Clariant

Overall approach

2/10
- Overarching commitment on deforestation
  
  0/4
  
  Overall commitment
  
  Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
  
  0/4
  
  Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
  
  Which commodities does the commodity-specific commitment apply to?: Palm oil
  
  !In December 2021, Clariant published its Global Policy on Sustainable Palm Oil, which sets forth commitments for the sourcing of sustainable palm oil, i.e., transitioning to source 100 % certified palm-based materials according to the Roundtable on Sustainable Palm Oil (RSPO) certification or equivalent. The policy also focuses on supplier requirements such as compliance with the No Deforestation, No Peat, No Exploitation (NDPE) approach. Achieving the commitments is facilitated largely by increased transparency in the value chain, which Clariant encourages actors along the value chain to pursue. Through the RSPO Mass Balance allocation system, Clariant currently draws more sustainable palm products on the market. Its ultimate goal is to shift all palm-related purchases to sustainable alternatives.!
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  "Muttenz, July 31, 2013 – Clariant, a world leader in specialty chemicals, today announced that it has signed the declaration of membership of the UN Global Compact."
  
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "By using bio-based chemical products the industry has the potential to reduce the dependence on fossil feedstock and to help substantially reduce greenhouse gas emissions thus mitigating climate change, protecting the environment, decreasing the pressure on the planet’s resources, and securing energy supply. Palm (kernel) oil and derivatives play an important role as a raw material for bio-based chemical products. However, the increased use of palm oilbased raw materials opens discussions on deforestation, loss of biodiversity and competition with food usage. [...] No Deforestation – No production, sourcing or financial investments that cause or contribute to deforestation or loss of natural forest as a result of conversion to agriculture or other non-forest land use; conversion to tree plantation; or severe and sustained degradation. Deforestation-free is synonymous with zero net deforestation or no gross deforestation, as defined by the Accountability Framework Initiative"
  
  Open source document
- Deforestation as a business risk
  
  0/1
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/1
- Reporting on emissions from land-use change
  
  0/1
- Disclosure of conservation activity
- Disclosure of reforestation activity
  
  Reforestation disclosure
  
  Yes
  
  0/0
  
  How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 2.15 HA
  
  "In 2019 we began a partnership with WeForest, a Belgium-based non-profit organization, which works with communities, local organizations and NGOs to develop scalable reforestation projects in several continents. With Clariant’s donation, WeForest is growing nearly 4 300 trees in cooperation with local communities in the Pontal do Paranapanema region in the western São Paulo state of Brazil. The restoration of 2,15 hectares of forest is having a positive impact on surrounding hectares too, by increasing biodiversity, improving soil health, and restoring water cycles, for example. Additionally, the trees are estimated to absorb around 681 tons of carbon dioxide over 30 years (the tree growth time), helping to combat climate change."
  
  Open source document
- Target to reduce emissions in scope 1/2
  
  Reduce emissions
  
  Yes
  
  0/0
  
  Is this target aligned with/verified by SBTi?: Yes
  
  Type of climate target: Other or unclear
  
  What is the target date for the company to achieve their climate target?: 2030
  
  "Reduction of Scope 1, 2, and 3 emissions Clariant’s ambitious climate targets provide for absolute reductions of its Scope 1, 2, and 3 emissions. With 2019 as the base year, the company aims to reduce Scope 1 and 2 emissions by 40 % and Scope 3 emissions from purchased goods and services by 14 % by 2030. These targets are approved by the Science-Based Target initiative (SBTi). "
  
  Open source document
Commodity score

21/90
- Palm oil
  
  30/90
  - Commitment Strength
    
    7/17
    - Commodity-specific deforestation commitment
      
      3/4
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "By 2025, Clariant targets to transition to the sourcing of 100% RSPO (or equivalent) certified palm-based materials, as far as commercially available on the market. We strive to source exclusively from suppliers compliant with No Deforestation, No Peat, No Exploitation (NDPE) policies."
        
        Open source document
      - Target date
        2025
        
        0.8/1
        
        Target date
        
        2025
        
        0.8/1
        
        What actions or steps are identified for time-bound implementation?: RSPO Certification
        
        "By 2025, Clariant targets to transition to the sourcing of 100% RSPO (or equivalent) certified palm-based materials, as far as commercially available on the market. We strive to source exclusively from suppliers compliant with No Deforestation, No Peat, No Exploitation (NDPE) policies."
        
        Open source document
      - Interim target date
        No
        
        0/0.5
        
        Interim target date
        
        No
        
        0/0.5
        
        What date is given for the interim milestone?: NA
        
        "By 2025, Clariant targets to transition to the sourcing of 100% RSPO (or equivalent) certified palm-based materials, as far as commercially available on the market. We strive to source exclusively from suppliers compliant with No Deforestation, No Peat, No Exploitation (NDPE) policies."
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
        
        Commitment to a traceable supply chain
        
        No traceability commitment
        
        0/4
        
        When was this commitment set?: NA
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    8/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association
      
      "Clariant strives throughout all its operations and activities to comply with laws, regulations, and ethical standards at all times; in particular Clariant recognizes the principles concerning the fundamental rights of work stipulated by the International Labor Organization (ILO): – freedom of association and the right to collective bargaining; – no forced labor; – no child labor; – no discrimination"
      
      Open source document
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      2/2
      
      Inclusion of small-scale farmers
      
      Yes
      
      2/2
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 500+
      
      "In line with the Roundtable on Sustainable Palm Oil (RSPO), we require the following from our suppliers: Inclusion of independent palm oil smallholders in the global supply chain, by promoting greater access to market and fair prices."[...]"SUSTAINABLE PALM OIL AND TRACEABILITY WITH SABAH SMALL PRODUCERS (SPOTS®)Sabah smallholders 500 smallholders in Sabah (Malaysia) are part of the SPOTS® Initiative, which enables them to produce RSPO-certified palm oil while securing their standard of living."
      
      Open source document
      Open source document
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Non-discrimination – suppliers shall not tolerate any discrimination on the ground of race, social or ethnic background, nationality, age, religion, gender, sexual orientation, political opinion or disability"
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to test Free, Prior and Informed Consent
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      Commitment to test Free, Prior and Informed Consent
      
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      "In line with the Roundtable on Sustainable Palm Oil (RSPO), we require the following from our suppliers: Respect of indigenous people rights including the application of the “Free, Prior Informed Consent” (FPIC)7 principle."
      
      Open source document
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    16/56
    - Reporting proportion of compliant volumes
      
      0/0
    - Reporting is independently verified
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      "Clariant acknowledges its role as a value chain player and the associated responsibilities that arise from it. To address these challenges, Clariant commits to the sustainable sourcing of palm oil, palm kernel oil and its derivatives and to collaborating with our suppliers to increase the transparency in the palm oil value chain supporting a value chain transformation. [...] To achieve our long-term vision of a sustainable palm oil industry committed to NDPE principles, Clariant1 strives to: [...] contribute to several scientific, technical and industrial bodies, e.g. as member of the Action for Sustainable Derivatives (ASD) and the Roundtable on Sustainable Palm Oil (RSPO), and support the development of relevant public-private partnerships in this field to increase the inclusion of small holders in the value chain and support a positive impact on social wellbeing by reducing human rights risks in the labor force of small holders [...] grow the certified products market share together with our value chain partners"
      
      Open source document
    - Deforestation cut off date
      Yes, for partial sourcing regions/operations
      
      1/2
      
      Deforestation cut off date
      
      Yes, for partial sourcing regions/operations
      
      1/2
      
      What cut-off date is specified?: 2018
      
      "Requirements for Clariant’s suppliers In line with the Roundtable on Sustainable Palm Oil (RSPO), we require the following from our suppliers: [...] No development, conversion, nor degradation, of High Carbon Stock (HCS) or High Conservation Value Areas (HCVA) as defined by the High Carbon Stock Approach (HCSA)4 – in compliance with the cut-off date of November 2018 set by the RSPO Principles & Criteria 5 (recognizing that companies which have publicly committed to anterior cut-off dates should abide by these)."
      
      Open source document
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise; Providing financial support
      
      What initiatives does the company participate in?: SPOT
      
      "Our commitments To achieve our long-term vision of a sustainable palm oil industry committed to NDPE principles, Clariant1 strives to: [..] contribute to several scientific, technical and industrial bodies, e.g. as member of the Action for Sustainable Derivatives (ASD) and the Roundtable on Sustainable Palm Oil (RSPO), and support the development of relevant public-private partnerships in this field to increase the inclusion of small holders in the value chain and support a positive impact on social wellbeing by reducing human rights risks in the labor force of small holders [...] participate in on the ground projects (such as project SPOTS2) and foster new partnerships" [...] "Conscious that some agricultural commodities like palm may lead to deforestation, L’Oréal and its suppliers Wilmar, Clariant and Global Amines have committed to implementing specific action plans with regard to the sustainable sourcing of palm oil and palm-based derivatives by working on the transparency of their supply chains and supporting independent smallholders to improve their quality of life. The SPOTS project was created with the goal to integrate small Malaysian producers within the global supply chains as a means of promoting traceability, certification and sustainability."”
      
      Open source document
      Open source document
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes, and published details of any grievances within the last two years (2019-2021)
      
      4/4
      
      Accessible grievance mechanism
      
      Yes, and published details of any grievances within the last two years (2019-2021)
      
      4/4
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      Clariant Integrity Line In addition, employees and business partners can confidentially report malpractices, violations of the Code of Ethics, and workplace-related compliance issues through the »Clariant Integrity Line.« Reports are anonymous and can be made 24/7 via an easyto-use online portal. Clariant increased its focus on ways to speak up as part of the Code of Ethics launch campaign in 2021 with an employee survey, senior management discussions, and an ethics journal. The Code of Ethics even includes a nonretaliation commitment to foster the company’s speak-up culture. The Integrity Line will be adapted to upcoming legal requirements on whistleblower protection and data privacy laws in the future. In 2021, Clariant received 13 questions and 82 reports through its Integrity Line. One case can relate to several issue types. Of the reports, 23 were related to business integrity, 34 to the treatment of employees, ten to health and safety or environmental violations, and the remaining cases related to information security, cyber risk, data privacy, and others. 31 cases were substantiated fully or partially.
      
      Open source document
      Open source document
      Open source document
    - Report volumes of commodity sourced/used
      Reporting total volume
      
      3/3
      
      Report volumes of commodity sourced/used
      
      Reporting total volume
      
      3/3
      
      Reporting non-certified/non-compliant volume: 93458 Metric Tonnes
      
      What product types/sectors is this in?: Pharmaceuticals
      
      Reporting certified/compliant volume: 10543 Metric Tonnes
      
      Total volume: 104001 Metric Tonnes
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      In the 2020 RSPO ACOP report, Claraint reports using a total of 104001 tonnes of palm oil with 10543 tonnes certified
      
      Open source document
    - Monitor compliance for labour rights and FPIC
      No
      
      0/5
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Downstream: Reporting suppliers
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
      
      How is compliance monitored?: Internal monitoring and verification systems
      
      What percentage of the company's supply chain volume does that represent?: NA
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      How frequently is compliance assessed?: NA
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
      
      "In line with the Roundtable on Sustainable Palm Oil (RSPO), we require the following from our suppliers: Cooperation with Clariant to verify supplier compliance with Clariant’s policies through third party assessment."
      
      Open source document
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: NA
      
      What criteria does the policy specify for blacklisting or exclusion?: NA
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      "In line with the Roundtable on Sustainable Palm Oil (RSPO), we require the following from our suppliers: Cooperation with Clariant to verify supplier compliance with Clariant’s policies through third party assessment."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Soy *
  
  4/90
  - Commitment Strength
    
    0/17
    - Commodity-specific deforestation commitment
      
      0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: unclear
      
      Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association
      
      "Clariant strives throughout all its operations and activities to comply with laws, regulations, and ethical standards at all times; in particular Clariant recognizes the principles concerning the fundamental rights of work stipulated by the International Labor Organization (ILO): – freedom of association and the right to collective bargaining; – no forced labor; – no child labor; – no discrimination"
      
      Open source document
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Non-discrimination – suppliers shall not tolerate any discrimination on the ground of race, social or ethnic background, nationality, age, religion, gender, sexual orientation, political opinion or disability"
      
      Open source document
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to test Free, Prior and Informed Consent
      No
      
      0/3
    - Commitment to respect customary rights to land, resources, and territory
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    0/56
    - Reporting is independently verified
      No
      
      0/2
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      No
      
      0/4
    - Report volumes of commodity sourced/used
      No reporting
      
      0/3
    - Monitor compliance for labour rights and FPIC
      No
      
      0/5
    - Monitor compliance for zero tolerance approach and customary rights
      No
      
      0/5
    - Downstream: Reporting suppliers
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2

* commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

Commitment strength

5/17

Avg. score
Implementation and Reporting

11/56

Avg. score
Associated Human Rights Abuses

6/17

Avg. score

Profile

Clariant AG is a Swiss multinational speciality chemicals company using both palm oil and soy in the manufacture of their various products. Clariant develops, produces, markets and sells specialty chemical products for various end markets including paints, cosmetics and oils.

Sector

Industry sector

Personal Products, Specialty Chemicals

Segments

Manufacturer

Switzerland

Company Type

Company type

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

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Clariant

Total

Score:

Total score:

23%

Profile

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Clariant

Total

Score:

Total score: 23%

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Total score:

23%