Material Impacts, Risks and Opportunities
The following is a description of WACKER’s material impacts on people and the environment as well as the resulting risks for WACKER in terms of pollution, and of the connection between the business model, value chain, strategy and decision-making.
Material impacts
Emissions to air and water
Chemical-product manufacturing involves the release of substances into the environment. These types of emissions may negatively influence people’s health and damage ecosystems. As WACKER is a chemical manufacturer, it influences the quality of air and water at its production sites all over the world. This also applies to other companies along our value chain. We aim to operate our plants in a way that minimizes the disadvantageous impacts on people and the environment.
Use of critical substances (substances of concern/substances of very high concern)
Manufacturing specialty chemical products often requires the use of critical substances. Both their handling and the possibility of their remaining in the product can negatively impact people’s health and ecosystems. As a chemical producer, WACKER uses critical substances to manufacture specialty chemical products. Handling them and the possibility of their remaining in the product means that WACKER has a potential influence on people and nature. This also applies to other companies along our value chain. We aim to ensure that any disadvantageous impacts on people and the environment are minimized by complying with critical limits that apply and by taking the corresponding occupational-safety and plant-safety measures.
Material risks
Increase in regulatory requirements for our production processes and products
The rise in regulations related to emissions to air and water and other kinds of pollution may lead to significant restrictions and higher costs as regards our production lines. A production-process changeover requires considerable capital expenditures. As a chemical producer, we are already subject to many legal regulations that may increase in the medium term and also lead to increased expenses along our value chain as regards any registrations and capital expenditure actions necessary. In extreme cases, this might even lead to operations (temporarily) shutting down or being restricted.
New legal provisions in the production and use of chemical substances constitute a further risk. Restrictions or prohibitions on groups of substances and stricter critical limits require products to be reformulated or production processes to be adapted. Furthermore, various international requirements (due especially to tightening of the European REACH legislation for chemicals) incur increased expenses for registrations of substances.
In the medium term, they could have a medium to high impact on WACKER’s earnings. This also applies to other companies along our value chain.
Please also see the Risk Report for details of the impacts and actions as well as our risk analysis in relation to our strategy.
