# Covestro AG

> Covestro has the right circularity question in view: which alternative carbon source can enter a real polymer route and still clear the customer's grade, certification and performance requirements?

- Industry: Chemicals & Advanced Materials
- Collection: Active
- Materials: Plastics, Solvents
- Processes: Recycling
- Evidence through: 2026-09-18
- Canonical URL: https://www.materialtransition.com/library/covestro-ag

## Material inputs to resolve

Polycarbonates, polyurethanes, coatings, adhesives and specialty chemicals

Covestro reported 2025 group sales of EUR 12.942 billion and EBITDA of EUR 740 million. Its annual report describes Performance Materials and Solutions and Specialties, a circular portfolio, alternative carbon sources and chemical recycling. Public sources do not establish one open feedstock, plant-level allocation, customer grade or buyer offtake.

**EUR 12.942B** FY2025 group sales

**EUR 740M** FY2025 EBITDA

**4.3M t** 2025 Scope 1 and 2 emissions, CO2e

**2035** Scope 1 and 2 net-zero target

- Fossil and alternative carbon feedstocks for polymer production
- Chlorine, isocyanates, polyols, aromatics, additives and process inputs
- Recycled feedstock, bio-based input and mass-balance materials

### Outputs and residuals to resolve

- Polycarbonates, polyurethanes, coatings, adhesives and specialty materials
- Mass-balanced and circular product variants for mobility, construction and electronics
- Off-spec polymer, solvent, catalyst and process residuals require site-level review

**First decision:** Choose one polymer family and one alternative-carbon route. Require feedstock origin, chain of custody, TDS, COA, certification and customer application performance before calling it a lane.

## Control

Covestro AG is the public operating company headquartered in Leverkusen, Germany.

#### Segments

Performance Materials and Solutions and Specialties are the two overarching segments in the 2025 report.

#### Circularity direction

The report describes alternative carbon sources, chemical recycling and collaboration with customers and partners.

#### Evidence boundary

The strategy is clear. The commercial proof still needs a named grade, plant route, allocation method and customer acceptance.

### Decision boundary

The public record supports one bounded next move: Choose one polymer family and one alternative-carbon route. Require feedstock origin, chain of custody, TDS, COA, certification and customer application performance before calling it a lane. It does not establish a buyer, commercial approval or supply agreement.

## Material flow map

| Material or stream | Qualification gate | Process or destination | Evidence still needed |
|-|-|-|-|
| Input | Qualification gate | Polymer route | Evidence still needed |
| Recycled feedstock | Purity, contaminants and chain of custody | Chemical or mechanical route | TDS, COA and certification |
| Bio-based carbon | Origin, allocation and carbon accounting | Mass-balance polymer | Claim method and customer approval |
| Alternative carbon | Availability, economics and process fit | Polycarbonate, polyurethane or specialty route | Plant trial and application result |

This is a public screening map. It separates company-disclosed flows from open qualification work. It does not convert a destination into a buyer or an announced ambition into operating capacity.

## Three defensible entry lanes

#### Qualify one alternative-carbon grade

The transition becomes real when a named grade clears performance and claim rules.

**Next evidence:** Choose polymer, application, feedstock route, certification and customer test.

#### Build a chemical-recycling feedstock lane

Chemical recycling is relevant where mechanical routes cannot meet quality or product requirements.

**Next evidence:** Map waste composition, preprocessing, yield, quality and delivered cost.

#### Protect the margin in a weak pricing environment

Covestro's 2025 sales and EBITDA declined, so a circular product needs a clear customer value case.

**Next evidence:** Show performance parity, compliance, traceability and willingness to pay.

## Evidence register

- **Annual Report 2025** Covestro AG, company report https://annualreport.covestro.com/annual-financial-report-2025/en/ [1]
- **Group key data 2025** Covestro, annual report data https://annualreport.covestro.com/annual-financial-report-2025/en/report/overview/covestro-group-key-data/ [2]
- **Circular economy strategy** Covestro, annual report strategy section https://annualreport.covestro.com/annual-financial-report-2025/en/report/management-report/fundamental-information-about-the-group/corporate-strategy/ [3]
- **ESRS E5 resource use and circular economy** Covestro, Annual Report 2025 sustainability statement https://annualreport.covestro.com/annual-financial-report-2025/en/report/management-report/group-sustainability-statement/environmental-matters/esrs-e5-resource-use-and-circular-economy/ [4]

Source hierarchy: filings and company disclosures first. The brief states what those sources support and leaves the unresolved plant, grade, permit, buyer and mass-balance questions explicit.

## Material Transition editorial interpretation

The next useful working session starts with: Choose one polymer family and one alternative-carbon route. Require feedstock origin, chain of custody, TDS, COA, certification and customer application performance before calling it a lane.

## Sources

- [1] Annual Report 2025 - https://annualreport.covestro.com/annual-financial-report-2025/en/
- [2] Group key data 2025 - https://annualreport.covestro.com/annual-financial-report-2025/en/report/overview/covestro-group-key-data/
- [3] Circular economy strategy - https://annualreport.covestro.com/annual-financial-report-2025/en/report/management-report/fundamental-information-about-the-group/corporate-strategy/
- [4] ESRS E5 resource use and circular economy - https://annualreport.covestro.com/annual-financial-report-2025/en/report/management-report/group-sustainability-statement/environmental-matters/esrs-e5-resource-use-and-circular-economy/

From the Material Transition company brief library: https://www.materialtransition.com/library/covestro-ag