Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Lanxess appears to be actively engaged on climate change, with some supportive positions but major negative exceptions. While the company’s top-line messaging is mostly positive with a few exceptions, its engagement with specific climate policies is primarily negative and mainly focuses on the EU Emissions Trading System (EU ETS) and Carbon Border Adjustment Mechanism (CBAM), as well as the energy transition in Germany.
Top-line Messaging on Climate Policy: Lanxess seems to take a positive stance in its top-line messaging on climate policy, with exceptions around the need for climate legislation. The company stated on its corporate website, accessed in November 2022, that it supports limiting global warming to under 2°C and its CEO Matthias Zachert signed an open letter in June 2022, broadly supporting the EU Green Deal. However, in an August 2022 news article on its corporate website, Lanxess referred to the EU Green Deal as a “regulatory tsunami”, suggesting that its scope is too ambitious. In its Corporate Responsibility Brochure published in May 2022, the company stated support for the UN climate targets.
Engagement with Climate-Related Regulations: In 2021-22, InfluenceMap detected limited but largely negative engagement with specific climate policies in the EU and Germany. On its corporate website accessed in August 2022, the company did not support the inclusion of the chemical sector in the EU’s Carbon Border Adjustment Mechanism without including export rebates. Lanxess CEO Matthias Zachert signed a June 2022 open letter not supporting the EU Parliament Environment Committee proposal to increase the ambition of the EU Emissions Trading System reform, stressing the risks of carbon leakage. In its 2021 CDP Climate Change Information Request, Lanxess supported energy efficiency targets with minor exceptions, emphasizing it needs to allow for economic growth for EU industry. In Germany, Lanxess advocated for the abolishment of the renewable energy levy (EEG) according to the company’s corporate website accessed in May 2022.
Positioning on Energy Transition: Lanxess appears to be mainly negatively engaged on the energy transition, with a focus on Germany. In a company article in October 2022, the company stated that in light of the energy crisis, the planned shut down of the last German coal plants should be reconsidered. In July 2022, Lanxess also advocated for new LNG infrastructure in Germany on its corporate website. However, in a September 2022 tweet, the company supported the transition to a low carbon economy through green hydrogen.
Industry Association Governance: Lanxess does not appear to have published a detailed list of all of its industry association memberships. However, the company published a ‘Political activities in 2021’ disclosure on its website, accessed in November 2022, in which the biggest contributions to industry associations are listed. It did not disclose further details of the company's role within each organization's governing bodies, nor their climate change policy positions. Lanxess has not published a review of its alignment with industry associations. The company maintains board positions in the European Chemical Industry Council (CEFIC) and the Verband der Chemischen Industry (VCI, both of which are negatively engaged on climate policy in the EU and Germany.