards

KPI Methodology Deadline
Improving the ESG compliance audit score – Ecovadis 2024 Receiving a score of at least 66% 2024-2025
(2024 completed)
1.9. Non-financial ESG reporting by ESRS standards

KPI Methodology Deadline
Publication of the ESG report for 2024 Start of ESG reporting 2025
esg baner aktualizacja

2.1. Implementation of growth initiatives

KPI The calculation formula for the index Deadline

1. Average number of training hours per employee 2025 – 15 h

2. Percentage of employees undergoing quality and productivity assessments: 80%

1. Total training hours / average employment for the period by gender

2. Number of employees undergoing 180 and/or 90 degree HRM assessment / average employment for the period by gender

2024-2025
(2024 completed)

2.2. Ensuring “Living Wage” standards

KPI The calculation formula for the index Deadline
100% of employees with wages equal to or higher than the “living wage” Number of employees with wages in 2024 higher than those reported by GUS (family 2+1 DM) compared to the corresponding period 2024-2025 2024-2025
(2024 completed)

2.3. Fostering a corporate culture supporting continuous development and employee satisfaction

KPI Methodology Deadline
eNPS at a level >/= 0 in 2024 and maintained in 2025 eNPS = % promoters – % detractors 2024-2025 2024-2025
(2024 completed)

2.4. Fostering a corporate culture supporting equality in access to leadership positions

KPI Methodology Deadline
Minimum 30% women in leadership positions in 2024 and 2025 The ratio of women to men in leadership positions (i.e., positions overseeing teams of employees) 2024-2025 2024-2025
(2024 completed)

2.5. Building a diverse and inclusive organizational culture

KPI Methodology Deadline
100% of employees participating in training on inclusivity and discrimination avoidance

Number of employees participating in training / total number of employees * 100%

*Intended for employees with more than 6 months of service

2025
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3.1. Implementation of environmental policy

KPI Methodology Deadline
Development, implementation, and publication of the environmental policy document Development, implementation, and publication of the document 2023, completed

3.2. Integration of environmental aspects into supplier assessment

KPI Methodology Deadline
Implementation of Environmental Policy in the Supply Chain Development, implementation, and publication of the environmental policy in the supply chain 2023, completed

3.3. Fleet modernization

KPI Methodology Deadline
Achievement of 50% hybrid/electric vehicles in the vehicle fleet by 2024 Calculation formula: Number of hybrid and electric vehicles / total number of vehicles in the vehicle fleet. Base year: 2022 2023, completed

3.4. Calculation of organization’s carbon footprint

KPI Methodology Deadline
Calculation of carbon footprint for all emission scopes (1, 2, and 3) Determination of the organization’s carbon footprint according to GHG Protocol and ISO 14064-1 standards 2023, completed

3.5. Carbon footprint reduction

KPI Methodology Deadline
Evaluation of potential levels of carbon footprint reduction for all emission scopes (1, 2, and 3) Adoption of specific reduction levels (%) and timelines (year) for carbon footprint reduction across all emission scopes (1,2,3) 2023, completed

3.6. Implementation and certification of integrated environmental management systems

KPI Methodology Deadline
Attainment of ISO 14001 environmental management system Implementation of ISO 14001 environmental management system by the end of 2024 2024, completed

3.7. GHG emission management through product group carbon footprint calculation

KPI Methodology Deadline
Calculation of carbon footprint for product category Determination of carbon footprint for “product groups” 2024-2025

3.8. Increase in recycling levels

KPI Methodology Deadline
Increase in average recycling levels:
Plastic film 15 01 02:
55% in 2024
80% in 2025
Paper waste 15 01 01:
80% in 2024
85% in 2025
Percentage of waste volume for a given code subjected to recycling out of the total waste generated in that code. Indicator calculated for each year 2024-2025
(2024 completed)

3.9. Increase in share of electricity from renewable energy sources (RES)

KPI Methodology Deadline
Utilization:
min. 20% of electricity from RES in 2024
Calculation formula: Amount of energy used 2024-2025
(2024 completed)

3.10. Climate change mitigation

KPI Methodology Deadline
CDP Climate Reporting Attainment of minimum “B” rating in CDP Climate 2024-2025

3.11. Transition towards green energy

KPI Methodology Deadline
Installation of photovoltaic panels Implementation of photovoltaic installation with co-financing from the subsidy program 2025

3.12. Energy transformation

KPI Methodology Deadline
2030 – 40%emission reduction for Scope 1+2
2030 – 30% emissions reduction for Scope 3
2040 – Achieve net-zero emissions
Percentage reduction relative to base year 2022 2025-2040

3.13. Certified verification of GHG management

KPI Methodology Deadline
Obtain third-party certification of compliance with the Scope 1, 2, and 3 Carbon Footprint Report Obtain a certificate of compliance 2025

3.14. Raising awareness of environmental change

KPI Methodology Deadline
CDP Water reporting 2026 Conduct an internal audit in preparation for the CDP Water 2026 2025

13.15. Science-based carbon footprint reduction

KPI Methodology Deadline
Initiation of the project and establishment of a schedule of activities defining specific levels of carbon footprint reduction for all emission ranges (1, 2, and 3) Adoption of specific levels (%) and timelines (year) of implementation for carbon footprint reduction for all emission scopes (1, 2 and 3) 2025
esg baner 4 eng

4.1. Ensuring minimum ethical standards in collaboration with supply chain partners

KPI The calculation formula for the index Deadline
Development of Supplier Code of Conduct Development, implementation, and publication of document 2023, completed

4.2. Ensuring ESG cooperation standards with supply chain partners

KPI Methodology Deadline

By 2023 – 100% of key suppliers* of raw materials from the “nicotine category” will undergo periodic supplier assessments covering ESG criteria

*Key suppliers are defined as those meeting the value criteria and achieving qualifying annual turnover participation

By 2024 – 100% of component suppliers will undergo periodic supplier assessments covering ESG criteria

% of key suppliers assessed on ESG criteria/all suppliers from “nicotine category” *100%
% of suppliers assessed on ESG criteria/all suppliers *100%
2023-2025
(2024 completed)

4.3. Ensuring compliance with fundamental human rights and labor rights

KPI Methodology Deadline

By 2023 – 100% of key suppliers of raw materials from the “nicotine group” will undergo periodic assessments, including compliance with fundamental human rights and labor rights

By 2023 – 100% of contracts with suppliers in the “nicotine” category will include provisions ensuring compliance with human rights

Min. 50% of key suppliers will be trained in policies respecting human rights and procedures incorporating human rights aspects

*Key suppliers are defined as those meeting the value criteria and achieving qualifying annual turnover

Number of key suppliers assessed on compliance with fundamental human rights and labor rights/all suppliers from “nicotine category”*100%

Number of contracts including provisions ensuring compliance with human rights/all contracts with suppliers from nicotine product categories 100%

Number of key suppliers trained in policies respecting human rights and procedures incorporating human rights aspects/all suppliers*100%. Base year 2024

2024-2025
(2024 completed)

4.4. Managing ESG risks in the supply chain

KPI Methodology Deadline
By 2025 – 100% of component suppliers will undergo ESG assessments and will be assigned an ESG risk rating based on this assessment % of suppliers assessed for ESG risk/all suppliers *100% 2025
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5.1. Increasing workplace safety

KPI The calculation formula for the index Deadline
Maintaining the Accident Rate indicator at no more than 1 annually (cumulative count)
2023 </=1
2024 </=1
2025 </=1
Indicator calculated using the formula (W = number of accidents/number of work hours * 100,000) 2023-2025
(2024 completed)
Maintain the rate of accidents resulting in lost time injuries ‘LTI I’ LTI I = (Number of accidents resulting in lost working time / number of man-hours worked)*100,000 2024-2025
(2024 completed)
Maintaining the rate of accidents resulting in lost time injuries in employees in the workforce ‘LTI II’ LTI II = (Number of accidents resulting in lost working time in blue-collar jobs / number of blue-collar working hours worked)* 100 000 2024-2025
(2024 completed)
Organizing a minimum of 6 meetings/year/department under “Leadership Launcher” for managerial staff aimed at improving occupational health and safety awareness Organizing a minimum of 6 meetings/year/department under “Leadership Launcher” for managerial staff aimed at improving occupational health and safety awareness 2024-2025
(2024 completed)

5.2. Enhancing safety culture level at the plant

KPI Methodology Deadline
Achieving the appropriate level of General Plant Safety Culture Survey score
2023: min. 70%
2024: min. 80%
2025: min. 80%
Score indicator calculated as points from survey divided by maximum points expressed in %. Survey comprising 17 questions divided into 6 Safety Pillars 2024-2025
(2024 completed)

5.3. Implementation and certification of integrated safety and health management systems

KPI Methodology Deadline
Implementation of ISO 45001 Implementation of certified safety and health management system by 2024 2024, completed
esg baner 6 eng

6.1. Raising customer awareness regarding the quality of raw materials used in e-liquids

KPI Methodology Deadline
Publication of 6 educational materials in written form, each with a minimum of 300 words, covering specific raw materials, good practices, correct verification of commercial documentation, as well as regulatory changes and consumer health safety Publication of 6 educational materials per year 2023-2025
(2024 completed)


6.2. Ensuring customer safety and health

KPI Methodology Deadline

Maintaining the product withdrawal rate from the market due to non-compliance with legal requirements
2024: < 0
2025: < 0

Number of product withdrawals from the market. Indicators calculated cumulatively during the year 2023-2025
(2024 completed)

Want to learn more about sustainability at Chemnovatic?

Find out more about sustainability at Chemnovatic by clicking here.

 
STC nicotine manufacturin

Check out our CSR activities!

We invite you to learn more about other activities (that are not part of the ESG strategy) that we carry out as part of our sustainable development and sense of social responsibility.

Check our CSR activities.

people with a plant CSR