CHT Sustainability Report 2023

REPORTING PERIOD: January 1st to December, 31st 2023
(editorial deadline April 30th, 2024)

REPORTING PERIOD: January 1<sup>st</sup> to december 31<sup>st</sup>, 2022 (editorial deadline April 30th, 2024)

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. In this way we can identify possible health and environmental risks at a very early stage and reduce or in an ideal case remove 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:

A new Global System Partner Agreement was agreed with bluesign® that will come into force at the beginning of 2024. For the first time, this includes not only CHT Germany (auxiliaries) and CHT Switzerland (dyes), but all manufacturing companies of the CHT Group, so that in future products produced locally by the companies can also receive bluesign® certification as part of the Global Product Stewardship.

CERTIFICATION TARGET 2024

CERTIFICATION 2023 AND TARGET 202420232024 TARGET
bluesign®
number of all products bluesign® approved
1668> 1700
Inditex
number of certified products
1611> 1600
ZDHC Gateway number of certified products2461> 2000
GOTS 6.0 since 03/2020 number of certified products873approx. 1000
C2C number of certified products206< 200

* 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.

As a globally operating company for specialty chemicals, product safety is a key element of our company policy. 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 2023

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 % 85 % > 80 % > 80 %
BF Construction & Assembly 76 % 31 % 82 % 93 % > 80 % > 80 %
BF General Industries 53 % 61 % 62 % 69 % > 70 % > 70 %
BF Washing Solutions 73 % 75 % 80 % 86 % > 80 % > 80 %
Total 62 % 65 % 77 % 82 % > 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 implemented uniformly using the criteria listed below. Reclassifications of SVHC substances have made the set target a major challenge for the Business Field General Industries.

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. In 2023, the business share of these products has already fallen below 4 %.

Sustainable innovations

We want to continue to offer our customers innovative and sustainable products and solutions. To this end, our Business Fields are in close contact with our customers in order to better understand their sustainability needs and offer suitable CHT solutions. Many of CHT’s innovation processes and development projects are also initiated from these dialogs.

These processes are managed using the digital tool “CREO”, which was implemented in 2023. CREO increases operational agility and efficiency through a standardized approach for the global research and development departments. Sustainability criteria are mandatory for the evaluation of research and development projects and are implemented in the CREO process.

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