HSEQ: Independent Assurance Report

The review performed by PwC relates exclusively to the German print version of the CR Report. The following text is a translation of the original German Independent Assurance Report.

To LANXESS AG, Cologne

We have been engaged to perform a limited assurance engagement for selected environmental and safety performance data including supplementing annotations for the period January 1, 2013 to December 31, 2013. These data can be found in the “Environmental and Safety Performance Data” table in the “Health, safety, environment and climate protection along the value chain” section of the “Corporate Responsibility” chapter in the Annual Report 2013 of LANXESS AG, Cologne (hereinafter LANXESS).

Management’s Responsibility

The Board of Management of LANXESS is responsible for the preparation of the “Corporate Responsibility” chapter in the Annual Report 2013 in accordance with the criteria stated in the Sustainability Reporting Guidelines Vol. 3.1 (pp. 7 – 17) of the Global Reporting Initiative (GRI):

  • Materiality
  • Stakeholder Inclusiveness
  • Sustainability Context
  • Completeness
  • Balance
  • Clarity
  • Accuracy
  • Timeliness
  • Comparability
  • Reliability

This responsibility includes the selection and application of appropriate methods to prepare the environmental and safety performance data as well as the use of assumptions and estimates for individual environmental and safety performance data which are reasonable in the circumstances. Furthermore, the responsibility includes designing, implementing and maintaining systems and processes relevant for the preparation of the “Corporate Responsibility” chapter in the Annual Report 2013.

Practitioner’s Responsibility

Our responsibility is to express a conclusion based on our work performed as to whether any matters have come to our attention that cause us to believe that the selected environmental and safety performance data in the “Health, safety, environment and climate protection along the value chain” of the “Corporate Responsibility” chapter in the Annual Report 2013 of LANXESS have not been prepared, in all material respects, in accordance with the above mentioned criteria of the Sustainability Reporting Guidelines Vol. 3.1 of the GRI. The environmental and safety performance data subject to our procedures are marked with c). We also have been engaged to make recommendations for the further development of CR management and CR reporting based on the results of our assurance engagement.

We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000. This standard requires that we comply with ethical requirements and plan and perform the assurance engagement to express our conclusion with limited assurance.

In a limited assurance engagement the evidence-gathering procedures are more limited than in a reasonable assurance engagement (for example, an audit of financial statements in accordance with § (Article) 317 HGB (“Handelsgesetzbuch”: German Commercial Code), and therefore less assurance is obtained than in a reasonable assurance engagement. The procedures selected depend on the practitioner’s judgement.

Within the scope of our work we performed amongst others the following procedures:

  • Interviews with employees who are responsible for reporting the environmental and safety performance data regarding the processes and controls in place when collecting the environmental and safety performance data;
  • Inventory of the processes and inspection of the systems and processes that are implemented to collect, calculate, analyze, verify and aggregate the environmental and safety performance data as well as sample testing;
  • Analytical evaluations of the environmental and safety performance data based on samples in line with the quarterly and annually data collection;
  • Review of internal documents, contracts and invoices/reports of external services providers.

Conclusion

Based on our limited assurance engagement, nothing has come to our attention that causes us to believe that the selected environmental and safety performance data in the “Environmental and Safety Performance Data” table in the “Health, safety, environment and climate protection along the value chain” section of the “Corporate Responsibility” chapter in the Annual Report 2013 for the period January 1, 2013 to December 31, 2013 have not been prepared, in all material respects, in accordance with the criteria of the Sustainability Reporting Guidelines Vol. 3.1 (pp. 7–17) of the GRI.

Emphasis of Matter – Recommendations

Without qualifying our conclusion above, we make the following recommendations for the further development of CR management and CR reporting:

  • Consistent implementation of the internal control system for the HSE data based on the defined target processes particularly with respect to organizational changes and new business units;
  • Perpetuation of the quarterly data collection that has been established in 2013;
  • Further development of controlling ability at the different group levels to ensure consistent data quality;
  • Further development of links to the financial controlling and accounting for achieving further synergies.

Munich, February 28, 2014

PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft

Bernd Boritzki                           Hendrik Fink
Wirtschaftsprüfer                      Wirtschaftsprüfer
(German Public Auditor)            (German Public Auditor)