Environmental Stewardship Policy

Introduction 

At Umicore, we recognize the urgent need to transition toward a more sustainable future. Our business model is dedicated to delivering sustainable products and services, and to developing safe, sustainable, and innovative solutions that enhance the quality of life for people and the planet. This Environmental Stewardship Policy describes how we manage the relationship between our operations and the environment.  

Objective 

The objective of this policy is to frame the interaction between our operations and the environment in alignment with our Let’s Go for Zero ambitions. This policy is our compass for progress toward becoming a Sustainability Champion. 

Scope 

This policy applies to the Umicore Group’s consolidated activities.  

General Principles 

Umicore is committed to ensuring compliance with applicable environmental laws, regulations, and permits related to our operations as well as compliance with internal Umicore standards. We understand that safeguarding the environment is a shared responsibility and actively collaborate with experts, local communities, and stakeholders. Our approach aligns with the principles of the Sustainable Development Goals (SDGs) in ensuring sustainable and responsible practices.  

A. Biodiversity 

We firmly believe that businesses have a responsibility to act as stewards of the environment and at Umicore. We aim to enhance our understanding of the potential impacts our operations may have on biodiversity and natural ecosystems and are guided by the principles of the Taskforce on Nature-related Financial Disclosures’ (TNFD) LEAP (Locate, Evaluate, Assess, Prepare) approach. We apply this approach to understand our interaction with the environment and to guide us on the potential preventive or corrective measures needed to minimize our impact on biodiversity. This empowers us to identify opportunities for positive change and will guide our efforts towards developing a consolidated strategy on biodiversity. 

B. Circularity and Resource Use 

Circularity is at the heart of Umicore’s business model. We are committed to contributing to tackling resource scarcity by maximizing the use and re-use of metals to create our advanced materials.  Our closed-loop approach fosters innovation while emphasizing the connections between the circular economy, responsible sourcing, resource efficiency, and high-quality recycling.

Our state-of-the-art and world-leading technology can recover precious and other non-ferrous metals from complex industrial waste streams, end-of-life products, electronic waste, and scrap materials. We provide recycling services for the most complex metal-containing waste streams as well as for products containing our materials closing the loop on our products. Our high-yield, high-purity processes minimize waste generation, as we recycle and reintroduce materials back into the feed as much as technologically feasible. 

Our approach towards mitigating supply chain risk, in both direct and indirect procurement, is shaped by our Global Sustainable Sourcing Policy, and the associated frameworks for responsible sourcing of battery materials and for materials from high risk and conflict affected areas, driving responsible sourcing of critical raw materials. We are committed to doing our part for a responsible and sustainable value chain.  

Our recycled materials are sourced and treated in a sustainable way. We are developing specific indicators aligned with the circular economy principles to emphasize our positive contribution to circularity.  

C. Climate Change and Energy Use 

Umicore plays a key role in the transition to a low-carbon future. Our materials address the global need for clean air and clean mobility while supporting climate change mitigation and adaptation. 

Umicore supports the goals of the Paris Agreement. We are committed to mitigating the climate change impacts of our operations by setting clear targets for reducing greenhouse gas emissions and continuously improving our carbon footprint. Our 2030 Scope 1 and 2 goals are aligned with a 1.5°C pathway, demonstrating our dedication to ambitious climate action. We are proud that our 2030 Scope 1, 2, and 3 objectives have been validated by the Science-Based Targets initiative (SBTi) as science-based.  

Scope 1+2 GHG emissions targets

-20% scope 1+2 GHG emissions by 2025 (vs. 2019 baseline)
-50% scope 1+2 GHG emissions by 2030 (vs. 2019 baseline)
-42% carbon intensity of purchased materials by 2030 (scope 3, cat. 1)
Net zero scope 1+2 GHG emissions by 2035 

Efficient and sustainable energy use is a fundamental part of our climate change mitigation and operational excellence commitments. We are dedicated to optimizing energy efficiency across our operations and minimizing energy consumption. Our approach to decarbonization is based on a three-levered hierarchy principle where we focus on avoiding emissions, replacing the sources of emissions wherever we can, and finally, capturing whatever we cannot design out of our operations. We are committed to maximizing renewable and zero-carbon energy sources to reduce the carbon footprint of our operations. 

Electricity from renewable sources targets

60% electricity from renewable sources globally by 2025 
100% electricity from renewable sources in Europe by 2025 
100% electricity from renewable sources globally by 2040 

D. Pollution 

We recognize the significant impact that industrial activities can have on the environment. We are committed to minimizing our emissions to air, water and soil by emphasizing prevention and control measures. By continuously monitoring all sites, we are assessing our performance and developing internal guidelines to minimize the impact of our operations. Through our long-lasting efforts, we have accomplished tremendous improvements in reducing our potential emissions while considering growing volumes of production.  

Diffuse emissions targets

-25% diffuse emissions by 2025 (vs. 2020 baseline)  
-57% diffuse emissions of arsenic by 2025 (vs. 2020 baseline) 
-19% diffuse emissions of lead by 2025 (vs. 2020 baseline) 

Prevention and efficient management of environmental services are critical to safeguarding human health, the environment, and the communities in which we operate. We are committed to maintaining a robust emergency response program that prioritizes safety. 

E. Water and Marine Resources 

At Umicore, we acknowledge the vital importance of water and marine resources to the health of our planet and the well-being of communities. We are committed to preserving and protecting these valuable resources by ensuring responsible water resource management:  striving for conservation, effective wastewater treatment, and sustainable usage and sourcing to minimize the impact on aquatic ecosystems. As part of our water stewardship program, we will seek to reduce water consumption in water-stressed areas.  

Water action plan target

Water action plan for 100% of industrial activities facing water stress by 2025 

Implementation 

We have implemented an Environmental Management System (EMS) upon which we continuously improve our environmental performance based on measurable targets. We aim to have all industrial operations ISO 14001 certified. As part of our Product Stewardship approach, it is our ambition to continuously expand the number of products undergoing life cycle assessments (LCA) to comprehensively evaluate both the environmental and carbon footprint of our products. 

We’ve established a process to identify and assess material impacts, risks, and opportunities related to environmental topics. For climate risks and adaptation, we follow the Task Force on Climate-Related Financial Disclosure (TCFD) and Taskforce on Nature-related Financial Disclosure (TNFD) recommendations to enhance resilience. Wherever we can, we quantify and monitor these risks. 

We work with stakeholders to drive positive change in the entire value chain. Our engagement includes awareness-raising as well as knowledge-sharing.  

We are translating this policy into guidelines for new site developments related to our growth.  

Governance 

The Supervisory Board's Sustainability Committee ensures the necessary sustainability-related policies and processes are in place, and reviews performance linked to them. In the management board, the EVP ESG oversees sustainability/ESG integration, performance, strategy, engagement and disclosure. The management board members are each responsible for the overall ESG performance within their reporting lines. The Senior Vice-President (SVP) for Environment, Health and Safety (EHS) ensures environmental compliance, risk mitigation and data reporting across Group activities. The Group ESG division co-accountable with business units and corporate divisions in delivering performance; where each has “Let’s Go for Zero” champions, that, together with the Group ESG team, work to implement the most efficient pathways to reaching our shared goals. 

We believe in a collective responsibility where every employee actively engages in environmental awareness, and continuous improvement, and contributes to our shared goals. Our robust culture is intricately woven with our strategic ambition to become a sustainability champion. This integration is fortified through proactive leadership, comprehensive training programs, and active engagement across all levels of our workforce. Part of this is raising ongoing awareness through regular communications with colleagues, including the empowerment of our network of “Let’s Go for Zero” champions, who work to embed positive change throughout the business and support the implementation of this policy. 

Umicore’s executive Remuneration Policy includes sustainability performance targets in full alignment with our sustainability ambitions. 

Monitoring and Reporting 

Adhering to the Belgian Corporate Governance Code and relevant EU regulations, we aim to meet the highest standards of disclosure. Annually, we produce an integrated report that combines financial and sustainability aspects. Wherever possible, we provide data going back five years and are committed to monitoring our environmental performance. Transparency and accountability are at the core of our efforts. Our report discloses objectives, targets, and performance under our sustainability strategy, and our efforts in terms of continuous improvement. 

A recognized third-party auditor provides limited assurance on environmental data.  

We seek stakeholder feedback and monitor emerging standards, providing robust and meaningful information on our sustainability journey. 

This policy was approved by the CEO and the EVP ESG. Group ESG is responsible for reviewing the policy no later than December 2025. The last update was recorded on September 20, 2023.