MASHINIi

COVESTRO AG.

1COV.XETRA | Manufacture of plastics and synthetic rubber in primary forms

Covestro AG is a leading global manufacturer of high-performance polymers and develops solutions for products found in many areas of modern life. Its products include polyurethanes and polycarbonates, as well as raw materials for coatings, adhesives, and specialties. Covestro's materials are used in...Show More

Ethical Profile

Mixed.

Covestro AG faces scrutiny over a January 2025 data breach. Critics also point to a 6.0% unadjusted gender pay gap. However, the company demonstrates strong ethical commitments: 68% of employees are covered by collective bargaining, and zero substantiated child or forced labor incidents were reported in 2024. Covestro aims for climate neutrality in Scope 1 and 2 emissions by 2035, with 4 US sites powered by 100% renewables since 2025. Its Aquair product line is 100% vegan certified. The company was fined 600,000 euros by BaFin in 2020 for a reporting lapse. Despite 2023 emissions of 20.86 million metric tons CO₂e, Covestro's EcoVadis score is in the top 10% of the chemical industry.

Value Scores

Better Health for All-30
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect20
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-10
-100100
Kind to Animals-40
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-50
-100100
Respect for Cultures & Communities10
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

-30

Covestro's operations involve the use of hazardous substances, generation of hazardous waste, and emission of wastewater and air pollutants, which are subject to extensive environmental, health, and safety (EHS) laws and regulations.

1
The company aims to reduce emissions and waste and increase energy efficiency.
2
Additionally, Covestro is expanding its low-carbon footprint medical polycarbonate portfolio, utilizing bio-waste, renewable electricity, and recycled materials to reduce its CO2 footprint.
3

Fair Money & Economic Opportunity

0

Covestro AG is a polymer manufacturer and does not offer lending or deposit services to consumers, nor does it operate as a financial institution. Therefore, most KPIs related to financial services, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility, fair lending compliance, profit reinvestment, financial literacy initiatives, debt burden ratio, geographic inclusion, and product simplicity, are not applicable and score 0. While the company's inclusive business initiatives aim to improve living conditions and farmer revenue,

1
the rubric for 'wealth_building_outcome' is based on a percentage of 'users' or 'customers' showing credit-score rise or savings growth, which cannot be quantified for Covestro's indirect beneficiaries in the context of its core business.

Fair Pay & Worker Respect

20

In 2024, 92% of employees were considered in the living wage analysis.

1
The CEO to median employee pay ratio was 58.9 in 2024.
2
Collective bargaining agreements covered 66% of employees in 2024.
3
The company reported a Recordable Occupational Injury Rate (TRIR) of 0.91 per 200,000 hours in 2024.
4
The unadjusted gender pay gap was 6.0% in 2024, meaning women earned 94% of men's pay.
5
The Employee Net Promoter Score (eNPS) was 39 in 2024.
6
The voluntary employee turnover rate was 11% in 2024.
7
There were zero substantiated incidents of child labor or forced labor reported in 2024, and no confirmed human rights violations through the grievance mechanism in 2023.
8
In 2023, 47 employees were on temporary contracts.
9

Fair Trade & Ethical Sourcing

0

Covestro reported no substantiated forced or child labor findings in its 2024 and 2022 supply chain assessments.

1
The company utilizes strong supplier monitoring systems, including online assessments by EcoVadis and on-site audits by external, independent auditors, and is a member of the Together for Sustainability (TfS) initiative.
2

Honest & Fair Business

-10

Covestro received an EcoVadis score of 71/100 in February 2025, placing it in the top 10% of the chemical industry.

1
The company has a comprehensive whistleblower policy, including a global SpeakUp! line (hotline and online tool) that allows for anonymous reporting and is operated by external service providers.
2
The policy explicitly prohibits retaliation against whistleblowers and implements EU Directive 2019/1937.
3
Covestro's Corporate Compliance Policy, effective since September 2015 and revised in 2023 for a 2024 rollout, outlines a strong commitment against corruption, prohibiting unlawful influence, bribes, and facilitation payments, with risk-based controls in place.
4
The company is a founding member of the United Nations Global Compact, which includes anti-corruption principles.
5

Kind to Animals

-40

Covestro uses animal studies for product safety when required by registration processes in the European Union, the United States, and China.

1
The company strives to minimize animal testing and has internal guidelines requiring research institutions and facilities to adhere to its animal welfare policies, committing to compliance during toxicological and ecotoxicological testing.
2
Covestro collaborates with Beyond Leather, which uses apple waste to make a 100% animal-free leather alternative (LEAP®).
3

No War, No Weapons

0

No evidence available to assess COVESTRO AG on No War, No Weapons.

Planet-Friendly Business

-50

As of the end of 2023, 16% of Covestro's global energy demand was covered by renewable sources, an increase from 12% in 2022.

1
The company aims for climate neutrality for Scope 1 and 2 emissions by 2035, and for Scope 3 emissions by 2050.
2
Covestro has not reported any environmental compliance violations.
3
The company mentions that some suppliers have Scope 1 and 2 targets, but no specific percentage of key suppliers with SBTi-aligned targets is provided.
4

Respect for Cultures & Communities

10

Covestro has 13 formal partnerships with community groups, including the UN Global Compact, Together for Sustainability (TfS), Greenlight for Girls, and Katalyst.

1
The company provides a global compliance SpeakUp! line, a whistleblower system with a hotline and online tool, and an email address (humanrights@covestro.com) for reporting human rights violations, available to employees and third parties.
2
Reports are acknowledged within 7 days.
3
However, the average time to resolve community complaints is not specified, with investigations varying in duration based on severity and complexity.
4
Confirmed violations lead to organizational, disciplinary, or legal measures, and the person making a report is notified of its outcome.
5
Covestro's TfS Academy offers courses in several languages, and its Policy Booklet is available in English and German.
6
All new employees are required to complete general compliance training, but specific cultural sensitivity training completion rates are not provided.
7

Safe & Smart Tech

0

Covestro experienced a data breach on January 24, 2025, but no details regarding its scope or impact were provided.

1
The company states that security is considered in system and software development, referring to this as "security by design."
2
Covestro conducts global campaigns and mandatory web-based training on topics like phishing and secure web use, with employees reporting a triple-digit number of suspicious emails monthly.
3
The company's privacy statement indicates compliance with the EU General Data Protection Regulation (GDPR).
4

Zero Waste & Sustainable Products

-30

Covestro reported a waste diversion rate of 78% in 2023.

1
The company generated 252,000 metric tons of waste in 2023, with 198,000 metric tons treated in recovery processes, including 78,000 metric tons recycled and 120,000 metric tons thermally recycled.
2
The company conducts annual waste reporting.
3
Covestro aims for a complete transition to regenerative production and business models, and minimizing its fossil footprint, but specific quantitative waste reduction targets with timelines are not provided.
4
The company has over 20 projects in research and development for recycling technologies, including the 'Circular Foam' project which aims for significant waste savings.
5
Covestro uses ISCC PLUS-certified raw materials and intermediates and relies on suppliers to provide detailed information on the environmental impact of their products.
6

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.