CSRD-Readiness for Lohmann Group
Customer: Lohmann GmbH + Co. KG
Category: Adhesive Technology
Date: July 2023
Founded in 1851, Lohmann is one of the pioneers of adhesive tape technology and today operates worldwide. The headquarters of the Lohmann Group is located in Neuwied, Germany. Today, the company employs over 1,800 people worldwide and includes 27 international locations and exclusive distribution partners in over 50 countries. Lohmann’s “Bonding Engineers” cover the entire value chain and enable customer-oriented solutions. Responsibility for a sustainable future and passion for innovative high-tech adhesive tapes are equally in focus and have been an integral part of the corporate identity for many years.
“DFGE was the right partner for our goal to optimally prepare for CSRD reporting. Step by step, the DFGE experts showed us how to improve our sustainability performance, how to record relevant key figures and how to set up the structures and processes for non-financial reporting. These insights are evidence of a successful collaboration.”
Challenges
Growing requirements through the CSRD
Due to its size, the company is required to report non-financial information in the areas of environment, social affairs and governance from 2026 onwards in accordance with the European Union’s Corporate Sustainable Reporting Directive (CSRD). Detailed information on strategies, policies, measures, targets and key performance indicators must be provided for each material sustainability topic of the company.
At the beginning of 2021, Lohmann faced the challenge that, although it already had a solid base of sustainability-related policies, measures and metrics internally, it was not yet reporting on its ESG efforts in the form of a sustainability report.
Solution
CCF, Materiality Analysis, UNGC, EcoVadis & CSRD
For this reason, Lohmann relied on the cross-thematic sustainability expertise of DFGE. As part of several projects that build on each other, the company was optimally prepared for the reporting requirements of the CSRD.
Step 1: Calculation of the Corporate Carbon Footprint in 2021
As a manufacturing company, the topic of climate change naturally represents the sustainability issue with the greatest opportunities, risks and impacts. For this reason, the calculation of the corporate carbon footprint was used to create an initial overview of the company’s CO2 emissions along the value chain and to identify key hotspots and potential savings.
Step 2: Materiality analysis based on the principle of double materiality
In parallel, a materiality analysis was carried out according to the principle of double materiality, as this forms the basis of any reporting under the CSRD. Two perspectives are included: First, it looks at what (potential) positive and negative impacts the company has on various sustainability topics. On the other hand, the financial opportunities and risks arising for the company from sustainability issues are illuminated. In a comprehensive analysis involving various internal and external stakeholders, the most relevant sustainability issues for Lohmann were identified. This forms the basis for the further development of strategies and guidelines as well as reporting on these topics.
Step 3: UNGC progress report in 2021
The next step was to prepare a progress report for the United Nations Global Compact (UNGC). The UNGC is a United Nations initiative that commits companies to adopt responsible practices in the areas of human rights, labor standards, environmental protection and anti-corruption. DFGE supported Lohmann in the preparation of this report and ensured that all metrics and measures relevant to it were captured.
Step 4: Participation in EcoVadis Rating
As a further important step, Lohmann decided to participate in the EcoVadis rating, an independent platform that evaluates the sustainability performance of companies. The rating includes the aspects of environmental management, labor practices, fair business practices and sustainable procurement. In close cooperation with DFGE, all the necessary information was collected and prepared for the rating, enabling potential improvements in sustainability management to be uncovered.
Step 5: CSRD readiness analysis
The project, which was carried out at the beginning of 2022, served to ensure that the company was optimally prepared for the requirements of the new EU directive. This included reviewing existing reporting processes and systems and identifying gaps. In addition, a roadmap for the remaining years until the reporting obligation was developed in order to meet the extended disclosure requirements. To this end, workshops were held with management and all relevant departments of the company to raise awareness of the CSRD and the new reporting requirements.
Result
A strong sustainability management
Preparing for the CSRD enables Lohmann to actively address sustainability requirements and align its long-term business strategy with environmental, social and governance-related sustainability goals.
The three pillars of ecology, economy and social responsibility are deeply rooted in the company culture and form the basis of the corporate strategy. We are pleased to be able to support Lohmann on its further journey.
