Sustainable value creation is measured by Solvay’s Sustainable Portfolio Management tool. It enables Solvay to make strategic decisions that steer its portfolio, support progress toward its sustainability objectives, and factor sustainability into operating decisions.
Product-Application Combinations assessed
of the portfolio analyzed
of revenues in sustainable solutions*
* Scope: consistent with financial reporting.
Solvay’s Sustainable Portfolio Management (SPM) focuses on sustainable business solutions. The SPM methodology is designed to boost Solvay’s business performance and deliver higher growth by letting decision-makers know how Solvay’s products contribute to sustainability, considering two factors:
- the environmental footprint related to their production, and associated risks and opportunities,
- how their applications create benefits or challenges from a market perspective, based on a qualitative assessment.
With SPM, decision-makers can detect sustainability risks and opportunities along the entire value chain (cradle-to-grave), develop action plans, and deliver innovative solutions that balance economic, social, and environmental values. SPM assessments are performed every year in order to capture the most recent signals from the market in a dynamic perspective covering more than 80% group revenue .
Since its implementation in 2009, the Sustainable Portfolio Management tool has been widely adopted by Solvay Global Business Units and Functions to integrate sustainability into their key processes:
- The Sustainable Portfolio Management profile is an integral part of strategic discussions between Global Business Units and the Executive Committee;
- Solvay uses the Sustainable Portfolio Management tool to evaluate mergers and acquisition projects to see if the investment is feasible in the light of Sustainable Portfolio targets;
- Investment decisions (capital expenditure above €10 million and acquisitions) made by the Executive Committee or the Board of Directors include a sustainability aspect that involves an exhaustive Sustainable Portfolio Management analysis of the potential investment;
- All Research and Innovation projects are evaluated using Sustainable Portfolio Management;
- In Marketing and Sales, Sustainable Portfolio Management allows Solvay to engage customers on fact-based sustainability topics – such as climate change action, renewable energy, recycling, and air quality – with the goal of differentiating and creating value for Solvay and the customer.
Portfolio Sustainability Assessment at the World Business Council for Sustainable Development
Benchmarking and sharing best practices among peers and customers makes the Sustainable Portfolio Management methodology more robust and leads to better decision-making. Solvay is a key contributor to the World Business Council for Sustainable Development’s Portfolio Sustainability Assessment. The initiative sets a high standard and gives industries a common framework for its implementation, detailing a specific methodology for the chemical industry.