Better Health for All

Clariant's alignment with 'Better Health for All' is mixed. While the company produces excipients and active pharmaceutical ingredients (APIs) for the pharmaceutical industry, potentially contributing to better health outcomes

, a customer was notified about regulatory investigations related to a product containing an undisclosed component, raising transparency concerns . Clariant is actively seeking substitutes for hazardous substances . However, the Natural Resources segment, serving the oil and mining industries, poses potential negative health externalities. Given the conflicting evidence and the materiality assessment indicating a neutral relationship with the value, a slightly negative score is appropriate. Insufficient data is available to assess revenue share from harmful products, R&D investment in health improvement, or the reach of vulnerable populations. ,

Fair Money & Economic Opportunity

Clariant AG is a specialty chemical company and does not operate in the financial services sector. The company does not offer consumer lending or deposit services, nor does it manage customer financial data or provide financial literacy programs. Its business activities, such as investments in production plants (e.g., CHF 80 million in an ethoxylation plant in China)

and R&D (CHF 126 million), are related to its core chemical operations, not community finance reinvestment. While Clariant engages in fair business practices, supplier training, and internal diversity and inclusion initiatives, these do not align with the specific definitions of the KPIs for financial products, services, and their impact on underserved populations.

Fair Pay & Worker Respect

The company reports 100% of its employees currently receive a living wage, based on Q1 2025 internal analysis.

The CEO-to-median total compensation ratio was 1:19 in 2020, excluding part-time employees. As of the end of 2020, 53% of employees were covered by collective bargaining agreements. The Employee Net Promoter Score (eNPS) was 86% in 2025, with a 69% participation rate in the engagement survey. There were no substantiated labor-law or human-rights violations reported in the past three years. No specific data was provided for safety incident rates, pay equity ratios, employee turnover, insecure contract share, or health insurance coverage.

Fair Trade & Ethical Sourcing

Clariant's Supplier Code of Ethics is binding for all suppliers and contractors globally.

The company reported no cases of child, forced, or slave labor in its operations or with its suppliers in 2022. For its palm oil supply chain, Clariant achieved 31% transparency up to the plantations level in 2022. Approximately 20.9% of direct spend is on high-risk materials like vegetable oil, wood pulp, starch, and bioethanol, with mitigation efforts in place for palm oil. However, audited suppliers typically have 36 months to address audit findings before a re-audit, and major audit findings are expected to be resolved within 12 months.

Honest & Fair Business

Clariant has a comprehensive global whistleblowing system, the Integrity Line, which is operated by a third party, allows for anonymity, and prohibits retaliation against those who report concerns in good faith.

This system was utilized by employees who alerted management in September 2021 about potential financial improprieties. The subsequent investigation into these allegations concluded by April 27, 2022, indicating a resolution time of approximately 210 days. This investigation led to a required restatement of 2020 financial statements and corrections to quarterly reporting for 2020 and 2021.

Kind to Animals

Clariant actively supports and develops alternative non-animal testing methods (NAMs), including in silico tools like AMBIT and CompTox Suite, and various in vitro assays

. These alternatives are standard in all product development and safety dossiers. The company has a comprehensive no-testing policy, applying the 3R principles (Replace, Reduce, Refine), and conducts animal studies only when legally or scientifically required, overseen by an internal Animal Testing Advisory Board . Clariant is active in several policy areas, including chemical management, through direct advocacy and collective action , and is a member of numerous trade associations . Its experts participate in the development and validation of new NAMs for regulatory acceptance , demonstrating a leadership position in advancing animal welfare policy and supporting regulatory reforms .

No War, No Weapons

Clariant acknowledges and adheres to internationally recognized human rights standards, including the UN Guiding Principles on Business and Human Rights, and is a signatory to the UN Global Compact.

The company maintains a Human Rights Policy detailing commitments and expectations for its operations, business relationships, and supply chains. Clariant's Code of Ethics serves as a set of ethical red lines, applying to all employees, managers, and Board members. This Code explicitly states adherence to regulations concerning combating chemical weapons. The Board of Directors mandates the Executive Committee and management to implement this Code of Ethics.

Planet-Friendly Business

Clariant sources 100% of its water from sites located in areas of high water stress.

The company's total carbon footprint for 2024 was 5.42 million tCO2e across Scope 1, 2, and 3, representing a 1.12% increase from 2023. Clariant publicly discloses its GHG emissions, covering Scope 1, Scope 2, and 5 out of 15 Scope 3 categories, with limited assurance provided by KPMG for material Scope 3 categories in the 2024 Annual Report. The company diverts 60% of non-hazardous waste and 75% of hazardous waste from landfill. Clariant's emission reduction targets are validated by the Science Based Targets initiative (SBTi) to a 1.5°C pathway, with targets revalidated in 2025. Furthermore, Clariant's disclosures are aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Respect for Cultures & Communities

Clariant has over 300 formal partnership agreements with local farmers for feedstock supply.

The company provides a global Integrity Line, available in over 40 languages, which serves as a grievance mechanism for community concerns across all operational sites. Clariant applies IFC Performance Standards to implement Free, Prior and Informed Consent (FPIC) principles when acquiring land, particularly for indigenous peoples and communities. In 2024, 26,224 hectares of forest in the Aceh Landscape were protected by 12 village regulations. The company has a framework to thoroughly investigate breaches of its Human Rights Policy and take appropriate action, with staff receiving training for human rights concerns. Total donations and activities amounted to CHF 5.5 million in 2021, representing approximately 0.11% of 2022 sales, but this is general charitable giving without a specific cultural heritage focus.

Safe & Smart Tech

Clariant has an internal AI tool, Clarita, for which rules and recommendations for use were distributed to the reporting team

, emphasizing human responsibility for content and a design that prevents learning from user interactions to maintain confidentiality . Clariant's shop sites and websites requiring commercially relevant data are encrypted with SSL technology , and the company endeavors to continuously adjust encryption technology . There are no documented incidents of unauthorized data use . Users are provided with comprehensive data subject rights, including access, correction, deletion, restriction, portability, objection, and withdrawal of consent , and automated decision-making as defined by GDPR does not occur . Clariant processes personal data only as necessary and retains it for no longer than one year from the date investigations end, if no judicial or disciplinary proceedings are initiated . The company processes personal data in compliance with GDPR and applicable local laws globally , using EU standard contractual clauses for international data transfers . Clariant is committed to respecting and supporting human rights, anchored in its Human Rights Policy Statement , covering its operations and supply chains .

Zero Waste & Sustainable Products

Clariant has set company-wide waste reduction targets for the 2019-2030 period, aiming for a 40% reduction in landfilled non-hazardous waste

and a 25% reduction in hazardous waste per ton of production. The company utilizes up to 60% recycled fluid in its de-icer products. Clariant implements numerous waste reduction initiatives, including the EcoCircle platform , developing catalysts and adsorbents for pyrolysis oil purification , de-icer fluid recycling management , and upcycling açaí raw material. Circular design principles are integrated as standard practice across product development , exemplified by the re-use of glycol in industrial applications and initiatives to transform the linear plastics value chain. For hazardous waste management, Clariant has a 25% reduction target by 2030 and maintains waste inventories for all sites, with waste recorded, analyzed, and described. However, the company received one hazardous waste violation in 2025. Waste audits are conducted every three years.