Chemnovatic ESG Strategy
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. To this end, 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.
Chemnovatic ESG Strategy for 2023-2025
Our ESG strategy covers all three ESG areas – Environmental, Social, and Governance. We have set five areas that we focus on, with specific objectives. Objectives have specific KPIs (quantitative and qualitative), calculation methodology, and defined time frames.
1. Ensuring compliance with ESG regulations and standards
Our ambition is to ensure compliance with regulations and prevent abuses, as well as to create an organization managed responsibly. We take formalized actions to ensure compliance with ethics and compliance both within the company and in relations with suppliers.
| KPI | Methodology | Deadline |
|---|---|---|
| Development of the Anti-Corruption Policy | Develop and implement an anti-corruption policy document | 2023 |
| KPI | Methodology | Deadline |
|---|---|---|
| Positive completion of the ESG compliance audit | Receive a minimum rating of 45% or other rating defined by the client in a given program | 2024 |
| KPI | Methodology | Deadline |
|---|---|---|
| Development of the Code of Ethics and Compliance | Development, publication, and implementation of the document | 2023 |
| KPI | Methodology | Deadline |
|---|---|---|
| Creation of a breach reporting mechanism | Creation of a mechanism and registry for reporting violations | 2023 |
| KPI | Methodology | Deadline |
|---|---|---|
| Introduction of mandatory initial and periodic training on compliance with the code of ethics and compliance | 90% of employees are certified in document knowledge | 2024 |
| KPI | Methodology | Deadline |
|---|---|---|
| Start of ESG reporting from 2024 | Begin ESG reporting from 2024 (first report for 2023) | 2024 |
| KPI | Methodology | Deadline |
|---|---|---|
| Identification and monitoring of key ESG risks for the business | Identification of key ESG opportunities and risks, along with identification of the tools used to mitigate them | 2024 |
2. Responsibility for the supply chain
We strive to effectively implement responsible business standards in the value chain. We respect basic human rights as well as labor rights. We also expect assurances that suppliers with whom we work meet these standards.
2.1. Ensuring a standard of cooperation with supply chain partners
| KPI | The calculation formula for the index | Deadline |
|---|---|---|
| 100% of the key suppliers of raw materials from the “nicotine category” will be subject to the cyclical assessment of suppliers, including ESG criteria | Number of key suppliers* that have been assessed including ESG criteria/All suppliers in the “nicotine category “*100% | 2023 |
| 100% of key suppliers will be subject to cyclical supplier assessment, including ESG criteria | Number of key suppliers* who were assessed including ESG criteria/All suppliers*100% | 2025 |
*Key suppliers are defined as suppliers that meet the value criterion and achieve a qualifying share of annual turnover
2.2. Ensuring respect for basic human and labor rights
| KPI | The calculation formula for the index | Deadline |
|---|---|---|
| A minimum of 50% of key suppliers will be trained in human rights policies and procedures that take into account human rights aspects | Number of key suppliers* who have been trained on human rights sensitive policies and procedures/ All suppliers*100% | 2024 |
| 100% of contracts with suppliers from the “nicotine group” will include provisions on ensuring compliance with human rights | Number of contracts that include provisions for human rights compliance/ All contracts in the “nicotine products” category*100% | 2023 |
| 100% of key suppliers of raw materials from the “nicotine group” will be subject to the cyclical assessment of suppliers, including compliance with basic human and labor rights | Number of key suppliers* that have been assessed including criteria on respect for basic human and labor rights/ All suppliers in the “nicotine category “*100% | 2023 |
| 100% of key suppliers will be subjected to a cyclical supplier assessment, including compliance with basic human and labor rights | Number of key suppliers* that have been assessed including criteria for respecting basic human and labor rights/All suppliers*100% | 2025 |
*Key suppliers are defined as suppliers that meet the value criterion and achieve a qualifying share of annual turnover
2.3. Ensure ethical minimum standards in collaboration with supply chain partners
| KPI | Methodology | Deadline |
|---|---|---|
| Developing a code of ethics for suppliers | Development, implementation, and publication of a supplier code of ethics | 2023 |
3. Customer care
Our ambition is to ensure transparency in terms of product quality. We want to raise customers’ awareness of the quality of raw materials, good practices, and proper verification of commercial documentation.
| KPI | Methodology | Deadline |
|---|---|---|
| Publication of 6 educational materials on individual raw materials as well as good practices and correct verification of commercial documentation in the year | Publication of 6 educational materials per year | 2023-2025 |
4. Care for the environment
We define actions to reduce the negative impact on the environment (including calculation and reduction of the carbon footprint), we also modernize the car fleet and strive to increase: the level of recycling, the share of (OZE) Renewable Energy Sources, and energy efficiency.
| KPI | The calculation formula for the index | Deadline |
|---|---|---|
| Increasing the average level of recycling of selected waste codes to 50% | Amount of waste recycled/amount of waste generated (average value for waste codes 15 01 01 and 15 01 02) | 2024 |
| KPI | The calculation formula for the index | Deadline |
|---|---|---|
| Use of min. 90 MWh of energy from OZE | Amount of OZE energy used/amount of total energy consumption | 2024 |
| KPI | The calculation formula for the index | Deadline |
|---|---|---|
| Achieving a share of 50% of hybrid/electric cars in the car fleet | Number of hybrid and electric cars/total number of cars in the car fleet | 2024 |
| KPI | Methodology | Deadline |
|---|---|---|
| Equipping facilities with photovoltaic panels | Implementation of photovoltaic installation | 2025 |
| KPI | Methodology | Deadline |
|---|---|---|
| Obtaining the ISO 14001 environmental management system | Obtaining an ISO 14001 environmental management system | 2025 |
| KPI | Methodology | Deadline |
|---|---|---|
| Implementation of the environmental policy | Implementation of an environmental policy | 2023 |
| KPI | Methodology | Deadline |
|---|---|---|
| Implementation of environmental policy in the supply chain | Implementation of an environmental policy in the supply chain | 2024 |
| KPI | Methodology | Deadline |
|---|---|---|
| Calculation of the carbon footprint for all emission ranges (1, 2, and 3) | Calculation of the carbon footprint of the organization and/or product groups | 2023 |
| KPI | Methodology | Deadline |
|---|---|---|
| Estimation of possible carbon footprint reduction levels for all emission bands (1, 2, and 3) | Adoption of specific levels (%) and deadlines (year) for carbon footprint reduction for all emission ranges (1, 2, and 3) | 2023 |
5. Care for employees
We strive to increase occupational safety and reduce the number of accidents. We aim to have a team of qualified, responsible, and ambitious employees, whom we will be able to support in their development.
| KPI | Methodology/ The calculation formula for the index | Deadline |
|---|---|---|
| Maintaining the Accident Rate at a level not higher than 1.5 per calendar year (calculated cumulatively) | Index calculated according to the formula (W= number of accidents/number of man-hours worked * 100,000) | 2023-2025 |
| Organization at least 2 meetings per year entitled “Leadership Launcher” for managers, aimed at improving health and safety awareness | Organization of a minimum of 2 meetings per year entitled. “Leadership Launcher” for executives to improve awareness of health and safety issues | 2023-2025 |
| KPI | Methodology | Deadline |
|---|---|---|
| Maintaining the result at the level of min. 70% of the Plant-wide Safety Culture Survey | Presentation of survey results. The indicator is the number of points from the survey divided by the maximum number of points expressed in % | 2023-2025 |
| KPI | Methodology | Deadline |
|---|---|---|
| Implementation of ISO 45001 | Implementation of a certified health and safety management system | 2025 |
| KPI | Methodology / The calculation formula for the index | Deadline |
|---|---|---|
| Number of talent groups implementing development programs % of employees in key positions with an Individual Development Plan | Number of talent groups (7-12 people) in 2023 = 1, 2024 = 2, 2025 = min.2) The formula for calculating the indicator: the number of employees in key positions with an Individual Development Plan/the number of all employees in key positions*100%. | 2023 = min 50% 2024 = 80% 2025 = 90% |
UN Sustainable Development Goals, which we implement as part of the ESG strategy
Some of the goals included in Chemnovatic’s ESG strategy are also consistent with the UN Sustainable Development Goals.
Learn more about the UN goals here: Sustainable Development Goals (un.org)
UN Sustainable Development Goals that we are pursuing as part of our ESG strategy
| Chemnovatic’s ESG strategy and UN Sustainable Development Goals | |
|---|---|
 |
Under Objective 4.2, we are pursuing Sustainable Development Goal 7, the message of which is “Ensure affordable access to sources of stable, sustainable, and modern energy for all.” More specifically to 7.2, we want to significantly increase the share of renewable energy sources in the global energy mix, by 2030. |
 |
Under one of the indicators of Target 2.2, we are pursuing Sustainable Development Goal 8, whose message is: “Promote stable, sustainable and inclusive economic growth, full and productive employment and decent work for all people.” Specific to 8.7 We are taking immediate and effective measures to eliminate forced labor, modern forms of slavery, and human trafficking; to prohibit and eliminate the worst forms of child labor, including the recruitment and use of child soldiers. By 2025, we want to eliminate child labor in all its forms. Under one of the indicators of Objective 5.1, we are pursuing Goal 8, specifically item 8.8, the message of which is: Protect labor rights and promote a safe working environment for all, including migrant workers, especially migrant women and those in precarious employment. |
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Under Objective 4.1, we are pursuing Sustainable Development Goal 12, whose message is “Ensure patterns of sustainable consumption and production.” More specifically to 12.5 By 2030, we want to significantly reduce the level of waste generation through prevention, reduction, recycling, and reuse. |
Want to learn more about ESG at Chemnovatic?
Thank you for your interest and for taking the time to review our ESG objectives. If you would like to learn more about our ESG strategy, please contact us at sales@chemnovatic.com
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.
Click here to learn more.
