In a statement, the phytochemical firm outlined plans that involve aligning its portfolio to its three growth divisions: Nutrition & Care, Specialty Additives, and Smart Materials.
Evonik revealed it will also exit its Performance Materials - Superabsorbents, Functional Solutions and Performance Intermediate businesses with plans now in motion to find new owners or partners next year.
“The businesses we are withdrawing from on strategic grounds are being optimally set up to give them a responsible route to a good future,” explains Christian Kullmann, Chairman of Evonik's executive board.
Sale proceeds from the Performance Materials businesses along with future operating cash flow will be channelled towards the firm’s switch to more environmentally friendly operation.
By 2030, Evonik aims to invest more than €3bn in Next Generation Solutions - products with superior sustainability benefits.
That is around 80% of annual growth investments. In the same period, a further €700m will be invested in Next Generation Technologies that “optimise production processes and infrastructure to avoid CO2 emissions.”
“We are greatly increasing our handprint and reducing our footprint at the same time,” says 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.”
“That includes, for example, drug delivery technologies for controlled release of pharmaceutical active ingredients, as well as natural-based active ingredients for cosmetics.”
Leading Beyond Chemistry
As part of an ethos that commits to ‘Leading Beyond Chemistry,’ Evonik are to launch a new Sustainability Tech Fund investing €150m to help develop innovative technologies and business models.
“The focus is on new technologies that will reduce emissions as well as on innovations that have a high technological fit with the Next Generation Solutions,” the firm says.
Evonik’s Research, Development & Innovation unit is also undergoing a sustainability makeover with the arm on track to generate additional sales of more than €1bn with its innovation growth fields by 2025, according to Harald Schwager, executive board member responsible for innovation.
“Our innovative capability is a key factor in leveraging green and profitable growth,” he adds.