Rising up for impact

Stakeholder engagement at the heart of our materiality assessment

To support our 2030 RISE Strategy's growth ambitions, and continue to be a sustainability champion using it to our competitive advantage, it is essential to develop a full understanding of the impact that our products and operations have on the world. That is why we work closely both internally with our business units and externally with all our stakeholders to deliver products and services that have specific sustainability benefits.

As a publicly listed company, we interact with many parties interested in how we conduct business. The relationship we foster with our stakeholders directly influences our success and our impact on society.

Stakeholder engagement at Umicore is a localized approach. All sites must identify their respective stakeholders and establish suitable ways of engaging with them. In many cases, such as the dialogue with customers and suppliers, stakeholder relationships are primarily managed by the business units, in line with our decentralized approach to business unit management. 

Materiality assessment

Company-specific information, such as Umicore’s risks and opportunities and sector-specific information, such as international sustainability frameworks, formed a long list of relevant topics. Umicore reviewed GRI (Global Reporting Initiative), IIRF (International Integrated Reporting Framework), SASB (Sustainability Accounting Standards Board), WBCSD (World Business Council for Sustainable Development), Stakeholder Capitalism metrics of the WEF (World Economic Forum), TCFD (Task Force on Climate-related Financial Disclosures) as well as peer reviews and performance in sustainability rating benchmarks.

To determine priorities, we conducted internal and external dialogues with stakeholders. We first assessed our stakeholder groups concerning the stakeholders’ interest in and influence on Umicore. We then asked internal and external stakeholders to prioritize topics according to the impact on their decisions towards Umicore. We consulted customer and supply representatives, employees worldwide and across all functions from the production site to senior management, as well as shareholders and fund providers through online surveys, workshops and interviews. Desk research complemented the survey and interview results. 

The ranking of topics from both the external and internal consultations was then categorized according to impact on Umicore and/or impact as a result of Umicore activities. As a result, a preliminary materiality matrix was developed. 

Umicore’s leadership were presented with this preliminary matrix and together analyzed the maturity of the material topics within Umicore. In addition, each material topic was assessed in terms of risk or opportunity. Risk-driven topics would pose a significant business risk if Umicore did not address them – linked to our “license to operate”. Opportunity-driven topics are those that could create opportunities in the market – linked to our “license to grow”.

"Mapping the material topics as risk- or opportunity-driven and according to their maturity enabled us to visualize the topics in terms of urgency and strategic focus."

In November 2022, Umicore began a new stakeholder engagement exercise to inform double materiality and disclosure as of reporting year 2023. The outcomes of that exercise are expected to be presented to, and validated by, the Management Board and Supervisory Board in the first quarter of 2023.

Umicore materiality map

Maximizing positive impact 

Umicore supports the United Nations Sustainable Development Goals (SDGs). Through innovative products and practices, we minimize adverse impacts, protect the environment, promote social progress and support economic growth.

Umicore also adheres to the ten Principles of the United Nations Global Compact on human rights, labor, environment and anti-corruption. We integrate these principles into our company’s strategy, culture and day-to-day operations and engaging in collaborative projects that advance the Sustainable Development Goals.  

To support sustainable consumption and production patterns (SDG12), we deliver technologies that provide resource efficiency and sustainability throughout industrial supply chains. Our recycling services – processing over 200 types of metal-containing materials, including industrial residues and “end-of-life” materials – deliver sustainable sourcing solutions to our customers. Our pioneering role in implementing sustainable sourcing practices in the supply chain has raised the bar for the industry and thus reduces waste generation on a large scale. At the same time, we continue to innovate to minimize negative impacts, for example, by limiting emissions and reducing waste in our industrial operations.  

Umicore builds resilient infrastructure, promotes inclusive and sustainable industrialization and fosters innovation (SDG9). Our strategic focus tackles society’s resource scarcity and environmental concerns. Our closed-loop business model supports the circular economy and our clean mobility solutions enable our automotive customers to reduce negative environmental impacts. We are a leading producer of catalysts and catalytic filters used in emission abatement systems for light- and heavy-duty vehicles, on-road and off-road. Our catalysts and particulate filters convert pollutant emissions into harmless gases and trap particulate matter, enabling our customers to meet present and future environmental standards. Umicore’s products have prevented hundreds of millions of tons of harmful pollutants from being emitted into the air. Our continued investment in R&D advances technological capabilities. Umicore remains committed to open innovation; a dedicated team facilitates collaboration with dozens of research institutes, start-ups and universities worldwide.  

Through our electromobility technologies, Umicore is contributing to ensuring access to affordable, reliable, sustainable and modern energy for all (SDG7). We are a leading producer of cathode materials for lithium-ion batteries. These are key in determining the power and energy density of rechargeable batteries to maximize the driving distance of electrified vehicles. Our technologies improve efficiency for downstream customers who manufacture the batteries and electrified vehicles, and for users of electric vehicles. Our hydrogen cell technologies are used as a new chemical carrier for energy, which is set to become the major energy carrier in the future and can be used to decarbonize the industry.  

We play an essential role in the energy transition with our products and continuously work to improve energy efficiency and increase renewable energy use in our processes.  

The Net-Zero pillar of our Let’s Go for Zero ambition sets the tone for Umicore to combat climate change (SDG13). Through its operations, Umicore emits greenhouse gases (GHGs). To minimize this negative impact, we have set Net-Zero GHG emission targets by 2035 for Scope 1 and Scope 2 emissions. 

Additionally, the nature of our closed-loop business model enables us to avoid GHGs by using materials from non-primary sources. As a result, we have set an ambitious target for our Scope 3 emissions: to reduce the carbon intensity of purchased materials by 42% by 2030. This means that the Scope 3 emissions of our raw materials will not increase, despite the exponential growth projected in our 2030 RISE strategy. 

Our 2030 decarbonization targets have been validated by the Science-Based Targets initiative (SBTi), confirming targets align with evidence-based science. By having our targets validated by SBTi, we support the goals of the Paris Agreement. Furthermore, our clean mobility solutions and closed-loop business model support the societal journey to decarbonization. Umicore also engages in public and private partnerships to improve education and awareness about climate change mitigation, for example, concerning clean energy and mobility. 

The Zero Harm pillar of our Let’s Go for Zero ambition is a significant challenge for an industrial player. However, Umicore is prioritizing employees’ and neighbors’ wellbeing and safety and minimizing the negative impact of its operations. Intensified efforts in favor of occupational health and safety and the overall wellbeing of our employees promote wellbeing and healthy lives (SDG3), as does safeguarding the safety of our products. Our catalysts also contribute to SDG3 by preventing harmful pollution and contributing to cleaner air for people to breathe.  

Water availability and sustainable management of water (SDG6) are fundamental components in the Zero Harm pillar of our Let’s Go for Zero ambition. Umicore has set out to implement a water stewardship program for all its industrial activities, with extra focus on areas facing water stress. The program focuses on two main objectives: raising global awareness about water sustainability and addressing local water risks where they exist. This program enables our sites to identify and mitigate water risks, share best practices with other sites and limit our impact on the environment, preventing water pollution from our production sites and continuously reducing water usage in our operations.  

Umicore aims to make communities as inclusive, safe, resilient and sustainable as possible (SDG11). We work actively to minimize the negative societal and environmental impact that our operations may cause. We are committed to reducing diffuse emissions with a target of -25% diffuse emissions by 2025. We are taking additional actions to ensure that the local community and industry can co-exist sustainably. In Hoboken, for example, we are accelerating investments to reduce diffuse emissions further and create a green zone to increase the distance between the residential area and our operations.  

Decent work and economic growth (SDG8) are an important focus for Umicore. Through job creation and thanks to our innovative and resource-efficient business model, Umicore contributes to the global transition. Umicore respects the principle of collective bargaining and is committed to fair wages and equal pay for work of equal value. We ensure a safe and secure working environment within our organization and ensure that human rights are respected within our supply chain.  

To ensure gender equality (SDG5) and cultivate diversity of thought within the company, Umicore strives to build an inclusive culture and increase women among our employees and our management. We’ve set ourselves an ambitious goal of gender parity as soon as possible, with 35% of women in management by 2030. 

Beyond the borders of our company, we promote anti-discrimination against women and enforce equal opportunities in our supply chain by asking suppliers to adhere to our Global Sustainable Sourcing Policy. For more information on how Umicore’s impact on the Sustainable Development Goals has been evaluated, see the Social Statements.