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Creating sustainable growth performance

This section describes Corbion's performance against its 2020 sustainability targets defined in the previous strategy Creating Sustainable Growth (2018 -2020).

Responsible sourcing

KPI

2020 Target1

2020

20196

% of raw materials assessed on security of supply (annually) √

100%

100%

100%

% of raw materials covered by generic supplier code √

> 90%

99%

100%

% of cane sugar responsibly sourced2

100%

100%

100%

% of palm oil and primary oleochemicals responsibly sourced3, 4

100%

100%

75%

% of corn-based dextrose responsibly sourced5

95%

99%

98%

% of soy-bean oil and primary oleochemicals responsibly sourced5

75%

38%

34%

% of wheat-based raw materials responsibly sourced5

50%

86%

84%

  • 1 % are defined by quantity.
  • 2 Quantity covered by Corbion's cane sugar code or Bonsucro certification.
  • 3 Primary oleochemicals as defined by RSPO, including glycerin.
  • 4 RSPO certified, using the Mass Balance model.
  • 5 Supplier meets Corbion's responsible sourcing requirements specified in our supplier code and our sustainable agriculture policy, evaluated by a self-assessment questionnaire. Target only includes tier-1 suppliers that source directly from farmers.
  • 6 Our facility in Araucária (Granotec do Brazil) was not included in 2019.
  •  =  reviewed by external auditor

All 2020 targets were achieved, with the exception of our target related to the responsible sourcing of soy as one of our soy-bean oil suppliers declined to complete our self-assessment questionnaire. Through our engagement with soy suppliers in the past years, we have confirmed that all soy-bean oil used by Corbion is produced in the US, from soy beans grown in the US. Risks such as human rights and deforestation issues are therefore low. For the current strategic period 2020-2025 (Advance 2025), the following adjustments have been made:

Creating Sustainable Growth KPI

Advance 2025 KPI

Motivation for change 

% of raw materials assessed on security of supply (annually)

% of high-risk raw materials / suppliers

To provide transparency on the outcome of the security-of-supply process.

% of high-risk raw materials / suppliers with mitigation plan

% of raw materials covered by generic supplier code

% of raw materials covered by generic supplier code

No change.

% of cane sugar responsibly sourced

% of cane sugar verified responsibly sourced; included in % of verified deforestation-free key agricultural raw materials and in reduction of Scope I, II, III emissions (SBTi-approved target)

Verification of the cane sugar code requirements through auditing is the next step in our responsible sourcing journey.

In the Advance 2025 strategy we decided to focus on deforestation-free sourcing and reduction of GHG emissions.

% of palm oil and primary oleochemicals responsibly sourced

Included in % of verified deforestation-free key agricultural raw materials and in reduction of Scope I, II, III emissions (SBTi-approved target)

In the Advance 2025 strategy we decided to focus on deforestation-free sourcing and reduction of GHG emissions.

% of corn-based dextrose responsibly sourced

Included in % of verified deforestation-free key agricultural raw materials and in reduction of Scope I, II, III emissions (SBTi-approved target)

In the Advance 2025 strategy we decided to focus on deforestation-free sourcing and reduction of GHG emissions.

% of soy-bean oil and primary oleochemicals responsibly sourced

Included in % of verified deforestation-free key agricultural raw materials and in reduction of Scope I, II, III emissions (SBTi-approved target)

In the Advance 2025 strategy we decided to focus on deforestation-free sourcing and reduction of GHG emissions.

% of wheat-based raw materials responsibly sourced

Included in % of verified deforestation-free key agricultural raw materials

In the Advance 2025 strategy we decided to focus on deforestation-free sourcing.

Responsible operations

KPI

2020 Target

2020

20193

Total Recordable Injury Rate

< 0.75

0.87

0.83

Renewable electricity √

50%

71%

58%

Landfill of by-products √

0

9.2 kT

4.6 kT

Landfill of waste √

-

1.8 kT

1.2 kT

Reduction of Scope I, II, III emissions (SBTi-approved target) 1,2

-

11%

12%

  • 1 We report our emissions in accordance with the Greenhouse Gas Protocol per metric ton of product. Our Science Based Target includes Scope I emissions from direct production (from natural gas), Scope II emissions from purchased energy (electricity and purchased steam, market-based), and Scope III emissions related to key raw materials and transport. Our full Scope III emissions and biogenic emissions are reported elsewhere in the Sustainability statements.
  • 2 Compared to 2016 as base year.
  • 3 Our facility in Araucária (Granotec do Brazil) was not included in 2019.
  •  =  reviewed by external auditor

All 2020 targets were achieved, with the exception of our safety target and the target related to zero landfill of by-products. Our Total Recordable Injury Rate (TRIR) combined for Corbion and contractor employees was 0.87, which is slightly up from last year (0.83). The landfilling of by-products increased to 9.2 kT due to the increased production of lactic acid at our plant in Spain. At this site, we have not yet been able to find an outlet for all by-products, due to legislative barriers and increased quantities. In 2020 we have engaged external support to address this situation and recently we have obtained regulatory approval to apply the by-product as a soil conditioner.

We will continue to report on all KPIs in the current strategic period (2020-2025).

Sustainable solutions

KPI

2020 Target

2020

20194

% of innovation projects assessed on sustainability √

100%

100%

100%

% biobased raw materials1

-

98%

98%

% of products sold covered by LCA1,2

50%

63%

44%

% of products sold covered by PSM3 assessment

-

0.4%

-

  • 1 By quantity; products manufactured at Corbion production sites.
  • 2 LCA = Life Cycle Assessment.
  • 3 PSM = Product Social Metrics.
  • 4 Our facility in Araucária (Granotec do Brazil) was not included in 2019.
  •  =  reviewed by external auditor


All 2020 targets were achieved. For the current strategic period, the following adjustments have been made.

Creating Sustainable Growth KPI

Advance 2025 KPI

Motivation for change

% of innovation projects assessed on sustainability

% of innovation projects contributing to preserving food and food production, health, and the planet

To provide transparency on the outcome of the security-of-supply process.

% biobased raw materials

% biobased raw materials

No change.

% of products sold covered by LCA

% of products sold contributing to preserving the planet covered by LCA

Definition adjusted to focus on products that require an LCA to provide transparency on environmental impact and to support claims.

% of products sold covered by PSM assessment

% of products sold contributing to preserving food covered by PSM; % of products sold contributing to preserving health covered by PSM

Definition adjusted to focus on products that require a PSM assessment to provide transparency on social impact and to support claims.

Materiality and stakeholder engagement

The foundation of our sustainability strategy is the materiality matrix, which we use to set priorities and ensure that we take a focused approach. A materiality analysis is about the identification of key issues that are important to our stakeholders and our strategy. The materiality matrix visualizes the results of this analysis, by plotting the relevant social, environmental, governance, and economic issues as a function of their importance to stakeholders (vertical axis) and the impact of Corbion's strategy and activities on the issues (horizontal axis).

In 2020, we updated the materiality matrix using an in-depth methodology (see Figures 1 and 2), resulting in the identification of ten material themes. These ten themes are considered important by the majority of our stakeholders and are impacted by Corbion's activities significantly. The materiality assessment is updated at least every three years, as input for our strategy updates. Compared to the materiality matrix determined in 2017, four new topics made it to the top 10: collaboration and partnerships, economic performance, sustainable and responsible agriculture, and responsible business.

The graph below shows the upper-right section of Corbion's materiality matrix, highlighting the ten material themes.

Materiality matrix

The materiality determination process (Fig. 1)

 

1.Theme identification

We compiled a long list of relevant sustainability themes based on international standards, media, peers, sector trends and risk analysis. This list was then consolidated to create a shorter list of 22 themes.

2. Stakeholder dialogues

The importance of each theme to our stakeholders was determined through a survey and interviews.

3. Determination of Corbion's impact

The degree to which Corbion impacts each theme was ranked by Corbion's senior management, Executive Committee, and Supervisory Board through a survey.

4. Materiality matrix calculation

The resulting internal and external scores were plotted in a matrix and discussed with the Sustainability Sounding Board and the Executive Committee to determine the material themes.

Key stakeholder groups (Fig. 2)

 

Our key stakeholders have been identified on the basis of two questions: 

1. On which stakeholders does Corbion have a significant impact? 

2. Which stakeholders have a significant impact on Corbion?

  

(Alphabetical order)

 

• Business partners

• Multi-stakeholder initiatives

• Customers

• NGOs

• Employees

• Potential future employees

• Governments

• Shareholders

• Industry associations

• Supervisory Board

• Knowledge institutes

• Suppliers

Material themes, definition, link to sustainability strategy

The table below lists the material themes, definitions, boundaries, management approach, and the link with Corbion's sustainability framework and strategy.

Material theme

Safe and healthy working environment

Definition

Provide a safe and healthy working environment for all employees, contractors and visitors, and promote a safety culture in the supply chain.

Management approach

• Record all incidents and implement corrective and preventive measures
• OHSAS 18001 / ISO 45001 certification for all our manufacturing sites

Boundaries

Corbion's own operations

Link with Advance 2025 strategy

Preserving health

Linked SDG

SDG3

Material theme

Greenhouse gas emissions

Definition

The reduction of GHG emissions of Corbion and its partners in line with the Paris climate agreement, by increasing energy efficiency, use of renewable energy and supplier engagement.

Management approach

• Transition to renewable electricity
• Energy-saving projects at manufacturing sites
• Selection of the most energy-efficient technology available when equipment is replaced
• R&D program to identify opportunities for heat integration, electrification, and recycling
• Partner with suppliers to jointly reduce our carbon footprint
• Review the financial impact of greenhouse gas emissions through internal carbon pricing in capital expenditure and long-term R&D projects

Boundaries

Corbion's value chain

Link with Advance 2025 strategy

Preserving the planet

Linked SDG

SDG13

Material theme

Innovation for safe, healthy and sustainable food production

Definition

Corbion's food ingredient solutions support the sustainable production of safe, healthy, and affordable food and the prevention of food waste along the value chain.

Management approach

•  Sustainability assessment integrated in our innovation stage-gate process
•  Quantify the impacts on people and/or planet for products with a sustainability value proposition (Life Cycle Assessment)
• Provide food safety solutions that enable our meat customers to produce safe food
• Provide preservation solutions that help our customers deliver products with longer shelf lives, which in turn enables them to reduce food waste and deliver affordable products to markets in which consumer spending power is limited
• Leverage our expertise in food spoilage and food safety to serve more segments of the food industry
• Provide solutions for healthy food, such as ingredients for salt reduction and mineral fortification

Boundaries

Corbion's downstream value chain

Link with Advance 2025 strategy

Preserving food and food production, preserving health

Linked SDG

SDG2, SDG3

Material theme

Sustainable procurement

Definition

To ensure high-quality materials and security of supply, Corbion aims to manage social and environmental risks within our supply chain in a responsible and ethical way.

Management approach

• Assessment of raw materials on potential risks related to procurement, quality (including food safety), and sustainability in our security-of-supply assessment, which is updated annually
• Development of mitigation plans for all high-risk raw materials and suppliers
• Generic supplier code that states mandatory requirements on, amongst others, business ethics, human rights, labor conditions, the environment, and responsible procurement; based on the OECD Guidelines for Multinational Enterprises and the eight fundamental conventions defined by the ILO
• Participate in relevant multi-stakeholder initiatives

Boundaries

Corbion's supply chain

Link with Advance 2025 strategy

Preserving the planet

Linked SDG

SDG12

Material theme

Collaboration and partnerships

Definition

Through collaboration with partners Corbion is able to provide better and innovative solutions for customers and society.

Management approach

• Engagement with suppliers of our key raw materials regarding responsible sourcing, sustainable agriculture, and reduction of GHG emissions
• Engagement with agricultural services partners regarding sustainable agriculture
• Joint innovation projects with customers
• Engagement with customers regarding the Science Based Targets initiative
• Participate in relevant multi-stakeholder initiatives and partnerships

Boundaries

Corbion's value chain

Link with Advance 2025 strategy

Preserving food and food production, preserving health, preserving the planet

Linked SDG

SDG17

Material theme

Economic performance

Definition

To ensure corporate longevity, and continuity in its solution offering, Corbion aims for healthy economic business returns.

Management approach

See Risk management chapter

Boundaries

Corbion's own operations

Link with Advance 2025 strategy

Preserving food and food production, preserving health, preserving the planet

Linked SDG

-

Material theme

Innovation for circular economy

Definition

Corbion's biobased chemicals and materials support the transition to a circular economy

Management approach

•   Sustainability assessment integrated in our innovation stage-gate process
•   Quantify the impacts on people and/or planet for products with a sustainability value proposition (Life Cycle Assessment)
•  Application of Green Chemistry principles in innovation
•   Innovation portfolio Lactic Acid & Specialities
•   Innovation portfolio Incubator

Boundaries

Corbion's downstream value chain

Link with Advance 2025 strategy

Preserving the planet

Linked SDG

SDG12

Material theme

Product quality and safety

Definition

Corbion delivers products that are safe, consistently meet specifications, and deliver the expected performance.

Management approach

• Ensure certifications are in place to meet customer and industry-adopted standards and requirements
• Internal audits by our global quality platform to ensure that we continue to improve our operational standards for quality and food safety
• Customer audits predominantly from our international pharmaceutical customers and large food clients
• No production of chemicals of concern

Boundaries

Corbion's own operations

Link with Advance 2025 strategy

Preserving health, preserving the planet

Linked SDG

SDG3, SDG12

Material theme

Sustainable and responsible agriculture

Definition

Corbion aspires to create a sustainable and traceable agricultural supply chain by eliminating deforestation and by continuous improvement to reduce negative impacts on the environment while providing positive benefits such as carbon sequestration.

Management approach

• Generic supplier code that states mandatory requirements on, amongst others, business ethics, human rights, labor conditions, the environment, and responsible procurement
• Sustainable agriculture policy
• Specific policies for our key raw materials focusing on continuous improvement toward the implementation of the relevant sustainability standard for each of these raw materials
• Engagement with suppliers and agricultural services partners regarding sustainable agriculture
• Participate in relevant multi-stakeholder initiatives

Boundaries

Corbion's supply chain

Link with Advance 2025 strategy

Preserving food and food production

Linked SDG

SDG2, SDG15

Material theme

Responsible business

Definition

By conducting business in a responsible fashion, actively enforcing an ethical, anti-corruptive culture, Corbion is a trustworthy partner.

Management approach

See Business conduct/compliance chapter

Boundaries

Corbion's value chain

Link with Advance 2025 strategy

Preserving the planet

Linked SDG

SDG12

Corbion's impact on the Sustainable Development Goals

To determine our strategic focus, we performed an SDG impact assessment, consisting of the four steps summarized in the figure below. Based on this assessment, Corbion has chosen to focus on SDG 2 (Zero hunger), SDG 3 (Good health and well-being), and SDG 12 (Responsible consumption and production) as the goals on which it believes it can have the most significant positive impact. These SDGs have been linked to the three preservation themes of the Advance 2025 strategy, namely preserving food and food production (SDG 2), preserving health (SDG 3), and preserving the planet (SDG 12). See our Measuring what matters white paper that describes this assessment in detail.

SDG Assesments

To determine the Corbion revenue contribution to preserving food and food production, health, and the planet, the entire Corbion product portfolio was mapped against the identified impact areas which are linked to these three themes. A similar approach was followed to determine the contribution of Corbion's innovation portfolio to these three areas.

Impact category

Preserving food and food production

Preserving health

Preserving the planet 

Animal health

2.4

3.3

 

Reduced environmental impact

2.4

 

12.5, 13.1

Food safety

2.1

3.3

 

Food waste

2.1

 

12.3

Health and health care

 

3.3, 3.4, 3.5, 3.7, 3.8

 

Health and nutrition

 

3.4

 

Marine biodiversity

2.4

 

14.2, 14.4

Biobased economy

  

12.2

Less hazardous chemicals

 

3.9

12.4