Pursuant to your request and in our capacity of statutory auditor of Solvay SA / NV (“the Company”), we hereby present you our assurance report on a selection of social, environmental and other sustainable development information disclosed in the Solvay Group Annual Integrated Report for the year ended 31 December 2018 (the “2018 Annual Integrated Report”), identified by the symbol and .

Responsibility of the Company

This selection of information (the “Information”) extracted from the 2018 Annual Integrated Report has been prepared under the responsibility of Solvay Group management, in accordance with internal measurement and reporting principles used by Solvay Group (the "Reporting Framework"). The Reporting Framework consists of specific definitions and assumptions that are summarized in section “Extra-financial statements” of the 2018 Annual Integrated Report.

Responsibility of the Statutory Auditor

It is our responsibility, based on the procedures performed by us, to express:

  • “Limited assurance” for the Information identified by the symbol as included in the 2018 Annual Integrated Report
  • “Reasonable assurance” for the Information identified by the symbol as included in the 2018 Annual Integrated Report

The complete list of Information in scope of our assurance engagement together with the type of assurance has been included in appendix A of this report.

We conducted our procedures in accordance with the international standard as defined in ISAE (International Standard on Assurance Engagements) 3000. With respect to independence rules, these are defined by the respective legal and regulatory texts as well as by the professional Code of Ethics, issued by the International Federation of Accountants (“IFAC”).

Nature and scope of procedures

We have carried out the following procedures

  • General procedures:
  • We assessed the appropriateness of the Reporting Framework with respect to its relevance, completeness, neutrality, clarity and reliability, by taking into consideration, when relevant, the sector reporting practices.
  • We have verified the set-up within Solvay Group of the process to obtain, consolidate and check the selected Information with regard to its completeness and consistency. We have familiarized ourselves with the internal control and risk management procedures relating to the compilation of the information. We have conducted interviews with individuals responsible for social, environmental and other sustainable development reporting.
  • At the sites that we have selected based on their activity, their contribution to consolidated indicators, their location and a risk analysis, we have:
  • Conducted interviews to verify the proper application of procedures and obtained information to perform our verifications;
  • Conducted substantive tests, using sampling techniques, to verify the calculations performed and reconcile data with supporting evidence.
  • All the audited sites and perimeters are listed in appendix B of this document.
  • “Limited assurance” for the Information identified by the symbol as included in the 2018 Annual Integrated Report
  • For the entity in charge of consolidation (“the Company”), as well as for the controlled entities, we have designed analytical procedures and verified, using sampling techniques, the calculations as well as the consolidation of this information in order to obtain limited assurance that the selected information does not contain any material errors that would question its preparation, in all material respects, in accordance with the Reporting Framework. A higher level of assurance would have required more extensive procedures.
  • “Reasonable assurance” for the Information identified by the symbol as included in the 2018 Annual Integrated Report
  • We conducted work of the same nature as the work described in section above (limited assurance) but in further detail, in particular performing an increased number of tests. When relevant, we have tested a representative sample of entities based on their activities, their contribution to the consolidated data, their location and a risk analysis. In these cases, the selected sample represents between 47 % and 63% of the published data, which is significantly more than what would be requested for a limited assurance review.

Conclusion

  • For the indicators in scope of “limited assurance” (identified by the symbol )

    On the basis of the procedures performed by us, nothing came to our attention that causes us to believe that the Information identified by the symbol as included in the 2018 Annual Integrated Report, is not prepared, in all material respects, in accordance with the Reporting Framework.

  • For the indicators in scope of “reasonable assurance” (identified by the symbol )

    In our opinion, based on the procedures performed, the Information identified by the symbol as included in the 2018 Annual Integrated Report, has been prepared in all material respects in accordance with the Reporting Framework.

Observations

Without qualifying our conclusion above, we draw your attention to the following points:

  • The process, definition, and underlying control environment of societal actions, though it was reinforced in 2018 compared to 2017, remains to be reinforced throughout 2019.
  • We have taken note that the process safety management indicator “percentage of sites with a Process Safety Management (PSM) system corresponding to their risk level” is not disclosed in the 2018 Solvay Annual Integrated Report as site data are no longer consolidated by the group, and that the internal control procedures based on the Solvay Care Management System (SCMS), which used to be in place to ensure the robustness on PSM, are no more effective as of 2018.
  • We have taken note that the reporting perimeter for process safety indicators, which should cover all industrial sites (production sites and research & innovation centers) excluding joint ventures not majority-owned, is not exhaustive and not homogeneous between the indicators related to risk analysis on the one hand and the indicators related to process safety incidents on the other hand.

Zaventem, 29 March 2019
The statutory auditor

Michel Denayer (signature)

Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises CVBA/SCRL
Represented by Michel Denayer

Appendix A - Overview of indicators reviewed

Indicators in bold are selected for reasonable assurance.

Reporting scope

 

Information

 

Audit Procedure

 

Audit scope

Sustainable business solutions

 

Product portfolio assessed

 

Reasonable Assurance

 

Group level

 

Sustainable business solutions

 

Reasonable Assurance

 

Group level

Greenhouse gas emissions

 

Greenhouse gas emissions intensity

 

Reasonable Assurance

 

Group level

 

Direct and indirect CO2 emissions (Scope 1 & 2)

 

Reasonable Assurance

 

Site level

 

Other greenhouse gas emissions according to Kyoto Protocol (Scope 1)

 

Reasonable Assurance

 

Site level

 

Total greenhouse gas emissions according to Kyoto Protocol (Scopes 1 & 2)

 

Reasonable Assurance

 

Site level

 

Other greenhouse gas emissions not according to Kyoto Protocol (Scope 1)

 

Limited Assurance

 

Site level

Energy

 

Primary energy consumption

 

Limited Assurance

 

Site level

 

Energy efficiency index – Baseline 100 % in 2012

 

Limited Assurance

 

Site level

Air quality

 

Nitrogen oxides emissions – NOx

 

Limited Assurance

 

Site level

 

Nitrogen oxides intensity

 

Limited Assurance

 

Site level

 

Sulphur oxides emissions – SOx

 

Limited Assurance

 

Site level

 

Sulphur oxides intensity

 

Limited Assurance

 

Site level

 

Non-methane volatile organic compounds emissions – NMVOC

 

Limited Assurance

 

Site level

 

Non-methane volatile organic compounds intensity

 

Limited Assurance

 

Site level

Water and wastewater

 

Freshwater withdrawal

 

Limited Assurance

 

Site level

 

Freshwater withdrawal intensity

 

Limited Assurance

 

Site level

 

Chemical oxygen demand (COD)

 

Limited Assurance

 

Site level

 

Chemical oxygen demand intensity

 

Limited Assurance

 

Site level

Waste and hazardous materials

 

Non-hazardous industrial waste

 

Limited Assurance

 

Site level

 

Hazardous industrial waste

 

Limited Assurance

 

Site level

 

Total industrial waste

 

Limited Assurance

 

Site level

 

Industrial hazardous waste not treated in a sustainable way in absolute volume

 

Limited Assurance

 

Site level

 

Industrial hazardous waste not treated in a sustainable way intensity

 

Limited Assurance

 

Site level

 

Substance of very high concern (SVHC) according to REACH criteria present in products sold

 

Limited Assurance

 

Group level

 

Percentage of completion of Analysis of Safer Alternatives program for marketed substances

 

Limited Assurance

 

Group level

Employee health and safety

 

Medical Treatment Accident Rate – for Solvay Employees, and contractors (MTAR)

 

Reasonable Assurance

 

Site level

 

Lost Time Accident Rate – for Solvay Employees and contractors (LTAR)

 

Reasonable Assurance

 

Site level

 

Fatal accidents of Solvay employees and contractors

 

Reasonable Assurance

 

Site level

Employee engagement and wellbeing

 

Solvay engagement index

 

Reasonable Assurance

 

Group level

 

Coverage by collective agreement

 

Limited Assurance

 

Group level

Critical incident risk management (Process accident and safety management)

 

Number of “risk sheets level 1” at the end of the year

 

Limited Assurance

 

Site level

 

Percentage of level 1 risk situations resolved within one year

 

Limited Assurance

 

Site level

 

Risk level 1 situation resolved

 

Limited Assurance

 

Site level

 

Process safety incident rate

 

Limited Assurance

 

Group level

 

Medium severity incidents with environmental consequences

 

Limited Assurance

 

Site level

 

Percentage of product lines having a risk analysis updated in the last five years

 

Limited Assurance

 

Site level

 

Medium severity incidents with environmental consequences in which the limits of the operating permit were exceeded

 

Limited Assurance

 

Site level

Solvay Way

 

Solvay Way Group profile

 

Limited Assurance

 

Site and Group level

Customer welfare

 

Solvay’s Net Promoter Score (NPS)

 

Limited Assurance

 

Group level

Societal actions

 

Employees involved in local societal actions

 

Limited Assurance

 

Site level

Diversity and inclusion

 

Total headcount

 

Limited Assurance

 

Group level

 

Percentage of women in the Group

 

Limited Assurance

 

Group level

 

Headcount by employee category (senior manager, middle manager, junior manager, non-manager)

 

Limited Assurance

 

Group level

Appendix B - Overview of perimeter reviewed

 

 

 

 

Audited reporting scope

Audited sites

 

Country

 

Greenhouse gas emissions

 

Energy

 

Air quality

 

Water and wastewater

 

Waste and hazardous materials

 

Employee health and safety

 

Process accident and safety

 

Solvay Way

 

Societal actions

Paulinia

 

Brazil

 

 

 

 

 

 

 

 

 

Santo Andre EST

 

Brazil

 

 

 

 

 

 

 

 

 

Dombasle

 

France

 

 

 

 

 

 

 

 

 

Collonges

 

France

 

 

 

 

 

 

 

 

 

Rosignano

 

Italy

 

 

 

 

 

 

 

 

 

Spinetta

 

Italy

 

 

 

 

 

 

 

 

 

Bernburg

 

Germany

 

 

 

 

 

 

 

 

 

Augusta, GA

 

USA

 

 

 

 

 

 

 

 

 

Devnya

 

Bulgary

 

 

 

 

 

 

 

 

 

 

 

 

Rheinberg

 

Germany

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Torrelavega

 

Spain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Green River, WY

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alpharetta

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anaheim, CA

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greenville, TX

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Beach, CA

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marietta, OH

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mt Pleasant

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West Deptford

 

USA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wrexham

 

UK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oldburry

 

UK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brussels NOH

 

Belgium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oudenaarde

 

Belgium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welland

 

Canada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changshu

 

China

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zhenjiang Songl

 

China

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shanghai Xin Zh

 

China

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zhangjiagang YA

 

China

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zhangijagang FE

 

China

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

St-Fons SP

 

France

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

St-Fons RC

 

France

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Freiburg Engess

 

Germany

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hannover

 

Germany

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Panoli

 

India

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rasal

 

India

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bollate

 

Italy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Onsan Gongdan-R

 

Korea

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gorzow

 

Poland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carnaxide

 

Portugal

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A selection of indicators audited

 

 

All relevant indicators audited

 

 

Audited GBUs and functions

 

Solvay Way

 

Customer Welfare

GBU Soda Ash & Derivatives

 

 

 

GBU Technology Solutions

 

 

 

GBU Composite Materials

 

 

 

GBU Silica

 

 

 

GBU Specialty Polymers

 

 

 

Corporate function – Risk management

 

 

 

Corporate function – Strategy

 

 

 

A selection of indicators audited

 

 

 

 

All relevant indicators audited