Sustainability report / Non-financial report

The “Sustainability report / Non-financial report” is a voluntary section that contains information pursuant to Sections 289b to 289e HGB (German Commercial Code) and Sections 315b and 315c HGB. In compliance with Section 317 (2) sentence 4 HGB, it is excluded from the audit.

Sustainability is a core element of our long-term strategy; it is an essential component of our corporate philosophy and a major factor determining our actions. Through economic, social and environmental sustainability, we secure the future of our group of companies while at the same time contributing to the continued integrity and viability of our environment. Our growth should not restrict the opportunities available to future generations; it should instead contribute to opening up new possibilities for them. All companies of the PCC Group are therefore committed to an ethically defined and sustainable approach to their business activities. We continually analyze all areas and activities that can contribute to better environmental protection or the more efficient use of natural resources.

The investment holding company PCC SE pursues sustainability in the economic sense primarily through its responsible and risk-conscious corporate governance and its predominantly long-term approach to the management of its investment portfolio. Our goal is to continuously and sustainably increase the value of this portfolio. This economic component of sustainability goes hand in hand with sustainability in the environmental and social senses. A holistic understanding of sustainable development is therefore also the basis of our Group-wide value-driven growth strategy.

Explanations of the terminology used for Scopes 1 and 2 can be found on page 44.

The Sustainability Report of the PCC Group is structured as follows:

PCC SE is a portfolio holding company focused on sustainable growth and the pursuit of a long-term investment strategy. We have a diversified portfolio of Group companies primarily active in the production of chemical feedstocks, specialty chemicals and silicon metal. We also have major interests in the field of container logistics. As a growth-oriented investor, PCC SE supports its affiliated companies in their entrepreneurial development and in the expansion of their various specific strengths.

The headquarters of PCC SE and the PCC Group is Duisburg, Germany. PCC was founded in 1993 by Waldemar Preussner, who, today as its sole shareholder, is Chair of the Supervisory Board of PCC SE. In the course of the past fiscal year, the PCC Group, with its more than 3,300 employees in 17 countries, generated consolidated sales of € 1,324.7 million. The majority of these revenues, around 66.3 %, were generated by the chemical-producing segments Polyols & Derivatives, Surfactants & Derivatives and Chlorine & Derivatives, primarily at their sites in Poland. In the same period, PCC realized consolidated earnings before interest / financial result, taxes, depreciation and amortization (EBITDA) of € 292.0 million. Capital expenditures in 2022 totaled € 116.3 million, an increase of 4.9 % compared to the previous year’s investment volume of € 110.9 million.

The Group strategy of PCC focuses on long-term corporate investment and sustainable business development aligned to generating and growing enterprise value. We actively manage and continuously optimize our existing investment portfolio by constantly reviewing projects and acquisitions. We strive to diversify into new market segments in line with our expertise while also developing non-core activities, sometimes just to a certain degree of market maturity ready for selling on. Our primary goal is to create the basis for further sustainable growth going forward.

The largest site of the PCC Group is located in Poland, some 40 kilometers north-west of Wrocław in the small Polish town of Brzeg Dolny, the headquarters of our two largest chemical companies PCC Rokita SA and PCC Exol SA. There these entities produce chemicals such as polyols, chlorine, chlorine co- and downstream products, phosphorus derivatives and other specialty chemicals. In the Silicon & Derivatives segment, we manage the silicon metal plant of our Group subsidiary PCC BakkiSilicon hf. in Iceland. The Trading & Services segment manages, among others, our founding company and largest commodity trading entity PCC Trade & Services GmbH, and in the Logistics segment our container logistics subsidiary PCC Intermodal SA connects European destinations, often via its own transshipment terminals. The Holding & Projects segment manages projects aligned to the future, a current example being the construction of a production plant for specialty chemicals in Malaysia within the joint venture PCG PCC Oxyalkylates Sdn. Bhd. in partnership with PETRONAS Chemicals Group Berhad.

Our sense of corporate social responsibility (CSR) or corporate citizenship forms the foundation of our sustainability strategy. For PCC SE, corporate social responsibility means listening to and properly taking into account the concerns of all stakeholders associated with our Group. The specific commitment of the PCC Group to CSR is anchored in special guidelines for those areas in which the interests of the respective stakeholders intersect with those of PCC companies. One example of this is our Code of Ethics. This is binding for all employees in the Group and stipulates, among other things, the rules of trust, fairness and reliability that apply in our dealings with colleagues and with our business partners.

As an international group of companies operating in many different markets, PCC maintains in some cases very close relationships with a wide variety of interest groups: Aside from our employees from various cultures, these include our customers, suppliers and other business partners, the residents neighboring our 39 locations in 17 countries, the private subscribers to our bonds, institutional investors and banks, not to mention government and public institutions such as regulatory authorities or universities.

We are in regular dialog with our stakeholders. For example, we present our quarterly and annual reports to our investors live in internet-based interactive investor conferences, in which we always include a Q&A session. And in late fall, PCC SE traditionally holds information evenings in several major German cities, these events having only been suspended for two years during the coronavirus pandemic for safety reasons. At these evening engagements, the members of the Executive Board of PCC SE provide investors, bondholders and other stakeholders with information covering the latest business developments, taking questions from the audience and making themselves available for personal discussions. The two Group companies listed on the Warsaw Stock Exchange, PCC Rokita SA and PCC Exol SA, also maintain direct communication with their stakeholders at various information events.

Socially responsible corporate action, CSR, is built on this basis of consistently open and transparent communication with all interest groups. The principles of CSR within the PCC Group include, for example, the rejection of all forms of corruption and discrimination, unconditional respect for human rights, a commitment to fair working conditions, and compliance with high safety standards for all our employees, as well as fulfillment of all environmental requirements. We take ownership of socially accepted standards, thereby underpinning them further. As part of our CSR, we also commit to compliance with standards that go beyond general norms, for example by having the PCC production companies participate in environmental protection initiatives such as the Carbon Disclosure Project, the United Nations Global Compact or the chemical
industry’s Responsible Care® initiative.

The portfolio holding company PCC SE assumes responsibility for strategic positioning and mission statements relating to Group-wide areas of importance, such as transparency in communication with our investors. Meanwhile, the individual PCC Group companies serve as the actual drivers of the dialog with diverse interest groups at our different sites.

PCC’s sustainability policy:

The Group companies operating in the chemicals production sector (assigned to the Polyols & Derivatives, Surfactants & Derivatives and Chlorine & Derivatives segments) are increasingly focusing on sustainability as part of their strategic business alignment, with their engagement in this area gaining force year on year. They continue to improve the efficiency of their production facilities, protecting the climate and the planet’s limited natural resources through the adoption of ever more energy-saving technologies and the increased use of renewable raw materials.

A pioneer in CSR is PCC Exol SA, one of the most advanced surfactants manufacturers in Central and Eastern Europe. For example, PCC Exol SA is the first company in Poland to have implemented and registered the Good Manufacturing Practice (GMP) system certified by the European trade association EFfCI. And the Group company also participates in reporting on its environmental impact as part of the Carbon Disclosure Project (CDP). We are likewise establishing a sustainable supply of the raw material palm kernel oil in Ghana, West Africa, for the surfactants production of PCC Exol SA. Rather than harvest the kernels of the palm fruit needed for our organic production there from large plantations, we collect them from more than 400 smallholders in various regions in southern Ghana.

PCC Rokita SA, the largest PCC company and one of the biggest chemical companies in Poland, is also increasingly focusing on sustainability and is steadily expanding its portfolio of environmentally and climate-friendly products. For example, chlorine supplied by PCC Rokita SA under the GREENLINE™ brand is exclusively manufactured using an environmentally friendly and resource-conserving membrane process, with this PCC subsidiary also ensuring that only energy from renewable sources is used for production. PCC Rokita SA introduced the membrane process in its chlorine production back in 2015, some three years ahead of a corresponding EU regulation – offering an example of how our production meets high environmental protection standards and how we often comply with new requirements long before they come into force. Through substantial investment in the modernization and expansion of its production capacities, PCC has, since acquiring a majority stake in PCC Rokita SA in 2003, created a flourishing chemicals group that is now also an important factor for the region, for example as a major and multi-award-winning employer. In addition, PCC Rokita SA’s modern power plant, a combined heat and power facility, supplies large parts of the nearby small town of Brzeg Dolny with environmentally friendly district heat. In Poland, coal-fired heating of domestic dwellings still predominates, as was also the case in Brzeg Dolny prior to PCC Rokita SA commencing its supply operations.

The PCC chemical companies pursue sustainability not only through their modern and efficient production methods, but also through the products they manufacture. Our innovations render items and commodities that many people use in everyday life more durable, safer and more environmentally compatible. The innovative chemical substances produced by the portfolio companies of our chemicals business ensure, for example, that hydraulic oils need to be changed less frequently and homes can be insulated more effectively; they make cosmetics even more skin-friendly and facilitate the manufacture of high-convenience foams that are also virtually free of emissions of volatile organic compounds as well as being exceptionally flame-retardant. Our aim and ambition is to ensure that our chemistry is not only creative and innovative, but also sustainable.

PCC’s chemical companies are underscoring this commitment with a new product portfolio of sustainable chemicals under the brand name GREENLINE™, a range that already boasts more than 250 products. PCC’s portfolio of green chemicals includes high-quality compounds offering a wide spectrum of sustainability benefits – such as increasing the efficacy of laundry detergents at low temperatures and thus reducing energy consumption. Products from PCC bearing the “Passivbau” label have been developed for especially energy-efficient construction, such as the PU foams for thermal insulation in our Crossin® product line. And our products carrying the “ECO” mark meet the strict standards of ECOCERT certification. This requires that products do not pose any threat to humans or the environment through their provenance, properties or production processes. Chemical feedstocks, additives and formulations of this group can be used for the production of finished products of the eco, organic or vegan type. More and more chemicals manufactured by PCC are 100 % biodegradable – an important sustainability feature, particularly for cosmetics that end up in sewage.

In addition to chemical feedstocks such as the especially skin-friendly betaines of the “ROKAmina” brand, the product range of the PCC Group also includes a number of ecological consumer goods. An example of this is the CAMOLIN® line of body care products and cleansers based exclusively on natural ingredients. PCC’s green chemistry categories also include products bearing the “LOW VOC” label with particularly low emissions of volatile organic compounds; the “Waste-free Production” label is awarded to PCC products in the manufacture of which the generation of unwanted waste has been eliminated or significantly reduced, or the waste has been used as an integral part of the production process; and halogen-free and formaldehyde-free products are likewise among PCC’s green chemistry categories.

The silicon metal plant of PCC BakkiSilicon hf. in Iceland is a flagship project of PCC in the field of sustainability. The installation of state-of-the-art filters makes the plant virtually free of dust emissions, and the energy supply for the Iceland plant is covered entirely by renewable sources (geothermal energy, hydropower). The plant’s carbon footprint is therefore exceptionally low compared to other silicon production facilities worldwide, and is destined to be further improved. See also the section on measures implemented to combat environmental issues in the non-financial report on page 45.

The service entities managed within this segment include, in particular, the Conventional Energies business unit, which primarily supplies the production facilities of PCC in Poland with steam and electricity. Here, dust emissions have been reduced from 50 to 20 mg / m³ in recent years through the installation of modern electrostatic precipitators at the PCC cogeneration plant at the Brzeg Dolny chemical site. As a result, this already low-emission power-and-heat facility operates even further below the dust discharge limit value of 100 mg / m³ currently in force in Poland. The facility not only supplies energy for PCC’s chemical production at the Brzeg Dolny site, but also provides a large proportion of the households in the small town with district heating.

The mainstay of our Logistics segment is the intermodal container transshipment business. PCC Intermodal SA runs combined transport operations throughout Europe on the basis of five wholly owned container handling terminals in Poland and Germany, facilities that have been greatly expanded and modernized in recent years. It therefore efficiently combines environmentally friendly rail and flexible road transport, thus supporting the transfer of traffic from road to rail in line with demands expressed by the European Union.

In the Holding & Projects segment, we manage, in particular, the Renewable Energies business, which focuses on the construction and operation of small hydropower plants that are exceptionally environmentally friendly due to their relatively low impact on nature. Six of these power plants, five in North Macedonia and one in Bosnia and Herzegovina, have so far been connected to their respective national grids.

The goal of firmly anchoring sustainability in all companies of the PCC Group is also served by the involvement of PCC affiliates in a large number of certification procedures, the signing of public agreements and membership in initiatives. For example, our chemical companies PCC Rokita SA, PCC Exol SA and PCC Synteza S.A. all participate in the chemical industry’s global Responsible Care® initiative. Our production companies have also received several awards for their sustainability and can point to high ratings and rankings in this domain. For example, two of our companies were awarded Gold certification in the renowned EcoVadis sustainability assessment: PCC Exol SA (2021) and PCC MCAA Sp. z o.o. (2022). PCC Rokita SA achieved Silver status in 2022, as it had done since 2018. The commitment of the holding company PCC SE to sustainability is underscored by its participation in the Renewable Carbon Initiative. The main certifications and initiatives are assigned to each of the five sustainability aspects of non-financial reporting, as described below.

In compliance with Germany’s CSR Directive Implementation Act (CSR-RUG) adopted on April 19, 2017, the PCC Group has published annually since fiscal 2017 a voluntary non-financial report pursuant to Sections 315b and 315c in conjunction with Sections 289c to 289e HGB (German Commercial Code). PCC SE presents its non-financial report as an integral part of the annual Group management report. Unless otherwise stated, the performance indicators relate to the companies included in the scope of consolidation. No adjustments are made in respect of the previous year to reflect adjustments to the scope of consolidation in the year under review.

This non-financial report is based on the requirements of the German Sustainability Code [DNK] and summarizes the key facts on the five aspects specified, namely environmental issues, employee issues, respect for human rights, social issues and the fight against bribery and corruption.

In addition, the general section of this non-financial report describes measures and initiatives of the PCC Group and individual companies that demonstrate our Group’s multifaceted commitment to our social responsibility as a corporate citizen.

In the following we provide a report on the guidelines, risks, measures and goals as well as the key non-financial indicators for each of the five sustainability aspects mentioned. Our approach here is to present the PCC Group as a whole; hence we refrain from mentioning individual affiliates.

The following table summarizes all the performance indicators applicable to non-financial reporting at Group level.

1 Based on the total output of all products and intermediates
2 Change in percentage points
3 First and second management levels

Environmental issues in connection with our business activities affect in particular the interests of the residents around our sites and other local communities. We are committed to complying with all applicable regulations, rules and standards with regard to environmental protection and, in addition, to pursuing all investments on the basis of advanced, environmentally compatible, efficient and, especially, energy-saving technologies. Aside from the safety of our employees and local residents, we regard the preservation of the environment as of paramount importance.

1. The great importance we attach to environmental protection in the PCC Group has a decisive influence on our choice of manufacturing processes and products; it also greatly informs our commitment to sustainability and safety. This is likewise recorded in our Code of Ethics, which is binding on the entire PCC Group.
2. We implement all our investment projects using advanced, environmentally acceptable and thus also energy-saving and economically efficient technologies.
3. PCC strives to minimize raw material and energy consumption in its production processes and continuously analyzes possibilities for improving working methods, manufacturing processes and products. Our aim here is to ensure that these are all safe and acceptable to employees, customers, the public and other stakeholders.
4. All employees are jointly responsible for the protection of people and the environment in their sphere of activity. The laws, regulations and internal guidelines on environmental protection, health, plant safety and occupational safety must be strictly observed at all times. Every line manager and supervisor is obliged to instruct, oversee and support his or her employees in the exercise of this responsibility. The commercial exploitation of natural resources such as air, water and geological materials may only take place within the framework of a previously granted permit. The same applies to the construction and operation of production facilities as well as their modification or expansion. Any unauthorized release of substances is forbidden.
5. Waste must be disposed of in accordance with statutory regulations. If third parties are involved for this purpose, it must be ensured that they also comply with prevailing environmental regulations and the corresponding specifications of PCC.

PCC’s business activities, and especially our production operations, exert an effect on the environment. Significant environmental impacts include emissions of air pollutants, consumption of raw materials and feedstocks, handling of hazardous substances, consumption of water and energy, wastewater pollution, waste disposal, accidents and noise emissions.

Companies of the PCC Group continuously combat these impacts by analyzing all areas and activities from which adverse effects on the environment and on the efficient use of resources may emanate, and by taking limiting measures where necessary, at the same time carefully taking into account the information provided by all interest groups, in particular local residents. This direct dialog with stakeholders at the local level is among the tasks and duties assigned to the respective Group companies.

One example that demonstrates how PCC takes environmental concerns into account in its investment projects is the silicon production plant in Iceland. Silicon production is extraordinarily electricity-intensive, but the energy supply of the PCC plant is covered entirely by regenerative sources, primarily geothermal energy. The dust emissions generated during silicon production are almost completely removed from the ambient air in our plant by especially effective filter systems. The goal is also to operate the plant so that it is climate-neutral throughout. Due to the nature of the chemical reaction, known as reduction, CO2 will always be produced in the process, even with the exclusive use of renewable energy. In order to make these emissions climate-neutral, the reducing agent coal currently being used is increasingly being substituted in the process by sustainably produced charcoal. In addition, the CO2 produced is to be captured and used in the further process to produce green methanol, a climate-friendly fuel. This can contribute, in particular, to the decarbonization of shipping, which today still largely uses fossil fuels. We have started collaborating with the national Icelandic energy supplier with the aim of testing the production of green methanol. According to sustainability certifications of green methanol already available on the market, it can save up to 90 % of greenhouse gas emissions compared to fossil-based methanol, as indicated by calculations by the sustainability certification provider ISCC, for example. And the products of PCC BakkiSilicon hf. are also expected to contribute to sustainability and climate protection in the future. Silicon powder, for example, serves as the starting material for a novel anode material being developed by Group company PCC Thorion GmbH in collaboration with the Fraunhofer Institute for Solar Energy Systems ISE. The anode material is expected to improve the performance of lithium-ion batteries, a key component of climate-friendly electromobility.

The Logistics segment’s largest business area is that of intermodal container transport, a system that efficiently combines environmentally friendly rail transport on long-distance routes and flexible road transport over shorter distances. Compared to road-only transport, our combined intermodal transport services enabled emissions savings of 402,000 metric tons of the greenhouse gas CO2 in 2022 (previous year: 383,535 metric tons of CO2) with a total productive output of 3,237.0 million ton-kilometers (previous year: 3,088.0 million ton-kilometers). These calculations are based on data from the European Environment Agency of November 5, 2015 for the reference year 2014.

In recent years, the Conventional Energies business unit has reduced dust emissions from the PCC combined heat and power plant at the Brzeg Dolny chemical site with the installation of modern electrostatic precipitators. Meanwhile. the Renewable Energies business focuses on the construction and operation of small hydropower plants, proven to be particularly environmentally compatible due to their relatively low impact on nature. To date, six of these power plants, five in North Macedonia and one in Bosnia and Herzegovina, have been connected to the grid.

Numerous certifications, the signing of public agreements and membership of initiatives document the commitment of PCC’s affiliates to environmental issues.

The PCC Group determines the performance indicators relevant to its business activities on an annual basis. In addition to emissions of greenhouse gases (GHG) in the definition of Scope 1, these include both energy consumption and water usage as environmental issues. Scope 1 defines greenhouse gas emissions arising directly from our own assets or those controlled by PCC companies (see also explanations on page 44). In the case of energy consumption, all energy sources that are recorded individually, i.e. electricity, gas, heat, steam, fuel oil, gasoline and diesel, are added together without any distinction being made in the data record. The water consumption data relate to both water for the production process and wastewater. Similarly, we do not differentiate as to whether usage, consumption or emissions are due to the manufacture of a saleable end product or to internal further processing.

The electricity consumption of all companies of the PCC Group in 2022 was 1,062.1 GWh (previous year: 852.7 GWh). Of this, 496.9 GWh, or 46.8 %, was generated from renewable energy sources (previous year: 340.5 or 39.9 %). The main contributor to the share of renewable energy sources is our silicon metal plant in Iceland, which is supplied exclusively with green electricity (mainly from geothermal sources).

Moreover, changes in the electricity mix from national supply networks also support this development. Although total electricity consumption increased in absolute terms compared to the previous year, the share of electricity from renewables rose even more sharply. The specific energy consumption of our affiliates increased by around half year on year in 2022, to 0.61 MWh per metric ton of product (previous year: 0.40 MWh). The main reason for this is that in 2022, due to the sanctions imposed as a result of the war in Ukraine, large trading volumes of coke, coal and anthracite were eliminated from the supply-side mix, resulting in a decline in the total volume of products in the PCC Group. Specific electricity consumption related to sales was 801.8 MWh per million euros, a reduction of 7.9 % compared to the previous year (870.4 MWh).

Absolute gross emissions of greenhouse gases in Scope 1 increased by 17.4 % year on year in 2022, to 486,800 metric tons CO₂-equivalent (t ‘000 CO₂e) (previous year: 414,800 t CO₂e). The increase resulted from the year-round operation of the silicon metal production plant in Iceland. As in previous years, carbon dioxide (CO₂) accounted for the majority of greenhouse gas emissions. Adjusted for emissions from non-fossil, i.e., sustainable, raw materials, such as wood, Scope 1 emissions amounted to 459.8 thousand t CO₂e. In specific terms, i.e. per metric ton produced or traded, gross emissions of Scope1 greenhouse gases increased by 42.1 % to 0.28 t CO₂e (previous year: 0.20 t CO₂e). Related to sales, gross emissions of greenhouse gases decreased by 13.2 % to 367.5 t CO₂e per million euros (previous year: 423.4 t CO₂e).

Water consumption and the generation of wastewater at the portfolio companies of the PCC Group essentially arise in the manufacturing process of our affiliates in the chemical-producing segments. Absolute water consumption decreased by 6.7 % to 6,654,500 m³ in 2022 (previous year: 7,130,500 m³). In volume terms, this translates into in a specific rate of use of 3.8 m³ of water per metric ton produced or traded, 13.0 % more than in the previous year (3.4 m³). This increase resulted, in particular, from the sharp reduction in traded volumes arising from the war in Ukraine. Related to sales, water usage decreased year on year to 5,000 m³ per million euros, 31.0 % below the previous year’s level of 7,300 m³ per million euros.

In their sustainability vision, PCC SE and the companies of the PCC Group acknowledge their ecological and social responsibility. The objective is to make a strong contribution to climate protection and sustainable  development. Thus, the PCC Group is striving in the long term to reduce specific consumption and usage, particularly of water. Greenhouse gas emissions from PCC’s chemical production are to be halved by 2030 compared to 2020 (Scopes 1 and 2, see explanations on page 44). By then, PCC’s energy generation is to be completely coal-free, with the share of energy supplied from renewable sources to be further increased. By 2050, the Group as a whole is to be net climate-neutral.

Among employee issues, the first priority is always that of ensuring occupational health and safety. PCC invests in technical safety and training so as to continuously improve occupational health and safety not only within the PCC companies but also along the value chain. We regularly review compliance with our safety, health and environmental standards. Continued investment in modern production facilities makes a significant contribution to occupational safety.

In addition, PCC specifically promotes the individual development of its employees. They are granted scope to work independently on a results-led basis and opportunities to take on responsibility. Employee initiative and creativity are specifically encouraged, with decision-making authority assigned within the scope of each individual’s potential. They are supported in their personal development through tailored preparation for new tasks with thorough on-the-job training. In its human resources management, PCC attaches great importance to diversity, both cultural and professional. Discrimination is not tolerated within the company in any form whatsoever. And regulations promoting gender equity and equality are binding.

This means that all employees have the right to fair, polite and respectful treatment. PCC does not tolerate any discrimination or harassment of employees. Specifically, discrimination or harassment on the grounds of descent, race, religion, origin, gender, disability, age, marital status, sexual orientation, political opinions or membership of trade unions or political parties is prohibited at PCC.

Together with protection of the environment, the safety and protection of our employees and of local residents are of the highest priority. PCC is therefore committed to ensuring safe working conditions at all times. For example, we implemented a highly comprehensive range of home office solutions at short notice during the coronavirus pandemic of recent years. In the event of an accident or malfunction, PCC takes the appropriate measures to avert, mitigate and repair the damage as quickly and effectively as possible and informs the relevant authorities.

The provisions on equality between men and women must be complied with. The equity imperative encompasses, in particular, areas such as task allocation, pay, training, professional development and promotion. All forms of sexual harassment in the workplace are prohibited. Sexual harassment is defined as any conduct with a sexual connotation which is undesirable to the person concerned and degrades their dignity.

Bullying as the deliberate exclusion and humiliation of employees is likewise not tolerated. Bullying is defined as systematic, persistent or repeated hostile behavior with the purpose of isolating a person at the workplace, within the workforce or even from the workplace.

PCC takes all reasonable measures to prevent discriminatory conduct and harassment. All employees are called upon to report any and all cases of discrimination or harassment in their working environment to their supervisor, the human resources department or the compliance officer.

Within the PCC Group, there are risks to employees with regard to occupational health and safety, particularly in the manufacturing PCC companies. PCC is actively working to create a safe environment for its people, continuously improving working conditions by using advanced technologies and investing in modern production facilities. For example, the complete technological switchover of our chlorine production to the modern membrane process has totally eliminated mercury from the production operation, significantly improving workplace quality in the facilities concerned.

PCC ensures that all employees enjoy equal opportunities in every dimension for their professional development, in relation to access to further training and in terms of their promotion opportunities. The companies of the PCC Group support their employees through flexible working-time models. The scope on offer ranges from working time accounts, part-time contracts and early retirement arrangements to home office arrangements. PCC encourages open communication between employees and, to the full extent possible, with our stakeholders.

PCC’s commitment to employee issues is evidenced by numerous certifications, the signing of public agreements and membership of initiatives:

The PCC Group is an internationally active conglomeration, as is reflected not only in the worldwide sale and distribution of products and services but also in the diversity of our employees. In 2022, the PCC affiliates around the world had in their employ people from a total of 28 nations (previous year: 27). As a result of the Group’s extensive investments and growth, particularly in new regions, its workforce has increased in recent years, and rose again by 2.4 % in 2022 to 3,391 as of December 31 (previous year: 3,311). The proportion of women decreased slightly to 25.4 % (previous year: 27.2 %).

The proportion of women in the first and second levels of management at PCC’s affiliates was 22.7 % in the year under review (previous year: 19.4 %). PCC invests intensively throughout the Group in the training and further development of its employees, with 60,456 person-hours spent on such activities last year (previous year: 31,815 person-hours), representing an increase of around 90 %. Occupational health and safety is invariably given high priority on the training agenda. Occupational accidents resulting in incapacity for work of more than one day amounted to 45 in 2022 (previous year: 64), representing a reduction for the fourth year in succession. The number of sick days due to occupational accidents increased across the Group to 1,593 (previous year: 1,328). And the number of sick days due to accidents at work per employee rose to an average of 0.47 (previous year: 0.40).

PCC rewards the commitment of its people appropriately and respects all employee rights of freedom of organization and co-determination. All forms of discrimination are forbidden. Backed up by insights revealed in personal discussions, the relatively high average period of service with the PCC Group of 9.1 years (previous year: 8.9 years) offers an indication of employee satisfaction. The average age of 40.6 years (previous year: 39.6 years) is evidence that PCC makes use of the expertise of older employees while also providing entry opportunities for young people, thus encouraging diversity and promoting good team performance through a mix of complementary skills and experience.

PCC rewards the commitment of its people appropriately and respects all employee rights of freedom of organization and co-determination. All forms of discrimination are forbidden. Backed up by insights revealed in personal discussions, the relatively high average period of service with the PCC Group of 9.1 years (previous year: 8.9 years) offers an indication of employee satisfaction. The average age of 40.6 years (previous year: 39.6 years) is evidence that PCC makes use of the expertise of older employees while also providing entry opportunities for young people, thus encouraging diversity and promoting good team performance through a mix of complementary skills and experience.

PCC has set itself the goal of continuously raising the standards of health and safety for the Group’s employees, constantly paying particular attention to accident prevention and health protection at the workplace as well as to preventative healthcare measures. Beyond a safe, pleasant working environment based on mutual awareness and appreciation, it is a central objective of PCC to offer all employees opportunities for ongoing development, for example through targeted training. In addition, there are to be further improvements in family / career compatibility, one of the aims being to increase the proportion of women at all levels of the Group.

PCC respects the protection of international human rights in accordance with the UN Charter of Human Rights, recognizes them unreservedly and supports them within its sphere of influence. Violations of human rights are not tolerated and are duly sanctioned. This is underlined especially by PCC Exol SA’s membership of the United Nations Global Compact.

Overall, it can be seen that the sites of the PCC companies are predominantly located in countries with a positive human rights record, particularly in Europe. Swapping these sites for those with a poorer human rights record and possibly lower production costs is not an option for PCC SE – neither for the Group as a whole, nor for the individual PCC companies.

Both PCC SE and the companies in its investment portfolio are actively committed to respecting human rights, especially in new regions in which the PCC Group has previously not been active. The same human rights standards apply throughout the PCC Group, i.e. irrespective of location, as documented, in particular, by our participation in a number of initiatives.

As in the previous year, no violations of human rights were reported in 2022, either in the companies of the PCC Group or in the holding company. Any potentially reported violation would be investigated by the Group management and sanctioned upon confirmation.

PCC is committed to fully prioritizing respect for human rights now and into the future. The respect for human rights enshrined in the Code of Ethics of  the PCC Group is obligatory for all executive and supervisory bodies, managers and employees in all PCC companies. This applies in particular, but not exclusively, to new locations in regions in which PCC has not previously been commercially active. PCC believes that monitoring of compliance with human rights must be intensified at such places.

At PCC, business activity is closely linked to social responsibility. In the social sphere, we take into account not only the interests of the residents neighboring PCC sites, but also those of the general public. Our Group companies are members of international organizations in the field of CSR and implement corresponding programs. PCC SE and its subsidiaries promote social initiatives and institutions. PCC also supports its employees in their social volunteering work and actively engages in dialog with local communities. PCC’s social responsibility remit includes cooperation with universities and other educational institutions, as well as providing support to sport and culture. Sponsorship money is only granted on the legal basis applicable in each case. This also requires the approval of the Executive Board of PCC SE, or the executive board or senior management of the respective Group companies. Cash payments and other financial contributions to politicians, political parties or other political organizations are strictly prohibited.

PCC SE and its subsidiaries are directly involved in the local communities in which they operate. At our Group headquarters in Duisburg, for example, PCC SE has been supporting the homeless charity “Gemeinsam gegen Kälte Duisburg e.V.” (“Joint Action Against the Cold”) for a number of years now. PCC also sponsors local and regional sports and cultural events. For example, the holding company is the name sponsor of the PCC Stadium in Duisburg-Homberg, located near the Group’s headquarters, and the main sponsor of VfB Homberg e.V., the regional soccer team based there. As of year-end 2022, the PCC Group was providing support to 86 projects (previous year: 62).

PCC has set itself the goal of continuing to drive value creation within the Group for the benefit of all stakeholders. PCC strives to augment its commitment to its social responsibilities through greater participation of its Group companies in international organizations and initiatives in the field of CSR, and is implementing an increasing number of corresponding programs in pace with this effort. PCC also intends to further expand its social commitment, including its collaborations with universities and other educational institutions.

PCC does not tolerate any form of active or passive corruption, extortion or bribery. Our commitment in this regard is set out in the PCC Code of Ethics, which is binding on all employees of the PCC Group.

Business relations with suppliers and partners are to be conducted exclusively according to objective factual and commercial criteria. Personal interests have no role to play in such transactions. The prohibition on receiving or giving gifts applies not only to direct financial consideration but also to other benefits which could jeopardize the commercial independence of either party. Complementary to the relevant tax regulations and approval obligations, PCC has a strict policy in place governing the granting and acceptance of benefits, gifts or invitations. Adherence to this policy must be assured at all times.

In order to ensure compliance with statutory provisions and the objectives that exist in this domain, all related measures are only approved once all the bodies responsible have conducted their own thorough examinations. As in the previous year, the number of penalties and fines for non-compliance with laws and regulations was zero.

Also as in the previous year, there were no compliance violations in the reporting year leading to the rejection or termination of business relationships.

PCC will continue to take uncompromising action against bribery and corruption on the basis of its zero-tolerance policy. Our goal is to ensure that the Group remains untainted by cases of this nature.