Sustainable Portfolio Management In brief

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Sabrina Ellis
6 years ago
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1 Sustainable Portfolio Management In brief

2 AGENDA MORE Business Solutions SPM Overview More Solutions for a better Business SPM Methodology In a nutshell Key decisions-making tool For better business performance Solvay s Ambition A tool to create more future 2

SPM OVERVIEW MORE Solutions for a better business A global and systematic assessment tool A compass to improve business performance Create more value for your business 3 SPM is a fact based and

3 SPM OVERVIEW MORE Solutions for a better business A global and systematic assessment tool A compass to improve business performance Create more value for your business 3 SPM is a fact based and robust compass to steer Solvay s portfolio toward better business because more sustainable. Alert the business to sustainability market signals, even weak ones Anticipate their impact Develop the right answers in timely way Capture value in emerging ecosystems Grow portfolio by levering on opportunities & turning challenges into solutions SPM is designed to Engage our customers in a common journey toward more sustainable solutions Boost Solvay s business performance and deliver higher growth.

SPM METHODOLOGY In a nutshell The SPM gives dynamic vision of product s

Decision-makers are informed on the contribution of Solvay s products

environmental manufacturing footprint and its correlated risks and

turnover analyzed 33% 8% Quantitative assessment by 19 impact

applications they bring benefits or faces challenges in a market

4 SPM METHODOLOGY In a nutshell The SPM gives dynamic vision of product s sustainability risks and opportunities in their business environment. Decision-makers are informed on the contribution of Solvay s products to sustainability considering both: % of 2015 Group sales Their environmental manufacturing footprint and its correlated risks and opportunities Operations vulnerability Vertical axis 43% 84 % of Solvay turnover analyzed 33% 8% Quantitative assessment by 19 impact indicators Market alignment to sustainability criteria How in their applications they bring benefits or faces challenges in a market perspective Horizontal axe 4 Qualitative assessment by 60 questions on social and environmental topics

KEY DECISIONS-MAKING TOOL For BETTER business performance Measuring sustainability in business terms Correlation between Solutions and er business growth SPM category: Solutions

At Solvay, the SPM tool is the compulsory analytical tool to be applied before decisions are made in Strategy, Research & Innovation (R&I), Marketing & Sales, Capital Expenditure

5 KEY DECISIONS-MAKING TOOL For BETTER business performance Measuring sustainability in business terms Correlation between Solutions and er business growth SPM category: Solutions (unmet needs to achieve higher social or environmental standards) shows an annual growth rate of +9% Challenges (sustainability concerns or roadblocks) ends up at -3%. At Solvay, the SPM tool is the compulsory analytical tool to be applied before decisions are made in Strategy, Research & Innovation (R&I), Marketing & Sales, Capital Expenditure (CAPEX) and as an element of due diligence in Mergers and Acquisitions (M&As) % of 2015 Group sales +9% Operations vulnerability 0% +3% -3% 16% not evaluated 100% Market alignment to sustainability criteria 5

6 SOLVAY S AMBITION A tool to create MORE future OBJECTIVES BY reference year Within Solvay, Global Business Units (GBUs) are accountable for delivering the ambitious Group target for sustainable business performance: By 2025, realize 1 of revenue out of every 2 in sustainable solutions. SOCIETAL ACTIONS X2 Contribute to Society Employees involved in societal actions Innovate Sustainable solutions Lightness Sustainable energy Ecofriendly materials Air and water care Smart and efficient processes SPM Act Responsibly Operating responsibly PEOPLE ENGAGEMENT % Share of sustainable solutions in the Group portfolio Empowering people CO2 SAFETY 80% -40% -50% Employee engagement index Reduction of carbon intensity of occupational accidents with MTAR target < 0.50

8 SPM METHODOLOGY Scope Operations Vulnerability (vertical axis) Market Alignment (horizontal axis)) 8

SPM HEAT MAP Identify systematic way sustainable topics at portfolio and customer levels Operations Vulnerability Auto Light weighting Neutral To Improve Reduce C02 emission

9 SPM HEAT MAP Identify systematic way sustainable topics at portfolio and customer levels Operations Vulnerability Auto Light weighting Neutral To Improve Reduce C02 emission Challenge To Solution Alternative to toxic product Increase crop yield Solutions To Leverage Pulp & Paper Ecolabel Green Forestry Bpa free epoxy 9 Market alignment to sustainability criteria

SPM SOLVAY S AMBITION A tool to create MORE future % 50 Share sustainable solutions in the Group portfolio

Resource Efficiency (17%) Safety & Prevention (14%) Very low environmental manufacturing 50% Operations

Market Alignment 16% Not Evaluated 10 footprint (13%) Human Toxicity (7%) Environment Toxicity (4%)

10 SPM SOLVAY S AMBITION A tool to create MORE future % 50 Share sustainable solutions in the Group portfolio SUSTAINABLE PORTFOLIO MANAGEMENT Solvay Solutions (in % of net sales) 2016 Climate Change (28%) 2025 Resource Efficiency (17%) Safety & Prevention (14%) Very low environmental manufacturing 50% Operations vulnerability 43% Sustainable solutions 33% Example: Composites Neutral impact 8% Challenged applications Market Alignment 16% Not Evaluated 10 footprint (13%) Human Toxicity (7%) Environment Toxicity (4%) Reducing the weight of a passenger car by 1 kg represents 10 kg CO2 equ. saved during its full life time (Climate Change benefits)

Business Leaders Detailed explanations for Practitioners Presentation of SPM

11 MORE BUSINESS SOLUTIONS Launch of a simple & digitalized SPM Guide SPM 50% Share sustainable solutions in the Group portfolio Executive summary for Business Leaders Detailed explanations for Practitioners Presentation of SPM Fast Track (simplification) 3 precise Business Cases Glossary and Q&A Click here 11

Sustainable Portfolio Management (SPM) Monetization of environmental impacts. Alain Wathelet

Sustainable Portfolio Management (SPM) Monetization of environmental impacts Alain Wathelet AGENDA Business Solutions Solvay s Ambition SPM steering portfolio toward Business Solutions Sustainable Portfolio