Covestro

Sector

Chemicals

Headquarters

Leverkusen , Germany

Official Website

covestro.com

Wikipedia

Covestro

Brands and Associated Companies

Epurex

Climate Policy Engagement Analysis

Climate Policy Engagement Overview: Covestro appears to support climate change policy globally, with some exceptions regarding specific EU policies. The company seems to be actively and mostly positively engaged on high-level climate policy issues. However, the entities’ engagement with specific climate policies at EU level between 2021-23 is somewhat limited, Covestro taking negative positions on the Carbon Border Adjustment Mechanism (CBAM), Emissions Trading System (ETS). The CEO holds influential positions in several industry associations, including the Federation of German Industries (BDI), the German Chemical Industry Association (VCI), and the European Chemical Industry Council (CEFIC).

Top-line Messaging on Climate Policy: Covestro has expressed general high-level support for climate policy ambitions in its top-level messaging, with a few exceptions. On its corporate website, accessed in November 2022, the company supported GHG emissions reductions in line with 1.5°C target. In its 2021 Annual Report, published in March 2022, the entity expressed support for a climate neutral global economy by 2050 as well as the Paris Agreement. However, in a December 2022 social media post, the entity emphasized that climate policy should not put industry under more pressure and in September 2021, CEO Markus Steilemann advocated against governments regulating industry on climate matters.

Engagement with Climate-Related Regulations: In its limited engagement on specific European and German climate policies, Covestro has engaged mostly supportive yet with some exceptions in 2021-23. In an open letter signed by energy intensive industries in June 2022, Covestro advocated against the EU Parliament Environment Committee’s proposal to increase ambition of the EU's Carbon Border Adjustment Mechanism and the EU Emissions Trading System reform, stressing risks of carbon leakage. However, in its 2021 CDP Climate Change Disclosure, Covestro stated support for increasing energy efficiency in buildings in Europe and for increasing renovation rates. In a December 2021 interview, Covestro CEO Markus Steilemann advocated for the German government to expand renewable energies rapidly, criticizing the slow speed in the past. Furthermore, the CEO called for] a 50% GHG reduction target in the United States by 2030 in an April 2021 interview.

Positioning on Energy Transition: Covestro appears to take generally supportive positions on the energy transition, with minor exceptions. In a June 2022 press release, the company supported switching from fossil energy sources to renewables, alongside the electrification of sectors like transport and buildings. Furthermore, in May 2022, the CEO advocated for a phase out of fossil fuels in Europe, in response to reducing dependency on Russian fossil fuels, and in March 2022 he advocated for the chemical industry to phase out carbon made from fossil fuels and a shift towards alternative feedstocks. The company supports the use of green hydrogen in the transformation of the chemical sector, as stated in a January 2022 press release. However, in a social media post in January 2023, Covestro supported new fossil gas infrastructure in Germany.

Industry Association Governance: Covestro has disclosed only limited information on some of its trade association engagement in its 2021 annual report. It has not published a review of its indirect engagement. The company has not published a dedicated review of its industry association memberships. Covestro holds board-level membership of a number of trade associations, including the European Chemical Industry Council (Cefic), the German Chemical Industry Association (VCI), and the Federation of German Industries (BDI), all of which take unsupportive positions on ambitious climate change policy in the EU and Germany respectively. In addition, Covestro is a member of the strategically negatively engaged German Association of the Automotive Industry (VDA).

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InfluenceMap Score for Climate Policy Engagement

C-

Performance Band

58%

Organization Score

55%

Relationship Score

31%

Engagement Intensity

Primary Evidence

All primary evidence used to inform the analysis of Covestro can be found in the two tabs below below. In the first tab, hyperlinks in each cell of the matrix provide access to evidence collected on Covestro's direct policy engagement activities. The second tab provides a record of any links between Covestro and the Industry Associations stored in the LobbyMap database.

DATA SOURCES
QUERIES
Main Web Site

Main Web Site

Corporate Media

Corporate Media

CDP Responses

CDP Responses

Direct Consultation with Governments

Direct Consultation with Governments

Media Reports

Media Reports

CEO Messaging

CEO Messaging

Financial Disclosures

Financial Disclosures

Communication of Climate Science

2NSNSNS0NSNS

Alignment with IPCC on Climate Action

21NS121NS

Supporting the Need for Regulations

NS0NS00-1NS

Support of UN Climate Process

1NSNS121NS

Transparency on Legislation

-1NA1NANANANS

Carbon Tax

NSNSNSNS-10NS

Emissions Trading

NSNSNSNSNS-1NS

Energy and Resource Efficiency

0020NS0NS

Renewable Energy

NSNSNS-1NS1NS

Energy Transition & Zero Carbon Technologies

101011NS

GHG Emission Regulation

NSNSNS1NS2NS

Disclosure on Relationships

-1NS1NANANANS

Land Use

NSNSNSNSNSNSNS