CHT Sustainability Report 2022

REPORTING PERIOD: JANUARY 1st TO DECEMBER 31st, 2022
(EDITORIAL DEADLINE MAY 31st, 2023)

REPORTING PERIOD: January 1<sup>st</sup> to december 31<sup>st</sup>, 2022 (editorial deadline may 31<sup>st</sup>, 2023)

Society

Product responsibility

Responsibility within the value chain

We check our products throughout their path along the value chain, from development through the production process to application at the customer’s site. This enables us to identify potential health and environmental risks at an early stage, reduce them, and ideally avoid them.

As part of our product responsibility, we work together with our suppliers, customers, independent research institutes and associations to continually improve the performance and sustainability of our products along the entire value chain.

Supported standards and quality labels

The major share of our products already comply with the requirements of the following quality labels:

In addition, we also test the suitability of our products for other established quality labels and standards and have them evaluated and certified depending on their relevance for the respective application. Examples among others are:

CERTIFICATION TARGET 2023

CERTIFICATION TARGET 202320222023 TARGET
bluesign®
number of all products bluesign® approved
1743> 1800
Inditex
number of certified products
1771> 1800
ZDHC Gateway number of certified products2430> 2500
GOTS 6.0 since 03/2020 number of certified products870870
C2C number of certified products206206
Reach® European chemistry standard number of certified products15> 1680*

* total number of REACH-registered substances

Moreover, we are checking additional established quality labels and certifications. As a chemical company taking our responsibility seriously, we actively contribute to practical, target-oriented sustainability initiatives wherever it is possible to improve the protection of humans and the environment.

Focus on product safety

As a globally operating company for specialty chemicals, product safety is a key element of our product responsibility. Our production processes and the articles manufactured in the process meet the highest standards in terms of process and occupational safety. In addition to high standards in process and work safety, our comprehensive product information and the avoidance of potentially critical substances are among the main aspects of our product range.

Uniform principles. No risks.

Complying with international laws and chemical regulations is a fundamental obligation for us. We operate within the guidelines of global requirements and specifications, taking up initiatives for responsible action and sustainability that the chemical industry has set itself. As an international group, we always consider our activities on a global scale: All over the world, we refrain from using products with AEEA and APEO although these substances are still permitted in some countries.

REACH

As a company with headquarters in the EU, we support its initiatives for chemicals legislation. We are actively supporting developments related to the European Green Deal and the transition to a modern, resource-efficient, and competitive economy. In this context, we are participating in the implementation of the REACH regulation and the development of the Chemicals Strategy For Sustainability together with other European chemical companies, the European Chemicals Agency (ECHA) and our customers. In addition to registering new substances and updating existing REACH dossiers, we as a company are closely monitoring the more far-reaching REACH developments regarding substance evaluation (CoRAP process and SVHC candidate list) in an ongoing process that also aligns our corporate strategy.

In connection with the objectives of the EU’s “Green Deal”, the topic of “sustainability of materials and processes” will become even more important in our company in the future.

Sustainable products 2022

Products and process solutions contributing to a sustainable development are an integral part of our product range. Our declared aim is to continuously increase the share of sustainable products within our offer and in sales.

SHARE OF SUSTAINABLE PRODUCTS OF ALL SALES 2020 – 2025 (CHT GROUP)

Business Field 2020 2021 2022* 2023* 2024* 2025*
BF Textile 67 % 70 % 83 % > 80 % > 80 % > 80 %
BF Construction & Assembly 76 % 31 % 82 % > 80 % > 80 % > 80 %
BF General Industries 53 % 61 % 62 % > 62 % > 70 % > 70 %
BF Washing Solutions 73 % 75 % 80 % > 80 % > 80 % > 80 %
Total 62 % 65 % 77 % > 75 % > 80 % > 80 %

As part of “Strategy 2025”, portfolio management based on the sustainability performance of CHT products takes on a more significant role within the entire CHT Group.

In our “Strategy 2025”, we have set ourselves the goal of achieving an 80 % share of sales with Eco Range products by 2025. In 2021, the sustainability assessment for the entire product range had been carried out uniformly using the criteria listed below, and a 65 % share of sales was achieved with sustainable products. Reclassifications of SVHC substances and CoRAP listings have made this goal a major challenge.

Uniform criteria for the Eco Ranges:

Ecological criteria, e.g.

Sustainability performance in customer process, e.g.

Sustainability performance in manufacturing process, e.g.

We intend to increase sales of our ECO Range products furthermore to a share of 80 % by 2025. The focus of activities will be on the global ECO Top Core Ranges, supplemented by locally developed or adapted ECO Performer Ranges. The same sustainability criteria apply to both Ranges. TECHNO BEST comprises the range of products that do not meet the CHT Group’s strict sustainability criteria but are state-of-the-art and cannot currently be replaced either technologically or in terms of their performance. In the case of the TECHNO BEST products, the challenges under which the products can become sustainable have been identified and development projects have already been initiated in some cases. The PHASE OUT range is expected to be nearly eliminated by 2025. As the business share of these products has already fallen below 10 %, a two-step process will be started in 2023 to eliminate > 80 % of the PHASE OUT products.

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