Sustainability performance

Sustainability performance indicators

• 1 Targets based on current manufacturing footprint; to be reviewed in case of acquisitions/major changes.
• 2 Net sales of products for which there is evidence that the product contributes to the SDGs. See our Measuring what matters whitepaper for more details.
• 3 Innovation projects targeting the development of products that contribute to the SDGs, by number of projects. Only adjacent and transformational innovations are included. Projects aimed at optimizing existing value propositions for existing customers are not included. See our Measuring what matters whitepaper for more details.
• 4 By quantity.
• 5 By number, based on Corbion’s supplier sustainability risk assessment methodology. The assessment is based on previous year purchase figures.
• 6 Bonsucro-certified or meeting the requirements of Corbion’s Cane Sugar Code verified by third-party audits, by quantity. See our Cane Sugar Policy for more information. The scope of this target was adjusted in 2023. More information can be found in the section on Responsible sourcing/cane sugar.
• 7 Key agricultural raw materials include cane sugar, dextrose derived from corn, palm oil and derivatives, soy-bean oil and derivatives, and wheat, by quantity. Through Bonsucro certification, RSPO certification, or other certification covering deforestation; or demonstrated to be deforestation-free based on satellite data, third-party audits (e.g., Corbion Cane Sugar Code audit), and/or country-of-origin statements.
• 8 Based on OSHA guidelines. Including contractors.
• 9 Applies to sites where food ingredients are produced, by number. Standards recognized by the Global Food Safety Initiative: BRC, FSSC22000, and SQF.
• 10 The Substitute It Now (SIN) list is a list of hazardous chemicals that have been identified as being Substances of Very High Concern, based on the criteria defined within REACH, the EU chemicals legislation. The SIN list is developed by the non-profit organization ChemSec.
• 11 Based on biobased carbon content relative to the total amount of carbon in the raw material, by quantity, excluding inorganic raw materials.
• 12 Scope I emissions from direct production (from fuels), Scope II emissions from purchased energy (electricity and purchased steam, market-based). Absolute reduction compared to 2021 as the base year. Scope III emissions related to key raw materials, waste, and transport, per ton of product. Progress is reported compared to 2021 as the base year. We report our emissions in accordance with the Greenhouse Gas Protocol. Our full Scope III emissions and biogenic emissions are reported in the Sustainability statements.
• 13 The Social Value Assessment is done according to the methodology described in the Handbook for Product Social Impact Assessment, published by the Social Value Initiative, and applies to products manufactured at Corbion sites. Outsourcing is excluded. By quantity. See our Measuring what matters whitepaper for more details.
• 14 The Life Cycle Assessment is peer reviewed according to the ISO 14040/44 standards for Corbion’s core products (such as lactic acid) or done according to the “LCA Approach for Corbion’s Product Portfolio: Lactic acid derivative plants, Corbion 2017,” which has been externally reviewed against and is considered to be in line with the principles of the ISO 14040/44 standards. This KPI applies to products manufactured at Corbion sites. Outsourcing is excluded. By quantity. The scope of this target was adjusted in 2023. More information can be found in the section on Life Cycle Assessment.

√    =  reviewed by external auditor. Some of the new KPIs that were included in our 2021 report for the first time have not yet been reviewed by the external auditor. We are preparing for assurance on all strategic KPIs.

Preserving what matters

Corbion’s impact on the Sustainable Development Goals

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 toward which we believe we can make the most significant positive impact, given our business activities. 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).

To monitor our impact, we track the overall contribution to the SDGs as a percentage of Corbion’s total revenues. In 2023, 69% of Corbion’s net sales contributed to preserving food and food production, health, and/or the planet, an increase of 4% compared to 2022. In 2023, we reviewed our functional blends portfolio for additional SDG contributing products. Another driver for the increased SDG contribution is the increased sales of omega-3 DHA. We aim to further increase this percentage to 75% by 2025, through divestment of non-SDG-contributing activities, growth in food preservation, PLA bioplastics, and omega-3 DHA, and by innovating new SDG-contributing solutions. All innovation projects are expected to contribute to preserving food and food production, health, and/or the planet, and these contributions are managed by a Sustainability assessment as part of the innovation stage-gate process. Projects that do not contribute to the SDGs are adjusted or canceled. At the end of 2023, 100% of our innovation projects contributed to preserving food and food production, health, and/or the planet.

We also recognize that our operations can (potentially) harm some of the SDGs. This includes the potential impact of Corbion’s manufacturing processes and use of raw materials on occupational health and safety (SDG 3), greenhouse gas emissions (SDG 13), deforestation (SDG 15), food security and agricultural impacts (SDG 2), and waste (SDG 12). Policies, procedures, and actions we have put in place to mitigate and minimize the identified potential environmental and social impacts and risks that may stem from our operations are summarized in the Materiality and stakeholder engagement section of this report, as well as in our Measuring what matters whitepaper. Additionally, Corbion’s Advance 2025 strategy has set ambitious targets to address these topics (see Sustainability performance indicators).

Human rights and labor practices

Corbion is committed to respecting and upholding human rights and labor standards. We act in accordance with internationally declared human rights and adhere to applicable laws within the framework of our business activities. Our commitment is based on the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Rights and Principles at Work. We have implemented procedures to ensure alignment with the Organisation for Economic Co-operation and Development’s (OECD) Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights and are also a signatory and active participant of the United Nations Global Compact.

The details of our commitment and information on how it is disseminated can be found in our Human Rights Policy. Salient issues within our own operations are addressed through our Code of Business Conduct, which covers, among others health and safety; inclusion, diversity, and equal employment opportunity; harassment; child and forced labor; working hours and compensation; and freedom of association. Our health and safety commitments are reflected in our Environment, Health, and Safety Policy and on our website. More details on the management of health and safety can be found in this report. Human capital management, diversity and inclusion, wages, working hours, equal opportunities, and collective bargaining agreements are managed by Human Resources and reflected in internal policies. More information on our approach can be found in the sections below.

Through consultation with internal and external experts as well as reliable proxies for workers in the supply chain, we have identified that the most salient human rights issues within our supply chain lie within the sourcing of palm oil as well as sugar in Thailand and Brazil. These risks are managed through our Responsible sourcing and Sustainable agriculture strategies. All suppliers are required to sign or show compliance with our Supplier Code, while risks specific to the cane sugar industry are mitigated through our Cane Sugar Code. More on how we verify responsibly sourced sugar can be found here.

Corbion utilizes the Supplier Ethical Data Exchange (SEDEX) platform and the SEDEX Members Ethical Trade Audit (SMETA) to monitor the social performance and compliance of our manufacturing sites. SMETA assesses each site on four pillars: labor, health and safety, environment, and business ethics. Audits are conducted by an external third-party auditor at least every three years. Findings are monitored by global and site coordinators, and corrective actions are implemented in case of non-compliance with our standards.

To understand Corbion’s impact on human rights in our own operations and our supply chain, we conduct Social Value Assessments. See the section on Social Value Assessment in this chapter for more information.

We also assess all of our raw materials and suppliers on potential risks related to human rights and environmental impacts. This risk assessment is based on RepRisk, a tool that systematically identifies material environmental, social, and governance (ESG) risks by analyzing information from public sources and stakeholders. For more information, see the Responsible sourcing section below.

Human rights issues identified through our due diligence process are assessed by a human rights specialist in accordance with the United Nations Guiding Principles on Business and Human Rights as well as the OECD Due Diligence Guidance on Responsible Business Conduct and discussed with the senior management of relevant business functions. Issues are discussed with the Sustainability Steering Committee, which comprises Executive Committee members, in instances where an actual or potential impact is assessed as severe and where Corbion is potentially causing, contributing to, or linked to the potential or actual impact.

Corbion’s human rights due diligence process involves regular engagement with potentially affected stakeholders, including employees, suppliers, workers in the supply chain, and local communities. Our Stakeholder Engagement Policy provides definitions, types of engagement, and the underlying principles to our approach.

Business ethics

Corbion’s Business Conduct Program combines the legal requirements of the countries where we operate and international standards, resulting in a framework that regulates how all Corbion employees interact with colleagues, business partners, governments, and communities. We translate these legal requirements and standards into our Code of Business Conduct, internal policies, and procedures to make this information accessible to everyone. Often, we go beyond what is required by local legislation to create a single global integrity approach within Corbion.

Every year, all Corbion employees follow mandatory training on our Code of Business Conduct, which is available in six languages. Employees receive training through an e-learning course or a classroom session. Course materials are updated yearly, based on the most relevant risks at the time of the release and the topics brought up in Speak Up reports of the previous year. The target group of employees for this training includes all employees, interns, and contingent workers. Corbion has a strict policy on attendance to the Code of Business Conduct training, with a 90.7% completion rate in 2023. In addition, selected groups of employees follow mandatory e-learning training every two years with respect to anti-corruption and competition law. In 2023, 581 employees (from the Sales, Procurement, Logistics, and Legal and Compliance departments, as well as middle and senior management) participated in the anti-corruption e-learning training, which had a 100% completion rate.

Under the Corbion Speak Up Policy, Corbion employees can report misconduct and (potential) violations of laws, the Code of Business Conduct, and underlying policies to their manager, their local HR contact, the regional Business Conduct Coordinator, or anonymously to the Business Conduct Committee through the Corbion Speak Up platforms (phone and web). We also invite our external stakeholders (customers, suppliers, communities, distributors, and agents) to raise concerns about (suspected) violations of our Code of Business Conduct, Supplier Code, Cane Sugar Code, or any applicable laws through our external Speak Up platform.

In 2023, 27 complaints with respect to the Code of Business Conduct were reported internally, of which 14 had merit and 3 ongoing. Appropriate measures have been taken by management. In 2023, Corbion received one report via the external Speak Up platform, which case is still ongoing.

See the Risk management/Business Conduct Program section for more details.

Talent attraction, retention, and development

At Corbion, our comprehensive training and development program is designed to benefit all employees, unlocking their full potential and fostering an engaged and high-performing organization.

In 2023, the market-wide talent shortage persisted and external market conditions remained highly competitive. We managed however to stabilize our turnover rate closer to 2021 levels, decreasing from 13.2% in 2022 to 10.2% in 2023. Corbion hired and onboarded 390 new employees in 2023.

In 2023, the dedicated function of Talent Management and Organizational Development, initiated the execution of an integrated talent strategy that has been designed to enable Corbion’s talent to more actively contribute to the overall business performance and support our growth. A new capability mapping process was implemented to support the organization in identifying certain talent segments that needed more focused efforts. We strengthened our talent review and succession planning processes with particular attention to the calibration of performance and potential and how to diversify our talent pools. Our performance management cycle encourages managers to discuss objectives and give regular and timely feedback on performance to their teams (on the “what” and the “how”). This process also contributes to the continuous development and growth of our talent.

Training is an important aspect of employee development, and in 2023, we continued to offer diverse training programs to facilitate the acquisition of new skills or enhancement of existing knowledge. Our onboarding, corporate, compliance, leadership, diversity, technical, and safety programs cultivate a culture of continuous learning and employee development, contributing to increased organizational performance, productivity, and improved results. Additionally, we initiated and conducted a pilot leadership training for new leaders in Totowa, New Jersey; we rolled out a comprehensive sales training program across all the regions; facilitated continuous improvement training programs for operations including e-learning tools, conducted safety trainings in all locations; and organized a series of webinars aimed at reinforcing and building business acumen and strategic knowledge.

Corbion’s values of care, commitment, collaboration, and courage are at the heart of everything we do. In 2023, we highlighted numerous instances of our employees embodying our values across the organization. We honored and recognized five exemplary success stories every quarter through the Values Showcase Program. In early 2023, we dedicated one of our quarterly showcases to safety, underscoring our commitment to this priority. Demonstrating our value of care with colleagues via Headspace continues to be one of our focus areas to improve employees’ health. We offer a free Headspace premium access account to all employees, providing them with exercises centered around meditation, sleep, movement, and focus. In addition, we established the Global Well-Being Project Team, with representatives from various regions. This strategic initiative aims to foster continuous awareness of well-being resources, including the introduction of a well-being portal, on-site health fairs, and health education classes. These educational sessions are designed to inform employees across diverse global locations about Corbion benefits and promote overall well-being.

In October 2023, we held a face to face senior management team meeting in Atlanta, Georgia. At this milestone event, we brought together our top 100 leaders to “Reconnect and Rediscover” and build new capabilities needed for the next phase of Corbion’s growth, in particular agility, customer-centricity, and oneness.

Collective bargaining

To ensure frequent employee–management interactions and responsible labor practices, we have joint management–worker health and safety committees in place at all production sites, with formally elected employee representatives. In Thailand, the Election Welfare Committee has a formal quarterly meeting with employer representation by labor law to jointly review the welfare and working conditions. The members of the Election Welfare Committee are all employee representatives.

Of the 1,765 employees with agreements, 41% are covered by collective bargaining agreements.

Diversity, equity, and inclusion (DEI)

At Corbion, we strongly believe in the power of diverse teams to drive innovation and growth. This commitment is applied throughout our employee life cycle and is detailed in our Diversity and Inclusion Policy. We strive to attract talent with diverse competencies, backgrounds, and origins to ensure that the diversity of our people reflects the societies in which we live and work. The Executive Committee overlooks the various initiatives for improving diversity within the organization. All Corbion recruiters are Diversity and Inclusion certified and trained to use diversity channels and inclusive language in job postings. We actively track and report on the inclusion of diverse candidates in the recruitment process. We also encourage managers to consider the diversity within their own teams. 

We are continuously working on becoming a more diverse and inclusive organization and raising awareness around all the ways in which we are diverse already. We do that through leadership, more refined employee data, recruitment, and talent management. In 2023, following our DEI roadmap, we conducted interviews with employees throughout the organization, from different regions, nationalities, positions, and gender. We collected valuable input on what DEI means for Corbion, where our strengths are, and what the expectations are for improvement. By learning about interviewees’ past DEI experiences and expectations for the future, we aim to continuously develop a more diverse and inclusive culture. The results are being used to inform new DEI initiatives and help the DEI focus group to take its first steps. One of the clearest outcomes and a key learning from the interviews is the diversity in answers we received. This confirmed how rich, yet complex, DEI is in a global environment, and when defining the next steps of our DEI roadmap, Corbion will need to take this into account.

Within Corbion, we embrace the importance of gender pay equity and monitor this on an annual basis, comparing for the Management and Executive Committee. If the base pay of employees does not meet the standards set by Corbion, initiatives are taken to close the gap. These initiatives are approved by the Executive Committee.

Company culture

Our values — care, commitment, collaboration, and courage — along with the key Corbion behaviors — set clear direction, make the difference, focus on customers, and deliver through teamwork — are now fully embedded in our programs and processes. They form the foundation of the Corbion culture.

Employee engagement

To measure the health of our company culture, we run engagement surveys. The 2023 edition of our Gallup engagement survey has been postponed so that the important messages around “Reconnect and Rediscover” shared with our top leaders in October and cascaded throughout the organization thereafter could become an integral part of the culture and engagement work we want to measure going forward. In 2023, focus was given on the action plans created by the various teams in the organization based on the outcome of the 2022 Engagement Survey. By having discussions around improvements and strengths, the action plans support further engagement within the teams across the organization. We are very proud of our high engagement scores and continuously look into any areas that require attention and improvement. We continued our “Stay Interviews,” focusing primarily on joiners with less than two years’ tenure with Corbion to gauge the robustness of our onboarding and integration processes.

Listening to our employees and their needs is a critical process to sustain our high engagement levels. 

Advocacy and public affairs

We believe biotechnology and sustainable innovations can provide an essential contribution in tackling the challenges the world is facing. Our purpose-driven public affairs efforts are aimed at showing regulators and policymakers that it is possible to do sustainable business while making healthy profits. Together with like-minded organizations we advocate for regulatory conditions that support sustainable frontrunners. To communicate our view on public affairs we have developed and published our comprehensive Public Affairs Policy, which firmly underscores Corbion’s support for purpose-driven advocacy, aligning our corporate values with meaningful societal impact.

In the past year, Corbion has been actively involved in several public affairs dossiers in the European Union, demonstrating a strong commitment to sustainability and responsible corporate citizenship. These dossiers include the Chemicals Strategy for Sustainability, Delegated Acts for Sustainable Finance Taxonomy, EU Protein Strategy, the Waste Framework Directive, Regulation on Packaging and Packaging Waste, Carbon Removal Certification, Framework on Biobased Biodegradable Compostable Plastics, the Algae Initiative, Sustainable Food Systems, and Transition pathway for a more resilient, sustainable and digital agri-food ecosystem. Through our consultation work and engagement with policymakers, Corbion has demonstrated our dedication to promoting sustainable business practices that align with the European Union’s values and objectives. Corbion’s input on these dossiers is publicly available on the European Commission's website.

In North America, Corbion became more active in public engagement during the year, with a particular emphasis on outreach initiatives to regulators, legislators, environmental non-governmental organizations, industry associations, and fellow sustainable frontrunners, focusing on topics such as safe and sustainable chemicals, improving safety of food additives, the Farm Bill, federal legislation to reduce food waste, and implementation of the Inflation Reduction Act.

In 2023, Corbion allocated a budget of € 170,000 for public affairs consultancy, reflecting a strategic investment in external expertise to navigate and address key regulatory and policy issues.

Preserving food and food production

Preserving food and food production (SDG 2: Zero hunger) is about creating a sustainable food system capable of feeding a growing population, given the boundaries of our planet. Corbion’s solutions for shelf- life extension, food safety, animal health, and aquaculture support this ambition. We also collaborate with our agriculture-derived raw materials suppliers to promote sustainable agriculture. In 2023, 38% of our revenues contributed to preserving food and food production.

Responsible sourcing

A significant part of our value chain’s environmental and social impact is upstream of our operations. To safeguard our sustainable solutions’ overall positive environmental and social impact, we need to ensure our raw materials are sourced responsibly. Our Supplier Code defines Corbion’s expectations in respect of our suppliers meeting our responsible sourcing commitment. The code covers principles and criteria for business ethics, human rights and labor conditions, and environmental practices, based on the OECD Guidelines for Multinational Enterprises and the eight fundamental conventions defined by the International Labour Organization, including freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor, the effective abolition of child labor, and the elimination of discrimination in respect of employment and occupation.

We require all of our raw materials suppliers to sign our Supplier Code to confirm adherence or demonstrate commitment to our code through their own company policies that embrace the standards included in our code.

We assess all of our raw materials and suppliers on potential risks related to human rights and environmental impacts. This risk assessment is based on RepRisk, a tool that systematically identifies material ESG risks by analyzing information from public sources and stakeholders. In addition to this, specific risk elements such as the use of SIN-listed raw materials and potential conflict minerals are considered. The risk assessment results in a high, medium, or low score for each raw material/supplier combination. For all high-risk items, mitigation actions are taken. The risk assessment is updated annually and also conducted for new raw materials or new suppliers.

In our 2023 assessment, 5% of the raw material/supplier combinations were classified as high risk, an increase of 1% compared to 2022. For 100% of the high-risk raw material/supplier combinations, mitigation plans have been drawn up. Mitigation actions include supplier engagement, additional traceability investigation, SEDEX registration, SMETA audits, or identification of alternative raw materials or suppliers. Through these actions, we aim to reduce the number of high-risk raw material/supplier combinations, although we also realize that it is not feasible to eliminate these risks entirely. Therefore, we update the assessment and mitigation plans annually to ensure constant attention and preparedness for potential issues.

Sustainable agriculture

A sustainable agricultural supply chain is of material importance to our business, as we rely on agriculture for our biobased raw materials. It is also vital to the communities in which we operate and to our planet’s resources. We recognize that intensive agriculture can have an adverse impact on people and the environment. The agricultural sector is the second-largest source of greenhouse gas (GHG) emissions globally, and farming of sugarcane, palm oil, and soybean oil has been linked to poor working conditions and forced and child labor issues. Sustainable agriculture, however, has the potential to protect the planet, enhance the economic viability of the agricultural sector, and support the livelihoods and well-being of farmers and the communities.

Corbion is not directly involved with the growing, harvesting, or processing of the crops used to make our raw materials. We partner with our direct suppliers and conservation solution providers and engage with other stakeholders involved in our agricultural supply chains to promote our vision for sustainable agriculture. We also implement relevant certification schemes, including Bonsucro, RSPO, and ProTerra. Our Sustainable Agriculture Policy describes our vision and fundamental principles, including respecting human rights; protecting biodiversity; eliminating deforestation; advocating stewardship of the air, soil, and water; and mitigating climate change.

Cane sugar

Our Cane Sugar Code defines the specific requirements for producing sustainable cane sugar, based on the definitions for sustainable sugarcane and derived products as set out by Bonsucro. Globally, some 7% of the sugarcane growing areas are Bonsucro certified, and for our main sourcing area, Thailand, this is just over 2.5%. Consequently, we audit our cane sugar suppliers against our Cane Sugar Code if they are not yet able to supply Bonsucro-certified sugar. See our Cane Sugar Policy for more details on our audit program. In 2023, we verified that 98% of our total cane sugar consumption met the requirements of our code compared to 91% in 2022. This includes around 34% Bonsucro-certified sugar. In 2023, we also investigated the verification options for sugar sourced in the US, which is used as an ingredient for functional blends and covers <1% of the current target scope. Because we lack sufficient leverage and the options for verification in the US are limited, we will focus our efforts on the verification of cane sugar used for fermentation from 2024 onwards, and adjust the scope of this KPI accordingly.

Palm oil

Our Palm Oil Policy describes our requirements for responsible sourcing of palm oil, including no deforestation, no peat, and no exploitation. Since 2020, 100% of our palm oil and primary oleochemicals have been RSPO certified. In 2023, we continued the implementation of RSPO for our secondary oleochemicals and achieved 92% RSPO certification for our total use of palm oil and derivatives.

Soybean oil

Our Soy Policy describes our requirements for responsible sourcing of soybean oil. We source the majority of our soybean oil from US suppliers. Soy production in the US is based on a national system of sustainability and conservation laws and regulations combined with careful implementation of best production practices by the nation’s 303,191 soybean farms. The U.S. Soy Sustainability Assurance Protocol is an aggregate approach audited by third parties that verifies sustainable soy production at a national scale. Over 90% of US soybean producers participate in the Farm Service Agency's Farm Program. When sourcing soybean oil in South America, we apply the ProTerra certification to meet our responsible sourcing commitments.

Corn dextrose

To support our science-based target, we collaborate with several partners to implement regenerative agriculture practices within Corbion’s US corn supply sheds.

In 2020, Corbion, among a number of companies, signed up to promote soil health through a Cargill initiative that collaborated with corn growers near our Blair plant in Nebraska to implement sustainable farming practices, mainly through the use of cover crops. The corn dextrose from these fields serves as a major raw material input for Corbion, which funded 10% of the program cost. The initiative, established by Cargill through a partnership with the Practical Farmers of Iowa, comprised three key elements: cost-sharing for growers who implement cover crops, a technical and peer support network, and monitoring and evaluation of outcomes and progress toward supply chain sustainability goals.

Assessment of compiled data of the three-year initiative showed that cover crops planted in the program resulted in a 38% reduction in metric tons of CO₂-equivalent emissions compared to if no cover crops were planted and sequestration was included. Acreage under the program has seen a potential 28% reduction in the emission factor thanks to the use of cover crops.

As a next step, Corbion joined Cargill’s RegenConnect program, which includes our corn supplier shed in Blair, Nebraska. Farmers enrolled in the program can choose sustainable practices that best suit their growing conditions and are compensated by carbon sequestered into the soil. Cargill, in a partnership with ReGrow, applies a measurement, reporting, and verification platform to quantify the outcomes associated with practice changes. By receiving technical support and resources, farmers are encouraged to adopt better soil health practices, including reduced tillage and planting of cover crops. These practices help reduce GHG emissions, build soil resilience, and improve water quality, enabling farmers to improve yields and to increase their resilience to climate change. The collaboration is designed to enable companies in the supply chain to support sustainable agriculture and to advance their sustainability commitments. Corbion will receive the results relevant to the 2023 crop cycle in 2025.

Preserving health

Preserving health (SDG 3: Good health) is about supporting healthy lives and promoting well-being at all ages. Corbion’s solutions for implantable technologies (such as orthopedic implants and drug delivery systems), pharma (such as parenteral and dialysis solutions), nutrition, and hygiene contribute to some of the underlying targets defined for SDG 3. We also care for the health and well-being of our own employees and supply chain partners. In 2023, 39% of our revenues contributed to preserving health.

Environment, health, and safety

Corbion is committed to creating a safe and healthy workspace with zero incidents. We firmly believe no job is so important that it cannot be done safely and with minimal environmental impact. Therefore, we approach our operations with meticulous care, prioritizing the safety, health, and well-being of our employees and contractors. We believe our responsibilities extend to the communities and environment with which we engage.

Our activities are supported by a management system that includes policies, procedures, training, and feedback, ensuring compliance with laws and regulations applicable to our operations and alignment with our company standards and codes. Corbion management, employees, and contractors are committed to achieving a zero-incident culture. Corbion fosters an open and transparent culture by encouraging all employees and contractors to report all incidents, near misses, and unsafe situations in order to continuously improve our safety and environmental performance. All these events can be reported by anyone in Sphera, our global incident management system.

Our Environment, Health, and Safety (EHS) framework below clarifies the specific responsibilities of the local sites versus the Global EHS Platform.

In 2023, we recorded 27 injuries across all regions. Consistent with previous years, there were no fatalities in 2023. Notably, both Corbion and our contract employees contributed to a commendable reduction in the Total Recordable Injury Rate (TRIR) which was 0.51. We take pride in successfully attaining our objective to conclude the year with a TRIR below 0.52, a notable advancement compared to 2022, which was 0.68.

During 2023, Corbion continued on our Safety Excellence journey, overseen by the Exco EHS Committee and steered by the Safety Excellence Committee.

• Visible felt leadership: All members of the Executive Committee committed to giving priority to safety-focused site observations during their visits to Corbion locations. The value of engaging in direct and personal safety-focused dialogues with employees and contractors is reinforced by the fact that their safety observations and subsequent follow-up actions are diligently tracked within the global management system.

• Behavior-Based Safety (BBS): Launched in 2022, the BBS program aims to strengthen site safety leadership capabilities and rituals, and to drive continuous risk reduction through employee involvement. Five locations out of 12 have concluded the project stage of the BBS program and are actively advancing their safety initiatives under the guidance of their respective site safety steering committees. Three more locations started the BBS journey during 2023.

• Safety management system: We continue to expand our global EHS management system to standardize and clarify minimum EHS requirements across all our locations. Six new global EHS standards were introduced in 2023, and sites are aligning their local practices with these global standards.

• Process safety capability and systems: A robust Process Safety Management (PSM) system will help mitigate the risk of significant safety and environmental incidents, including but not limited to fires, explosions, chemical releases, or spills. Our long-term ambition is to develop a “zero-leak” culture, ensuring that all of our products remain contained “in the pipes.” In 2023, process safety capabilities and processes were further strengthened, with PSM training sessions, Hazard and Operability (HAZOP) training sessions, and site-specific support conducted at several locations worldwide. We actively track sites’ multi-year process hazards analysis planning and progress.

• In 2023, we introduced a Global EHS Audit Program aimed at evaluating sites’ conformance with Corbion’s global and local EHS requirements. This audit process covers all manufacturing locations and supplements the existing ISO audits

All workers, including employees, temporary workers, and contractors at Corbion’s manufacturing sites, are covered by an occupational health and safety system. The majority of them are covered and verified through the ISO 45001 certification (spanning 11 out of 13 locations, representing about 90% of Corbion’s production volume). Non-certified locations, Grandview and Querétaro, follow Corbion’s system requirements such as the global EHS standards and Corbion’s 10 Safety Rules, and they are integrated in all of our EHS processes. Five sites are ISO 14001 certified, representing about 79% of Corbion’s production volume.

Our contractors are well integrated into our safety management system. We take safety criteria into account when selecting contractors, provide onboarding and on-site support and oversight, and report and investigate incidents where contractors are involved. We are extremely proud to have reached more than 4 million contractor hours in 2023 without any recordable injuries during the construction of our circular lactic acid plant in Thailand.

Overall, our employee absentee rate was 2.5% compared to 2.6% in 2022.

Product quality and safety

We are committed to delivering high-quality solutions that safely meet our customer expectations and fulfill our customer promise through quality and manufacturing systems and processes.

On a local level, we operate in compliance with local regulations and legislation, while ensuring certifications are in place to meet customer and industry-adopted standards and requirements, such as ISO 9001, Global Food Safety Initiative (GFSI) BRC, FSSC22000, SQF), GMP+, GMP Pharma (ICHQ7), the Food Safety Modernization Act, Halal, Kosher, non-GMO, and Organic.

For our Sustainable Food Solutions business, food safety is a key priority in terms of production quality, spoilage, contamination, supply chain traceability, and allergy labeling. All 12 Corbion manufacturing sites that produce food ingredients are certified against a GFSI-recognized standard. Two of our manufacturing sites have a pharmaceutical registration in addition to their food certification, and two sites produce biopharmaceuticals without a food certification. In addition, we host customer audits predominantly from our pharmaceutical customers and large food clients.

These, and our self-assessment audits performed by our Global Quality Platform, ensure that we continue to improve our operational standards for quality and food safety. In 2023, we maintained all certifications and continued harmonizing the quality management of the different Corbion sites based on the Global Quality Manual. This document underlines our drive for continuous quality improvement and food risk reduction.

In 2023, we noted no non-compliances with product quality and safety regulations or codes.

Chemical safety and stewardship

Monitoring of product safety performance is part of GFSI certification (see above) and all Corbion production sites have Hazard Analysis and Critical Control Point (HACCP) plans available. GFSI certification also includes processes for deviation control, root cause investigation, corrective/preventative actions, and a recall program. To make our chemicals-safety performance more transparent and demonstrate the low-hazard profile of our portfolio, we use three chemicals-safety KPIs:

• The number of chemicals produced on the REACH Authorisation List of the EU. Substances on this list are selected from the REACH Candidate List of the European Union. They cannot be launched on the market or used after a given date (“sunset date”) unless authorization for their specific use or exemption from authorization is granted.

• The number of REACH Candidate List chemicals produced. The REACH Candidate List is the first step toward stringent regulation of Substances of Very High Concern (SVHC).

• The number of SIN list chemicals produced. The Substitute It Now (SIN List), developed by the non-profit organization ChemSec, lists very hazardous chemicals that may be placed on the REACH Candidate List.

None of Corbion’s products are included in any of the lists above. Our priority is to keep it this way, to meet our promise to preserve what matters, and to minimize risks related to regulatory measures, workers’ health, consumer exposure, and potential accidents and spills.

We apply strict cut-off criteria for developing new products (SVHC criteria) and adhere to the 12 principles of Green Chemistry. All Corbion products that are within the scope of REACH have been registered accordingly. See our Statement on chemicals safety and stewardship for more information.

Preserving the planet

Preserving the planet (SDG 12: Responsible production and consumption) is about moving toward a circular economy. Biobased ingredients and materials from Corbion play an essential role in promoting SDG 12 and help to create a circular economy. SDG 12 also includes food waste reduction as a sub- target, and we contribute to this goal as well through our work to create zero waste, improve energy efficiency, reduce greenhouse gas emissions, and implement our new circular production technology in our manufacturing plants. In 2023, 57% of our revenues contributed to preserving the planet.

Biobased raw materials

In 2023, 98% of our raw materials were biobased, derived from renewable, agricultural sources such as sugarcane, corn, soy, wheat, and palm oil. The use of biobased raw materials instead of fossil-based resources to produce specialty chemicals supports the transition to a circular economy, as biobased raw materials are renewable by nature, insofar as their production is sustainably managed.

According to the Bioplastic Feedstock Alliance, a sustainable biobased feedstock is legally sourced, conforms to the Universal Declaration of Human Rights, does not adversely impact food security, and does not result in deforestation. Corbion’s Sustainable Agriculture Policy describes our key principles for the production of biobased raw materials. At the current level of bioplastic production, land use is minimal and does not compete with food. Over the following decades, the world population will grow, and global demand for crops for food and industrial applications is expected to increase. Next-generation feedstocks such as second-generation sugars from agricultural residues and C1 carbon sources can help address this concern. Corbion actively engages with external parties who have the potential to supply second-generation feedstocks to Corbion assets. Through open collaboration with technology providers and sugar suppliers, and the provision of feed and off-take options, we aim to stimulate the development of commercial-scale supply chains of alternative-generation sugar feedstocks in the coming decades. However, at the moment, the scale is still small, and technology readiness is low.

Forests and biodiversity

Humans depend on healthy ecosystems that stabilize the climate; provide food, clean water and air, and raw materials; and protect coastlines. Deforestation and biodiversity loss are threatening Earth’s capacity to maintain healthy ecosystems. Business activities can contribute to deforestation and biodiversity loss. As we source raw materials from sectors that are at risk of contributing to these issues, we are committed to doing as much as possible to limit our negative impacts and contribute to regenerative projects.

To provide more transparency on the risk of deforestation in our agriculture supply chains, we track the percentage of key agricultural raw materials (sugar, palm, soy, wheat, corn) purchased that is verified deforestation-free. About 50% of our key agricultural raw materials are sourced in North America, where deforestation is not an issue.

According to the Agri-footprint database, which is based on statistics from the Food and Agriculture Organization of the United Nations (FAO), no land transformation from forest has occurred in the sourcing areas of Corbion’s dextrose, soybean oil, or wheat suppliers in the US. For sugar, palm oil, and soybean oil sourced outside of North America, the absence of deforestation is verified through audits, satellite studies, and Bonsucro, RSPO, or ProTerra certification. Combined, we verified that at least 99% of our key raw materials are deforestation-free globally, a step up compared to 2022 (93%).

To better understand and demonstrate our commitment to address the potential impact of Corbion’s business activities on biodiversity, we joined the Science Based Targets Network (SBTN) corporate engagement program. Within this program, we work with other stakeholders to create methods and tools for integrated target setting, in line with the best available science. In 2023, Corbion was selected, together with 16 other companies, to pilot the target-setting process. During 2023, the first release of corporate science-based targets for nature, comprising freshwater and land targets, was tested. In parallel, we are working closely with the method developers to provide feedback on the applicability and robustness of the current methods.

Climate action

The effects of climate change and its acceleration are evident all over the world. We need to act now. The climate crisis threatens people, nature, and economies around the world. To avoid the most significant effects of climate breakdown, companies need to halve greenhouse gas emissions before 2030 and achieve net-zero emissions before 2050, in order to limit global temperature rise to 1.5°C per year. Corbion believes that we have a responsibility to preserve the climate, and we play an essential role in the transition to a zero-carbon economy.

In October 2019, Corbion publicly committed to climate change action, making science-based targets part of our standard business practice and tying our incentives program to those goals. Our targets were approved after a thorough, independent validation process by the Science Based Targets initiative (SBTi). We were the second Dutch chemical company with a SBTi-approved target, providing a benchmark and inspiration for our peers and partners to transition to a low-carbon economy.

In 2022, we raised our climate ambition to align with 1.5°C, the most ambitious goal of the Paris Agreement. This target is what the latest climate science has told us is needed to prevent the most damaging effects of climate change. We committed to reducing our absolute Scope I and II emissions by 38% and our Scope III emissions by 24% per metric ton of product by 2030, compared to 2021. Our new targets have been validated by the Science Based Targets initiative.

Our Climate Transition Action Plan has three pillars:
1. Reduce our own footprint in line with 1.5°C and achieve net zero by 2050.
2. Provide transparency with respect to the carbon footprint of our products and our operations.
3. Promote climate action by enabling our customers to reduce their footprint.

To achieve our SBTi commitment, we focus on the following initiatives:

• Reduce energy consumption and transition to renewable energy.

• Promote supplier engagement, raw material certification, and regenerative agriculture.

• Reduce transport emissions.

• Eliminate waste to landfill.

• Support radical process development.

In 2023, we made significant progress toward achieving these new targets by reducing our absolute Scope I and II emissions by 25% compared to 2021. The main drivers for this reduction are the implementation of renewable electricity and product mix effects. Our Scope III emissions were reduced by 37% per ton of product, equivalent to an absolute reduction of 16% compared to 2021. This reduction is primarily caused by a combination of lower purchases of raw materials and product mix effects. It is important to highlight that some of these reductions are not of a structural nature, and consequently, there may be an increase in emissions in the coming years.

Reduction of our energy consumption is the first priority in our Climate Transition Action Plan. In 2023, we completed several energy-reducing projects at our site in Gorinchem, the Netherlands (reducing approximately 1 kiloton CO₂-eq annually) and Campos, Brazil (0.3 kiloton CO₂-eq). Examples include pre-heating process streams and optimizing process settings. Furthermore, we optimized our use of biogas produced in our waste water treatment facility at our production location in Gorinchem. As of 2024, the biogas can be fully utilized in the steam boilers, which is expected to reduce our natural gas consumption by 10%. To prepare for further electrification of our processes, we initiated a project to expand the supply of electricity to the Gorinchem plant in the Netherlands.

In addition to these completed projects, we initiated the engineering of an evaporator based on mechanical vapor recompression, resulting in CO₂ savings of approximately 1 kiloton per year after construction. Our capital expenditure plan for the next five years includes similar energy savings opportunities.

In R&D, the focus of 2023 was on long-term decarbonization of the lactic acid process and the production of powder derivatives. We also kicked off a global platform on energy that consists of technologists from the production locations and energy experts from the global R&D and engineering groups. The aim of this platform is to be a global knowledge network within Corbion to support year-on-year improvement and management of energy toward lower energy consumption and therefore lower CO₂ emissions.

Another key initiative to achieve our GHG reduction target is the transition to renewable electricity. By now, 10 of our 13 manufacturing sites are fully powered by renewable electricity. Compared to 2022, we increased the use of renewable electricity at our site in Gorinchem, the Netherlands, to 100%, which increases our global coverage to 97%. As a member of RE100, a global initiative to accelerate change toward zero-carbon grids at scale, we are committed to achieving 100% renewable electricity by 2025.

We use internal carbon pricing to manage and understand the financial impact of GHG emissions on our business. Considering the EU ETS forecast scenarios of € 90, € 125, and € 150 per metric ton by 2030, Corbion has introduced a global internal carbon price of € 100 per metric ton for Scope I and II emissions to be included in all investment decisions. In addition, this has been used as a sensitivity in the goodwill impairment test. Including the internal carbon price, the outcome would not lead to impairments.

Partnerships with our key raw materials suppliers are essential to achieve the targeted Scope III reductions. In 2023, we continued our engagement with key suppliers of cane sugar, dextrose, soybean oil, and chemicals. The goal is to better understand the footprints of these raw materials and identify GHG reduction opportunities. These reduction opportunities could be found within our suppliers’ manufacturing operations or captured by implementing sustainable agriculture practices on the farms our suppliers source from. The project developed in collaboration with Cargill (see the Sustainable agriculture section) resulted from these engagement activities. In addition to supplier engagement, another approach is to implement third-party sourcing certifications, such as RSPO certification and Bonsucro, where GHG emissions are reduced by complying with the certifications’ stringent environmental standards.

Specifically in Brazil, cane sugar suppliers also produce biofuels and voluntarily have their production process audited under the RenovaBio program (National Biofuels Policy). This program provides a framework for certifying a mill’s efficiency in reducing GHG emissions, which is of strategic importance to the achievement of national decarbonization targets.

In December, Corbion announced the mechanical completion of our new circular lactic acid manufacturing plant in Rayong, Thailand. Lactic acid produced by this first-of-its-kind facility will have the lowest associated carbon footprint compared to any manufacturing technologies currently used. The recycling of processing chemicals eliminates the use of lime, which is a significant contributor to our Scope III GHG emissions.

Water stewardship

Most of the water consumption in Corbion’s value chain is in agriculture (see Sustainable agriculture). In our manufacturing processes, fermentation is the most water-intensive unit operation. A large part of the water used is recovered in the purification process and reused or discharged for wastewater treatment. The net water consumption includes only water evaporation in the cooling towers and water in (by-) products.

In 2023, Corbion launched a comprehensive Water Policy, reaffirming our commitment to sustainable practices. The policy includes assessing risks and opportunities, practicing efficient water management, reducing consumption in water-stressed areas, collaborating on water resource management, promoting sustainable innovation, and providing transparency through reporting.

Corbion uses Aqueduct to assess water risks for our manufacturing sites and suppliers of key agricultural raw materials. Aqueduct is a data platform run by the World Resources Institute, an environmental research organization. Aqueduct comprises tools that help companies, governments, and civil society understand and respond to water risks, such as water stress, variability from season to season, pollution, and water access. Based on the Aqueduct 4.0, the most recent version of WRI’s water risk framework, only one of 13 Corbion sites is classified as a high overall water risk assessment area. This particular site contributes to 0.01% of the total water withdrawal impact. Additionally, some 39% of our water withdrawals come from high-stress areas and 8% from extremely high-stress areas. Within the SBTN corporate engagement program, we are further investigating our impact on water, in both the direct operations and upstream value chain, to prioritize locations for action.

Zero waste

Corbion is committed to responsibly managing the waste generated in our operations. Our waste program focuses on 1) the valorization of by-products; 2) waste reduction, re-use, and recycling; and 3) innovation.

In our lactic acid production process, we generate significant quantities of valuable by-products, such as gypsum. Per metric ton of lactic acid, almost two tons of by-products are produced. The majority of these by-products are valorized, but occasionally they do end up in a landfill. Since implementing a new valorization option for gypsum at our lactic acid plant in the US in 2017, we have increased the recycling of by-products to 98%–99%. In 2023, our site in Montmeló, Spain, received regulatory approval and secured a deal with a nearby company to use one of our by-products as fertilizer for acid soils. At our site in Rayong, Thailand, one of our outlets for gypsum temporarily ceased its operations, which unfortunately required us to landfill part of the gypsum produced at this site. Overall valorization of by-products increased compared to 2022.

The startup of our new circular lactic acid manufacturing plant in Rayong, Thailand eliminates the formation of gypsum as a by-product. This novel method is a result of our innovation program and allows us to expand our production with as little impact on our footprint as currently technologically feasible.

In 2023, landfill of generic waste increased by 3% compared to last year. Our site in Rayong, Thailand had a cleaning activity resulting in a one-time increase of landfilled waste. In 2022, we reduced landfill of generic waste by 44%.

Measuring what matters

Life Cycle Assessment

Life Cycle Assessment (LCA) is a methodology for the systematic and quantitative evaluation of the environmental performance of a product through all stages of its life cycle, from raw material extraction through production, use, and disposal (“cradle-to-grave”). An LCA can be used as a scientific basis to identify improvement opportunities, compare different products, and support decision making in new product and process development. Environmental impacts typically evaluated in an LCA study include greenhouse gas emissions, water use, land use, eutrophication potential, acidification potential, and particulate matter.

Corbion uses Life Cycle Assessments as a tool to understand the “cradle-to-gate” environmental impact of our products, and help our customers improve their environmental footprint, and substantiate their sustainability claims. All Corbion LCAs are peer reviewed according to ISO 14040/44 and ISO 14067 standards.

In 2023, we performed LCAs for specific functional blends produced at our facility in Totowa. With these additional studies, we assessed 79% of our production volume.

The LCAs performed for functional blends demonstrated that the environmental impact of these products is primarily driven by the impact of the raw materials. Performing LCAs for the entire functional blends portfolio therefore does not give us additional insight to improve our performance. From 2024 onwards, we will therefore focus our LCA target on fermentation-derived products manufactured at Corbion, and only assess specific functional blends.

Social Value Assessment

Corbion uses Social Value Assessment (SVA) to understand the social impact of our business activities on our stakeholders throughout our supply chain. In 2017, Corbion joined the Social Value Initiative. Together with the other partners, we developed a methodology for measuring social impacts, available in the Roundtable’s Handbook. The Handbook provides a framework, an overview of data collection tools, and scoring approach to assess social impacts. In 2023, we applied the methodology to our manufacturing facilities in Campos and Orindiúva, Brazil. We assessed the impact of Corbion’s own operations and our supply chain on employees and local communities. The results of these assessments can be found on our website. 70% of our production volume is now covered by an SVA.

Sustainability assessment of innovation projects

To ensure the alignment of our innovation projects with our sustainability ambitions, we assess new product and process development projects against the relevant material themes in our sustainability strategy and their potential contribution to the Sustainable Development Goals (SDGs 2, 3, 12, 13, 14). The assessment is integrated into our innovation stage-gate process and guides the project team on sustainability-related matters. This warrants that sustainability is an integrated part of the product and process design and that potential issues can be tackled early. The assessment includes an evaluation of resource and energy efficiency, chemical safety, and the project’s potential impact on Corbion’s GHG emissions. If a significant negative impact is identified, the project team has to mitigate this within the project. If this is not feasible, R&D is requested to investigate alternative options to reduce the impact elsewhere.

Sustainability assessment at different stages of the innovation funnel