About Covestro
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. The company supplies customers around the world in key industries such as mobility, building and living, as well as the electronics sector. Beyond these pivotal industries, Covestro's polymers find applications in areas as varied as sports, leisure, cosmetics, health, and within the chemical industry.
Covestro has made sustainability a core pillar of its business strategy. With a commitment to advancing sustainable solutions, Covestro aims to reduce its carbon footprint, minimize waste generation, and promote circular economy principles throughout its operations. Covestro is committed to becoming fully circular. In addition, Covestro aims to achieve climate neutrality for its scope 1 and scope 2 emissions by 2035, and the Group’s scope 3 emissions are also set to be climate neutral by 2050. Covestro is actively investing in research and development focusing on innovative and circular products that address environmental challenges while also driving economic growth. Consequently, proactively managing the environmental footprint of its entire product portfolio is of utmost importance.
Key Facts
Revenue [2023] | €14.4 billion |
Employees [2023] | 17,500 |
Production sites worldwide [2023] | 48 |
GHG emissions [Measured by CO2-equivalents - Scope 1 & 2] | 4.9 mn. tons |
Motivation for partnering with AllocNow
The demand for sustainable products is surging across industries, and Covestro recognizes its environmental responsibility. As customers demand more and more eco-conscious solutions, not only innovation in products and production methods is needed, but also comprehensive Life Cycle Assessments (LCAs) across the diverse portfolio of products are crucial in communicating transparently on Covestro’s commitment.
Beyond meeting customer expectations, these LCAs represent a strategic cornerstone for stewarding product development and optimization of production processes, in line with Covestro's ambitious sustainability goals. A manual Product Carbon Footprint (PCF) calculation methodology was developed to respond to the immediate needs, but providing transparent, and continuously updated LCA information for the entire Covestro product portfolio, including all intermediate products, required a robust, scalable, and more sophisticated solution: an innovative platform that can handle the inherent complexities and scale of the highly integrated chemical value chains that underlay Covestro products. To achieve this goal, the collaboration with AllocNow has revealed a strategic success.
Leveraging AllocNow Product Sustainability Platform
Seamlessly integrated with Covestro’s cloud infrastructure and data landscape, AllocNow Product Sustainability Platform (PSP) takes Covestro’s commitment to sustainability to the next level. PSP automates the entire LCA process, from the meticulous collection of data from multiple data sources to a comprehensive value chain analysis, to meaningful and accurate reporting.
By drawing on the standard set out by Together for Sustainability (TfS), PSP ensures not only accuracy and reliability of Covestro's LCAs, but also compliance with global environmental standards and guidelines.
Uniquely designed to handle the intricate complexities of Covestro's vast product portfolio and global production sites, PSP embodies the vision for transparency and efficiency in delivering sustainability information. PCF values, among other LCA impact categories, are now at the push of a button available for most Covestro products, thus establishing a new benchmark within the chemical industry.
"AllocNow understands our specific needs as a chemical company. They bring an innovative and scalable solution which allows us as an organization to focus on what really matters – driving sustainability and circularity rather than manually calculating LCAs." Birgit Himmelreich, Head of LCA
The effort allowed Covestro to be among the first German chemical companies to obtain certification according to standards ISO 14040/ISO 14044 and ISO 14067, alongside compliance with the TfS PCF-Guideline for a fully automated methodology that includes several LCA impact categories.
TÜV Rheinland Energy GmbH, acting as an independent third-party auditor, led the certification process and approved procedure, approach, and general methodology.
View certificate on certipedia.com: ID No. 0000085252: Covestro Deutschland AG
Continued Collaboration and Future Outlook
The impact of PSP extends beyond mere compliance. It empowers Covestro to understand the individual impact of each step of its complex internal value chain to LCA categories such as climate change (excluding/including biogenic carbon), resource depletion (fossil), acidification potential, eutrophication potential, and photochemical ozone creation potential.
Covestro and AllocNow remain committed to further developing the platform by adding features and functions. Together, Covestro and AllocNow drive innovation and sustainability as leader in the global chemical industry.