Covestro : 2024 ESG Investor Presentation May 2024

We Will Be Fully Circular

Sustainability @ Covestro Covestro 2024

covestro.com

ESG @ Covestro │ 2024

1

Forward-looking statements

This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG.

Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro's public reports which are available on the Covestro website at www.covestro.com.

Covestro assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

2ESG @ Covestro │ 2024

Inventor and leader in high-tech material solutions

Covestro at a glance

WHAT WE DO

Covestro is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life.

The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics and health.

WHAT WE STRIVE FOR

Purpose

Vision

To make the world a		We will be
brighter place		fully circular

€14.4bn

Sales 2023

17,520

Employees (in FTE) 2023

Together with our partners and customers, we are taking big steps to tackle a fundamental challenge: Shifting towards a Circular Economy.

To achieve this bold goal, we are innovating efficient ways to close energy and material cycles. We are pushing boundaries in polymers.

Values

Curious,

courageous,

colorful

Goals

Financial 2023 and

non-financial 2025 goals

#1

Global producer of PU and its derivatives as well as PC(a)

3	ESG @ Covestro │ 2024	Notes:	(a) Based on total combined nameplate capacity for MDI, TDI and polyether polyols at year end 2023 as per Covestro estimates;
			PU = Polyurethanes; PC = Polycarbonates

Setting the path for tomorrow

New Covestro strategy 'Sustainable Future'

BECOME THE BEST	DRIVE SUSTAINABLE	BECOME FULLY
OF WHO WE ARE	GROWTH	CIRCULAR
Transform the company	Address sustainability	Accelerate the transition
to exploit its full potential	in a profitable way	to a fossil-free economy

ADVANCE DIGITALIZATION

EXPAND 'WE ARE 1' CULTURE

4ESG @ Covestro │ 2024

Pursuing long-term goals that transform the company

Covestro strategic objectives

	BECOME THE BEST		DRIVE SUSTAINABLE
	OF WHO WE ARE		GROWTH

BECOME FULLY CIRCULAR

Mid-cycle EBITDA with yearly increasing EBITDA based on capacity increases

Structuring business into the 2 segments and profitably developing the business with focus on sustainability and CE

Customer centricity concept consisting of knowing the customer, thinking customer first and co-creating customer value

Grow by long-term average capex slightly above D&A

Managing and steering the product portfolio toward greater sustainability and circularity

Pursue options for bolt-on acquisitions in S & S segment

Invest in CE projects

almost €1bn of capex over 10 years

Produce 100% of our products from alternative raw materials long-term

Transform polymer research through increasing investments in digital R&D

5	ESG @ Covestro │ 2024	Notes:	CE: Circular Economy
			S & S: Solutions & Specialties segment

Over products positively impact sustainability in our daily lives

Covestro product applications

PU RAW MATERIALS

Increasing energy efficiency of buildings through materials and technologies for insulation

Mass-balanced polymers used in flexible and rigid foam saving crude oil, e.g. Desmodur CQ®

Food preservation along the cool chain

ENGINEERING PLASTICS

Enabling electro-mobility with materials for battery housings, housings for charging stations

Recycled content grades on a virgin performance level

Use in protective gear and medical applications, e.g. drug delivery devices

SOLUTIONS & SPECIALTIES

Waterborne coatings and adhesives, replacing solvent

Bio-based raw materials to improve CO2 footprint, e.g. Baycusan® eco

Fully recyclable shoes made from thermoplastic PU powder and filament

6ESG @ Covestro │ 2024

Our innovative products tap into attractive new markets

Structural growth drivers

UN SDGs(a)

NEEDS

SAMPLE APPLICATIONS(7)

related to climate change:

related to increasing mobility:

related to growing population and prosperity:

related to increasing urbanization:

• Alternative energy sources, stepping away from fossil fuels
• Zero emission concepts
• Electricity key to green hydrogen economy
• Energy-efficientmobility

• E-mobility

• Autonomous driving
• Sustainable fashion • Food preservation
• Medical applications
• Energy-efficientlighting • Affordable housing
• Public infrastructure

• Increase in electricity demand from 2019 to 2050 ~75%1
• On- & Offshore wind energy
  CAGR: ~7%2
• Global car production
  CAGR: ~3.4%3
• Global EV prod.
  CAGR: ~26%4
• Healthcare device market
  CAGR: ~5.5%5
• Covestro relevant market
  CAGR: >6.0%5
• Luminaire market
  CAGR: ~4%6
• Luminaire LED
  CAGR: ~17%6

	Notes:	(a) Most impacted goals out of 17 Sustainable Development Goals, set by the United Nations' "2030 Agenda for Sustainable Development
7	ESG @ Covestro │ 2024	1)	BP, Energy Outlook, 2023 for 2023-2050; 2) Preview GWEC, Global Wind Executive Council: Annual-Wind-Report 2023 for 2023-2030; 3) GD, Feb 2024, for years 2022-2027
4)	GD, Feb 2024, for years 2022-2027; ; 5) Fortune Business Insight, CAGR 2022-2029, Covestro estimates for 2023 to 2030; 6) Fortune Business Insights Report on Lighting (CAGR

2022-2029) / LED Lighting Market (CAGR 2022-2029) 7) Covestro industry demand outlook assumes global GDP CAGR of ~3% in 2023 - 2028e

Long history of innovations inspired by sustainability

Covestro milestones in sustainability

2015

Covestro was founded and signed UN Global Compact

2015 Pledge to 'Operation Clean Sweep' and strive

toward zero pellet loss

2016 First Covestro 2015 GRI Supplement published

2016 Covestro non- financial goals for 2025 published

2017 Covestro Policies developed and approved, including a policy on Sustainability

2019

Signatory of EU

Circular Plastics

Alliance

2019

Founding member of Alliance to End Plastic Waste

2020 New company vision:

We will be fully circular

2020 Initiated company transformation centered around new vision of CE

2021 Non-financialKPI introduced to Board of Management long-termincentive plan: absolute CO2e reduction over four years

2022

Net-Zero Target until 2035 and 60% GHG reduction until 2030 (scope 1&2 emissions)

Non-financial KPI introduced for all employee's short-term incentive plan: absolute CO2e emissions

2023

Global network of

16 ISSC+certified sites for regional supply of sustainable products by the mass-balance approach

2024

Net-zero target for scope3 until 2050 intermediate reduction of 30% in 2035 from base year 2021

2015

2016

2017

2019

2020

2021

2022

2023

2024

2015

First coating hardener made of renewable raw materials launched

2016 Production start of soft foam components with CO2 in Dormagen, Germany

2017

Key chemical aniline won from renewable raw materials for the first time

	2020
	First marketed
	PC made of
2019	phenol of
New	attributed bio-
polycarbonate	based origin
grades from
post-
consumer
recycled
(PCR) content
launched

2021 Prototype insulation board developed with CO2 as feedstock for PU rigid foam

2022 renewable product portfolio with reduced CO2 footprint for TDI, climate neutral versions of MDI and PC

2023 PUReSmart project successfully finished closing the loop from mattress recycling to virgin flex foam material used again for new matrasses

8ESG @ Covestro │ 2024

Notes:	UN SDG: United Nations Sustainable Development Goals
	GRI: Global Reporting Initiative

On track to achieve our ambitious non-financial targets

Covestro sustainability targets

Five ambitious goals

2025

Align research and development with the UN Sustainable Development Goals

Apply sustainability standards to all suppliers

Improve living conditions of 10 million people in underserved markets

Use carbon in the most intelligent way

2030-50 Covestro aims for scope 1-3 climate neutrality with intermediate targets

Our Achievement

52% of R&D project expenditures in 2022

76% by end of 2023

6.7 million people by end of 2023

Company vision to become fully circular announced in 2020, concept merged into CE approach

-8.4% reduced GHG emissions in Scope 1&2 vs 2020

9	ESG @ Covestro │ 2024	1	Achieving net zero greenhouse gas emissions is defined as a balance between anthropogenic emissions (from own operations and energy procurement) and
anthropogenic removals of greenhouse gases.

Covestro ESG rating results and index membership

As of February 2024

	Scoring
ESG Ratings &	Range	2016		2017	2018	2019		2020		2021		2022	2023	2024	Distinction
Indices	(Worst →
	Best)
															Leadership	(1)
	D- to A	-		-	-	-		-		A-	A-	A-	A-
				Level
														Next update		(2)
	0 to 100
	73						80					72	in 2025
					A	A		A		A			A			(3)
MSCI ESG	CCC to	BBB		BBB
								AA		tba
AAA
		74		75		80									(4)
	100 to 0									tba
					23.3	20.0		18.3	21.1	20.1
	Excluded /	Listed		Listed	Listed	Listed	Listed		Listed	Listed	Listed
	Listed

	Notes:	(1)	Leading within the chemical industry in managing the most significant climate related questions.
10	FY 2024 │ IR Roadshow Presentation	(2)	Covestro belongs to the Top 5% within the chemical industry.
		(3)	Covestro belongs to the Top 23% within specialty chemicals.
		(4)	Covestro is identified as a TOP ESG performer of Sustainalytics' ESG Risk Ratings out of more >4,000 comprehensive companies.
			Covestro belongs to the Top 5% within the chemical industry.