Sustainable Portfolio Management In brief

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Key decisions-making toolFor better business performance

SPM MethodologyIn a nutshell

AGENDAMORE Business Solutions

Solvay’s AmbitionA tool to create more future

March 30, 2017SPM in brief

SPM OverviewMore Solutions for a better Business

• Alert the business to sustainability market signals, even weak ones • Anticipate their impact • Develop the right answers in timely way• Capture value in emerging ecosystems • Grow portfolio by levering on opportunities & turning challenges into

solutions

SPM is designed to • Engage our customers in a common journey toward more

sustainable solutions• Boost Solvay’s business performance and deliver higher growth.

A global and systematic assessment tool

SPM OVERVIEWMORE Solutions for a better business

SPM is a fact based and robust compass to steer Solvay’s portfolio toward better business because more sustainable.

Create more value for your business

A compass to improve business performance

March 30, 2017SPM in brief

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SPM METHODOLOGY In a nutshell

The SPM gives dynamic vision of product’s sustainability risks and opportunities in their business environment. Decision-makers are informed on the contribution of Solvay’s products to sustainability considering both:

Vertical axis

Horizontal axe

How in their applications they bring benefits or faces challenges in a market perspective Qualitative assessment by 60 questions on social and environmental topics

Their environmental manufacturing footprint and its correlated risks and opportunities

Quantitative assessment by 19 impact indicators

Ope

ratio

ns v

ulne

rabi

lity

Market alignment to sustainability criteria

43%

8%

33%

% of 2015 Group sales

HighLow High

84 % of Solvay turnover analyzed

Low

March 30, 2017SPM in brief

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KEY DECISIONS-MAKING TOOLFor BETTER business performance

At Solvay, the SPM tool is the compulsory analytical tool to be applied before decisions are made in Strategy, Research & Innovation(R&I), Marketing & Sales, Capital Expenditure (CAPEX) and as an element of due diligence in Mergers and Acquisitions (M&As)

Measuring sustainability in business terms

0%

100%

Ope

ratio

ns v

ulne

rabi

lity

Market alignment to sustainability criteria

% of 2015 Group sales

Low

HighLow High

16% not evaluated

+ 9 %

- 3 %

+ 3 %

Correlation between Solutions and Higher business growth

SPM category:• Solutions (unmet needs to achieve higher

social or environmental standards) shows an annual growth rate of +9%

• Challenges (sustainability concerns or roadblocks) ends up at -3%.

March 30, 2017SPM in brief

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SOLVAY’S AMBITIONA tool to create MORE future

Empowering people

Operating responsibly

Act Responsibly

Innovate Sustainable solutions

Air and water careSmart and efficient processes

Lightness Sustainable energy

Ecofriendly materials

Contribute to Society

50%

Share of sustainable solutions in the Group portfolio

SPM

X2Employees involved in societal actions

SOCIETAL ACTIONS

-50%

of occupational accidents with MTAR target < 0.50

SAFETY

-40%

Reduction of carbon intensity

CO2

80%

Employee engagement index

PEOPLE ENGAGEMENT

OBJECTIVES BY 2025

2014 reference year

https://sustainabledevelopment.un.org/

Within Solvay, Global Business Units (GBUs) are accountable for delivering the ambitious Group target for sustainable business performance:

By 2025, realize € 1 of revenue out of every € 2 in sustainable solutions.

March 30, 2017SPM in brief

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SPM METHODOLOGY Scope

Operations Vulnerability (vertical axis)

Market Alignment (horizontal axis))

March 30, 2017SPM in brief

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SPM HEAT MAP Identify systematic way sustainable topics at portfolio and customer levels

Ope

ratio

ns V

ulne

rabi

lity

SolutionsTo

LeverageNeutralTo

Improve

ChallengeTo

Solution

Market alignment to sustainability criteria HighLow

Low

High

Reduce C02 emission

Bpa free epoxy

Pulp & Paper Ecolabel Green Forestry

Auto Light weighting Alternative to

toxic productIncrease crop yield

March 30, 2017SPM in brief

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50%

SUSTAINABLE PORTFOLIO MANAGEMENT

Ope

ratio

ns v

ulne

rabi

lity

Market Alignment

8%

33%

Low

High

Low High

2016 2025

Sustainable solutions

43%

Neutral impact

Challenged applications

(in % of net sales)Solvay Solutions • Climate Change (28%)• Resource Efficiency (17%)• Safety & Prevention (14%)• Very low environmental manufacturing

footprint (13%)• Human Toxicity (7%)• Environment Toxicity (4%)

16% Not Evaluated

50% Share sustainablesolutions in theGroup portfolio

SPM

Example: CompositesReducing the weight of a passenger car by 1 kg represents 10 kg CO2 equ. saved during its full life time (Climate Change benefits)

SOLVAY’S AMBITIONA tool to create MORE future

March 30, 2017SPM in brief

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50%

Share sustainablesolutions in theGroup portfolio

SPMMORE BUSINESS SOLUTIONSLaunch of a simple & digitalized SPM Guide

● Executive summary for Business Leaders

● Detailed explanations for Practitioners

● Presentation of SPM Fast Track (simplification)

● 3 precise Business Cases

● Glossary and Q&A

Click here

March 30, 2017SPM in brief

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