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).

The materiality assessment is updated at least every three years, as input for our strategy updates. 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 graph below shows the upper-right section of Corbion’s materiality matrix, highlighting the ten material themes.

Materiality matrix

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.

Corbion's impact on the Sustainable Development Goals

In preparation for our strategy update Advance 2025 we assessed our entire product portfolio and our value chain with a view to the potential – positive and negative – impact on the Sustainable Development Goals. The assessment involved the four steps summarized in the figure below.

See our Measuring what matters white paper that describes this assessment in detail.

SDG Assesments

In evaluating Corbion’s potential for contributing to the SDGs based on an analysis of our entire product portfolio, we were inspired by the “Business Reporting on the SDGs – An analysis of the goals and targets” publication developed by the Global Reporting Initiative and the UN Global Compact. This publication provides illustrative examples of actions businesses can take to impact the SDG targets. Our assessment identified the following relevant impact areas and associated SDG targets:

For each of the identified impact areas, internal and external documentation has been collected and reviewed by relevant Corbion Competence Leads and other experts to confirm that there is sufficient evidence supporting the impact of a product or product group. The supporting documentation included academic publications, R&D studies by external laboratories, internal test results, customer feedback, examples of commercial application, certifications and patents. We left out products for which we do not yet have sufficient evidence to claim a positive contribution to the impact category.

Corbion’s products are used in a number of different industries, and their ability to contribute to the achievement of the Sustainable Development Goals depends on the sector in which they are applied. For products we supply to the confectionery and sweet goods sub-markets, we do not claim positive impacts in the “health benefits” and “food waste reduction” categories. We also do not claim positive impacts for our products used in the oil and gas sector, since they cannot solve or eliminate the negative environmental impacts in this sector. The sector itself, which is based on finite resources, is in conflict with some of the SDGs (for example, SDG 12 Responsible consumption and production, and SDG 13 Climate action).

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. In these calculations, preserving the planet includes impacts related to SDG 12, SDG 13, and SDG 14. In 2021, 60% of our global sales and 100% of our innovation projects contributed to preserving food and food production, health, and/or the planet.

EU Taxonomy

• 1 Reported as 'Net sales' in the consolidated income statement

• 1 Reported under the capital expenditure and acquisition of group companies sections of Property, plant, and equipment, Leases, and Intangible fixed assets

• 1 All maintenance costs, rent and leases (excluding depreciation and impairment, including short-term leases) and R&D expenses (excluding amortization and impairment). These costs are part of the costs reported in the consolidated income statement lines Cost of sales, Research and development costs, and General and administrative expenses.

The tables above show information required under Regulation (EU) 2020/852 for which further regulations are currently still under development. As an example, the Taxonomy Regulations establishes six environmental objectives of which at reporting date only two environmental objectives (Climate change mitigation and Climate change adaptions) have been finalized. The disclosure therefore potentially does not provide a full overview of Corbion’s eligible activities as the four other environmental objectives are not yet considered. In future reporting years, other EU Taxonomy objectives need to be considered, which could potentially result in additional economic activities being considered as eligible.

For this reporting period, Corbion considers the following economic activities to be eligible under the act:

• Manufacture of other low carbon technologies (3.6) - AlgaPrime DHA enables life-cycle GHG emission savings in the manufacture of aquaculture feed by offering an alternative to fish oil. The manufacturing of AlgaPrime DHA is therefore considered eligible.

• Manufacture of organic basic chemicals (3.14) – according to Annex 1 of the Delegated act, this activity includes a number of specific chemicals and a category other chemicals (NACE 20.14). Corbion's business activities related to the manufacturing of organic acids, derivatives and emulsifiers can, in our view, be associated with NACE code C20.14 and are therefore considered eligible.

Under the current definitions of the EU Taxonomy, the manufacturing of functional blends for application in food, which is about 22% of Corbion's turnover, is not considered eligible.

Compared to Corbion's SDG assessment, which determines the alignment of Corbion's activities with the UN Sustainable Development Goals, the EU Taxonomy excludes the contribution of food waste reduction to climate change mitigation. According to UNEP (UNEP Food Waste Index Report 2021), 8-10% of global greenhouse gas emissions are associated with food that is not consumed. Corbion considers its solutions for shelf-life extension therefore to contribute to Preserving the planet, more specifically to SDG 12.3. In addition, the EU Taxonomy currently only considers environmental objectives. Corbion's SDG assessment also considers social objectives, specifically activities that contribute to SDG 2 Zero hunger, and to SDG 3 Good health and wellbeing. In total, 24% of the non-eligible turnover and 70% of the eligible turnover is contributing to the SDGs according to Corbion's SDG assessment.