Lanxess embedding sustainability in their companies

By OEM Update Editorial March 25, 2021 1:47 pm IST

The company assigned the topic of sustainability directly to the members of its board of management. This covers climate protection and energy, occupational health and safety, environmental protection, products and circular value chains, employees and corporate culture, and transparent reporting on achievement of sustainability.

A new system of compensation for the Board of Management has been in place since the beginning of the year. Roughly one-third of the variable compensation is now linked to the company’s sustainability performance. More specifically, the company’s performance in the areas of climate protection and occupational health and safety will be factored into the system for 2021.

80 percent of the short-term variable compensation now depends on the operating result (EBITDA pre exceptionals) and 20 percent on occupational health and safety, as measured in terms of lost time injuries.

Roughly 60 percent of the long-term variable compensation is based on the performance of the LANXESS stock price relative to the MSCI World Chemical Index, and roughly 40 percent on the reduction of greenhouse gas emissions. In 2019, LANXESS set itself the goal of becoming climate-neutral by 2040.

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