Evonik
Automates and
Scales Supplier Prequalification

With IntegrityNext, the company systematically screens its business partners for sustainability and compliance risks – laying the foundation for a transparent and responsible supply chain.

 

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Industry Specialty Chemicals

Core business areas

  • Custom Solutions: Comfort & Insulation, Interface & Performance, Coating Additives, Coatings & Adhesive Resins, Catalysts, Oil Additives, Care Solutions, Health Care
  • Advanced Technologies: Crosslinkers, High Performance Polymers, Smart Effects, Active Oxygens, Animal Nutrition

Annual revenue €15.2 billion (2024)

Employees 32,000 (2024)

Headquarters Essen, Germany

Supplier network 33,000 (tier 1)

Annual procurement spend €10.5 billion

11,000

suppliers systematically prequalified using self-assessments

94%

response rate for supplier self-assessments

400

procurement staff benefit from efficiency gains through digital, centralized prequalification

With IntegrityNext, we can efficiently prequalify thousands of suppliers while ensuring compliance with stringent sustainability and regulatory standards. Continuously updated questionnaires, a multilingual platform interface, and seamless ERP integration help to substantially streamline the entire process.

Sascha Ceylan
Head of Sustainability, Risk & Compliance, Procurement Department, Evonik

How Evonik Uses Our Platform

  • Main applications
    • Systematic supplier prequalification
    • Compliance with legal requirements such as the German Supply Chain Act (LkSG)
  • Suppliers screened 28,000 (tier 1)
  • Suppliers subject to self-assessments 11,000 (tier 1)
  • Self-assessment response rate 94%

Evonik Goals We Support

Sustainability and Compliance

Ensure proactive supply chain management in line with legal requirements such as the German Supply Chain Act (LkSG) and recognized sustainability standards.

Efficient, Risk-Based Supplier Selection

Establish a centralized, automated pre-qualification process based on current sustainability and compliance criteria.

Transparency and Documentation

Improve visibility into supplier practices and ensure verification of supporting evidence, including ISO certifications.

Corporate Context

Evonik is a global leader in specialty chemicals, headquartered in Essen, Germany, with more than 100 production sites worldwide. The company sources products and services from over 100 countries. Approximately 60% of its procurement spend is concentrated in Europe, followed by 25% in the Americas and 15% in Asia. Raw materials represent nearly half of Evonik’s total purchasing volume.
 
The company’s global procurement organization emphasizes efficiency, compliance, and the strategic use of synergies as key drivers of success. Sustainability and innovation also play a pivotal role, requiring close collaboration across the entire value chain.
 
As a founding member of the industry initiative Together for Sustainability (TfS), Evonik has long been committed to embedding sustainability into its supply chain. While the company regularly conducts audits and assessments for critical suppliers, it lacked a scalable solution to analyze a large number of smaller suppliers worldwide – efficiently and in alignment with both recognized sustainability standards and legal obligations.
 
Following a careful evaluation of available solutions, Evonik selected IntegrityNext, based on the following key criteria:
 
  • User-friendly, multilingual platform
  • Curated and regularly updated self-assessment questionnaires
  • Broad coverage of sustainability topics
  • No cost for suppliers
  • Seamless data integration with Evonik’s ERP system

 

Our goal was to systematically embed sustainability into the supply chain while efficiently fulfilling legal obligations such as the German Supply Chain Act (LkSG). The IntegrityNext platform is a central building block of these efforts and dovetails seamlessly with our human rights compliance management system.

Project Description

Key Stakeholders

Evonik’s global procurement function is centrally managed from Germany, supported by regional units in Asia, North America, and South America. Responsibility for sustainability in procurement lies with the Sustainability, Risk & Compliance (SRC) department, which plays a central role in supplier prequalification. As part of this mandate, the SRC team uses supplier assessments to determine whether potential business partners meet Evonik’s sustainability standards.

Beyond establishing internal guidelines and best practices, the SRC team also trains sourcing managers in sustainability-related competencies and monitors supplier performance, including qualification, scores, and risk ratings. The department drives sustainability management processes within the supply chain and is part of Evonik’s broader corporate sustainability network. The team works closely with the Corporate Sustainability unit, which reports to the Executive Board – highlighting the strategic significance of sustainability across the organization.

Two main users in the SRC department work directly with the IntegrityNext platform. At the same time, buyers and other teams access relevant supplier data through Evonik’s SAP system, which is connected to IntegrityNext via an API. They verify whether suppliers hold required ISO certifications, comply with international human rights standards, or provide conflict minerals declarations, using the CMRT template of the Responsible Minerals Initiative (RMI).

Roll-Out

Evonik applies a two-pronged approach to supplier assessments. While selected high-risk suppliers undergo a detailed audit by a TfS partner, the majority – all relevant suppliers and service providers with annual procurement volumes below €100,000 – are prequalified based on IntegrityNext self-assessments. The platform is fully integrated into Evonik’s compliance management system.
 
An external partner supports Evonik in conducting compliance checks for the small number of suppliers who do not participate in the IntegrityNext prequalification process.

Key Outcomes

Scalable Risk Assessment

Uploaded suppliers undergo an automated country and industry risk analysis. In addition, the business practices of a total of 11,000 suppliers have been evaluated through self-assessments – averaging 1,500 to 2,000 per year. With a remarkable 94% response rate, the process delivers a high level of transparency.

Comprehensive Topic Coverage

In addition to topics relevant under the German Supply Chain Act (LkSG) – such as environmental protection, human and labor rights, anti-corruption, and supply chain responsibility – the analysis covers further aspects such as energy management and due diligence obligations related to conflict minerals.

Effective Compliance Framework

By significantly increasing visibility into the supply chain and systematically documenting sustainability practices – for example, through relevant ISO certifications – Evonik lays the foundation for a robust risk analysis and compliance with legal due diligence obligations.

Operational Relief for Buyers

Digital prequalification via IntegrityNext is mandatory for all new suppliers exceeding a defined procurement threshold and is managed by a small core team. This ensures high process efficiency and frees sourcing managers from the time-consuming task of conducting supplier evaluations themselves.

IntegrityNext not only enables us to accurately assess supplier risks, but also significantly reduces the administrative workload. Without the platform, hundreds of our sourcing managers would have to handle these processes manually.

Future Outlook

Evonik is committed to the continued development of its sustainable supply chain initiatives, with the following strategic priorities:

Increasing Transparency

Evonik has a solid understanding of its direct (tier 1) business partners and already has visibility into deeper levels of the supply chain in specific areas – such as forced labor risks in certain markets. Looking ahead, expanding transparency beyond tier 1 and improving product and component traceability are key strategic objectives.

Compliance and Due Diligence

Compliance with legal requirements remains a central focus, particularly with regard to the EU Corporate Sustainability Due Diligence Directive (CSDDD). Evonik is also affected by the EU Deforestation Regulation (EUDR) due to the use of palm oil-based products in its upstream supply chain.

Decarbonization and Circular Economy

Further strategic priorities in procurement include the decarbonization of the supply chain, the measurement of Product Carbon Footprints (PCFs) for purchased raw materials, and the use of bio-based, recycled, or CO₂-based materials to support a circular value chain. Through circular design, the company aims to reduce resource consumption, lower its environmental footprint, and significantly reduce Scope 3 emissions.

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