Evonik is to invest more than €3 billion in ‘Next Generation Solutions’ by 2030 as the German outfit pivots to three core businesses.
The company is aligning its portfolio completely to its three growth divisions: Specialty Additives, Nutrition & Care, and Smart Materials.
Preparations are under way for the exit of all three businesses of Performance Materials - Superabsorbents, Functional Solutions and Performance Intermediates.
Evonik aims to find new owners or partners for each of these three businesses in the course of 2023.
The proceeds from the divestment of the Performance Materials businesses and the operating cash flow in the coming years will be channelled to Evonik’s green transformation.
In addition to the more than €3 billion invested in Next Generation Solutions, Evonik will spend a further €700 million on ‘next Generation Technologies’ - the optimization of production processes and infrastructure to avoid carbon emissions.
Evonik aims to reduce its footprint by significantly cutting both direct and indirect greenhouse gas emissions from production and processing.
With the support of Next Generation Technologies, Evonik will reduce its scope 1 and 2 emissions by 25%, from 6.5 million metric tons at present to 4.9 million metric tons by 2030.
“We are greatly increasing our handprint and reducing our footprint at the same time,” said Thomas Wessel, the executive board member responsible for sustainability.
“Translated into KPIs: We will substantially increase the sales share of our Next Generation Solutions from 37% at present to over 50% by 2030.”
