Please note that comparatives have been restated. For details, see note 32 in the Notes to the Consolidated Financial Statements. Borealis divested the Borealis nitrogen business unit including fertilizers, technical nitrogen, and melamine products (Borealis NITRO) at the beginning of July 2023; the comparatives in the management report include data from Borealis’ nitrogen business for six months in 2023.
In 2024, Borealis and its subsidiaries (the Company or the Group) reported a Total Recordable Injuries (TRI) rate per million hours of 3.8. This is slightly better than the 4.0 reported in 2023. After a poor start in January, safety performance improved steadily throughout 2024, with a 10% improvement in year-end TRI versus the first half of the year. A particularly welcome improvement in safety performance was reported in Kallo (Belgium), where a new world-scale propane dehydrogenation (PDH) plant is currently under construction. The TRI rate at this site improved from 7.6 in 2023 to 2.2 in 2024.
The Group’s commitment to “Zero Harm” – the elimination of accidents and safety incidents altogether –drives a series of improvement measures and initiatives. Foremost among these is the risk management program “B-Safe.” Since its company-wide roll-out in 2023, over 4,000 Borealis employees have received safety instruction in the form of one- to three-day training sessions, depending on their respective roles. The B-Safe journey involves the creation of a safety improvement plan for every Borealis location based on areas of focus identified by those employed there, and subsequently supported by senior leaders.
B-Safe is augmented by other improvement initiatives, such as the clustering of sites with similar risk profiles in order to more efficiently mitigate these risk types. At the Group’s compounding and recycling locations, safety improvement efforts are focused on mitigating risks with severe consequences (working with machines, with electric current, at heights, and traffic safety). At assets acquired more recently, a key priority is ensuring that safety fundamentals are in place and strictly observed.
A single fatality was recorded in 2024 after a driver employed by a subcontractor fell from a silo truck while self-loading at the Schwechat (Austria) plant in May. While this regrettable incident is not technically a recordable one, Borealis conducted a thorough investigation. Lessons learned from it have been applied accordingly at other locations so as to prevent future recurrence.
While geopolitical strife led to short-lived spikes in the Brent Crude oil price, the market remained relatively stable throughout 2024, with an average of USD 80/bbl, ending the year at USD 73/bbl, marginally lower than the 2023 average of USD 83bbl. Despite OPEC+ restraint in postponing output increases until April 2025, and extending production cuts to the end of 2026, production increases in other countries in the face of lagging global demand – especially from China – have intensified price pressures. Core inflation continued to moderate in developed markets, accompanied by the easing of interest rates.
Naphtha prices increased from USD 635/metric ton (t) in December 2023 to a 2024 peak of USD 709/t in March, supported by higher crude prices and increased blending of naphtha into the gasoline pool as the differential between crude and naphtha narrowed. In July, naphtha prices fell to USD 658/t, in line with low seasonal demand from refineries as well as lower crude prices. At year-end, naphtha prices stood at USD 612/t.
Ethylene and propylene contract prices followed a similar development curve as naphtha. Ethylene started the year at EUR 1,185/t and peaked at 1,260/t in April, in line with the naphtha price, and in response to robust demand amid continuing logistics bottlenecks. Ethylene prices hit a low of EUR 1,183/t in October following weaker naphtha prices and the easing of container freight bottlenecks. Prices ended the year at EUR 1,205/t. The price of propylene rose from EUR 1,050/t in January to EUR 1,145/t in April, then subsequently declined to close out the year at EUR 1,075/t.
The polyolefins market in 2024 remained weak by historic levels but showed a marked improvement compared to the unprecedented destocking that occurred in the second half of 2023 across the value chain. From February to September, the European polyolefins market was bolstered due to disruptions to global container shipping, which increased logistics costs and delivery times of imported materials. As these disruptions eased in the last quarter of 2024, European supply increased, with a negative impact on industry profitability.
The global expansion project Borouge 4, a USD 6.2 billion facility currently being built in Ruwais (UAE), has reached a construction progress of around 80%. The start-up of the first unit is scheduled by the end of 2025 with the subsequent units to gradually start-up in 2026. One of the largest industrial projects in the UAE, Borouge 4 will transform Borouge into the world’s largest single polyolefin complex by increasing its annual capacity with an additional 1.4 million metric tons of polyethylene. The advanced base chemicals and polyolefins produced at Borouge and based on Borstar® technology will meet robust demand in the region, and drive growth in high-value and more sustainable applications.
The world scale propane dehydrogenation (PDH) plant construction project in Kallo (Belgium) has reached a construction progress of more than 90%. In 2025, the remaining activities will be completed and all systems for the PDH plant will reach full mechanical completion during the year.
As of March 28, 2024, Borealis AG acquired 100% of Integra Plastics AD shares from Betainvest EOOD and Vallenova Limited. Under the new name Integra Plastics EAD, the company will continue to operate an advanced mechanical recycling plant built in 2019 in Elin Pelin (Bulgaria), which has an annual capacity of over 20,000 metric tons. The acquisition complements Borealis’ own recycling expertise and innovation leadership and will thus further accelerate the transition to plastics circularity.
Transformation is a core element of the Borealis Strategy 2030: Borealis is consolidating its position as a fully customer-centric supplier of sustainable material solutions which add value to society and accelerate the transition to a circular economy. Long an industry front-runner in circularity, Borealis aims to further increase the share of circular products in its overall production output in the coming years. These currently include the recycled and renewable-based polymers in its Borcycle™ C, Borcycle™ M, and Bornewables™ grade portfolios, as well as the renewable hydrocarbons in the Borvida™ family of base chemicals.
Meaningful progress has been made in 2024 toward creating a circular economy based on “reduce, reuse, and recycle” in tandem with design for recyclability, by providing more sustainable material solutions for applications in mobility, infrastructure, energy, healthcare, and consumer products. The scope of use for recycled and renewable-based polymers continues to expand to include the most demanding applications. In March, for example, the US Food and Drug Administration (FDA) issued Letters of No Objection which permit the use of select grades in the Borcycle™ M portfolio in food-grade packaging in countries under its governance.
The acquisition of Integra Plastics EAD, finalized in March 2024, is the most recent step to boost the Group’s advanced mechanical recycling output. This effort was further bolstered in June by the installation of a recyclate-based polyolefins compounding line in Beringen (Belgium). Once operational in 2025, this facility will use the continually upgraded Borcycle™ M technology to transform mechanically recycled post-consumer waste into high quality rigid polypropylene and polyethylene. This output is augmented by other mechanical recycling facilities in the Borealis Group, including Italy-based Rialti S.p.A, a leading polypropylene compounder of recyclates used in injection molding and extrusion and acquired by Borealis in 2023; Ecoplast Kunststoffrecycling GmbH in Austria; and mtm compact GmbH and mtm plastics GmbH in Germany.
Chemical recycling processes are essential complements to mechanical recycling. Since acquiring a majority stake in Belgium-based Renasci N.V. in 2023, Borealis enjoys access to chemically recycled feedstock for the ISCC-PLUS certified grades in the Borcycle™ C portfolio. In April 2024, Borealis, OMV, and TOMRA Feedstock announced a long-term, expanded partnership which will ensure that mixed post-consumer waste destined for landfilling is instead sorted by polymer type, then processed by Borealis and OMV using mechanical and chemical processes, respectively, to produce circular products and solutions.
Innovation is a pillar of the strong Borealis foundation and drives transformation in all areas of business activity. Ongoing investment in research and development (R&D), open innovation, and value chain collaboration enables Borealis to fulfil its corporate purpose of “Reinventing Essentials for Sustainable Living.” Proprietary technologies like Borstar®, which continues to be developed within the Borstar® Nextension program, form the base for material solutions which help the industry address urgent societal and environmental issues such as decarbonization, the green-energy transition, and waste reduction. Thanks to its suite of technologies, Borealis can continually expand its offer of advanced specialty polyolefins in order to capitalize on the market potential of lucrative niche applications in sectors like renewable energy, mobility, healthcare, consumer packaging, and in the circular sphere.
Several 2024 product launches illustrate how collaboration with value chain partners and other stakeholders continues to facilitate the development of eco-efficient applications across diverse industry sectors. Launched at the WIRE trade fair in April, Borcycle™ ME7153SY, a unique and sustainable cable jacketing solution for low and medium voltage cables, contains 50% post consumer recyclate. A new medium voltage cable insulation grade, Borlink™ LS4301R, offers reduced emissions thanks to a newly optimized base resin and cross-linking agent. In infrastructure, crosslinked pipes (PE-X) produced using the HE1878E-C3 compound show exceptional resistance to the effects of chlorine, provide UV resistance, and achieve the highest Class 5 designation in accordance with the North American ASTM F876 specification standard.
Innovation at Borealis is customer driven and global in scope. Around 600 people are currently employed at one of Borealis’ three innovation hubs: the Innovation Headquarters in Linz (Austria) as well as the innovation centers in Porvoo (Finland) and Stenungsund (Sweden). Borealis also operates Borstar pilot plants for polyethylene in Porvoo, and for polypropylene in both Porvoo and Schwechat (Austria). A pilot facility in Porvoo is augmented by catalyst manufacturing plants in Linz and Porvoo.
Having been ranked as the top Austrian innovator in the European Patent Index 2023, Borealis continues to expand its patent portfolio. In 2024, Borealis filed 121 new priority patent applications at the European Patent Office, versus 128 filed in 2023. As of December 2024, Borealis holds around 8,900 granted patents as well as approximately 3,400 patent applications which are subsumed in approximately 1,600 patent families.
The Borealis Group’s Digital Strategy has been designed to support the overarching aims of the Borealis Strategy 2030, and to accelerate the delivery of reliable and innovative digital solutions across all facets of the Group. The Digital Strategy is the catalyst for transformation in circularity, sustainability, customer centricity, and operational efficiency. It encompasses five main clusters: business growth; innovation, data and artificial intelligence (AI); operational excellence; cybersecurity; and people and capabilities. Lighthouse projects have been developed for each of the clusters and are currently in various stages of implementation.
Increased greenhouse gas (GHG) emissions are detrimental to the environment and society, having been linked to global warming, extreme weather events, and rising sea levels. The Paris Agreement is among key global efforts to limit the global temperature increase to 1.5° C above pre-industrial levels. In order to achieve this, the petrochemical industry – like all major sectors – must reduce emissions in its own operations as well as along its value chains.
Borealis is keenly aware of its responsibility to do its part to limit global warming by reducing its direct and indirect GHG emissions, which the Group labels and calculates within the framework of the Greenhouse Gas Protocol: direct GHG emissions (Scope 1); electricity indirect GHG emissions, from purchased energy (Scope 2); and other indirect GHG emissions (Scope 3). This framework guides efforts to mitigate climate change effectively.
Borealis aims to reduce its reported Scope 1 and Scope 2 emissions from 5.1 million metric tons/year (from a 2019 baseline) to 2 million metric tons/year by 2030 1). Decarbonization efforts center on using a higher share of energy from renewable sources, and by implementing energy efficiency projects at its own production locations. The Borealis Strategy 2030 stipulates that by 2030, 100% of the electricity used in its Polyolefins and Base Chemicals production operations in Europe should be of renewable origin. This year, Borealis achieved an intermediate goal earlier than anticipated when it reached a 50% share of renewables by the end of 2024.
This achievement was made possible in part thanks to multiple long-term power purchase agreements (PPA) signed with renewable energy providers in this and previous years. In 2024, Borealis announced four new PPAs with the Swiss producer Axpo, bringing the total number of PPAs signed with Axpo alone to eight since 2021. Two of the 2024 Axpo PPAs procure wind power for Borealis operations in Belgium, while the other two supply wind power to operations in Sweden and Belgium. Borealis also signed a ten-year PPA with Burgenland Energie, Austria’s leading wind and solar energy producer, to supply wind power and solar energy to help power Borealis facilities in Schwechat (Austria). At the start of 2024, multinational power company Vattenfall started supplying hydropower to Borealis operations in Stenungsund (Sweden) as part of the first long-term PPA signed with Borealis.
A second cornerstone in the Borealis Group’s decarbonization efforts is enhancing the energy efficiency of its own production facilities; the goal is to obtain 10% savings in energy consumption by 2030, working from a 2015 baseline. Scope 1 emission reduction ambitions are reflected in integrated CAPEX portfolio management; a set of energy-efficiency projects have been incorporated in the investment portfolio until 2030. Borealis has also developed a transition plan toward net zero by 2050 for Scope 1 and Scope 2 GHG emissions based on location-specific carbon neutrality blueprints.
One of the 15 different categories of Scope 3 emissions, Scope 3.1, refers specifically to carbon emissions associated with the products and/or services purchased by an organization, often from vendors outside the company’s direct control. For the Borealis Group, reducing Scope 3.1 emissions means optimizing feedstock and raw material procurement, and increasing recycling capacity in order to reduce end-of-life impact. To this end, as of 2025, Borealis will evaluate ways in which reporting accuracy for feedstock suppliers can be improved by shifting from industry-averaged to supplier-specific emission factors in instances where such information is available. Doing so would enable the Group to explore opportunities to reduce indirect emissions where technically and economically feasible. Furthermore, once the final chemicals sector guidelines have been published by the Science Based Targets initiative (SBTi), Borealis
intends to assess the feasibility of setting such targets.
1 Taking into account the July 2023 divestment of the Borealis nitrogen business unit, including fertilizers, technical nitrogen, and melamine
products (Borealis NITRO); in accordance with the Greenhouse Gas Protocol, this is categorized as a base year emission shift.
Borealis net profit bounced back from a record low of EUR 159 million in 2023 to EUR 566 million in 2024, driven by improved performance of the Borealis Polyolefins and Base Chemicals businesses; the robust and efficient management of fixed costs; and a higher contribution of net income from equity-accounted investments. Yet the year 2024 was also characterized by ongoing market uncertainty; stubborn inflation and high energy costs, particularly in Europe; weak margins; and record polyolefins overcapacity in the face of feeble demand. In 2024, the Group’s European business benefited from global shipping disruptions, which led to higher than anticipated polyolefin margins and unexpected commercial
opportunities, particularly in the first half of the year.
The contribution to net results from Borealis joint ventures increased from EUR 160 million in 2023 to EUR 242 million in 2024. At EUR 389 million, the Borouge contribution is a 23% increase versus 2023. This improved result was driven by higher sales volumes made possible by continued robust production levels following the Borouge 2 plant turnaround in the first quarter of 2023. At EUR -140 million, the 2024 Baystar contribution is negative, albeit an improvement on the EUR -158 million posted in 2023. In the first quarter of both 2023 and 2024, Baystar experienced prolonged ethane cracker outages due to extreme weather events. The Borstar® 3G plant, which was started up in late 2023, continued to ramp up production in the first half of 2024. Costs associated with the ramping up, including the commencement of depreciation and the end of capitalized costs, negatively impacted its contribution.
The return on average capital employed (ROCE) of 6% in 2024 was higher than the 2% in 2023.
An increased EBIT, greater profit contributions from associated companies, and higher interest
income all contributed to the improved ROCE versus 2023.
* Tables are included in the download version.
Borealis net debt increased to EUR 946 million in 2024 from EUR ‑152 million in 2023, a development driven primarily by dividend payments of EUR 978 million to ADNOC and OMV in December 2024. The resulting gearing ratio of 11% at the end of 2024 (compared to ‑2% at the end of 2023) reflects a very strong balance sheet. Liquidity reserves, composed of undrawn committed credit facilities and cash balances, amounted to EUR 2,086 million as of December 2024, compared to EUR 3,478 million at year-end 2023. Borealis also benefits from a welldiversified financing portfolio and a balanced maturity profile. The solvency ratio was 67% as of December 2024, compared to 68% at year-end 2023.
Sales
Borealis sold 3.87 million metric tons of polyolefins in 2024, around 11% more than the 3.50 million sold in 2023. Demand for polyolefins increased slightly in the first half of 2024, but levels remained virtually unchanged compared to the same period in 2023. Stagnant economic growth in Europe and the damper put on consumer spending by cost-of-living increases could not be offset by lower inflation and lower interest rates, thus negatively affecting polyolefins demand.
Even though demand for consumer products in Europe and the US rose in 2024, underlying demand remains soft. Demand in both the healthcare and consumer appliance sectors is flat as customers navigate protracted market uncertainty. Weak demand in the construction sector in particular has affected Borealis Energy and Infrastructure business areas, yet this was offset by robust demand for selected high voltage applications in Borealis Energy and Mobility, resulting in overall higher volumes to market for most Borealis business areas in 2024.
Borealis Base Chemicals sales increased in 2024 to 2.03 million metric tons from 1.84 million metric tons in 2023. This rise was driven by higher phenol sales owing to larger contractual volumes based on higher demand in Europe and lower natural gas prices. Olefins sales likewise increased in 2024 due to higher Borealis Polyolefins sales and the absence of plant turnarounds such as those which took place in 2023 in Porvoo (Finland) and Kallo (Belgium).
Cost Development
Driven by higher feedstock prices, production costs in 2024 were higher than in 2023; both the elevated naphtha price and the higher LPG ratio contributed to an increase in production costs. Higher sales volumes of Polyolefins and Base Chemicals in 2024 drove a slight increase in sales and distribution costs, from EUR 686 million in 2023 (EUR 755 million including Nitro) to EUR 710 million in 2024. Administrative costs decreased from EUR 277 million in 2023 (EUR 297 million including Nitro) to EUR 267 million in 2024 thanks to strict cost management policies adopted by Borealis in 2024, and despite inflation and the administration of growth projects. In 2024, Borealis costs related to R&D stood at EUR 15 million, compared to EUR 13 million in 2023. Capitalized internal development costs amounted to EUR 33 million in 2024, a decrease versus the EUR 37 million reported in 2023.
At the end of 2024, the Borealis Group employee headcount was 6,090. This increase of 147 versus 5,943 in the previous year was due in the main to the 2024 acquisition of Integra Plastics AD.
Strong Foundation - Performance Excellence (SFPE)
The Strong Foundation – Performance Excellence (SFPE) program, launched in 2022 as part of the Borealis 2030 Strategy, has been pivotal in enabling the Group to navigate the prolonged industry downturn. In 2024, SFPE delivered approximately EUR 240 million in sustained EBITDA improvements. Key achievements included product pricing optimization; variable costs reduction through improved feedstock sourcing; and operational efficiency improvements.
As of 2024, SFPE also includes dedicated measures for fixed cost savings. In its first full year of impact, these measures have contributed EUR 50 million in savings, and are thus on track to deliver the targeted EUR 100 million by 2026. The SFPE’s holistic approach and rigorous implementation have significantly strengthened Borealis’ financial resilience and operational excellence.
Operating Profit
Operating profit in 2024 was EUR 342 million, a marked rebound compared to the EUR 6 million (EUR -34 million including Nitro) operating profit reported in 2023. The Borealis Polyolefins operating profit recovered from EUR ‑79 million in 2023 (a year in which figures were negatively impacted by impairments), to EUR 164 million in 2024, a rise driven by higher demand and improved margins. Borealis Base Chemicals delivered an operating profit of EUR 246 million, up from the EUR 162 million reported in 2023. The better result was due to increased demand and greater margins made possible by improved cracker performance as well as a more favorable ethylene-naphtha spread. Moreover, unlike 2023, there were no plant turnarounds in 2024.
Financial Income and Expenses
Net financial income increased from EUR 43 million in 2023 to EUR 95 million in 2024. One major reason was due to higher interest income. In 2024, the Borealis Group earned EUR 168 million in interest income from loans granted to its joint ventures and its cash deposits, compared to the EUR 143 million earned in the previous year.
Taxes
Income tax charges amounted to EUR ‑136 million (EUR -127 million including Nitro) in 2024, compared to EUR ‑2 million in 2023 (EUR 57 million tax income including Nitro). The overall tax charge in 2024 was to a large extent driven by stronger business performance.
Net Income from Equity Accounted Investment
The contribution from Borealis joint ventures increased significantly, from EUR 160 million in 2023 to EUR 242 million in 2024. At EUR 389 million, the full-year Borouge contribution is an improvement versus 2023 (EUR 317 million), and made possible by record production levels and sales in 2024. The Baystar contribution failed to meet expectations, with an overall negative contribution (EUR -140 million) despite increasingly reliable cracker performance and the gradual stabilization of operations at the new Borstar® 3G polyethylene plant’s Bay 3.
Investments in property, plant, and equipment amounted to EUR 602 million in 2024, compared to EUR 729 million in 2023. The bulk of investment is associated with the construction of the new world-scale PDH plant in Kallo (Belgium); the upgrade of semicon units in Antwerp; and a new compounding capacity in Schwechat (Austria) as well as the XLPE Second Closed train. Investments in intangible assets amounted to EUR 89 million in 2024, compared to EUR 79 million in 2023.
In 2024, depreciation, amortization, and impairment came to EUR 423 million, virtually unchanged compared with the EUR 411 million total in 2023.
The net profit for the year amounted to EUR 566 million, compared to a net profit of EUR 159 million in 2023. In 2024, a resolution was passed to distribute a dividend of EUR 103 million based on the 2023 financial results. In December 2024, shareholders agreed on a special dividend of EUR 978 million that was also based on the 2023 financial statements. An outstanding dividend related to the 2022 financial results of EUR 12 million was paid to ADNOC in 2024.
At year-end, total assets and capital employed stood at EUR 12,705 million and EUR 9,647 million, respectively. This compares to the EUR 13,203 million and EUR 8,969 million reported at the end of 2023.
Cash flow from operating activities was EUR 749 million. This improvement over the EUR 552 million reported in 2023 was driven primarily by a significant increase in EBITDA compared to 2023. Cash flows were negatively impacted by capital contributions and financing of the joint ventures Borouge (EUR 243 million) and Baystar (EUR 92 million) throughout 2024; CAPEX investments of EUR 690 million (tangible and intangible); and through payments related to the acquisition of Integra Plastics AD.
The free cash flow before dividends amounted to EUR 156 million in 2024 (EUR 592 million). The free cash flow after dividends amounted to EUR -939 million in 2024 (EUR 204 million). Net interest-bearing debt increased from EUR ‑152 million at year-end 2023, to EUR 946 million at year-end 2024 (see table below).
* Tables are included in the download version.
Shareholders’ equity at year-end 2024 amounted to EUR 8,696 million, compared to EUR 9,114 million in 2023. For further information on equity, see note 13 in the consolidated financial statements.
* Tables are included in the download version.
Borealis has a documented enterprise risk management process which ensures that all parts of the Group routinely identify and assess their risks, and develop and implement appropriate mitigation actions. Risk management contributes to achieving the Group’s long-term strategies and short-term goals. Borealis captures emerging risks that may materialize during the business plan period, and strategic risks that may affect the delivery of the Group’s long-term strategy. Borealis believes that an effective risk culture makes it harder for an outlier, be it an event or an
offender, to put the Group at risk.
In 2024, emphasis in risk management continued to be on balancing the need for growth, profitability, and sustainability. Ongoing turbulence in geopolitics and markets has exposed the fragilities of the global energy system and the obstacles to accelerating the transition to green energy and circularity. In Europe in particular, the industry is confronted with economic uncertainty and an increasingly burdensome regulatory compliance framework. These and other risks in the overall landscape are periodically consolidated, reported, and reviewed.
Borealis distinguishes between various types of risks. The most relevant risk types include, but are not limited to, the following described below.
Strategic risks are often related to unfavorable long-term developments in the market and/or industry; developments related to technology and innovation; changes to the competitive environment; or a threat to the reputation of the Group.
Operational and tactical risks usually refer to unfavorable and unexpected short-term or midterm developments and include all risks that may have a direct impact on the Group’s daily business operations. All operational risks are assessed according to documented guidelines and procedures that are administered by the respective business functions.
A proactive approach to risk prevention management has been implemented in the Operations function, covering risks in the areas of Production; Health, Safety and Environment (HSE); Product Stewardship; Plant Availability; and Quality. The risk management approach also safeguards the Responsible Care® approach toward risks in operations. The standard risk management process includes a common risk matrix and risk registers, built bottom-up from plant to portfolio level, enabling a common risk rating system for the whole of operations. In accordance with its legal obligations, Borealis assesses and discloses in its non-financial section the potentially negative impact of its activities on the environment and society as well as corresponding mitigation measures. The main risks analyzed include:
Climate-related risks and mitigation actions are specifically analyzed within the framework of European Sustainability Reporting Standards (ESRS) risk assessment. Transition risks include, for example, higher GHG emission prices; increasing operating costs; increasing pressure on the use of fossil fuel-based feedstock; and a negative industry image. Physical risks are mainly related to potential supply chain disruptions caused by extreme weather events, political unrest, or other factors. At the same time, some risk types associated with climate change also represent opportunities for innovation and growth. For example, the development of new circular and/or renewable-based products and applications; low-emission product portfolio extensions; and value chain and/or stakeholder partnerships that accelerate industry efforts to achieve climate neutrality.
Project-related risks are assessed in the Borealis project approval process. The applicable key risks related to an individual project are assessed. These risks include financial, market, technical, legal, intellectual property, strategic, operational, country-related and political factors. This risk assessment also reflects the probability of project completion within the estimated time frame and forecasted resource requirements, and the likelihood that key project objectives will be achieved. Project-related risks are managed by the respective project manager and reported to the Project Steering Committee.
Financial and market risks may refer to those arising, for instance, from unexpected changes in market supply, demand, commodity prices, services, or financing costs. Risks may also arise from liquidity, interest rates, foreign exchange rates, credit and insurance, the inability of a counterparty to meet a payment or delivery commitment, and may, for example, extend to incorrect assumptions or the inappropriate application of a model. The assessment of financial risk management is described in detail in note 17 of the consolidated financial statements. The Vice President Treasury & Funding and the General Counsel are responsible for reporting and coordinating the management of all financial risks.
Compliance risks involve legal and regulatory risks, codes of conduct (ethics policy), standards, and contracting compliance. Doing business in an ethical manner is vital to the Group’s good reputation and continued success. Tactical or generic risks are risks identified as part of standards or compliance. These risks mainly relate to processes or control weaknesses. Information security risks relate to the confidentiality, integrity, and availability of critical company information. The Vice President Digital Solutions and the General Counsel support line managers with the assessment of information security risks and the development and implementation of risk mitigation actions.
The Executive Board periodically reviews the Group’s key risks, defines the Group’s risk tolerance levels, monitors the implementation of mitigation actions, and reports the key risks and mitigation steps to the Supervisory Board. The Executive Board safeguards the integration of risk assessment in its strategic planning.
The Supervisory Board is responsible for reviewing the effectiveness of Borealis’ risk management practices and processes, risk appetite and tolerance levels, the Group’s risk exposure, and the effectiveness of mitigation actions. Some of these responsibilities are delegated to the Audit Committee, a sub-committee of the Supervisory Board. All Borealis employees are responsible for managing risk within their authority and in their field of work in order to ensure that risk management is properly embedded in the organization and reflected in daily decision-making processes.
In the first half of the year, Hetal Patel and Raul Prieto were appointed to the Borealis Supervisory Board, succeeding Khaled Salmeen and Khaled Al Zaabi. On November 25, 2024, Mike Baker was appointed to the Supervisory Board, replacing previous member Raul Prieto. With the recent founding of the Borealis AG works council in November 2024, three seats are now officially occupied by the employee representatives Philipp Riesenkampff, Dorothea Wiplinger, and Gernot Baumgartel. Daniela Vlad has stepped down from the Supervisory Board of Borealis end of February 2025 and Alfred Stern took over her position on March 1, 2025.
As announced on June 12, 2024, the Borealis Supervisory Board appointed Stefan Doboczky as Borealis CEO, effective July 1, 2024. Stefan Doboczky succeeds Thomas Gangl, whose mandate as CEO of Borealis AG and employment contract was terminated by mutual agreement with the Supervisory Board effective June 30, 2024. As of February 1, 2024, Craig Arnold succeeded Lucrèce Foufopoulos-De Ridder as Executive Vice President Polyolefins, Circular Economy Solutions and Innovation & Technology.
Borealis commemorated its thirtieth year of operations in 2024, celebrating a long track record as a polymers innovator and an industry leader in accelerating the transition to plastics circularity. The combination of technological prowess, dedication to creating value for customers, and operational excellence laid the foundation for success in a difficult year. Like the one before it, the year 2024 was marked by geopolitical uncertainty, global polyolefins overcapacity, and slower overall growth in demand for polyolefins. Yet Borealis’ financial performance demonstrated clear improvements compared to 2023.
Borealis must draw on its 30-year legacy to adapt to the long-term structural developments facing all industry players. These include transitioning to a circular economy, lowering GHG emissions, and the disruption associated with new technologies and digitalization. European players must strive to remain competitive in the face of deindustrialization and increasingly stringent regulatory requirements. However, Borealis is well placed to successfully manage these challenges thanks to its strong foundation and the agility and dedication of its people. The improved 2024 safety record shows that progress has been made toward achieving the ultimate goal of “Zero Harm.” Safety will remain the top priority in 2025 as Borealis strives to become the industry leader in health, safety, and security in line with its “HSSE 2030” initiative
In accordance with Section 267a of the Austrian Commercial Code (UGB), Borealis prepares a non-financial statement as part of the Group Management Report.
The non-financial statement was prepared in line with the requirements of the Austrian Nachhaltigkeits- und Diversitätsverbesserungsgesetzes (NaDiVeG) and in accordance with the European Sustainability Reporting Standards (ESRS) in preparation for the reporting obligation under the CSRD. As the report fully complies with the ESRS for the first time, comparative information is not reported according to ESRS 1.136. Borealis includes further information and key figures on the basis of the Taxonomy Regulation (EU) 2020/852 in the non-financial statement.
* Tables are included in the download version.
Definitions:
Capital employed: Total equity plus net debt Return on averagecapital employed
(ROCE): net income plus net interest related to financing minus tax effect divided by average capital employed.
Solvency ratio: Total equity, less goodwill, divided by total assets
Gearing ratio: Interest-bearing debt, less cash and cash equivalents, divided by total equity
