Responsible sourcing
It is important to us that the materials we use to manufacture our products are procured in a socially and environmentally responsible manner. Responsible sourcing allows us to positively impact stakeholders in our supply chain. We prioritize procuring goods that are produced under environmentally and socially responsible conditions following all applicable international standards and regulations.
We manage our supply chain through our two business units: Microbial Control Solutions (MCS) and Nutrition, Care and Environmental (NCE). Many of the materials we procure are site and product specific. However, common approaches are used across both. To ensure our suppliers are aligned with our values and ambitions, we conduct supplier screenings and assessments.
Additionally, we comply with regionally specific requirements, such as the UK Modern Slavery Act Statement, California Transparency in Supply Chains Act Statement and the Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour.
Our procured materials contribute to our GHG emissions footprint reductions. We prioritize selecting more environmentally friendly materials and transportation methods, like vessels and rail instead of airfreight. We ensure workers at our supplier sites are treated safely, ethically and with respect, in line with our corporate values of Safety and Health, Ethical Behavior and Respect for People and Planet.
To achieve more sustainable supply chains across the business, we have set a goal for 100% of our key suppliers to complete a comprehensive environmental, social and governance (ESG) assessment by 2030.²³
Roll-out and preparing the foundation for TfS Application
While in 2024 we refreshed our Supplier Code of Conduct to align with industry best practices, expanding its availability beyond English and Chinese to include Spanish, Thai, German, and Czech, our focus in 2025 shifted to capacity building and further rolling out the program across the Procurement Community, with an emphasis on supplier assessment.
Through our sustainability assessments and use of EcoVadis IQ Plus, we continuously monitor our suppliers' adherence to our Supplier Code of Conduct. In cases of non-compliance, we reserve the right to request corrective action and, if necessary, terminate our agreement with the supplier.
Our ambition for 2025 was to empower the entire procurement community to utilize the EcoVadis IQ Plus Platform and to increase the proportion of spend with suppliers who have undergone assessment to 80%. To support this goal, we developed a comprehensive live dashboard that facilitates the progress of the EcoArx initiative.
By year-end, we reached our goal: 81% of direct spend was covered by a signed Supplier Code of Conduct. In high-risk countries, 90% of spend was covered by the Supplier Code of Conduct, and 79% of the spend was managed through IQ Plus. More than 200 companies now hold an EcoVadis rating.
In 2025, we also prepared our application to join Together for Sustainability (TfS) as a new member.
TfS is a global initiative dedicated to advancing sustainable practices in the chemical supply chain. By fostering collaboration among leading chemical companies, TfS seeks to standardize and improve sustainability assessments, enabling participating organizations to evaluate, monitor, and enhance the environmental, social, and governance (ESG) performance of their suppliers. The program leverages shared audits, assessments, and benchmarking tools to drive transparency and continuous improvement across the industry.
The application and onboarding to TfS represent a significant milestone in our responsible sourcing journey. Through this partnership, we gain access to rigorous sustainability standards, best practices, and a collaborative network that supports the ongoing development of sustainable procurement strategies. Aligning with TfS strengthens our commitment to sustainability, ensures compliance with evolving global expectations, and reinforces our leadership in responsible supply chain management. Ultimately, TfS participation will help us drive meaningful progress in reducing environmental impact, promoting ethical business conduct, and supporting long-term value creation for all stakeholders.
Supplier screening & assessment
Prior to entering into a contractual agreement with a supplier, we conduct supplier screening and assessments that consider risk factors such as financial, geopolitical, and environmental risk. In addition to regularly reviewing this risk assessment, we ask our suppliers to complete an EcoVadis questionnaire. This provides a thorough overview of a supplier's corporate social responsibility performance and enables us to better understand the sustainability and risk performance of our value chain.
Our EcoArx responsible sourcing program provides greater insight into the activities of our suppliers, and we are committed to making sustainability improvements within our and our suppliers' operations.
ECOARX
In 2024, we launched our EcoArx program that aims to drive our responsible sourcing activities throughout our supply chain. The name EcoArx comes from a combination of the prefix 'Eco,' which underscores our dedication to both 'Ecology' and 'Economics'. It is also a nod to our collaboration with EcoVadis - and 'Arx', which is our pledge to uphold the integrity of Arxada’s supply chain.
The EcoArx program is grounded in Arxada’s sustainability strategy, which is seamlessly integrated across the entire enterprise. We ask all our suppliers to sign the Supplier Code of Conduct, and commit to the Global Sustainable Procurement Policy which was newly rolled out across the organization. We trained more than 50 colleagues in the EcoArx program, the supplier risk assessment tool, and have set targets for the Procurement organization to drive our responsible sourcing strategy.
The implementation of the EcoArx program led to nearly 50% improvement in Arxada’s score in the Sustainable Procurement category of the recent EcoVadis assessment, playing a key role in securing the EcoVadis Gold Medal in 2026.
Looking forward to 2026
We are excited to continue the implementation of EcoArx and to further embed sustainability in our procurement practices. This will include capability building with our procurement teams and our suppliers, continuous improvement of our supplier management processes and formalizing contractual obligations and improvements with our suppliers to support and enable our sustainable procurement strategy.
We recognize that addressing Scope 3 emissions is essential to achieving our climate goals and driving systemic change in the chemical industry. Therefore, we are committed to enhancing transparency across our value chain and reducing our Scope 3 emissions by systematically mapping and quantifying emissions from both upstream suppliers and downstream product use. This will help us continue to improve our responsible sourcing efforts across Arxada and our supply chain.
Another important milestone is the application and onboarding to Together for Sustainability, which we aim to complete in Q2 2026.
Propyne – Valorization of a former byproduct
Propyne is a base chemical with numerous uses for the synthesis of pharmaceuticals, agrochemicals, and industrial chemicals. The thermal cracker at our Visp site produces a range of products, among which propyne had so far not been isolated but used thermally by combustion.
In 2025, a new distillation unit was commissioned, introducing the continuous production of propyne as a pure, isolated product. A C3 side stream of the cracker was thus turned into a new value product.
Due to its flexibility, the cracker can be run from biogenic feedstocks, such as bio-naphtha or bio-LPG without a change in the product profile. Not only does this render the output streams – including propyne – biogenic, but it also significantly reduces the emissions of greenhouse gases (GHG) over the life cycle of propyne.
Polyboost™ multifunctional additive
Polyboost™ multifunctional additive, part of Arxada’s LEAP (Leverage Enhanced Additive Performance) platform, helps paint and coatings manufacturers address stricter VOC/SVOC requirements, reduced preservative options, and increasingly complex water-based formulations. The booster technology enhances preservation performance at optimum biocide levels, enabling lower use rates of traditional preservatives and helping avoid H317 labeling to support worker safety. Polyboost™ multifunctional additive also reduces lifecycle costs by minimizing spoilage, rework, downtime, and recalls, while delivering multifunctional benefits such as neutralization, co-dispersion, reduced defoaming, and improved colour acceptance using fewer ingredients. VOC-free and compatible with EU Ecolabel and Nordic Swan approvals, Polyboost™ multifunctional additive supports responsible biocide use and improved air quality. UN SDG: 3.9, 9.4, 12.4, 12.5
Peragreen 26WW
This EPA-registered peracetic acid (PAA) solution is an alternative to traditional halogen-based disinfectants in wastewater applications. This chemistry decomposes into water, oxygen, and acetic acid and further downstream into carbon dioxide with no persistent chemical load or disinfection byproducts. Peragreen 26WW is a retrofit-ready solution that can be adopted in treatment systems without major infrastructure replacement. Its improved compatibility with pumps, pipes, and dosing equipment materials allows for longer use of materials and reduced
infrastructure buildouts and investment. Its use helps facilities meet Clean Water Act requirements. It has an improved safety profile for handling and storage by operators and is readily biodegradable in end use applications (waste water treatment facility).
UN SDG: 3.3, 3.9, 6.3, 6.a, 6.b, 11.6, 12.4, 12.5, 14.1
Quanticare
Quanticare™ - Arxada’s fast-acting daily disinfectant that also eliminates spores, supporting the control of emerging resistant pathogens. The formulation delivers faster efficacy, broader usability, and improved material compatibility, supporting more efficient and sustainable disinfection practices. By matching dwell time to actual disinfection needs, it reduces unnecessary chemical exposure on surfaces and in indoor environments while improving workflow efficiency. Enhanced wipe performance provides greater surface coverage per wipe, enabling more area to be disinfected with fewer wipes and reducing material consumption and waste in high-use healthcare settings. Improved compatibility with metals, plastics, and polymers also helps prevent surface degradation and premature equipment failure, lowering repair, replacement, and associated resource demands. UN SDG: 3.3, 12.5
Primacure® curing agents and Primaset® resins
Advanced resin systems for composite materials support aerospace sustainability by enabling lightweight, high-strength structures that replace traditional metals. Carbon Fiber reinforced composites can reduce structural weight by 20–30%, with optimized designs achieving up to 50% weight savings versus Aluminum structures. Every 1% reduction in aircraft weight can deliver approximately 0.75% fuel savings, while composite-intensive aircraft such as the Boeing 787 and Airbus A350 achieve around 20–25% lower fuel burn compared with previous-generation metal aircraft. Composites also enhance durability through improved corrosion resistance, longer service life, and reduced maintenance requirements, further supporting resource efficiency and sustainability goals across the aerospace value chain.
UN SDG: 7.3, 9.4, 9.5, 12.2, 12.5, 13.2
23 Our key suppliers make up approximately 20% of our supplier base and account for approximately 80% of our spend. With a comprehensive ESG assessment, we intend an evaluation that goes beyond legal and mandatory obligations.
