STRATEGY
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FINANCIAL STATEMENTS
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AkzoNobel Report 2025
The Rhythm of Blues
Our 2026 Colors of the Year feature
an upbeat and versatile color family
which can bring calm, balance and
energy. A trio of shades has been
developed, the light blue Mellow
Flow™, the dark blue Slow Swing™
and the vibrant Free Groove™.
CONTENTS
About AkzoNobel
4
2025 results at a glance
5
CEO statement
6
How we created value
8
Strategy and operations
12
Case study: AI in action
22
Sustainability statements
23
Case study: AkzoNobel Cares
85
Leadership and governance
87
Financial statements
133
Other information
210
Disclaimer: This PDF of AkzoNobel’s annual report is derived from the official version of the
company’s Report 2025. The European Single Electronic Filing format (the ESEF reporting
package) is the official version. The ESEF reporting package is available on our website. In case of
discrepancies between this PDF version and the ESEF reporting package, the latter prevails. The
auditor’s report and limited assurance report of the independent auditor included in this PDF
version relate only to the ESEF reporting package.
On the cover:
Proud to have supported Alaska Airlines in bringing its aurora borealis
inspired livery to life on the airline’s first Boeing 787-9 Dreamliner. Created
using 11 colors within our Aerodur basecoat/clearcoat system, the finish
showcases our color expertise while delivering proven performance and
protection, helping customers achieve more sustainable outcomes in
demanding aviation environments.
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2025 HIGHLIGHTS
AkzoNobel Report 2025
Reaching new heights
Embracing wind power
Leading the charge
Creating a global leader
The sky’s the limit
Harnessing solar energy
JUNE
JULY
SEPTEMBER
NOVEMBER
NOVEMBER
OCTOBER
Photo: Emergo
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ABOUT AKZONOBEL
AkzoNobel Report 2025
Let’s paint the
future together
As experts in making paints and coatings, chances are you’re only ever a
few meters away from one of our products.
Active in more than 150 countries, we’ve set our sights on becoming the
global industry leader. It’s what you’d expect from one of the world’s most
sustainable paints and coatings companies, which has been inventing the
future since 1792.
We have a world class portfolio of brands – including Dulux, International,
Sikkens and Interpon – which is trusted by customers around the globe.
Helping us to color people’s lives and protect what matters.
Our success is built on creating durable, intelligent solutions and ensuring
quality is layered through everything we do. From pioneering product
development and unbeatable customer service, to the focus and thought
we put into helping people and society.
It’s about preserving the best of what we have today and creating an even
better tomorrow.
Let’s paint the future together.
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2025 RESULTS AT A GLANCE
AkzoNobel Report 2025
REVENUE
€10,158 mln
Revenue development in € millions
10,846
10,668
10,711
10,158
2022
2023
2024
2025
ADJUSTED EBITDA MARGIN*
14.2%
Adjusted EBITDA margin development in %
10.7
13.4
13.8
14.2
2022
2023
2024
2025
ADJUSTED EBITDA*
€1,444 mln
Adjusted EBITDA development in € millions
1,157
1,429
1,478
1,444
2022
2023
2024
2025
CARBON FOOTPRINT SCOPES 1 AND 2
47%
Percentage reduction versus 2018 baseline
28
38
41
47
2022
2023
2024
2025
12%
South Asia Pacific
FINANCIAL SUMMARY
€1,164 mln
13.5%
€3.71
31,500
operating income
return on investment (ROI)*
earnings per share
employees (FTE)
REVENUE BY DESTINATION
12%
North America
12%
Latin America
48%
EMEA
16%
North Asia
* Alternative Performance Measures (APMs). AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary
information on the reporting of the underlying developments of the business. APMs include, but are not limited to, adjusted operating
income, (adjusted) EBITDA, adjusted earnings per share, ROS and ROI. A reconciliation of the Alternative Performance Measures to the
most directly comparable IFRS measures can be found in Note 3 of the Consolidated financial statements.
2025 was a banner year of operational execution
– and a strategic turning point – as our drive to
build a stronger AkzoNobel culminated in a
proposed merger which will take us back to
the forefront of the coatings industry.
We’ve been laying the foundations for some time, most recently by
taking charge of our own destiny to become leaner and more agile.
We’ve made a clear step-up in the past three years, with adjusted
EBITDA margin rising from 10.7% in 2022 to 14.2% in 2025. And by
staying laser-focused on what we can control – efficiency, pricing
discipline and cash generation – 2025 saw us once again improve
our profitability by over-delivering on our cost-saving ambitions in
generally soft end-market conditions.
The business challenges were considerable. We faced geopolitical
uncertainties, with tariffs complicating supply chains and influencing
customer demand, as well as adverse currency impacts. We
therefore doubled down on the levers within our control, accelerating
our self-help agenda and translating those actions into tangible and
structural improvements in our performance.
Our SG&A efficiency program was largely completed by the middle
of the year and is expected to achieve €200 million of gross annual
cost savings, significantly more than the €120 million initially
announced. In addition, we initiated six site closures in 2025 as part
of our industrial excellence program, which aims to reduce
complexity, improve capacity utilization and modernize our
manufacturing footprint. This program also includes making targeted
investments, such as the recently launched €50 million upgrade to
our largest Aerospace Coatings manufacturing facility, located in
Waukegan in the US.
Alongside these developments, we continued to dynamically
manage our portfolio as we work towards higher capital efficiency.
We completed the divestment of Akzo Nobel India Limited, realizing
exceptional value at 25x EBITDA – an important step in sharpening
our strategic focus – and we’re continuing to review our Decorative
Paints positions in South East Asia. This portfolio refocus, combined
with our strong cash flow generation in 2025, has allowed us to
deliver ahead of schedule on our mid-term leverage ratio objective of
around 2x net debt/adjusted EBITDA and regain capital allocation
flexibility.
All of the above are indisputable proof points that we’re well on our
way to achieving our mid-term targets, and that we have the
strategy and the execution to thrive stand-alone. But can we be
even stronger in partnership? That’s the question we’re answering
with the proposed all-stock merger with Axalta. The combination will
help us take control of our future, strengthen our strategic
independence and bring us back to a leading position with the
enhanced scale and capabilities we’ve been working towards to
better serve our customers globally. By joining forces, we’ll create a
company that will be stronger in every way, with $600 million of cost
synergies in addition to revenue synergies, EBITDA profitability in the
region of 20% and an innovation engine that will create exceptional
value for our customers. As CEO of the combined business, I’m
excited to lead our talented teams in bringing the best of both
companies to our customers and shareholders, delivering
outstanding value to both.
Looking at 2025 in more detail, we continued to show our ability to
expand margins. In Decorative Paints, our South America business
achieved solid growth, particularly in the second half of the year,
driven by Brazil. We maintained our pricing discipline in Europe,
Middle East and Africa (EMEA) against a backdrop of uneven
demand, while in Asia, we saw mixed volume recovery in China, but
gained share in the premium segment. Elsewhere, performance was
strong in Vietnam, with softer demand in Indonesia.
It was a similar story for our Performance Coatings activities, which
operated in a challenging environment, and were faced with
significant volume pressure in North America. Industrial Coatings
remained subdued throughout the year, while Vehicle Refinishes
stabilized at lower levels as 2025 progressed. Powder Coatings
reinforced its global leadership, but suffered from a depressed
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CEO STATEMENT
AkzoNobel Report 2025
GREG
POUX-GUILLAUME
CEO and Chair of the Board of Management
architectural market. In contrast, Aerospace Coatings and Marine
and Protective Coatings continued to deliver solid results, and all our
businesses in China performed strongly.
On an operational level, our ongoing improvement actions allowed
us to further boost our service levels. The programs we have in place
are further solidifying our foundations and will continue to drive our
performance far beyond 2025.
We also made meaningful progress towards halving the carbon
emissions in our own operations by 2030. While we’re almost there
in terms of what we control – Scopes 1 and 2 – it’s proving more
challenging to gain ground across the whole value chain. Our efforts
around Scope 3 are being stepped up and are highlighted by a
number of ongoing partnerships. These include teaming up with
Arkema and BASF to introduce bio-attributed raw materials that help
reduce the carbon footprint of our superdurable Interpon D low cure
and Collections offering of architectural powder coatings in Europe.
Sustainability continues to drive our innovation and we were excited
to launch collaborations with several other partners during the year.
For example, we’ve entered into a pioneering partnership with IPG
Photonics to apply laser technology for curing powder coatings. We
also became exclusive paint supplier for the Calosol heat-absorbing
technology in the Netherlands, which transforms the façades of
homes and buildings into a source of energy.
As we continue to transform our company, it’s been reassuring to
see that our colleagues across the world understand what we’re
doing and why. This is demonstrated by our annual Voices survey,
which this year achieved a 90% participation rate – our highest ever
and well above the 75% industry benchmark. Notable results include
our eNPS (Employee Net Promoter Score) – which measures the
likelihood of recommending AkzoNobel as a workplace. This
increased by six points to +16, an impressive 12 points above the
benchmark.
As we enter 2026, we’ll continue to execute on our strategy as we
prepare for the closing of the proposed Axalta merger, targeted at
the end of the year. We don’t anticipate a meaningful recovery
across our end markets. However, our self-help approach is clearly
delivering and the measures we’ve taken will continue to support our
bottom line as we move towards this next chapter in our long and
proud history.
On behalf of the Executive Committee, I want to thank all our
shareholders, customers, partners and other stakeholders for your
support throughout 2025. I’d also like to give well-deserved
recognition to our colleagues around the world for their relentless
effort and dedication. Their energy and commitment have been
evident during the year, and it’s a privilege to stand alongside them
as we steer AkzoNobel towards the next phase of our journey.
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CEO STATEMENT
AkzoNobel Report 2025
CEO Greg Poux-Guillaume visited the company’s
Marine and Protective Coatings plant in Houston
during a visit to the US. As well as catching up on
the facility’s progress with industrial excellence
activities, he also met many of the employees and
discussed the investments being made to further
improve the site.
We deliver profitable growth by developing
innovative, high-performance and more
sustainable products that create value for
our customers, shareholders, employees
and society in general.
Revenue from third parties
in € millions
Decorative Paints
Performance Coatings
4,344
4,300
4,301
4,090
6,499
6,368
6,410
6,068
2022
2023
2024
2025
Innovation investment
Research and development expenses in € millions
258
270
296
274
2022
2023
2024
2025
Summary of financial outcomes
in € millions/%
2024
2025
∆%
Revenue
10,711
10,158
(5%)
Operating income
917
1,164
27%
Identified items*
(196)
83
Adjusted operating income*
1,113
1,081
(3%)
Adjusted EBITDA*
1,478
1,444
(2%)
Adjusted EBITDA margin (%)*
13.8
14.2
Average invested capital*
8,350
8,016
(4%)
ROI (%)*
13.3
13.5
Capital expenditures*
306
309
Net debt*
3,901
2,942
Leverage ratio*
2.6
2.0
Net cash from operating activities
673
915
Free cash flow*
367
606
Number of employees
34,600
31,500
Net income attributable to
shareholders
542
635
Weighted average number of shares
(in millions)
170.7
171.0
Earnings per share from total
operations (in €)
3.17
3.71
Adjusted earnings per share from
continuing operations (in €)*
3.88
3.63
* Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details, including a reconciliation to the most directly comparable IFRS measure.
Revenue development full-year 2025
-2%
2%
—%
—%
-4%
-1%
-5%
Volume Price/mix Organic
sales
Acq./div.
FX
Other
Revenue
Revenue by destination in %
A North Asia
16%
B South Asia Pacific
12%
C EMEA
48%
D North America
12%
E Latin America
12%
Based on full-year 2025.
Capital expenditures* 2025: Total €309 million
A Decorative Paints
85
B Performance Coatings
207
C Corporate and other
17
Capital expenditures are guided to be around €350 million for 2026.
* Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for
more details, including a reconciliation to the most directly comparable IFRS measure.
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HOW WE CREATED VALUE
AkzoNobel Report 2025
A
B
C
A
B
C
D
E
Financial overview
Organic sales were flat, with an increase in price/mix offset by lower
volumes. Price/mix was up 2%, mainly due to positive pricing.
Volumes were 2% lower due to the impact of macro-economic
uncertainties, particularly in North America.
The translation effect due to the strong euro impacted revenue by
minus 4%, while Other (which mainly relates to hyperinflation
accounting) was down 1%, resulting in 5% lower revenue overall.
Operating income increased to €1,164 million (2024: €917 million)
and included identified items of positive €83 million (2024: negative
€196 million). The profit from the India divestment, reported in Other
activities, more than offset the costs related to recording the
provision for the Australian litigation, reported in Performance
Coatings, and the costs related to our restructuring programs.
Adjusted EBITDA at €1,444 million (2024: €1,478 million), including
an €85 million negative impact from FX translation. Structural cost
measures helped offset most of the impact from lower volumes,
keeping operating expenses lower year-on-year, despite wage and
general inflation. Adjusted EBITDA margin improved to 14.2% (2024:
13.8%).
For business results, refer to Strategy and operations.
Financing income and expenses
Financing income and expenses amounted to negative €199 million
(2024: negative €102 million), with net interest on net debt stable at
€127 million (2024: €126 million). The €97 million increase includes
an (identified) charge of €21 million related to recording the interest
portion of the provision for the Australian litigation. The remainder of
the increase is mainly due to hyperinflation accounting and the
impact of a prior year interest gain related to the release of a
provision for an uncertain tax position.
Income tax
The effective tax rate was 32.7% (2024: 29.4%). The tax rate was
impacted by the derecognition of deferred tax assets (mainly due to
a combination of changes in forecasted taxable income in certain
jurisdictions and increased deferred tax assets related to temporary
differences (Australian litigation), and the India divestment. Excluding
these two effects, the tax rate would have been 28.7%.
Shareholders’ equity
Shareholders’ equity amounted to €4.7 billion at December 31,
2025, compared with €4.6 billion at year-end 2024. The main
movements in 2025 related to profit for the period of €635 million,
offset by currency effects of €222 million negative (net of taxes) and
dividend of €339 million. The currency effects were driven by the
strengthening of the euro versus other currencies, in particular the
US dollar, Chinese yuan and pound sterling.
Dividend in €
1.98
1.98
1.98
1.98
2022
2023
2024
2025*
* Proposed
Earnings per share from total operations in €
2.01
2.59
3.17
3.71
2022
2023
2024
2025
Adjusted earnings per share from continuing operations* in €
2.45
3.07
3.88
3.63
2022
2023
2024
2025
* Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details, including a reconciliation to the most directly comparable IFRS measure.
Outstanding share capital
The outstanding share capital was 171.1 million common shares at
the end of December 2025. The weighted average number of shares
in 2025 was 171.0 million shares.
Cash flow and net debt
Net cash from operating activities in 2025 was an inflow of €915
million (2024: inflow of €673 million). The higher inflow was mainly
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HOW WE CREATED VALUE
AkzoNobel Report 2025
due to improvements in changes in working capital, partly offset by
higher cash out from our restructuring programs.
Net cash from investing activities in 2025 was an inflow of €442
million (2024: outflow of €132 million). The inflow was driven by €776
million of cash inflow from the India divestment (net of €98 million of
income taxes paid and €28 million of cash derecognized at
disposal). This inflow was partly offset by a net outflow from short-
term investments of €140 million and capital expenditures of €309
million.
Net cash from financing activities in 2025 was an outflow of €981
million (2024: outflow of €684 million). The change compared with
2024 was mainly due to a higher outflow in changes from
borrowings.
At December 31, 2025, net debt was €2,942 million (December 31,
2024: €3,901 million). The decrease was mainly due to net cash
generated from operating activities for the period (€915 million) and
net proceeds from acquisitions and divestments (€816 million;
including €776 million from the India divestment), partly offset by
capital expenditures (€309 million) and dividends paid (€382 million).
Leverage ratio (net debt/adjusted EBITDA) at December 31, 2025,
was 2.0 (December 31, 2024: 2.6).
Dividend
The dividend policy remains unchanged and is to pay a stable to
rising dividend.
A final 2024 dividend of €1.54 per common share (2023: €1.54) was
approved at the AGM on April 25, 2025, which resulted in a total
2024 dividend of €1.98 per share (2023: €1.98).
In 2025, an interim dividend of €0.44 per share was paid (2024:
€0.44). A final 2025 dividend of €1.54 (2024: €1.54) per common
share is proposed.
Invested capital
Invested capital at December 31, 2025, totaled €7.6 billion, down
€0.7 billion from year-end 2024. This decrease was mainly caused
by negative currency translation, lower trade working capital and the
India divestment.
Trade working capital
Trade working capital was €1.4 billion at December 31, 2025
(December 31, 2024: €1.6 billion). Trade working capital as a
percentage of revenue was 14.4% in Q4 2025. On a comparable
basis (excluding the impact of the India divestment) it was 14.7%,
down 1.0% compared with Q4 2024, mainly due to lower inventories
and trade receivables.
Trade working capital in € millions1
2024
2025
Trade receivables
2,144
1,990
Inventories
1,721
1,529
Trade payables
(2,220)
(2,157)
Trade working capital
1,645
1,362
1 Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details.
Pensions
The net balance sheet position (according to IAS 19) of the pension
plans at the end of 2025 was a surplus of €0.6 billion (year-end
2024: surplus of €0.6 billion). The development during 2025 was
mainly the offsetting effect of lower inflation rates and lower plan
asset returns in key countries.
Employees
At December 31, 2025, the number of employees (in FTEs) was
31,500 (December 31, 2024: 34,600). On a comparable basis
(excluding the impact of the India divestment), headcount was down
1,800 employees driven by efficiency programs.
2026 Outlook*
Subject to ongoing market uncertainties, the company expects to
deliver €100 million of adjusted EBITDA improvement in constant
currencies. As a result, adjusted EBITDA for the full-year 2026 is
expected to be at or above €1.47 billion, based on year-end 2025
exchange rates and adjusted for the India divestment.
For the mid-term, AkzoNobel aims to expand profitability to deliver
an adjusted EBITDA margin of above 16% and a return on
investment between 16% and 19%, underpinned by organic growth
and industrial excellence.
The company expects leverage to be around 2 times net debt/
adjusted EBITDA by the end of 2026. In the mid-term, AkzoNobel
aims to maintain leverage around 2 times, while remaining
committed to an investment grade credit rating.
Closing of the Axalta merger, which is subject to shareholder and
regulatory approvals, is expected in late 2026 or early 2027.
* Outlook represents current company expectations based on organic volumes adjusted for the
India divestment, is subject to ongoing market uncertainties and at exchange rates as of the end of
2025. Outlook is on a standalone basis and excludes any effects from the proposed merger with
Axalta.
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HOW WE CREATED VALUE
AkzoNobel Report 2025
Sustainability progress
At AkzoNobel, we innovate with and for customers and play an
active role in supporting the industries we supply to advance
towards a more sustainable future.
We’re focused on ensuring that the pioneering paints and coatings
we supply continue to protect what matters, while also bringing
benefits across the value chain. It means we’re always working on
new and exciting ways to make our products more sustainable and
make the surfaces we coat last longer.
During 2025, we made further progress towards our 2030 key
sustainability ambitions. This progress is highlighted in the charts
opposite and further detailed in the Sustainability statements.
We’re investing €7 million at our Rapla decorative paints site in Estonia to expand
capacity, improve efficiency and enhance sustainability. Due to be fully
completed by Q3 2026, the work includes increasing production capacity by
more than three million liters a year and expanding the distribution center.
The investment will help drive sustainable growth and operational efficiency.
ENVIRONMENTAL AND SOCIAL
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HOW WE CREATED VALUE
AkzoNobel Report 2025
47%
50 %
2025
2030 target
Carbon emission reduction own operations
19%
50 %
2025
2030 target
Carbon emission reduction value chain
73%
75 %
2025
2030 target
Suppliers meeting our sustainability expectations
27%
30 %
2025
2030 target
Female executives
100,000
100,000
2025
2030 target
Members of local communities empowered with new skills
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AkzoNobel Report 2025
STRATEGY AND
OPERATIONS
An overview of the company’s strategy, the performance of our
Paints and Coatings businesses during the year and our approach to
innovation.
Strategy
13
Decorative Paints
16
Performance Coatings
18
Innovation
20
For more details on key 2025 figures, see the previous How we
created value pages and the Segment information in Note 3 of the
Consolidated financial statements.
We helped Chinese manufacturer COMAC soar to a new record after supplying the most colors
they’ve ever used on a C919 aircraft. Our Aerospace Coatings business provided 44 colors for
the Beautiful Greater Bay Area livery, which was created for China Southern Airlines. It followed
on from an earlier partnership with China Southern to develop an eye-catching design for their
Vibrant Greater Bay Area Airbus A350.
The sky’s the limit
AkzoNobel operates a global portfolio of Paints and Coatings
businesses. Our approach is therefore focused on the specific
requirements of different markets and customers, which results in
distinct and effective strategies to outperform in the areas where
we’re active.
We’ve established the following overarching strategic pillars across
our portfolio of businesses:
• Sustainability-driven innovation
• Growth in focus segments and markets
• Industrial excellence and simplifying our execution model
• Active portfolio management
These pillars provide the foundation for our sustainable long-term
value creation moving forward and are described in more detail in
this chapter.
Sustainability-driven innovation
We’re committed to capturing the opportunities that sustainability
presents as a catalyst for innovation. We recognize that sustainability
is driving changes in our industry and believe this aligns with our
strengths in innovation and our leadership position in sustainability.
We’re developing products that are more sustainable, which enables
us to gain market share and generate higher margins in certain
markets. We’re also focused on accelerating our development
efforts and reducing time to market.
During 2025, we launched several solutions that demonstrate our
commitment to advance towards a more sustainable future,
especially in our three main end-user segments – the built
environment, transport and consumer goods. They included:
• Award-winning powder coatings technology for protecting electric
battery bottom plates for EVs, tripling the life of the battery
shielding coatings, compared with using standard solutions for the
same application method
• Superdurable architectural powder coatings containing bio-
attributed raw materials that help deliver reduced product carbon
footprint, achieved through our ongoing value chain partnership
with Arkema and BASF
• A new generation waterborne basecoat for vehicle repair which
requires just a single visit to the spray booth, enabling faster
processing times compared with the conventional basecoat
application method, and reducing both energy costs and carbon
emissions
• Next generation clearcoat for consumer electronics applications
which combines premium aesthetics with exceptional stain and
wear resistance
• A “sunscreen” coating system in China which features a radiative
cooling topcoat and a thermal radiation barrier mid-coat, helping
to cool down buildings and make them more energy efficient,
compared with using standard mid-coat and topcoat solutions for
the same application
Growth in focus segments and markets
Our growth strategy targets continued investment in growth markets
and segments where we have differentiated positions, such as
aerospace coatings, powder coatings, and marine and protective
coatings.
In these markets, our enhanced operational performance is
supporting our mid-term growth ambitions. We also launched a
number of targeted growth investments during the year:
• A major €50 million upgrade is underway at our Waukegan, Illinois,
facility in the US – the company’s biggest aerospace coatings
production site – positioning us to meet forecast production levels
and support a strong, multi-year pipeline in this rapidly growing
segment
• In the UK, we’re investing more than €15 million on filler
modernization and starting Chartek production at our marine and
protective site in Felling. This will strengthen our position in the
specialized, high-value fire protection market and help meet
growing customer demand for this globally recognized technology
• Around €20 million is being invested at our North American
Powder Coatings sites in the US and Mexico. This will support our
business in the region by removing capability and capacity
constraints for our full powder offering and enable production of
our market-leading differentiated aesthetics for the architectural
segment
Mid-term ambitions:
ADJUSTED EBITDA
MARGIN*
RETURN ON
INVESTMENT (ROI)*
>16%
16-19%
Adjusted EBITDA*
growth
Industrial excellence
benefit
CAGR: >6%
€300 mln by 2027
Volume growth
Leverage ratio*
CAGR:
+ Low single digit %
~2x investment grade
Subject to ongoing market uncertainties and assuming constant currencies, on a standalone
basis and excludes any effects from the proposed merger with Axalta. CAGR on 2023
baseline.
* Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements
for more details, including a reconciliation to the most directly comparable IFRS measure.
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STRATEGY
AkzoNobel Report 2025
Industrial excellence and simplifying our
execution model
We know there’s significant value to be gained through improving
our operations. We’re addressing bottlenecks in business-critical
supply chains, under-investment in key sites and low capacity
utilization, in line with our industrial excellence program launched in
2023. This initiative continues to gather pace. We’ve closed 12 sites
since the start of the program, all without business disruption and
while improving service levels. All actions under the industrial
excellence program are expected to be completed by the end of
2026, including at least six additional site closures, with full run-rate
of benefits visible in 2027.
In Decorative Paints, the focus for 2025 remained on optimizing our
manufacturing footprint in EMEA. As part of this optimization, we’re
closing selected sites and transferring production to regional anchor
sites where we have invested in automation and equipment
efficiency improvements. Three closures have been completed in
EMEA to date and the program remains on track, with a further three
closures announced for 2026.
In Performance Coatings, our efforts were concentrated on footprint
consolidation for Industrial Coatings in North America, which
involved two site closures, alongside productivity initiatives and
service improvements for our businesses across the region. These
actions supported stronger service levels and shorter lead times,
with productivity improvements clearly visible across our anchor
sites. Business continuity was preserved, with company-wide OTIF
(on-time, in-full) maintained above 90% throughout this period of
significant change.
We also made strong progress in achieving other variable
manufacturing cost savings through the reduction of operational
leakage, shipment consolidation, enablement of dual sourcing and
rationalization of packaging.
In addition to the industrial excellence program focused on
optimizing our manufacturing sites, we’re also working to streamline
and optimize our functional organization. We’re simplifying
operations, accelerating decision-making and streamlining the
company’s management structure. Under this program, we reduced
2,900 functional positions, significantly above the initial target, with
all actions completed by mid-2025. The progress achieved
underscores the disciplined execution of our transformation agenda
and reflects our continued agility in an increasingly challenging
market environment.
We aim to deliver a seamless experience for customers and
employees. To achieve that objective, we’re continuing to streamline
our execution model by further aligning commercial and industrial
activities, simplifying the operating model and decision-making, and
strengthening end-to-end accountability to drive faster, more
effective implementation.
Active portfolio management
We’re actively looking for ways to improve our portfolio in pursuit of
synergies and scale, and to redeploy capital towards growing our
core Coatings businesses. Central to this is the strategic review of
our portfolio – with current focus on Deco Asia – which we launched
in late 2024.
The first major milestone in this process was reached during 2025
with the sale of Akzo Nobel India Limited to the JSW Group, one of
India’s leading diversified conglomerates. The transaction included
AkzoNobel’s decorative paints and liquid coatings business currently
localized in India, while the India Powder Coatings business and the
International Research Center remain under full AkzoNobel
ownership and continue as part of the company’s global network.
The deal represented an EV/EBITDA multiple of 25x. Total proceeds
from the divestment of the India business amounted to
approximately €900 million.
Our portfolio review is ongoing and the focus remains on Paints
businesses where AkzoNobel holds a sub-scale position. This is
primarily evident in the Asia Pacific region, where current valuation
levels present attractive monetization opportunities.
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STRATEGY
AkzoNobel Report 2025
Established
1792
Established
1866
$11,885 mln1
Revenue
$1,689 mln1
Adj. EBITDA
31,500
Employees
125
Manufacturing sites 70
R&D facilities
$5,117 mln
Revenue
$1,128 mln
Adj. EBITDA
12,300
Employees
42
Manufacturing sites
21
R&D facilities
1 AkzoNobel financials converted to USD on basis of rates available on page 140
In November 2025, Akzo Nobel N.V. and Axalta Coating Systems
Ltd. agreed to combine in an all-stock merger, creating a premier
global coatings company with an enterprise value of approximately
$25 billion.
The combination brings together two coatings industry leaders with
complementary portfolios of highly regarded brands to better serve
customers across key end markets, enhancing value for
shareholders, employees and other stakeholders.
The combined business will have a highly attractive financial profile,
industry-leading innovation capabilities and a balanced global
footprint spanning more than 160 countries. It will be well positioned
to drive substantial growth and shareholder value creation. The
combination is expected to drive identified and actionable run-rate
synergies of approximately $600 million, 90% of which are expected
to be achieved within the first three years following the close of the
transaction.
There will be a new name and ticker symbol, to be announced in
due course, while the combined company will have dual
headquarters in Amsterdam and Philadelphia. It will be organized
under a Dutch holding company with tax residency in the
Netherlands. After a period of dual listing on Euronext Amsterdam
and the New York Stock Exchange, shares of the combined
company’s common stock will be listed solely on the NYSE.
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STRATEGY
AkzoNobel Report 2025
CREATING A PREMIER GLOBAL COATINGS COMPANY
2025 figures
2025 figures
Revenue in € millions
2024
2025
∆% ∆% Organic*
Decorative Paints
EMEA
2,462
2,412
(2%)
—%
Decorative Paints
Latin America
825
758
(8%)
6%
Decorative Paints
Asia
1,014
920
(9%)
(3%)
Total
4,301
4,090
(5%)
—%
* Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details, including a reconciliation to the most directly comparable IFRS measure.
Key financial figures
in € millions/%
2024
2025
∆%
Operating income
405
401
(1%)
Identified items1
(80)
(102)
Depreciation and amortization2
(150)
(145)
Adjusted EBITDA1
635
648
2%
Adjusted EBITDA margin (%)1
14.8
15.8
Average invested capital1
3,921
3,525
(10%)
ROI (%)1
12.4
14.3
1 Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details, including a reconciliation to the most directly comparable IFRS measure.
2 Excluding identified items.
Decorative Paints revenue by destination in %
A
B
C
Key brands
2025 OVERVIEW
Decorative Paints delivered strong results
in 2025, highlighting the resilience of our
business in times of macro-economic
volatility. The year presented a mixed
operating environment across regions.
EMEA achieved a robust performance, with strong pricing largely
offsetting softer volumes amid uneven demand trends. Latin America
delivered solid growth, supported by effective pricing, despite
volume volatility – especially in Brazil. Solid volume growth in Asia,
mainly in China and Vietnam, was offset by pricing and mix
pressures and weaker conditions in Indonesia. Despite these
challenges, the segment delivered increased profitability, supported
by efficiency measures.
Organic sales for Decorative Paints were flat, with a 1% increase in
price/mix offset by 1% lower volumes. Volumes were lower in Deco
EMEA and Deco LATAM, while volumes in Deco Asia were up,
driven by China outperforming in soft market conditions. Price/mix
was up 1%, driven by positive pricing in Deco EMEA and Deco
LATAM. Currency translation impacted revenue by 4%, while Other
(which mainly relates to hyperinflation accounting) was down 1%,
resulting in 5% lower revenue.
Operating income came in at €401 million (2024: €405 million). The
€22 million increase in identified items, which was driven by
restructuring programs, was partly offset by lower operating
expenses.
Adjusted EBITDA increased to €648 million (2024: €635 million),
despite €40 million negative FX translation impact. Adjusted EBITDA
margin expanded to 15.8% (2024: 14.8%) as the impact of our
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DECORATIVE PAINTS
AkzoNobel Report 2025
Decorative Paints is comprised of businesses that focus on a full range of interior and exterior
decoration and protection products for both the professional and do-it-yourself channels. These
include paints, enamels and varnishes, as well as products for surface preparation. We also offer
services such as mixing machines, color concepts and advice, along with training courses for
applicators. AkzoNobel operates its own sales distribution network in addition to selling through
agents and distributors, across three geographical regions, with all regional business units now
operating under a centralized leadership structure.
A
EMEA
59 %
B
Latin America
19 %
C
Asia
22 %
ongoing operational efficiencies and restructuring initiatives
increasingly benefited the bottom line.
EMEA
Organic sales were broadly flat, with pricing offsetting weaker
volumes. Demand trends were mixed with volume growth in South
Europe and Africa, the UK and Benelux in line with prior year and a
decline in Central and Eastern Europe. Revenue was was down 2%.
Latin America
Organic sales increased by 6% supported by positive pricing, even
after accounting for the inflationary impact in Argentina. Volumes
were slightly down driven by Brazil, which reflected the phasing of
our pricing initiatives amid market ownership changes. Revenue was
down 8% on currency translation.
Asia
Organic sales were down 3%, with positive volumes offset by
weaker price/mix. In China, we returned to growth and outperformed
a weak overall market – especially with our premium products –
delivering solid volume increases, offset by negative mix. Trends in
South East and South Asia were broadly positive, albeit with
differences across countries (in line with broader macro-economic
trends), with Vietnam outperforming and Indonesia facing weak
market conditions. Revenue was down 9% mainly on currency
translation.
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DECORATIVE PAINTS
AkzoNobel Report 2025
Our Dulux Academy in the UK reached
a major milestone in 2025. More than
25,000 individuals have now been
welcomed through its doors and online.
Established in 2016 to help
professional decorators build their
skills and knowledge, the academy
model has also been mirrored by our
brands in other regions – ensuring that
our expertise in decorating excellence
continues to help paint the future in
countries around the world.
An iconic hotel in Belgium has been restored
with our Sikkens Rezisto products.
The Corinthia Grand Hotel Astoria Brussels
reopened as an elegant tribute to heritage and
modern aesthetics. We supplied everything
from stain-resistant wall paint to scratch-
resistant varnish for woodwork.
A
Powder Coatings
21%
B
Marine and
Protective Coatings
26%
C
Automotive and
Specialty Coatings
22%
D
Industrial Coatings
31%
Revenue in € millions
2024
2025
∆% ∆% Organic*
Powder Coatings
1,365
1,280
(6%)
(1%)
Marine and
Protective
Coatings
1,575
1,570
—%
5%
Automotive and
Specialty Coatings
1,434
1,347
(6%)
(1%)
Industrial Coatings
2,036
1,871
(8%)
(3%)
Total
6,410
6,068
(5%)
—%
* Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details, including a reconciliation to the most directly comparable IFRS measure.
Key financial figures
in € millions/%
2024
2025
∆%
Operating income
679
300
(56%)
Identified items1
(56)
(365)
Depreciation and amortization2
(178)
(178)
Adjusted EBITDA1
913
843
(8%)
Adjusted EBITDA margin (%)1
14.2
13.9
Average invested capital1
3,773
3,595
(5%)
ROI (%)1
19.5
18.5
1 Alternative Performance Measure: refer to Note 3 of the Consolidated financial statements for more
details, including a reconciliation to the most directly comparable IFRS measure.
2 Excluding identified items.
Performance Coatings revenue by business unit in %
A
B
C
D
Key brands
2025 OVERVIEW
2025 proved to be a challenging year
for our Performance Coatings activities,
which brought mixed results.
Volumes primarily reflected softer demand in North America, where
growth was limited to Marine and Protective Coatings and
Aerospace Coatings, accelerating into the second half of the year.
The remaining businesses in the region were impacted by subdued
industrial activity and cautious consumer spending.
China was more resilient, led by strong performances in Powder
Coatings and Marine and Protective Coatings. In EMEA, trading
conditions were generally weak across the portfolio, in line with
broad-based economic softness.
We maintained pricing discipline against a backdrop of adverse
currencies and ongoing competitive intensity and continued to
realize benefits from our restructuring efforts. Despite our sustained
focus on operational excellence, margins narrowed as the benefits
were more than offset by an unfavorable regional mix resulting from
weaker demand in North America.
Organic sales were flat, with positive pricing offsetting lower
volumes. Price/mix improved by 2%, as all businesses delivered
positive pricing, despite increased competitive pressure. Volumes
declined by 2%, with growth in Asia offset primarily by the weakness
in North America due to macro-economic uncertainties. Marine and
Protective Coatings delivered solid growth across key regions, while
Powder Coatings performed particularly well in Asia.
Currency translation impacted revenue by 4%, while Other (which
mainly relates to hyperinflation accounting) was down 1%, resulting
in revenue down 5%. Operating income was €300 million (2024:
€679 million), impacted by identified items of negative €365 million
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PERFORMANCE COATINGS
AkzoNobel Report 2025
AkzoNobel is one of the world’s leading manufacturers and suppliers of performance coatings.
Our products are engineered to achieve functional properties such as corrosion control, fouling
control, anti-scratch and passive fire protection, while delivering step changes in sustainability.
Our Performance Coatings activities are organized into four main businesses: Automotive and
Specialty; Industrial; Marine and Protective; and Powder Coatings. Key end markets include
general industrials (agricultural and construction equipment, construction-related steel and metal
fabrication, pipes, appliances and transportation), energy, packaging, infrastructure and
shipbuilding and maintenance.
(2024: negative €56 million), mainly due to the recording of a
provision for the Australian litigation (€272 million) and restructuring
programs (€88 million). Excluding identified items, lower operating
expenses and higher pricing partly offset the impact from lower
volumes and lower gross margin. Adjusted EBITDA was €843 million
(2024: €913 million), including a €56 million negative FX translation
impact. Adjusted EBITDA margin was 13.9% (2024: 14.2%).
Powder Coatings
Powder Coatings delivered a resilient performance in a challenging
market environment. Organic sales declined 1%, with volumes under
pressure, mainly in North America and Europe, as macro-economic
uncertainty weighed on demand. Despite weak architectural demand
in China, our business in Asia delivered solid growth, supporting a
resilient performance in a challenging overall market environment.
Revenue was down 6% on currency translation.
Marine and Protective Coatings
Organic sales rose 5%, supported by positive contributions from
volumes and pricing. Protective Coatings delivered exceptional
volume growth, benefiting from strong tailwinds in North America
and China. Marine Coatings built on share gains in previous years
and continued to grow in maintenance and repair. Yacht Coatings, a
market-leading niche business, had a modestly slower year due to
lower consumer confidence, mainly in EMEA. Revenue was flat.
Automotive and Specialty Coatings
Organic sales declined 1%, primarily due to lower volumes. The
market for vehicle refinishes remained weak across North America
and EMEA throughout the year. Meanwhile, the Aerospace Coatings
business gained additional momentum in the second half, delivering
exceptional run-rate growth by year-end. Revenue was down 6% on
currency translation.
Industrial Coatings
Full-year organic sales down 3%, driven by lower volumes; revenue
down 8% on currency translation. Volumes down in all segments,
with Packaging Coatings impacted by strong prior year
comparatives. Revenue was down 8% on currency translation.
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PERFORMANCE COATINGS
AkzoNobel Report 2025
The São Paulo Museum of Art (MASP)
in Brazil has completed its biggest
ever renovation project. The
distinctive building features prominent
red porticoes which were restored
with protective coatings from our
International brand. We also
developed a matching shade of
MASP Red to replicate the original
color. (Photo: Pedro Truffi).
Our Marine Coatings business signed a strategic
agreement with Winning Shipping in China
which will contribute to the fleet operator’s
transition to lower carbon operations. The two
companies have been partners since 2016 and
the expanded collaboration will involve
AkzoNobel supplying a significant volume
of International coatings for a number
of drydocking projects in 2026. Focused on six
vessels, it will enhance the fleet’s operational
efficiency and environmental performance.
INNOVATION
IN NUMBERS
~2,700
R&D professionals worldwide
€1.33 bln
spent on R&D (last five years)
~2,300
patents/patent applications
~70
laboratories worldwide
Innovating with impact
Our search for better never stops. That’s why our research and
development teams are constantly striving to develop advanced
technologies and more sustainable solutions that benefit customers
and communities around the world.
From asset protection and surface enhancement, to reducing
environmental impact and improving productivity, our game-
changing portfolio of paints and coatings is always evolving.
Focused on three main end-user segments – the built environment,
transport and consumer goods – our wide-ranging expertise enables
us to make the things people see and use every day exceed their
expectations. It’s about delivering supreme color performance and
next level protection, while also unlocking new functionalities. These
are designed to help customers develop solutions using fewer
natural resources, with increased productivity, performance and
durability.
In 2025, we continued to push boundaries and demonstrate our
commitment to sustainability-driven innovation. This included several
strategic collaborations and a variety of exciting product launches, all
designed to achieve positive change as we accelerate our efforts to
paint the future.
Built environment
Green buildings are at the forefront of sustainable development and
play a crucial role in reducing the environmental impact of the
construction industry. As a leading global paints and coatings
company, we’re ideally placed to help make cities and communities
more liveable and sustainable. During 2025, highlights in this end-
user segment included:
• Launching a “sunscreen” coating system in China that cools down
buildings and makes them more energy efficient. The innovative
technology – which features a radiative cooling topcoat and a
thermal radiation barrier mid-coat – can lower the surface
temperature of buildings by up to 10% during hot summer
months, compared with using standard mid-coat and topcoat
solutions for the same application
• Becoming exclusive paint supplier to the Calosol heat-absorbing
façade technology that we helped create. The innovative panel
system – which transforms the façades of homes and buildings
into a source of energy – was developed together with Dutch
partners Emergo and TNO
Many of our products also make a vital contribution to critical
infrastructure, such as the facilities and assets used in the oil and
gas industry. During the year, we introduced Chartek ONE passive
fire protection in Europe, which provides next-level fire protection for
assets in the energy sector and meets the highest industry
standards. It uses our latest patented technology and combines low
VOC with excellent performance, faster application and improved
process and material efficiency, helping to lower costs and reduce
environmental impact.
Transport
We supply a comprehensive range of advanced coatings and color
technologies for virtually every type of transport, including cars,
commercial vehicles, ships, yachts and airplanes. Committed to
developing world class products that can help reduce environmental
impact, we deliver high-performance solutions designed with
strength, efficiency and durability in mind. During 2025, highlights in
this end-user segment included:
• Introducing Autowave Optima, a new generation one-stop
application waterborne basecoat, which can help bodyshops
reduce both energy costs and carbon emissions
• Winning one of the automotive industry’s most coveted innovation
prizes – the 2025 Altair Enlighten Award – which was presented to
our Powder Coatings business and Chinese electric car-maker
NIO for co-developing a new product which will help NIO achieve
its 15-year EV battery longevity ambition
• Continuing to implement digitization and automation across our
business to improve efficiency, customer experience and
sustainability. This included the ongoing success of our virtual
aircraft spray booth. Introduced by the Aerospace Coatings
business, the portable virtual reality system is used for training
painters to coat airplanes
Consumer goods
We partner closely with brands around the world to co-develop
innovations that meet evolving design trends and sustainability goals.
From personal electronics and home appliances to beverage cans,
furniture and packaging, our coatings bring lasting beauty and
protection to things you see and use every day. During 2025,
highlights in this end-user segment included:
• Our Packaging Coatings business introducing a BPA non-
intentionally added (BPAni) line of Accelshield coatings on the
Brazilian market. The coating has been developed for the inside of
beverage cans and lids, meeting regulatory requirements
regarding the elimination of BPA in the metal beverage packaging
industry
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INNOVATION
AkzoNobel Report 2025
• Launching our next generation clearcoat for consumer electronic
applications. Utilizing advanced multi-curing UV technology, it
delivers a velvet-like, super matte surface with exceptional stain
and wear resistance
Sustainability-driven innovation through
collaboration
We proactively share our expertise and collaborate with partners –
across and beyond our value chain – to address the challenges
facing our customers and the wider world. In 2025, we agreed
several strategic partnerships with suppliers and customers.
Working with value chain partners
• We teamed up with Arkema and Omya to map out a landscape of
decorative paint formulations with a reduced carbon footprint of up
to 35%. The ongoing research project combines our formulation
expertise with Arkema’s bio-based and bio-attributed binders and
additives, and Omya’s recycled and opacity booster minerals
• We forged a pioneering partnership with IPG Photonics which
involves applying laser technology for curing powder coatings. It
will offer a faster and more energy efficient alternative, compared
with conventional powder coating curing methods
• Our Coil and Extrusion Coatings business launched a new initiative
called IONOMY™. This network aims to help companies that coat
metal coils make the transition to using renewable energy to cure
their products. The not-for-profit initiative is bringing together
experts from various fields and enabling more effective
collaboration, which will make the transition easier
• We continued to support our customers in optimizing their
application process through AI-powered software. This helped
improve coating uniformity by close to 10%, reducing the
likelihood of products needing to be reworked or rejected, which is
an inherent sustainability benefit and brings cost efficiency
Academic collaborations
• We started working on a five-year project funded by the Dutch
Research Council. Called RESPOND (Recycling Enhanced Smart
Programmable ON-Demand coatings), we’ve joined together with
the Universities of Groningen, Twente and Nijmegen to investigate
how we can develop coatings that can be released on demand to
enable smart recycling
• We continued to be a proud and active member of the Advanced
Research Center Chemical Building Blocks Consortium (ARC
CBBC), a public-private collaboration between universities and
chemical companies to accelerate the transition to a more
sustainable chemical industry
• We further extended our valued partnership with the NMIMS
University in Mumbai, India, to push the boundaries of AI-powered
engines in the delivery of advanced color solutions to the vehicle
refinishes market
As we continue to explore new frontiers and challenge technological
boundaries in paints and coatings, the desire and determination to
innovate with impact is stronger than ever. Moving forward, finding
ways to make the ordinary extraordinary will be the key that helps us
unlock more opportunities, both within and beyond our industry,
through the handprint of our products.
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INNOVATION
AkzoNobel Report 2025
We became exclusive paint supplier for Calosol’s heat-absorbing façade
system in the Netherlands. It uses products from our Interpon and Fidura
portfolios and is based on technology we helped to develop. The
innovative panel system – which transforms the façades of homes and
buildings into a source of energy – uses a special coating (available in a
variety of colors) that can harness energy from the portion of sunlight
invisible to the human eye. Which means the system can capture solar
energy as long as there’s daylight – even when it’s raining.
Photos: Emergo
Transforming our business with AI
The rapid rise of artificial intelligence (AI) is a game-changer for many
industries and businesses. At AkzoNobel, we’ve taken it way beyond
the pilot phase. We’re not only embedding it in internal processes –
making them faster and more efficient – we’re also looking at
incorporating AI into production and delivery processes. It’s about
optimizing the entire chain, end to end.
We have a clear direction to combine data, process intelligence and
AI to create value for the company and our customers, while
continuing to strengthen our cybersecurity and technical capabilities.
By automating manual tasks in Finance, HR, Legal and
Procurement, for example, we can achieve efficiency gains and
reduce costs.
Our overall AI goals span productivity, innovation, risk mitigation and
market leadership, reflecting industry insights that AI can help
transform R&D, supply chains and customer engagement. Most of
the groundwork has already been completed. We have an extensive
digital foundation in place, and combined with our data platform,
advanced process intelligence and solid AI tooling, we’re enabling
fast scale-up once new concepts have been proven and validated.
We recognize that using AI introduces specific risks, including data
quality, privacy, security, legal and model-related risks. For all AI
development and deployment, we apply a structured risk
assessment and a “security-by-design” approach, including data
privacy controls, appropriate authorizations and access
management, segregation of duties and end-to-end audit trails to
support traceability and accountability. We validate data sources and
outputs, and we use controlled pilots with defined success criteria
and documented testing before any solution is scaled. For AI agents
and other automated workflows, we typically begin with a physical
review to validate decisions and outcomes. Where risk levels warrant
it, this human validation remains in place on an ongoing basis, rather
than moving to full automation.
Several successful AI-assisted initiatives are already up and running.
For example, we’ve enabled automated credit block checks, which
dramatically speed up order processing and improve customer
service capacity. We’ve also introduced AI agents to carry out
automated work and transactions in operations, Finance, IT and HR.
We currently have 70, and in 2025 these AI agents completed more
than 1.5 million tasks.
Innovation and growth are also part of our AI landscape and are
being leveraged in R&D to accelerate new product development and
further build on the quantum capabilities we’ve had in place for a
number of years.
In 2025, we saw accelerated global use of our Flightpath Pro
solution – revolutionary software developed by our Powder Coatings
business in partnership with Coating AI. The AI-driven technology
helps customers improve their coating application processes by
reducing carbon footprint and minimizing waste.
We’re also integrating AI into our Celonis sustainability applications,
starting with the Shipping Emissions app. This enables more
informed transport planning by identifying opportunities to
consolidate shipments and optimize routing, which helps reduce
emissions associated with logistics activities. Although this first
implementation is still in an early, limited scale phase, it’s providing
us with a scalable foundation. Over time, we plan to expand data-
driven decarbonization across our logistics network and into
additional areas of our value chain.
Strategic differentiation is another area of attention. Our ambition is
to build unique AI-enabled capabilities – including smart coatings,
digital services and data-driven customer tools – to help us stand
out in the market. By being first in the segment with capabilities such
as digital color apps or performance coatings data analytics,
AkzoNobel can gain an important competitive advantage.
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CASE STUDY: AI IN ACTION
AkzoNobel Report 2025
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AkzoNobel Report 2025
SUSTAINABILITY STATEMENTS
This section details our sustainability performance. It explains our
ambitions, outlines our approach to creating shared value and shows
our performance on key environmental and social indicators.
Our approach to sustainability
24
General disclosures
26
Basis for preparation
26
Governance
28
Strategy
31
Impact, risk and opportunity management
31
Environmental
37
Climate change
37
Pollution
47
Water and marine resources
49
Circular economy
50
EU taxonomy
54
Social
59
Own workforce
59
Workers in our value chain
68
Governance
70
Business conduct
70
Metrics table
73
EU legislation disclosure
77
Methodology and definitions
79
For additional information, visit: akzonobel.com
Our International marine coatings were used to protect the world’s first Aframax oil tanker
to adopt wind-assisted propulsion. Built in China and christened the Brands Hatch,
the entire vessel features our products, which provide comprehensive protection, as well
as helping to reduce the tanker’s fuel consumption and operational carbon footprint.
Embracing wind power
Our Director of Sustainability, Wijnand Bruinsma, played an active role during
COP30 in Brazil. As well as meeting customers, suppliers and government
officials, he was a discussion leader at the Frontrunners’ Dinner organized by the
Netherlands British Chamber of Commerce. The event was held alongside one of
the first ever boats to be powered by green hydrogen – which is protected by our
International marine coatings. (Photo: Victor de Oliveira Santos e Uirá Dantas).
Setting the standard in sustainability
At AkzoNobel, we innovate with and for customers and play an
active role in supporting the industries we supply to advance
towards a more sustainable future.
We’re focused on ensuring that the pioneering paints and coatings
we supply continue to protect what matters, while also bringing
benefits across the value chain. It means we’re always working on
new and exciting ways to make our products more sustainable and
the surfaces we coat last longer.
By using the power of paints and coatings – to harness energy,
reflect heat, protect surfaces for longer, improve indoor air quality
and reduce drag in ships, for example – we can help customers
reduce energy consumption, increase overall efficiency, lower waste
and improve safety. This will play an important role in helping them
achieve their own sustainability ambitions.
For example, in 2025, we extended our strong relationship with
Signify – a world leader in lighting – by providing Interpon F powder
coatings to help extend the lifetime of Philips LED consumer outdoor
luminaires. We also began purchasing reduced carbon footprint raw
materials for our decorative paints production in EMEA (Europe,
Middle East and Africa). And thanks to a value chain partnership with
Arkema and BASF, we’re using bio-attributed raw materials that help
reduce the product carbon footprint of our superdurable Interpon D
low cure and Collections offering of architectural powder coatings in
Europe.
These partnerships highlight why collaboration is so essential to
achieving our carbon emission ambitions across the value chain.
Because to make the kind of progress we’re so determined to
achieve, we need to engage in collective action and share our
expertise.
Non-stop innovation
It’s all underpinned by our non-stop innovation, which is helping us
move towards our science-based target of reducing carbon
emissions across our entire value chain by 50% by 2030 (baseline
2018). It’s an ambitious goal – and there’s still some way to go – but
we’re collaborating with our partners and investing in innovative
solutions as we strive to achieve the change that’s needed.
Progress on our other key 2030 ambitions has been much faster.
For example, our 2025 interim target for carbon emission reduction
in our own operations (baseline 2018) was 25% and we’re currently
at 47% (close to our 2030 target of 50%). We’re also well on the way
to reaching 100% renewable electricity use at our manufacturing
sites – our mid-term target for 2025 was 50% and we’re currently at
69%. Meanwhile, we’ve made positive strides towards our target for
suppliers meeting our sustainability expectations.
A notable development in 2025 was the signing of a power purchase
agreement (PPA) with leading Nordic solar developer and
independent power producer Alight. A new 15 MWp solar park is
being constructed in Sweden which will supply renewable electricity
at a fixed, low price to power our adhesives site in Kristinehamn and
protective coatings plant in Angered.
Progress towards our key sustainability
ambitions
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47%
50 %
2025
2030 target
Carbon emission reduction own operations
Scopes 1 and 2 (baseline 2018, absolute)
19%
50 %
2025
2030 target
Carbon emission reduction value chain
Scope 3 emissions, selected Scope 3 upstream and downstream
(baseline 2018, absolute)
73%
75 %
2025
2030 target
Suppliers meeting our sustainability expectations
Covering more than 1,500 suppliers with 83% of our global spend
and 96% of our upstream carbon emissions
27%
30 %
2025
2030 target
Female executives
Percentage of women at executive level
Our ambitions are built on three strategic pillars: producing durable
solutions in a more sustainable manner; helping our customers
become more sustainable; and empowering communities and our
employees. It means the development of our products and solutions
is increasingly aimed at the use of renewable and recycled materials,
and reducing solvent content. The functionality and services we offer
can help to improve material, energy and production efficiency,
make surfaces more durable and improve our customers’ paint
application processes.
Innovation lies at the heart of our journey to a more sustainable
future. By continuously pushing the boundaries of what’s possible in
paints and coatings, we’re not just responding to the challenges of
today, but shaping the solutions of tomorrow. As we move forward,
our commitment to collaboration and decarbonization will remain key
to driving progress within and beyond our industry.
Circular economy
One of the essential functions of our products is to support a more
circular economy by protecting surfaces and objects during their
lifetime. More than 70% of our portfolio helps to safeguard all
manner of substrates, ensuring the durability, functionality and
longevity of whatever has been coated. This reduces the need to
replace and repair these objects and thus increases material
resources efficiency.
Among the innovative new products we launched across the world
in 2025 were a new generation waterborne basecoat for vehicle
repair – which can significantly improve bodyshop productivity – and
a waterborne wood coating which features 20% bio-based content,
helping to increase the use of renewable raw materials, without
compromising on performance.
We continued to collaborate closely with customers to identify low-
carbon alternative products and actively shared our product carbon
footprint data with interested industry players, fostering greater
transparency and accelerating collective progress. These efforts
were recognized during the year when we received third-party
verification from Bureau Veritas for our product carbon footprint
methodology. As well as being essential for customer confidence
and sustainable procurement along our downstream value chain, the
verification brings trust and credibility to our product carbon footprint
statements.
ESG ratings and benchmarks
We constantly monitor our progress to ensure we remain on the
right track and work hard to maintain our high standards with leading
rating agencies such as CDP, MSCI, EcoVadis, Sustainalytics and
FTSE4Good. This independent acknowledgement recognizes our
ambitious targets and programs and our sustainability leadership in
our industry.
We annually review the benchmarks we actively participate in, taking
into account stakeholder preference, such as investors, suppliers
and customers. We prioritize active participation in those
benchmarks that help drive continuous improvement and rely mostly
on publicly available information. We’re proud that we remained a
frontrunner in the paints and coatings industry throughout 2025,
based on the following ESG rating agencies and benchmarks.
ESG rating
agency
Key achievements
CDP
Achieved the highest possible A score (Corporate A list) for the full
Climate questionnaire, placing us in the top 4% of nearly 20,000
companies scored
MSCI
Maintained highest possible rating (AAA) for ten consecutive years
EcoVadis
Maintained our high rating from EcoVadis – 81/100 and earned a gold
medal – placing us in the top 3% of 130,000+ companies assessed
across all industries around the world
Sustainalytics
Obtained ESG medium risk with leading score among our direct peers
FTSE4Good
We featured in the FTSE4Good Index Series for the 20th consecutive
year. The series measures performance across environmental, social
and governance (ESG) practices
Key partnerships
Our Binh Duong site became the first ever paints and coatings manufacturing
facility in Vietnam to earn LEED Gold certification. The recognition highlights the
fact that we don’t just focus on the environmental impact of our products – we’re
also committed to making our factories more sustainable. Key features at the
decorative paints site include an advanced wastewater treatment system. It also
uses an innovative process which allows for sludge to be recycled into tiles,
thanks to a collaboration with an external partner.
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OUR APPROACH TO SUSTAINABILITY
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BASIS FOR PREPARATION
The Sustainability statements of Akzo Nobel N.V. are prepared in
accordance with the requirements as included in the Corporate
Sustainability Reporting Directive (CSRD), article 29(a) of EU Directive
2013/34/EU, including compliance with the European Sustainability
Reporting Standards (ESRS) and the Taxonomy Regulation, Article 8
of EU Regulation 2020/852. On the publication date of our 2025
Sustainability statements, the CSRD had not yet been transposed in
national Dutch law. We therefore report in line with CSRD on a
voluntary basis. The Sustainability statements are prepared on a
consolidated basis. The scope of the consolidation is equal to the
scope of consolidation for the Financial statements.
The material impacts, risks and opportunities connected to our own
operations and our value chain have been assessed as part of our
double materiality assessment (see Impact, risk and opportunity
management). A description of the double materiality process is also
included in the same chapter.
Actions are embedded in the topical chapters in the Sustainability
statements. Every action we disclose is deemed key, except for
those disclosed as part of the images and their captions, as well as
those not related to our material topics. The scope is identified when
disclosing each action. The time horizon of key actions is short,
medium and long term, unless noted otherwise in the disclosure. No
significant financial or other resources have been allocated, costs are
embedded in ongoing operational and capital expenditure.
Time horizons
The reporting period applicable to the Sustainability statements is
equal to the reporting period for the financial statements. The short-,
medium-, and long-term time horizons defined from the end of the
reporting period are aligned with ESRS requirements.
Metrics and targets in relation to material
sustainability matters
Reported metrics for material sustainability matters as included in the
Sustainability statements are derived from several different source
data files and reporting systems used by AkzoNobel. The reported
metrics have not been assured by an external body other than our
assurance provider.
An overview of reporting systems and definitions is included in the
Methodology and definitions chapter.
The setting of targets on material topics was approved by the
Executive Committee. Factors considered when setting targets
include historical conduct and the availability of a baseline. There
was no direct external stakeholder involvement in setting targets.
The targets we’ve set are voluntary, apart from the gender diversity
target of at least one-third female and one-third male representation
of the Supervisory Board, which follows the Dutch Gender Diversity
Bill.
Divestment of Akzo Nobel India Limited
AkzoNobel completed the divestment of Akzo Nobel India Limited
(ANIL), in December 2025. ANIL was a consolidated subsidiary of
AkzoNobel. The India Powder Coatings business and International
Research Center have both been retained by AkzoNobel under full
ownership.
Metrics measured over the year include ANIL only up to the
divestment closing date of December 10, 2025. Metrics measured at
year-end (e.g. headcount) are fully adjusted for the divestment and
therefore exclude ANIL at December 31, 2025.
The sale led to a limited scope change, both in terms of sites
divested and headcount reduction. In addition, AkzoNobel has
retained its geographic presence in India. As a result, the reported
(consolidated) figures for 2025 and 2024 remain comparable and
comparative information has not been restated; prior-period figures
are presented as originally reported. In addition, no material changes
related to the divestment have been identified across any of our
material topics, and no baseline recalculations are required for the
Report 2025.
Sources of estimation and outcome
uncertainty
The preparation of the Sustainability statements requires
management to make judgments, estimates and assumptions that
affect amounts reported. The estimates and assumptions are based
on experience and various other factors that are believed to be
reasonable under current circumstances. The estimates and
underlying assumptions are reviewed on an ongoing basis. The
following metrics have a higher degree of judgment and complexity,
for which changes in the assumptions and estimates could result in
different results than those recorded in the Sustainability statements:
• Scope 3 emissions (see Climate change)
• Water consumption (see Water and marine resources)
• Percentage of post-consumer recycled (PCR) content in plastic
packaging (see Circular economy)
• Durability of our products (see Circular economy)
A detailed description of the calculation methodology of metrics can
be found in the Methodology and definitions chapter.
Value chain estimation
For the calculation of our Scope 3 emissions, we make use of
estimations by means of industry averages and supplier specific
data. The sources we use to retrieve the industry averages are the
CEPE (European Council of the Paint, Printing Ink and Artists’
Colours Industry) and Ecoinvent databases (see Climate change for
more details). Replacing industry average data with supplier specific
carbon footprint data in order to calculate the Scope 3 emissions
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attributed to our suppliers is a key driver to improve our data quality.
For 2025, 43% (2024: 31%) of our Scope 3 upstream GHG
emissions (which is equal to 19% of our total Scope 3 emissions)
were calculated using supplier-specific data.
Changes in preparation or presentation
versus prior periods
These Sustainability statements are built on the foundation we’ve laid
out in our annual report over the last few years. As a result, they’re
aligned with the Environmental, Social and Governance presentation
requirements of the CSRD. Some metrics have been changed,
added or eliminated compared with 2024:
• Substances of Very High Concern leaving our facilities – added for
2025, per hazard class, in tons (see Pollution)
• Post-consumer recycled (PCR) content in plastic packaging at
Decorative Paints Europe, in tons (see Circular economy)
• Overall water consumption – indicator has been removed, given
that overall water consumption is not related to a material IRO
Our second year reporting under CSRD brings new reportable
metrics and definitions and/or scope changes to previously reported
metrics. These are described in detail in the Methodology and
definitions chapter.
Reporting adjustments related
to prior periods
No reporting adjustments for metrics such as restatements related
to prior periods have been identified.
Use of phase-in and transitional provisions
For the reporting year 2025, the following phase-in and transitional
provisions on Disclosure Requirements, as included in ESRS 1, are
applied to the Sustainability statements:
• The requirements as included in ESRS E1-9 in relation to the
anticipated financial effects from material physical and transition
risks and potential climate-related opportunities
• The requirement as included in ESRS S1-7 and S1-14 on
disclosures related to non-employee workers
Incorporation by reference
Some disclosures are incorporated by reference to other parts of this
annual report. Whenever this is the case, it’s clearly indicated. We
incorporate the following disclosures by reference:
• Description of business and markets served
• Integration of sustainability-related performance in incentive
schemes, as well as other compensation indicators
• Diversity in the Supervisory Board and Board of Management
• Role, expertise and independence of the Board of Management
and Supervisory Board
• Integration of sustainability risk management into the overall risk
management processes
• Note 19 of the Financial statements for the financial effects
(environmental costs) from material pollution-related risks
We’re further along the road to achieving our carbon emission ambitions after
becoming the first UK paint manufacturer to deploy large-scale electric heavy
goods vehicles under the government’s Zero Emission Heavy Duty Vehicle
program. In collaboration with XPO Logistics, we’re now operating two eHGVs
from our Slough site – together with an existing hydrotreated vegetable oil (HVO)
powered fleet. This will help us reduce annual carbon emissions by around 3,000
tons. That’s equivalent to removing more than 650 cars from UK roads.
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GOVERNANCE
The role of the management
and supervisory bodies
The composition of the management and supervisory bodies
ensures sufficient access to expertise and skills with regard to
sustainability matters. The composition of the Board of Management
is included in the chapter Our Board of Management and Executive
Committee. Further information relating to their skills is included
under Sustainability on page 102. The composition of the
Supervisory Board is described in Our Supervisory Board. The
expertise and skills of its members are included in the Supervisory
Board skills and profiles. In addition, the oversight of impacts, risks
and opportunities by the Supervisory Board is included in the
Sustainability paragraph on page 93. The oversight of the impacts,
risks and opportunities by the Board of Management is included
under Sustainability on page 102 in the Corporate governance
statement. The independence of the Supervisory Board is discussed
on page 95, under Independence of the Supervisory Board.
With regards to the naming of our administrative, management and
supervisory bodies, as defined by CSRD:
• Administrative and management body: We refer to Our Board of
Management, consisting of the CEO and CFO
• Supervisory body: We refer to Our Supervisory Board
The company’s management and supervision are organized under
Dutch law in a so-called two-tier system, comprising a Board of
Management (solely composed of executive directors) and a
Supervisory Board (solely composed of non-executive directors). The
Board of Management, operating in the context of the Executive
Committee, is responsible for incorporating our sustainability agenda
into the company strategy and monitoring the performance through
the Operational Control Cycle, as described in the Corporate
governance statement. Within the Executive Committee, the Chief
Human Resources Officer is responsible for sustainability.
Sustainability is on the agenda of the Supervisory Board on a
quarterly basis. Separately, the Audit Committee is kept up to date
with sustainability reporting developments, including developments
in relation to risk management and internal control processes. More
information, including the topics discussed, can be found in the
Report of the Supervisory Board and the Corporate governance
statement.
Integration of sustainability-related
performance in incentive schemes
Goals related to ESG aspects are included in both the long-term
incentive (LTI) and the short-term incentive (STI) performance targets
for the Board of Management. The LTI ESG targets can be found on
page 122 of the Remuneration report in the second table under
Performance metrics 2023-2025 LTI Share Plan. The STI ESG
targets can be found on page 120 of the Remuneration report in the
table STI on personal objectives. Goals related to ESG aspects in
remuneration from 2025 onwards can be found in the Remuneration
report on page 123 under Conditional grant 2025-2027 LTI Plan,
and page 130 as part of the 2026 remuneration table for the Board
of Management and the Remuneration Policy for the Board of
Management.
Statement on due diligence
The outcomes of the different due diligence processes we have in
place with regard to sustainability matters, as described in more
detail below, inform us of our material impacts, risks and
opportunities. The identification, prevention, mitigation and reporting
of these actual and potential impacts are embedded in the way we
conduct business.
Included below is a description of the specific due diligence
processes in relation to human rights and environment. For the due
diligence process performed to determine our material impacts, risks
and opportunities, see Impact, risk and opportunity management.
Human rights due diligence
As part of our core values of safety, integrity and sustainability, we’re
committed to respecting internationally recognized human rights in
all our operations and throughout our value chain. We recognize our
responsibility to respect the human rights, including labor rights, of
all stakeholders in our own workforce and across our value chain.
We’re committed to actively and systematically assessing actual and
potential human rights impacts, taking action where needed to
ensure our impact on people’s lives is as positive as possible.
This commitment is in line with the United Nations Guiding Principles
on Business and Human Rights, the International Bill of Human
Rights (consisting of the Universal Declaration of Human Rights, the
International Covenant on Civil and Political Rights and the
International Covenant on Economic, Social and Cultural Rights) and
the International Labour Organization (ILO) Declaration on
Fundamental Principles and Rights at Work. We support the
Organization for Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.
Further support is provided by our human rights framework. It
includes policies, a governance structure, a focus on salient issues
and (topic-specific) due diligence processes to continuously identify
and mitigate (potential) human rights risks and remediate actual
impacts. The framework also includes a grievance mechanism to
enable, remedy and report on risks and actions. Read more in our
Human rights position paper.
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Modern slavery statement
We’re aware that multiple risks come with a complex and long
supply chain, including the risk that modern slavery may exist in
these supply chains. Our Modern slavery statement sets out our
commitment to prevent modern slavery in our business and supply
chain. AkzoNobel has a zero tolerance approach to modern slavery
of any kind. We define modern slavery to include child labor, debt
bondage, forced labor, human trafficking, servitude, slavery and
slavery-like practices.
Global salient human rights issues assessment
Since 2023, we’ve integrated our global salient human rights issues
assessment into our yearly CSRD double materiality assessment
process (see Strategy in the General disclosures chapter of these
Sustainability statements). While we respect all human rights equally,
we prioritized certain issues based on severity and likelihood. This
has resulted in the salient human rights issues (see table below) for
us to work on and conduct further due diligence. Health and safety
and Working time (the latter is part of the salient issue Working
conditions) have also been identified as a material topic under the
CSRD’s double materiality assessment.
Salient human rights assessment
Upstream
supply chain
(suppliers)
Own
operations
Logistics
Downstream
(customers,
end-users)
Health and safety
l
l
l
l
Working conditions
l
l
l
Discrimination and
harassment
l
Negative impact on
local communities
l
Modern slavery
l
l
Topic-specific due diligence process
We operate continuous topic-specific due diligence processes that
help us identify (potential) human rights impacts, on which we both
engage and communicate. For example, our Health, Safety,
Environment and Security (HSE&S) audits assess the health and
safety conditions at our manufacturing sites and R&D locations.
Through that same process, we require every location to have a
procedure in place that covers processes for stakeholder outreach
and external complaints regarding surrounding communities. If
members of surrounding communities have a complaint, they can file
it directly with the site manager of the relevant location (any
complaints are registered and tracked in a central tool), or raise their
concerns through our SpeakUp! grievance mechanism.
Another example is our Supplier Sustainability Framework, which
includes assessments, surveys and audits of our high-risk suppliers,
and is designed to identify and assess sustainability practices,
including human rights, in our supply chain. For more information on
our high-risk suppliers, please refer to the Suppliers identified for
sustainability program definition in the Methodology and definitions
chapter.
Based on a comprehensive review of media findings over the last five
years, and our current situation regarding collective bargaining and
freedom of association in our top ten risk-based selected countries,
we haven’t identified any material restrictions on worker
representation in negotiations over wages and employment
conditions across our global operations. Therefore, “Restriction of
worker representation in negotiations on wages and conditions of
employment” is not currently considered a salient risk within the
broader issue of Working conditions.
Human rights due diligence related to modern slavery
With regard to addressing potential modern slavery in our supply
chain, we target both our direct and indirect suppliers. For our direct
suppliers, we identify our high-risk suppliers according to our
Supplier Sustainability Framework and assess and audit them. More
details about this program and our membership of Together for
Sustainability (TfS) can be found in the Business conduct chapter of
these Sustainability statements. For our indirect suppliers – where
we have to look further in the supply chain due to certain risks –
we’ve conducted in-depth research into our raw materials portfolio
and prioritized high-risk supply chains, based on publicly available
information from NGOs and government agencies. In 2025, we
assessed the list of high-risk supply chains we had in scope and
decided to remove fluorspar, based on the publicly funded 2024 US
Department of Labor (USDOL) Bureau of International Labor Affairs
(ILAB) study, which found child labor to be no longer prevalent in this
sector. We continued to concentrate on calcium carbonate, cobalt,
copper, mica, talcum and tin supply chains.
Cobalt and tin
As part of our due diligence program regarding materials with
potential human rights impacts, we measure the percentage of
responses received. For cobalt and tin, we also measure the
percentage of smelters that are either listed as active or conformant
smelters in the Responsible Minerals Assurance Process.
In 2025, we sent out 292 surveys on the minerals, to which 91%
responded (2024: 92%).
Of the 97 suppliers who confirmed using tin and/or cobalt necessary
for the functionality of the product, 88% disclosed their smelters. In
total, 80% of these smelters were either listed as active or
conformant smelters in the Responsible Minerals Assurance
Process.
Mica minerals
For mica, we’ve identified 25 mica processors, of which ten
participated in the Global Workplace Standard (GWS) program from
the Responsible Mica Initiative. Out of the participating processors,
five are compliant with this standard. We’re working with our
suppliers to bring all their processors onto this program and improve
towards compliance with this standard.
In addition, through our Responsible Mica Initiative (RMI)
membership, we delivered positive impact for workers in the mica
value chain in India. The Community Empowerment program is
transforming communities in the mica region with initiatives that
provide long-term and self-sustainable remedies to the underlying
causes of child labor and poor working conditions. Launched in
2018, more than 180 villages and 16,000 households are now
benefiting from various programs, including better schools and
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healthcare delivery, access to more diverse sources of livelihood and
receipt of government services.
Through our RMI membership, we – together with many
stakeholders and peer companies – commit to:
• Having 100% of processors compliant with the RMI Global
Workplace Standard
• Establishing a fair and responsible mica supply chain (including fair
living income) in the Indian states of Jharkhand and Bihar
• Eliminating unacceptable working conditions and eradicating child
labor in India’s mica supply chains by 2030
In the Responsible Mica Initiative, a grievance mechanism is in place
with the aim of a fair, timely and objective resolution of grievances
relating to the implementation of its mission and operations. The
form used to file a complaint is available in English, French, Hindi and
Malagasy.
Other minerals
For all other minerals included in the survey (calcium carbonate,
copper and talcum), some suppliers confirmed that these materials
are sourced from known risk countries associated with forced or
child labor. If there are no controls in place, we request that these
controls be put in place (e.g. by means of social audits or visits). In
2025, following the findings of our 2024 human rights due diligence,
we initiated several site audits.
Training
For suppliers who deliver raw materials that contain minerals as
described previously in this chapter – and who fall under our human
rights due diligence program for materials which have high risks of
negative impacts on human rights occurring in their supply chain –
we provided six webinars and question and answer sessions to
explain AkzoNobel’s efforts in this area and what we expect from our
suppliers. During these webinars, we shared the Responsible Mineral
Initiative templates that our suppliers must use to collect information
from their own suppliers. These templates are also used by our
suppliers to share information requested by us. During 2025, a total
of 114 individuals attended our webinar sessions across the globe.
Incidents, complaints and severe human rights impacts
During 2025, no severe human rights impacts or incidents were
reported in our own operations. For an overview of cases registered
through our SpeakUp! mechanism, please see the Integrity and
compliance management chapter.
Environmental due diligence
Environmental due diligence is embedded in our HSE&S processes.
We have environmental due diligence processes in place for both
acquisitions and divestments.
These processes are usually carried out in collaboration with a third-
party specialist in the form of:
• HSE&S due diligence for overarching health, safety, environment
and security-related topics
• Phase 1 and 2 environmental site assessments for soil and
groundwater-related topics. This process is generally carried out in
accordance with current (inter)national standards
For more background information on our upstream value chain
environmental due diligence, refer to the Management of
relationships with suppliers paragraph in the Business conduct
chapter.
Risk management and internal controls
over sustainability reporting
For general background information on our risk and internal control
processes, refer to the Risk management chapter of this annual
report. Controls and procedures related to the management of
impacts, risks and opportunities and the decision-making process
are being integrated into the overall risk management process.
Dedicated controls and procedures related to impacts, risks and
opportunities are integrated in the relevant internal function.
Internal controls related to sustainability reporting are dependent on
the area of reporting, as multiple internal functions contribute to our
sustainability reporting, depending on the topic. The majority of
reported metrics are prepared by our HSE&S and HR functions.
In 2023, we started our implementation plan to prepare a roadmap
for the pathway towards reasonable assurance readiness for our
sustainability metrics. This implementation plan includes the
development of risk and control matrices for the functions
contributing to sustainability reporting. These risk and control
matrices include an overview of the main risks associated with the
underlying processes and metrics and connected mitigating
controls. Risks are prioritized depending on the function involved
and potential impact of the risk. Therefore, all efforts to improve the
(reporting) tooling and internal controls are an integral part of this
overarching implementation plan and our efforts are ongoing for full
implementation.
Main risks identified when preparing our internal control environment
relate to the accuracy and completeness of information, resulting
from the fact that the scope of CSRD requires data gathering on
multiple metrics that haven’t been reported in previous years. These
risks have been mitigated by implementing controls at both the
functional and group level. Controls mainly consist of reconciliation of
reported data to source files, analytical procedures and IT general
controls.
During 2025, we further developed our internal control frameworks
for sustainability reporting within the functions, and at group level, to
ensure the accuracy and completeness of underlying data in light of
the assurance requirements under CSRD. Controls for the functions
that contribute to the most metrics (HSE&S and HR), have been
implemented. While this is an important step forward, we recognize
our control framework is still maturing. Further work remains and
controls for the remaining functions will be rolled out during 2026.
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GENERAL DISCLOSURES
AkzoNobel Report 2025
STRATEGY
Strategy, business model and value chain
Markets served
AkzoNobel produces paints and coatings, which is classified under
NACE Code C20.3. This is a subset of C20 – Manufacture of
chemicals and chemical products. The chemicals sector is
considered a high climate impact sector in accordance with the
Commission Delegated Regulation (EU) 2022/1288.
AkzoNobel’s operations are grouped into two main businesses:
Paints and Coatings. For a description of our business model and
strategy, see the Strategy chapter in the Strategy and operations
section. For key markets served, refer to the boxed introduction text
at the start of the Decorative Paints and Performance Coatings
chapters (pages 16 and 18). We also provide an overview of our
business model and interaction with material topics on page 36.
For a breakdown of headcount by geographical area, as well as
revenue by destination, please refer to the Regional statistics in the
Financial summary.
Legislation on the use of chemical substances is constantly updated.
We monitor the permitted use of chemicals as part of our day-to-day
operations, to ensure compliance with legislation and adherence to
local legislation in relation to banned products.
Interaction with strategy and goals related
to product groups
The key element of our strategy related to sustainability is
sustainability-driven innovation. This relates to halving our carbon
emissions across our value chain by 2030 (baseline 2018). The
target relates to how we formulate, produce, market and sell our
products and will have an impact on the way we interact with our
suppliers and customers over the coming years. As the majority of
our emissions take place outside of our own operations,
collaborating with our suppliers and customers is key to achieving
our targets. More details can be found in Climate change.
In addition to our carbon ambitions, we strive for circular use of
materials, which drives our approach to developing lower carbon
solutions for our customers, while transitioning away from virgin raw
materials. Achieving our 2025 target of 50% post-consumer
recycled content for plastic cans in our Decorative Paints Europe
business demonstrates our continuing drive towards innovation,
growth and excellence. More details can be found in Circular
economy.
Capturing the opportunities that sustainability presents allows us to
achieve our sustainability targets, while also driving progress within
and beyond our industry.
Interests and views of stakeholders
In line with the Dutch Corporate Governance Code, we’ve published
a Stakeholder Engagement Policy, which is available on our website.
As detailed in the policy, our key stakeholders are customers,
employees, governments and policy makers, industry associations
and other partners, investors, suppliers and wider society. We use
various methods to engage in dialog with our stakeholders,
depending on the nature, purpose and frequency of the interaction.
Engagement methods with stakeholders include (depending on the
level of engagement): one-on-one meetings; calls; conferences;
roundtables; consultations; roadshows; assessments/audits;
surveys; multi-stakeholder initiatives/coalitions. Key topics of this
engagement include: company performance and strategy (financial
and ESG); business climate; investments; innovation; sustainability;
regulation; employee insights.
The main purpose of our stakeholder engagement is that it allows us
to foster meaningful relationships with those who play a crucial role
in our endeavors. It also helps us address pertinent issues effectively
and have a positive impact on the communities where we operate.
The views of these stakeholders shape our strategic decision-
making process. As part of our double materiality assessment, we
also consulted with representatives from these key stakeholder
groups on sustainability-related impacts, risks and opportunities.
IMPACT, RISK AND OPPORTUNITY
MANAGEMENT
Material impacts, risks and opportunities
and their interaction with strategy
and business model
We assessed the impacts, risks and opportunities on environmental,
social and governance matters and how these interact with our
strategy and business model. This assessment is based on internal
and external stakeholder engagement for both impact and financial
materiality. It results in an overview of our material impacts, risks and
opportunities throughout our value chain.
For details on the material risks, impacts and opportunities, we refer
to the separate disclosures as included in the Environmental, Social
and Governance chapters of these Sustainability statements. Details
on the process steps taken in the double materiality assessment are
included in the next chapter. A mapping from the material risks,
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impacts and opportunities to the associated ESRS disclosure
requirements is also included in this section.
The resilience of our strategy and business model to address our
material impacts, risks and opportunities is analyzed for the topics
where this is relevant; primarily for climate change mitigation and
climate change adaptation. Our resilience is analyzed for the short,
medium, and long term by describing how our business model and
strategy interact with our carbon reduction levers (for climate change
mitigation) and natural hazard impact management (for climate
change adaptation). See the chapter on Climate change for more
details.
Description of the process to identify
and assess material impacts, risks
and opportunities
Our risk assessment process to identify and assess material
impacts, risks and opportunities for ESG-related topics is structured
in line with the requirements of the ESRS. The process of identifying
sustainability-related impacts through our double materiality
assessment has been performed separately from our enterprise risk
management process, as described in the Risk management
chapter of the Leadership and governance section. Therefore, no
prioritization of sustainability-related impacts has taken place relative
to other types of risks.
In 2023, we performed a baseline of our assessment in preparation
for CSRD. The outcomes serve as a basis for the updated double
materiality assessment which we performed in 2025. Opposite we
provide a description of the process steps taken to prepare the
assessment.
In 2023, we gathered and analyzed the background research on
potentially material topics to AkzoNobel. For this, we reviewed
different sources:
• ESG raters, including their view on material topics for our broader
sector and our specific sector, as well as our suppliers and their
respective industries
• Sustainability reports of peers, as well as value chain partners,
such as suppliers and customers
• The outcomes of our salient human rights issues due diligence
process
• Previous years’ impact materiality assessments
This input shaped our view on the landscape of potentially material
environmental, social and governance impacts, risks and
opportunities for AkzoNobel.
During the second phase performed in 2023, we organized several
workshops with internal subject matter experts, with the aim of rating
and calibrating the potential and actual impacts, risks and
opportunities (IROs) for all topics included in the ESRSs.
In the workshops, we rated the IROs on severity (scale, scope and
irremediability) and likelihood on a 1 to 5 scale. The total scoring per
topic (determined as the sum of the scoring on scale, scope and
irremediability, multiplied by the likelihood) served as the basis for
determining the material topics. Topics with a score of 50 or above
were deemed to be material. This assessment was split per value
chain area (upstream, own operations and downstream) and per
specific activity, business relationship or other factors where
relevant. The assessment was performed for the impact on people,
as well as the environment. Financial materiality was also analyzed
per topic, based on the same materiality thresholds used for our
Financial statements.
During the materiality assessment, we requested participants to
address potential entity-specific topics not included in the topics
provided in the ESRS.
In the third phase performed in 2023, we created a shortlist of
material topics based on the outcome of the workshops. We
validated the assessment with internal stakeholders (management
teams of subject matter experts involved, consisting of, among
others, representatives of our environmental, substances, legal,
health and safety, and procurement teams) and the CSRD Steering
Committee. The Executive Committee validated our double
materiality assessment during 2023 and the Audit Committee and
Supervisory Board were informed about the process and outcome.
Subsequently, the shortlist of topics has been validated with our
external stakeholders (see Interests and views of stakeholders in the
Strategy section of these Sustainability statements for an overview of
key stakeholders), both potentially impacted stakeholders, as well as
users of the information.
We annually review the double materiality assessment and update
our material IROs based on the outcomes of this review. Every three
years, we aim to perform a thorough double materiality assessment,
unless an event triggers an early reassessment, for example larger
acquisitions or divestments.
In 2025, we updated our double materiality assessment, building on
the assessments performed in 2023 and 2024. The following
process steps were taken:
• We assessed whether we had significant changes to the
organization or operational structure which would warrant an
update of our IROs (e.g. major mergers and/or acquisitions,
significant changes in key suppliers, global events, etc.). No such
events were identified
• We used our 2023 double materiality assessment as a basis and
reviewed the material IROs identified in 2023 and 2024, as well as
reviewing the IROs that were not deemed material in 2023 or
2024. Apart from smaller changes in the definition of our IROs, this
review didn’t lead to changes to the topics assessed as being
material for 2025 reporting
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• We’ve validated the outcomes of the updated double materiality
assessment with our key external stakeholder groups (suppliers,
customers, investors and employees). This verification didn’t lead
to any changes to the outcomes of the double materiality
assessment
The resulting material topics applicable for reporting in 2025, and the
reference to the relevant chapter in these Sustainability statements,
are included on page 35.
The double materiality assessment process and the due diligence
process may be impacted by changes over time. Therefore, the
Sustainability statements and material IROs identified may be subject
to change.
We haven’t identified material topics related to biodiversity under our
double materiality assessment. We did identify indirect material
impacts, such as emissions and waste, which are covered in the
relevant chapters.
The land use of a paints and coatings factory is relatively small
compared with the footprint of other industries, such as extractive
industries or the broader chemicals industry. Based on the IUCN’s
Key biodiversity areas, none of our production sites are located in
areas of significant biodiversity value. We identified indirect impacts,
such as carbon emissions and waste, which are reported in the
relevant chapters.
We also assessed the dependence on biodiversity and ecosystems
in our upstream value chain. This is assumed to become more
important when we transition towards more bio-based materials.
However, it isn’t currently identified as a material topic under our
double materiality assessment. We haven’t consulted with affected
communities in particular on biodiversity. For general engagement
with affected communities, refer to the Human rights due diligence
paragraph in General disclosures. We haven’t considered systemic
risks in our assessment.
In addition to the material topics previously mentioned, we’ve
identified a number of topics related to either legal requirements or
other relevant matters. The topics related to legal requirements
mainly consist of reporting requirements on human rights due
diligence and diversity and inclusion. Other relevant matters are
those which we deem necessary to understand the organizational
context AkzoNobel is operating in, and which we consider to be
elementary for organizations with our size and impact. Because
these topics aren’t considered material as a result of our double
materiality assessment for CSRD, we haven’t included all the related
ESRS disclosures to these topics in the Sustainability statements
when implementing CSRD. The related disclosures primarily consist
of our policies and procedures in place. The following other relevant
matters are included in the Sustainability statements, applicable to
our own operations:
• Gender equality and equal pay
• Discrimination and harassment
• Diversity and inclusion
• Freedom of association and collective bargaining
• Whistleblowers
• Bribery and corruption
• Political engagement and lobbying activities
In addition to these other relevant matters related to own operations,
we also report on the topic of modern slavery for our upstream
operations.
Current and anticipated financial effects
of material sustainability risks
and opportunities
The current and anticipated financial effects of the material risks and
opportunities have been assessed and are not expected to materially
impact our financial position, financial performance and/or cash
flows over the short, medium and long term.
During the year, we launched Sikkens Autowave Optima. It’s a new generation
waterborne basecoat for vehicle repair which helps achieve 50% faster process
times compared with conventional basecoat application methods. It means
energy costs and carbon emissions can both be reduced by up to 60% (based
on our own benchmark testing).
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UPSTREAM
OWN OPERATIONS
DOWNSTREAM
Suppliers of raw materials
Manufacturer of paints and coatings
Paint shops, workshops and factories
Climate change mitigation and Energy
Climate change adaptation
Priority substances
Priority substances
Circularity and Waste
Working time
Health and safety
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OUR BUSINESS MODEL, VALUE CHAIN AND INTERACTION WITH MATERIAL TOPICS
AkzoNobel Report 2025
ENVIRONMENTAL
SOCIAL
The table below includes the material impacts, risks and opportunities, as well as a reference to where the related disclosures are included in the Sustainability statements.
Topic – Impacts
Boundary (value
chain part)
Time
horizon
Description of the material potential impact(s)
Description of the material actual
impact(s)
Reference to chapter in
Sustainability statements
Disclosure requirements and associated page
numbers in the Sustainability statements
Climate change mitigation
and Energy
Upstream
S/M/L
Inability of suppliers to take remediating actions to reduce carbon
emissions and/or inability to reformulate to lower carbon
feedstocks
Contributes to global warming and not
able to achieve the targets set out in
the Paris Agreement
Climate change
DR E1-1 (p. 37)
DR E1-2 (p. 37)
DR E1-3 (p. 37)
DR E1-4 (p. 73)
DR E1-5 (p. 73)
DR E1-6 (p. 73)
Own operations
S/M/L
Inability to reduce our carbon emission through energy efficiency
improvements and renewable energy sources
Downstream
S/M/L
High-emitting customer segments not mitigating their climate
impact
Priority substances
Upstream
S/M/L
Potential impact of spillage, accidental release and/or emissions
Environmental pollution and potential
health impacts
Pollution
DR E2-1 (p. 47)
DR E2-2 (p. 47)
DR E2-3 (p. 47))
DR E2-5 (p. 47)
DR E2-6 (p. 47)
Downstream
S/M/L
Inappropriate or unsafe handling of our products
Circularity and Waste
Upstream
S/M/L
Potential impact of not moving quickly enough to lower carbon
alternatives, such as bio-based raw materials
Potential impact of not transitioning away from virgin raw
materials, in particular plastic packaging
Resource use having a negative
impact on climate and ecosystems
Circular economy
DR E5-1 (p. 50)
DR E5-2 (p. 50)
DR E5-3 (p. 50)
DR E5-4 (p. 50)
DR E5-5 (p. 50)
Own operations
S/M/L
Inefficient resource use, landfill and loss of potential heat
recovery from incineration
Resource use having a negative
impact on climate and ecosystems,
potential environmental contamination
Working time
Upstream, own
operations and
downstream
S/M/L
Excessive working hours for own workers and workers in the
value chain
Negative impacts on the health and
livelihoods of workers and the risk of
modern slavery
Own workforce (for own
operations) and Workers in the
value chain (for upstream and
downstream workers)
DR S1-1 (p. 62)
DR S1-2 (p. 62)
DR S1-3 (p. 62)
DR S1-4 (p. 62)
DR S1-5 (p. 62)
DR S2-1 (p. 68)
DR S2-2 (p. 68)
DR S2-3 (p. 68)
DR S2-4 (p. 68)
DR S2-5 (p. 68)
Health and safety
Upstream
S/M/L
Potential impact of occupational health and safety incidents
Negative impact on the health and
safety of people
Own workforce (for own
operations) and Workers in the
value chain (for upstream and
downstream workers)
DR S1-1 (p. 60)
DR S1-14 (p. 60)
DR S2-1 (p. 68)
DR S2-2 (p. 68)
DR S2-5 (p. 68)
Own operations
S/M/L
Potential impact of occupational health and safety incidents
Downstream
S/M/L
Inappropriate or unsafe handling of our products
Topic – Risks and
opportunities
Boundary (value
chain part)
Time
horizon
Description of the material risks/opportunities
Description of the material
impact(s)
Reference to chapter in
Sustainability statements
Disclosure requirements and associated page
numbers in the Sustainability statements
Climate change adaptation
Own operations
S/M/L
Risk of inadequate adaptation of own operations to natural
hazards occurring from climate change, including unavailability of
water in water scarce areas
Loss of assets and ceasing of
operations due to natural hazards
occurring
Climate change
DR E1-1 (p. 42)
DR E1-2 (p. 42)
DR E1-3 (p. 42, 49)
DR E1-4 (p. 42, 49)
DR E3-4 (p. 49)
Circularity and Waste
Downstream
S/M/L
Opportunity to extend durability of our products and therefore
durability of substrates
Adding durability to substrates,
making them longer-lasting
Circular economy
DR E5-1 (p. 52)
DR E5-5 (p. 52)
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Interaction of material topics with business
model and strategy
Climate change mitigation and Energy
In our own operations, as well as in our value chain, we’ve identified
the impact of climate change. As we, our suppliers and customers
produce carbon emissions, we need to ensure that we do our best
to meet our carbon reduction targets, which are in line with the Paris
Agreement. This plays into many parts of our company strategy,
such as the way we interact with our suppliers and the educational
webinars we run to find solutions together, as well as how we do
business with our customers. It also applies to how we target energy
efficiency programs and renewable electricity deployment in our own
operations. We’ve identified key levers for our Scopes 1, 2 and 3 to
further reduce the carbon emissions in our value chain.
Climate change adaptation
As a global company, we’re exposed to the risk of natural hazards
occurring. This risk might increase in the future, due to climate
change. This could lead to an increase in, for example, flooding, or
could cause heat stress at our manufacturing sites. It could also lead
to increased water scarcity. That’s why we have programs in place
to manage and mitigate these risks.
Priority substances
We use priority substances in certain parts of our portfolio. In these
sustainability statements, priority substances discussed classify as
substances of very high concern (SVHCs); further details can be
found in the dedicated Pollution section and the Methodology and
definitions section. The potential impact of spillage and accidental
release poses the risk of environmental pollution, including potential
health impacts. It’s our responsibility to mitigate these impacts, both
in our own operations and our portfolio, and at customer application
level. Impacts related to priority substances are mitigated by correct
labelling and appropriate documentation regarding safe handling and
use – including storage and disposal, as well as site specific
preventive actions to avoid soil pollution.
Circularity and waste
As a manufacturing company, we currently have waste resulting
from our operations. We’ve set ambitions to minimize waste to
landfill and a target to increase circularity in the materials we use.
This also applies to the plastic packaging we buy from suppliers for
our Paints business. We’ve therefore set targets to increase the use
of post-consumer recycled (PCR) content in plastic packaging for
our Decorative Paints Europe business. With regard to waste
reduction, we’re evaluating the 2025 baseline for the preparation of
future target setting.
Working time
As a global manufacturing company, we’ve identified the impact of
excessive working hours for both our own workers and workers in
our value chain, now and in the future. Although we have more direct
impact and responsibility over the workers in our own workforce, we
also have a responsibility to help mitigate the impact of working
excessive hours in our upstream supply chain. We’re addressing this
by monitoring adherence to our global working hours policy in our
own workforce. For our value chain, we monitor our suppliers’ score
for labor and human rights in the EcoVadis assessments.
Health and safety
Within our industry – in terms of both our own operations and our
suppliers and customers – we’ve identified the impact of
occupational health and safety incidents. This could negatively
impact the health and safety of people employed in our own
operations, as well as our value chain. We have processes in place
in our own operations to help minimize and mitigate the impact of
occupational safety incidents occurring. We also monitor and audit
the occurrence of these incidents in our supply chain through our
supplier sustainability program. We’re committed to ensuring that
business activities are conducted in a way that prevents harm to our
customers, employees, contractors, the public and other
stakeholders.
Circularity and waste opportunity
We have a role to play in making sure that our products help extend
the lifespan of the substrates onto which they’re applied, thereby
increasing the longevity of assets. As paints and coatings make a
vital contribution to making substrates more resilient, our R&D efforts
and business model are focused on continuous improvement of the
quality of our products, which includes increasing durability.
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We met our 2025 target of at least
50% recycled content (PCR) in
plastic packaging
ESRS E1
CLIMATE CHANGE
Materiality and governance
Materiality
Our approach to determining material impacts, risks and
opportunities is described in General disclosures. Our assessment
identified climate change mitigation and adaptation as material
topics for AkzoNobel – mitigation for our entire value chain and
adaptation for our own operations only.
Our approach to climate change mitigation
Policy
We’re aware that climate change could affect our supply chain, our
customers and the way we operate. Therefore, in 2021, we
announced our target to reduce carbon emissions across our full
value chain by 50% by 2030 (taking 2018 as our baseline), which is
approved by the Science Based Targets initiative (SBTi)1. This is in
addition to our carbon neutral ambition for 2050.
Our targets are aligned with the Paris Agreement, which aims to limit
climate change and ensure the global temperature doesn’t rise more
than 1.5˚C above pre-industrial levels. Our targets will help drive our
innovation and collaboration with value chain partners, including
customers and suppliers.
Our scope includes two distinct targets: a 50% reduction in carbon
emissions from our own operations (Scopes 1 and 2), as well as a
50% reduction in our Scope 3 emissions. Scope 3 includes
purchased goods and services (category 1 in the GHG protocol),
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1 The SBTi validated our 42% reduction ambition versus a 2020 baseline. Our 50% reduction ambition versus the 2018 baseline refers to the same target.
We’re making progress towards our
SBTi approved target to reduce
carbon emissions across our full value chain
by 50% by 2030 (taking 2018 as our baseline)
84
40
of our locations now
use 100% renewable
electricity
locations are using solar
panels to produce
renewable electricity
Achieved the highest possible
A score (Corporate A list) for the full
Climate questionnaire of CDP
In total
This is in addition to our
carbon neutral ambition
for 2050
Met our 2025 target of at least 50%
post-consumer recycled content in
plastic packaging in Deco Europe
Our combined Scopes 1 and 2
emissions (market-based)
HIGHLIGHTS
Our Scope 3 emissions
(upstream and downstream)
of our Scope 3 upstream GHG emissions
were calculated using supplier specific data
47%
19%
43%
Received third party verification from
Bureau Veritas for our Product Carbon
Footprint (PCF) methodology
versus our 2018 baseline
versus our 2018 baseline
Down
Down
application and use of our products (categories 10 and 11, including
VOC emissions), and end-of-life (category 12). Our Scope 3 target
covers around 96% of our total Scope 3 emissions, the remainder
consisting of non-material categories.
We consider 2018 a representative baseline year for target-setting
for AkzoNobel as no material abnormalities in terms of volume or
energy mix occurred in 2018 for Scopes 1, 2 and 3.
Our carbon emission reduction plan (which is part of our climate
change mitigation policy), target and transition plan have been
approved by our Board of Management and reviewed by our
Supervisory Board. AkzoNobel is not excluded from the EU Paris-
aligned benchmarks.
Climate change mitigation in own operations:
Actions, resources and targets
The overall progress we’re making on our decarbonization strategy
for Scopes 1 and 2 can be seen in the graph below. Our carbon
emissions have reduced by 47% (2024: 41%) compared with our
baseline, moving well beyond our 25% interim target for 2025, and
close to our 50% reduction target for 2030. We’ve also improved our
energy efficiency by 10% (2024: 9%) compared with our 2018
baseline, and we’re progressing well towards our 20% energy
efficiency ambition for 2030. We expect a 2% increase from our
emission abatement systems, labeled as License to operate. This will
be compensated by additional efforts in energy efficiency. The
remaining decarbonization will be achieved by shifting towards fully
renewable energy sources.
Three key levers for Scopes 1 and 2 reduction
We’ve further refined our key levers for decarbonization: energy
efficiency; renewable electricity; and energy transition. Below are
several examples of the progress we’re making in our own
operations, as a result of implementing our decarbonization strategy.
Energy efficiency
We’re aiming to improve our energy efficiency through the following
programs:
• Operational excellence by improved metering and efficiency
benchmarking to drive performance improvement. We collect and
analyze these data on our global Energy Portal platform
• Upgrading assets, based on a multi-year CapEx plan for all our
major production sites. We ensure that all equipment replacement
projects come with energy efficiency upgrades. For example,
we’ve carried out several waste heat recovery projects in North
Asia by upgrading existing air compressors and regenerative
thermal oxidizers (RTOs). These assets are now delivering their
waste heat to resin tanks and storage rooms, reducing our heating
energy and carbon emissions
• Production footprint optimization by relocating production from
less efficient to more efficient sites. At the end of 2025, we saw
the first signs of energy efficiency improvements at our Decorative
Paints business in the EMEA region, with more to come in 2026
Renewable electricity
We aim to maximize our renewable energy production from on-site
solar panels at our locations and prioritize projects with the highest
decarbonization impact. To meet our renewable electricity targets,
we’re contracting additional renewable electricity via Power
Purchase Agreements (PPAs), including the signing of a contract this
year in Sweden with Alight, which will be operational from 2027. We
continue to look for opportunities in mature markets, while
expanding the procurement of renewable electricity certificates in
regions such as North Asia to achieve 100% renewable electricity in
2030.
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Carbon emissions reduction Scopes 1 and 2 towards our 2050 carbon neutral ambition
All our manufacturing locations in Europe operate on 100% renewable electricity
– and we continue to boost installed capacity at our sites. For example, during
2025, we erected 334 solar panels at our Powder Coatings facility in Vallirana,
Spain, which have a total installed power of 150 kW.
Energy transition
To reduce our fossil fuel consumption, we’re carrying out various
energy transition projects, which include installing heat recovery units
and heat pumps to heat our buildings and operational facilities. In
2025, we continued to allocate a budget for decarbonization
projects. This included a €1.7 million investment to install a new
heating system at our Pilawa site in Poland (due to be completed in
2026). The work involves replacing natural gas fuelled boilers with
heat pumps and upgrading chillers and air compressors with heat
recovery units. The heating system will be powered by renewable
electricity, partly coming from the facility’s 1.9 MWp solar energy
park, which was installed in 2024.
Upstream and downstream operations: Scope 3
emissions - Actions, resources and targets
For Scope 3, we’re increasing our sustainable product offering by
developing innovative products and engaging with our suppliers and
customers to collectively find solutions towards our target of halving
carbon emissions in our value chain by 2030 (baseline 2018).
Because reducing our value chain emissions is, for the most part,
outside of our direct control, working together with our value chain
partners is key to collectively decarbonize.
We recognize that AkzoNobel is highly dependent on the level of
commitment demonstrated by both our upstream and downstream
value chain partners in reducing their own carbon emissions. In the
following paragraphs, we explain the key levers and highlight the
dependencies identified in our value chain. While we carry on
pushing for decarbonization, we continue to operate within a
complex value chain consisting of many interdependencies. We
recognize this means that both acceleration and deceleration of our
Scope 3 target is – at least partially – outside of our direct control.
During 2025, we continued to integrate sustainability and innovation
into our daily business to work towards our targets.
Four key levers for Scope 3 reduction
When it comes to reducing carbon emissions across our value chain
by 50%, we’ve identified four key levers: energy transition; process
efficiency; reduced solvent emissions; and circular solutions.
Projects related to our Scope 3 reduction are grouped under these
four key levers. Although we believe it’s important to set strong
Scope 3 targets, we’ve not yet disclosed detailed plans for 2030 to
2050, to support our 2050 carbon neutral ambition. As we continue
to direct efforts towards halving our emissions by 2030, the plans
we’ve put in place to support our Scope 3 carbon emission
reduction levers serve as a base for ongoing decarbonization
post-2030.
Energy transition
It requires a significant amount of energy to produce the materials
we buy, and apply and cure the products we sell. When suppliers
and customers choose to switch to renewable energy, we group
those initiatives under the energy transition carbon reduction lever.
Many of our suppliers and customers are setting targets for
decarbonization of their own operations, moving to renewable
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The carbon footprint in our value chain
in % of contribution to overall carbon footprint
12%
46%
1%
26%
15%
electricity and cleaner sources of powering their processes. This is
increasingly leading to growing availability of raw materials with a
reduced carbon footprint. Through our projects and programs on
energy transition, we aim to offer our customers lower carbon
footprint solutions. This lever represents 39% of our overall planned
reduction for 2030. This program has been developed to have
specific sub-levers for our different regions and segments.
Process efficiency
The processes our customers use to apply and cure the coatings we
sell to them have a large impact on our Scope 3 carbon footprint,
which we can help reduce by focusing on process efficiency at our
customers’ locations. Many of our coatings customers use natural
gas to cure our products. By collaborating on developing coatings
that enable electrification of the process, we can offer our customers
products that help to lower their carbon footprint and save energy
costs. In our Automotive and Specialty Coatings business, the
demand for ambient and UV curing coatings – which don’t require
heat to cure – is rising. In 2025, our Powder Coatings business took
a major step forward through a pioneering laser curing partnership
with IPG Photonics. By calibrating our Interpon powders for modular
laser “cold oven” technology, coatings can be cured in just a few
minutes using significantly less energy and floor space than
conventional ovens, helping customers lower operational costs and
reduce their carbon footprint.
Meanwhile, our Automotive and Specialty Coatings business
strengthened process efficiency with the launch of Sikkens
Autowave Optima, a new generation waterborne basecoat for
vehicle repair. Requiring just a single visit to the spray booth, it
enables up to 50% faster process times and can reduce energy
costs, carbon emissions and material use, while maintaining high-
quality repair performance. We’re looking to collaborate with
customers and advise them on carbon reduction strategies for their
coating processes, thereby becoming the partner of choice for cost
and carbon conscious customers. The process efficiency lever
represents 33% of our overall planned reduction for 2030 and runs
across our different segments, but mostly involves customers in our
coatings segments, as they have a significant downstream energy
consumption impact.
Reduced solvent emissions
Release of solvents from our products is a key component of our
Scope 3 emissions, making solvent reduction an important lever for
emissions reduction. Projects in this area relate to reducing the
carbon footprint of customers who apply our products that contain
VOCs. This can be done by switching to water-based products, flat
reduction of solvents in our formulations and by thinking along with
customers to capture and oxidize the solvents we supply to them,
which can be a key area for the application of renewable solvents.
A key achievement in this area is our continued efforts to reduce our
solvent emissions, for example through Waterway, a program within
our Decorative Paints business focused on transitioning from
solvent-based to water-based paints. This lever represents 13% of
our overall planned reduction for 2030, with the program running
across our different segments.
Circular solutions
This lever aims to reduce the end-of-life impact of the fossil-based
materials in our products. This can mainly be achieved by increasing
the amount of renewable materials in our formulations, which can be
done through applying bio-based, biomass balanced and recycled
materials, among others. This lever represents 15% of our overall
planned reduction for 2030 and runs across our different segments.
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100
81
50
2018
2025
Energy transition
Process efficiency
Reduce solvent
emissions
Circular solutions
2030 target
Carbon emissions reduction pathway – Scope 3 (in percentages)
We’re actively running carbon reduction projects throughout the
company in these key focus areas, and set up a clear governance
structure in 2023 to ensure they’re embedded in future plans, such
as our R&D pipeline and supplier engagements. We also coupled
our executive remuneration to Scope 3 carbon emission reduction
for the first time in 2024, marking a key milestone for our company
to move towards our 2030 target. More information can be found in
the Remuneration report.
The costs for moving towards our 2030 target are mostly captured
in the CapEx investments of our suppliers – and, for our Coatings
business units, our customers – with limited direct investments
required for our own operations. The financial effects, if any, would
be captured in our cost of sales.
Collaborative engagement across
the value chain
Supplier engagement
We actively engage with our suppliers to share our ambitions and
encourage these key partners to do the same. Key impact areas for
suppliers are: increasing process efficiency; moving to renewable
energy; and increasing the use of renewable materials and fuels. We
also see more intensive collaboration with suppliers on developing
new innovative solutions as a key driver towards reducing our full
value chain carbon footprint. In 2025, we continued meaningful
dialog with our key suppliers to understand how their plans can
support our ambition and how we can collaborate to close any gaps.
We’ve incorporated Product Carbon Footprint (PCF) requirements
and carbon price considerations into our Request for Information
(RFI) and Request for Proposal (RFP) processes for suppliers to build
awareness and encourage low carbon strategies. Together with
other joint programs we have with key suppliers, these efforts will
enable us to achieve further carbon emission reduction in our full
value chain.
In 2022, Together for Sustainability (TfS) launched the Product
Carbon Footprint (PCF) Guideline for the chemical industry to ensure
a consistent measure of carbon emissions along the value chain in
the chemical industry and beyond. In 2024, TfS updated its PCF
Guideline to expand its scope with new guidance, introducing
mandatory data points, improving data quality and strengthening
alignment with global standards. In 2025, we continued to roll out
the TfS PCF data exchange solution (SiGREEN), enabling TfS
members to request PCF information from suppliers for purchased
materials. Meanwhile, we made good progress with onboarding
more than 200 suppliers on SiGREEN (of which 73 shared their
specific data), and sent out surveys to the remaining top 250
suppliers to better understand their maturity and challenges. Out of
the 53% who responded, 43% are currently not able to share PCF
due to resource, system or other constraints. We’ll continue to help
increase their capabilities through the TfS academy. As a result of
this engagement, in 2025, 43% (2024: 31%) of our Scope 3
upstream GHG emissions (which is equal to 19% of our total Scope
3 emissions) were calculated using supplier-specific data.
During 2025, we upgraded our Supplier Sustainability Balanced
Scorecard (SSBS) to a more specific Supplier Carbon Scorecard
(SCS) to better support our carbon reduction ambitions. The new
scorecard enables us to focus on multiple areas: coverage of
supplier specific PCF and any improvements versus our baseline;
carbon ambition reductions set by our suppliers; and offering
insights on renewable alternatives. This new scorecard helped us to
hold constructive meetings and discussions with our top 100
suppliers to better understand their plans and challenges. Each year,
we determine which suppliers fall within the scope based on their
emissions from the previous year, and update the SCS monthly,
based on multiple data sources. Supplier performance is evaluated
regularly using the SCS.
Thanks to a value chain partnership with Arkema and BASF, the carbon footprint
of a large part of our architectural powder coatings portfolio has been reduced. It
means the superdurable Interpon D range – which includes D2525, used on the
Shard in London, UK – can now make an even bigger impact in helping to reduce
embodied carbon over the whole lifecycle of a building.
Customer engagement
Customers are pivotal partners in our journey to reduce Scope 3
emissions, and in 2025, we continued our joint efforts to
decarbonize value chains. By working closely with customers across
diverse markets and applications, we’re helping them transition to
more sustainable solutions. This includes: moving away from
solvent-based products to water-based and low-VOC technologies;
introducing innovations that reduce energy requirements during
curing; designing coatings that extend the lifetime of assets; and
developing bio-based and biomass balanced solutions to increase
circularity.
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In Decorative Paints EMEA, for example, we launched a 99.9%
VOC-free paint to further minimize emissions related to volatile
organic compounds, while in our Marine and Protective Coatings
business, we expanded our range of high solids products with
reduced solvent content. We also continued to introduce
technologies that cure at lower temperatures, or even at ambient
conditions, enabling customers to decrease energy consumption
and improve process efficiency in our key transport and built
environment end-user segments. Our engagement model is built on
collaboration and capability building – the majority of our sales teams
have been trained to provide customers with technical advice,
specifications, training and communication materials that enable
them to select and implement products which help reduce carbon
emissions.
In 2025, our Product Carbon Footprint (PCF) methodology received
independent verification from Bureau Veritas, confirming alignment
with ISO 14040, ISO 14044, ISO 14067 and the latest Together for
Sustainability (TfS) guidelines. By integrating supplier specific data
and sharing PCF information, we enable customers to make better
informed portfolio choices, decarbonize their supply chains and
comply with climate reporting requirements. We further developed
the roll-out of our sustainable repair network for our vehicle refinish
customers, helping them to measure and lower Scopes 1 and 2 of
their bodyshops by using our lower carbon footprint products. We’re
also exploring breakthrough technologies together with partners,
such as electron beam curing with Wuxi El Pont Radiation
Technology Co., Ltd. and laser curing for powder coatings with IPG
Photonics, as well as helping retailers to offer more sustainable
choices to consumers through clear on-pack sustainability
communication in our Decorative Paints EMEA business.
Climate change adaptation
Materiality
We identified climate change adaptation as a critical aspect of our
operations. The primary risk involves insufficient adaptation to natural
hazards resulting from climate change. This could lead to asset loss
and operational disruptions.
Risk assessment
In 2023, we performed a desktop study with the help of Zurich
Insurance Group, assessing all our manufacturing sites (~130), as
well as a selection of key supplier locations (~50), with regards to
physical climate hazards.
To assess criticality, we used the total insured value for our own
locations and the total spend value for supplier locations. Our
analysis concentrated on high and very high hazard levels across our
portfolio, considering various climate scenarios and future time
horizons. The climate scenarios applied were SSP2-4.5 (middle
road) and SSP5-8.5 (fossil fuel development), with time horizons set
for 2030 (near term, combining short and medium term) and 2050
(mid to long term). SSP (Shared Socio-economic Pathways) are
scenarios that help model future changes, including climate change.
The scenarios used are consistent with AR6, the sixth assessment
report from the Intergovernmental Panel on Climate Change (IPCC).
We chose these scenarios as they’re widely accepted by the
scientific community.
Our locations were analyzed for multiple natural hazards related to
climate change, some of which have a higher inherent potential
physical risk to our operations than others. In scope were:
precipitation, thunderstorms, wind, heat, flood, drought, wildfires,
cold waves and hail. The outcome of this assessment has been
used as a basis for further analysis around climate risk management,
including for future resilience planning. The 2023 risk assessment
continued to form the basis of our risk management in 2025 and will
be updated if circumstances or events emerge that necessitate an
updated assessment.
In China, our Levis Pro brand launched a “sunscreen” architectural coating
system which can cool down buildings and make them more energy efficient.
Featuring a radiative cooling topcoat and a thermal radiation barrier mid-coat, the
innovative technology can lower the surface temperature of buildings by up to
10% during hot summer months, compared with using standard mid-coat and
top-coat solutions for the same application (validated by internal testing).
Risk management: Physical risks
Emergency response planning
In 2024, we began integrating these risks into our enterprise risk
management processes. We shared the detailed outcome of the
physical climate risk assessment with all our manufacturing site
managers. Consequently, we require all sites to update their
emergency response plans using the climate risk assessment,
detailing the site’s exposure to the aforementioned extreme weather
events as a guide. Each site must identify its top three risks and
prioritize them in future risk mitigation planning. As part of our regular
HSE&S audit process, each site will be audited every three to five
years. This evaluation will include an assessment of emergency
preparedness, particularly regarding climate change-related
increases in natural hazards.
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Physical risks and impacts own operations: Environmental
and social
We identified two material topics related to environmental and social
factors: environmental – water scarcity at water intensive sites; and
social – heat stress.
Environmental: Water scarcity
While overall water consumption is not material for AkzoNobel, as
indicated in our double materiality assessment, we’ll concentrate our
water consumption reduction efforts on our top water intensive sites
in areas of high water stress. See the Water and marine resources
chapter for more details.
Social: Heat stress
Our employees often work in hot conditions, where they’re at risk of
heat stress-related illnesses, especially during the summer months.
Climate change puts workers at an increased risk, requiring
additional health and safety support. To that end, heat stress
management guidance was added to our occupational health
management system.
The related policy states that our line management is responsible for
both ensuring that all relevant employees receive heat stress-related
training and for adjusting work practices to address heat stress
concerns. This can include, for example, providing drinkable water in
adequate quantities, scheduling hot work for cooler periods of the
day and offering provisions for workers wearing personal protective
equipment (PPE). All relevant employees are required to follow work
instructions and training related to heat stress. Currently, we don’t
have quantified targets related to this impact. The global policy is
owned by the HSE&S team.
Upstream physical climate risks
Even though not in scope for materiality, we’ve carried out natural
hazard risk surveys to suppliers located in those risk locations to
learn what mitigation actions they have in place.
Physical risks own operations: Financial impacts
We assessed the potential occurrence of material financial impacts
to our own operations resulting from climate change. For this
assessment, we analyzed the risks of both property damage and
business interruption.
Given our approximately 125 manufacturing sites, we assess our risk
of business interruption as low and our operations as resilient. This is
primarily due to our extensive global production network and the
relatively low revenue exposure per site, allowing us to shift
production when a natural hazard occurs.
We also analyzed historic insurance claims related to natural
hazards. Over a period of 20 years, the total indemnity paid related
to natural catastrophes was below €10 million. This is the combined
sum of property damage and business interruption. Therefore, we
don’t currently anticipate a material financial effect.
Transition risks
We operate a global portfolio of Paints and Coatings businesses
and, as laid out in our Strategy section, our strategic approach is
therefore geared towards the specific requirements of different
markets and customers.
One of our strategic pillars is sustainability-driven innovation. We’re
committed to capturing the opportunities that sustainability presents
as a catalyst for innovation. We recognize that sustainability is driving
changes in our industry and believe this aligns with our strengths in
innovation and our leadership position in sustainability. For example,
our commitment to carbon reduction throughout our value chain has
proven to be a catalyst for customer dialog.
We’re developing sustainable products that differentiate us from
competitors, allowing us to gain market share and command higher
margins in certain markets. We’re also accelerating our development
efforts and reducing time to market.
When analyzing our climate-related transition risks, we take into
account climate change mitigation, technology, market and
reputation. Climate change mitigation is reported on earlier in this
chapter.
We’re also assessing our portfolio regarding the energy efficiency of
our real estate assets and working towards establishing a
comprehensive breakdown of the carrying value of our real estate
assets by energy efficiency classes.
Building on our 2024 review, we further analyzed potential transition
risks during our assessment of long-term trends in 2025. As part of
these long-term trends, environmental transition risks were
considered including, but not limited to, climate change. The risks
listed below aren’t considered (acute) material risks following our
double materiality assessment, but are provided for information
purposes. We don’t anticipate any direct material financial effects
from these risks.
The top five transition risks:
• The lack of availability of (precious) raw (e.g. bio-based) materials
slowing down the use of more sustainable raw materials and more
sustainable products
• Changing legislation (sustainability-driven product or environmental
legislation) impacting the company’s ability to achieve strategic
objectives and its ability to move production (different
requirements in different countries/regions)
• Divergence between societal scrutiny and legislation, leading to
shifting customer and investor expectations
• Increased divergence in the potentially conflicting trade-off
between increased demand for recyclability and inherent long-
lasting aspects of our products
• Infrastructure limitations (e.g. electricity network capacity) hindering
us from reaching our sustainability objectives
Enterprise risk management
Climate risk, including the GHG risk management program, is also
part of our enterprise risk management process, as a strategic risk.
In this process, we assess the key risks that could hinder us from
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achieving our strategic objectives – such as a lack of resilience – and
prioritize these risks based on our risk appetite. This approach
allows us to identify relevant risks and adapt to, or mitigate, these
risks. In addition to our risk management approach, the other key
areas that influence our resilience are (sustainable) operations,
innovation and the ability to adapt.
We have the following mitigations in place:
• A balanced geographic presence with revenue generated from all
regions and continued investment focus on higher growth markets
to optimize geographic spread and reduce the risk of a certain
region (or business) being impacted by climate risk
• Measures to improve our industrial operations, such as reducing
complexity, improving capacity utilization and investing in the
modernization of our sites, helping to mitigate climate risk
• Ongoing portfolio adjustments and new product introductions,
strengthening our ability to adapt while supporting business
continuity and continued customer relevance
Internal carbon pricing
We have sustainability assessments in place for all material
investment projects. For the last nine years, we’ve implemented an
internal carbon price for these investment decisions, anticipating the
impact of future carbon pricing, such as EU Emission trading system
ETS2. The cost impact is now also actively used in small project
evaluations, with the goal to drive decarbonization investments at
our production sites. Annually, we quantify the potential transition
risk impact of any global carbon taxation by multiplying our carbon
footprint (Scopes 1 and 2) with the internal carbon price. To analyze
different potential scenarios, we calculate the impact using a carbon
price ranging from €50 to €120 per ton, the latter being the
suggested price by the Net Zero Climate organization. That range
results in an impact well below 1% of 2025 revenues. Our suppliers
and customers might be impacted by carbon pricing, which creates
both risks and opportunities. For example, we can mitigate the
carbon cost impact for our customers by offering more sustainable
solutions.
GHG emission reduction targets:
Scope and methodology
We have a target of 50% carbon emissions reduction for Scope 1
and Scope 2 (market-based) by 2030 (baseline 2018, absolute) and
a target of 50% carbon emissions reduction for Scope 3 by 2030
(baseline 2018, absolute). This is validated by the Science Based
Targets initiative and is in line with a 1.5˚C global warming scenario.
Breakdown Scopes 1 and 2
Our GHG emissions under Scope 1 are spread over the fuels we use
at our sites, with natural gas being the largest contributor. The
material emissions from Scope 2 are almost all related to our non-
renewable electricity, with only some sites purchasing steam and hot
water from external suppliers. We currently have 16 sites (2024: 10)
using electricity generators with non-renewable fuels for back-up
and emergencies. Their energy production has reduced from 1.5
GWh in 2024 to 0.46 GWh in 2025.
Scope 1 - Direct emissions
GWh
GHG (ktCO2eq)
GWh
GHG (ktCO2eq)
Crude oil and petroleum products
36.5
9.2
27.4
7.0
Natural gas
239.7
48.4
236.0
47.7
Other fossil sources
0.0
0.0
0.0
0.0
Renewable fuel sources
1.6
0.0
1.6
0.0
Self-generated renewable electricity
16.6
0.0
20.6
0.0
Total
294.4
57.6
285.6
54.7
Scope 2 - Indirect emissions (market-based)
GWh
GHG (ktCO2eq)
GWh
GHG (ktCO2eq)
Electricity from fossil fuels
177.2
107.2
158.1
93.7
Steam and hot water from fossil fuels
22.5
4.5
19.0
3.8
Electricity from nuclear power
11.0
0.0
9.8
0.0
Electricity and hot water from renewables
342.0
0.0
354.1
0.0
Total
552.7
111.7
541.0
97.5
Scopes 1 and 2 energy consumption and GHG emissions
2024
2025
Breakdown Scope 3
Our 50% (absolute) reduction target for 2030 encompasses the
following categories, covering around 96% of our total Scope 3
emissions:
• Upstream: Category 1 (purchased goods and services, including
packaging)
• Downstream: Category 10 and 11 (application and use of sold
products), VOC emissions and Category 12 (end-of-life)
Our 2025 Scope 3 data can be found at the end of this section
(GHG emissions table) on page 46.
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Regional split energy consumption in %
A EMEA
39
B North America
20
C North Asia
19
D Latin America
14
E South Asia Pacific
8
Energy consumption reduction
and solar energy
For 2025 versus our 2018 baseline year, our absolute energy
consumption from own operations reduced by 7% and our relative
energy consumption per ton of production reduced by 10%. For
2025 compared with 2024, our absolute energy consumption
reduced by 2.4%, while our relative energy consumption reduced by
1.3%.
Several energy efficiency measures were taken at our sites in 2025.
We’ve relocated some production volume to more efficient sites and
the first improvements are becoming visible for our EMEA region.
We’ve also seen various energy projects make an impact, notably in
Latin America and South Asia Pacific. These included managing
energy during shutdown and developing action plans for utilities.
During the year, we stopped producing resins at our Felling site in
the UK, which reduced our electricity and fuel consumption. Given
that we’ll now purchase these resins, the attributed GHG emissions
will effectively move from Scopes 1 and 2 towards Scope 3.
Unfortunately, we’ve also seen increases in energy consumption in
North America, which can be explained by the colder winter
experienced by our northern sites, and the start of manufacturing
changes as part of our footprint optimization in that region.
A
B
C
D
E
In 2025, 4% of our consumed electricity was produced at our sites
through solar panels (2024: 3%). Generating renewable electricity
on-site alleviates pressure on the electricity grid and reduces our
carbon footprint and energy costs. In total, 84 of our locations (2024:
83) now use 100% renewable electricity and 40 locations are using
solar panels to produce renewable electricity, increasing from 33
locations in 2024. We’ve currently installed about 40% of our solar
on-site potential (2024: 33%) and have a healthy pipeline of projects
for the coming years.
We signed a power purchase agreement (PPA) with leading Nordic solar
developer Alight. A new 15 MWp solar park being built in Sweden will supply
renewable electricity to our sites in Angered and Kristinehamn, starting in 2027.
Energy consumption in gigawatt hours (GWh)
Energy consumption
u
KWh per ton of production
845
843
847
827
272
253
251
248
2022
2023
2024
2025
Renewable electricity certificates were procured in the Americas and
Europe and equaled our purchased electricity volume. We’ve also
procured renewable electricity certificates in China, covering 45% of
the purchased electricity. Globally, our bundled certificates represent
41% of our purchased electricity (2024: 28%) and our unbundled
certificates represent 26%, (2024: 35%) bringing electricity from
renewable sources to 67% of our total purchased amount (2024:
65%). When we include our on-site solar generation, renewable
electricity represents 69% of our total electricity consumption at the
end of 2025, improving from 65% in 2024. This is well beyond our
interim target of 50% for 2025.
Gross Scopes 1, 2, 3 and total GHG
emissions
2025 results: Scopes 1 and 2 emissions
In 2025, our combined Scopes 1 and 2 emissions (market-based)
reduced by 47% versus our 2018 baseline. We’ve surpassed our
2025 interim target of reducing our carbon footprint for our own
operations by 25% versus our 2018 baseline. Compared with 2024,
we reduced carbon emissions by 10%, mainly through purchasing
renewable electricity in China and improved energy efficiency. Our
Scope 1 has reduced by 13% since 2018, while our Scope 2
(market-based) has reduced by 57%. With decarbonization projects
having been put in place in 2025, we’ll see further decline of our
Scope 1 emissions in the coming years to meet our targets.
2025 results: Scope 3 emissions
Our 2025 Scope 3 carbon footprint was down 9% from 2024 (from a
rounded 12.8 million tons in 2024 to a rounded 11.6 million tons in
2025). This progress towards our emission reduction target reflects
both updates to industry databases and increased use of supplier-
specific emissions data, as well as improvements in the mix of
products in our portfolio. The leading industry databases – CEPE V4
and EcoInvent 3.10 – were updated in 2025, now better capturing
recent decarbonization efforts made across our upstream value
chain.
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These database updates are infrequent recalibrations that occur
every few years and should not be taken as a step change in year-
on-year trend. Meanwhile, approximately half of our Scope 3
upstream emissions are covered with supplier specific data, enabling
us to capture the efforts made by our suppliers in the value chain.
Our Scope 3 carbon footprint was down 19% versus our 2018
baseline. As the development of new solutions, investments in the
value chain and market acceptance take time, we expect the
majority of the reduction of our Scope 3 carbon footprint towards
the latter part of the decade.
GHG emissions in tCO2eq
Retrospective
Milestones and target year
Base year (2018)
2024
2025
Change (2025 vs
2024)
% Change (2025
vs 2024)
2030
Annual % Target/
Base year
Scope 1 GHG emissions
Scope 1 GHG emissions
57,645
54,664
(2,981)
(5)
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions
202,927
196,690
(6,237)
(3)
Gross market-based Scope 2 GHG emissions
111,738
97,513
(14,225)
(13)
Scopes 1+ 2 GHG emissions
Gross location-based Scopes 1+2 GHG emissions
260,572
251,354
(9,218)
(4)
Gross market-based Scopes 1+2 GHG emissions
288,919
169,382
152,177
(17,206)
(10)
144,459 1
4
Total gross indirect (Scope 3) GHG emissions
Significant Scope 3 categories
14,438,628
12,761,437
11,631,185
(1,130,252)
(9)
7,219,314 2
4
1 Purchased goods and services
6,771,061
5,988,301
5,396,911
(591,390)
(10)
10 Processing of sold products (including Category 11: Use of sold products)
5,827,185
4,900,094
4,508,365
(391,729)
(8)
12 End-of-life treatment of sold products
1,840,382
1,873,042
1,725,909
(147,133)
(8)
Other Scope 3 categories
466,316
478,570
465,974
(12,596)
(3)
Total GHG emissions
Total GHG emissions (location-based)
14,904,944
13,500,578
12,348,513
(1,152,066)
(9)
Total GHG emissions (market-based)
15,193,863
13,409,389
12,249,336
(1,160,053)
(9)
GHG removals, projects financed through
carbon credits and revenue intensity
AkzoNobel doesn’t make use of financed carbon credits outside our
value chain. Currently, we don’t perform or purchase any offsetting
activities for our GHG emissions and we don’t make use of carbon
removals or storage in our own operations.
Our GHG intensity, measured as total GHG emissions per net
revenue, is 0.00122 tCO2eq/€ for location-based and 0.00121
tCO2eq/€ for market-based. These are also included in the Metrics
table.
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1 Our carbon emissions reduction target of 50% relates to the combined impact of Scopes 1 and 2.
2 Our carbon emissions reduction target of 50% relates to significant categories of Scope 3 (SBTi approved).
ESRS E2
POLLUTION
Materiality
Our approach to determining our material impacts, risks and
opportunities is described in General disclosures. Following our
double materiality assessment for priority substances under ESRS
E2 (pollution), Substances of Very High Concern (SVHCs) (ESRS
E2-5) has been identified as a material topic for AkzoNobel. The
financial effects from material pollution-related risks are included in
our environmental costs. See Note 19 of the Financial statements.
The impact of SVHCs on our supply chain processes and policies,
including the impact of spillage, is included in the chapter on
Workers in our value chain.
Our approach to pollution
AkzoNobel commercializes paints and coatings for many different
industries and end markets. The production of paints and coatings
by definition entails the use of a large variety of chemicals. Correct
classification of our end products is based on detailed information,
received from our suppliers, of the components (substances) present
in the raw materials we use, which are then incorporated into the
paints and coatings formulations. This information includes, but is
not limited to, regulatory status, hazard and the amount of the
substance present.
This process of correct labelling and appropriate documentation
safeguards the availability of necessary information regarding safe
handling and use – including storage and disposal.
Pollution of air, water and soil
All our operations are subject to country specific applicable
environmental regulations. They, therefore, operate with an
environmental permit, or under environmental legislation, and are
required to comply with applicable discharge criteria for air and
water. These permits do not necessarily align with ESRS disclosure
requirements for emissions to water and air. In order to gain further
insights into the impact of SVHC emissions to water and air, we
engaged an external consultant and conducted a pilot study to
estimate emissions into air and water across a representative sample
of our manufacturing sites.
In order to determine the most relevant SVHCs to sample, annual
usage volumes were analyzed and the top six SVHCs with highest
consumption were selected. Twelve pilot sites were then chosen,
based on discharge type, operational characteristics and geographic
diversity to ensure representative coverage of our global SVHC use.
The external consultant completed a detailed questionnaire with
each site, covering production, schedules, material handling,
emission sources and treatment systems. Supporting
documentation such as permits and diagrams were reviewed,
followed by interviews with the site management to clarify data gaps.
Site specific sampling plans were developed, based on detailed
assessments of emission points and production activities. These
plans were further refined through follow-up discussions with site
teams to ensure feasibility and effective implementation. The
sampling results are compared against the applicable European
Pollutant Release and Transfer Register (E-PRTR) thresholds (where
available) and theoretical loss estimates derived from SpERCs for the
paints and coatings industry. Should the results be above the
theoretical loss assumptions, we’ll conduct further research. Final
sampling results are currently pending and will guide our pollution-
related priorities once available.
In relation to the topic of soil pollution through accidental releases,
our existing manufacturing locations have primary containment/
sealed floors that prevent contact with the soil. In addition, we have
secondary containment systems and mature process safety
management systems in place. We therefore don’t consider soil
pollution as material for our own operations. Legacy soil remediation
efforts, including the financial provision for remediation, are disclosed
in Note 19 of the Financial statements.
Substances of Very High Concern
Substances of Very High Concern (SVHCs) are defined under
REACH ((EC) No 1907/2006). They’re disclosed to AkzoNobel by
our suppliers, and by us to our customers through the safety data
sheet (SDS) when present above levels of 0.1%. REACH stands for
Registration, Evaluation, Authorization and Restriction of Chemicals.
This is a European Union regulation, adopted to improve the
protection of human health and the environment from the risks that
can be posed by chemicals, while enhancing the competitiveness of
the EU chemicals industry. The regulation came into force on June
1, 2007. This report covers all SVHCs that were on the REACH
candidate list at the start of the reporting year (January 1, 2025).
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Policy, actions and targets
At AkzoNobel, SVHCs are only used in our products when it’s both
permitted by applicable legislation and required by the need for the
unique properties and performance. As part of this approach, we
continuously invest in sustainable innovation to reduce carbon
footprint and the use of SVHCs. Our policy relates to SVHCs
purchased and used in our own operations. The policy is reviewed
and updated, if necessary, on an annual basis. Monitoring of the
substances used in our products is a continuous process conducted
by our Product Safety and Regulatory Affairs (PSRA) department.
The Executive Committee is accountable for implementation of the
policy. Currently, we don’t have a generic policy or target for the
phase out of all SVHCs.
The total amount of SVHCs procured in 2025 amounted to 22,946
tons (2024: 23,234), representing <1% of total purchased volumes,
based on the substances of very high concern as included in the
REACH list as per January 1 of the reporting year, which is the same
as last year. The total amount in the table opposite doesn’t reconcile
to this number as certain substances have multiple end-point hazard
classes. The difference between sourced and sold volumes is related
to the irreversible chemical conversion that many of the SVHCs we
use undergo during the manufacturing process, which means they
are no longer present as identifiable SVHCs in our end products. The
total quantity of SVHCs leaving our facilities as part of products is
26% of the procured quantity of SVHCs, and mainly relates to
SVHCs with mutagenic and carcinogenic hazard classes.
The vast majority (>97%) of our SVHC purchases relate to our
Performance Coatings businesses (2024: >95%). In terms of our
sold products containing SVHCs, >90% relate to the same business.
SVHCs, per hazard class
2024
2025
Hazard class
acronym
Hazard class/End-
point full name
SVHC sourced
(in tons)
SVHC sourced
(in tons)
SVHC leaving our
facilities1 (in tons)
Carc
Carcinogenic (Article
57a)
1,299
1,452
1,053
ED ENV
Endocrine disrupting
properties (Article 57(f)
- environment)
8,808
8,638
671
ED HH
Endocrine disrupting
properties (Article 57(f)
- human health)
8,168
7,700
285
EqLoC ENV
Equivalent level of
concern having
probable serious
effects to the
environment (Article
57(f) - environment)
7,356
7,373
671
EqLoC HH
Equivalent level of
concern having
probable serious
effects to human health
(Article 57(f) - human
health)
7,356
7,373
671
Muta
Mutagenic (Article 57b)
3,273
3,068
2,906
PBT
PBT (Article 57d)
86
42
96
Repro
Toxic for reproduction
(Article 57c)
8,721
8,124
630
Resp. Sens.
Respiratory sensitising
properties (Article 57(f)
- human health)
1,979
1,915
205
vPvB
vPvB (Article 57e)
110
193
187
1 Newly reported data point, therefore no availability of comparative data for 2024.
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AkzoNobel Report 2025
Water withdrawal by purpose (in %)
A Cooling
73
B Process
13
C Other
14
ESRS E3
WATER AND MARINE RESOURCES
Materiality
Our approach to determining our material impacts, risks and
opportunities is described in General disclosures. Considering the
relatively low water footprint of the paints and coatings industry, our
overall water consumption is considered not material following our
double materiality assessment. However, we do strive for continuous
improvement in water use efficiency at our sites in high water stress
areas (HWSAs), as identified in the overall risk assessment of our
climate change adaptation.
We defined the number of sites located in HWSAs by using the
Aqueduct water risk atlas developed by the World Resources
Institute. For 2025, 58 sites (down from 59 in 2024 due to a site
closure) are located in HWSAs under the 2030 Business As Usual
(BAU) scenario.
Policy, actions and targets
We’re committed to the responsible use and conservation of water.
We strive to reduce water use and encourage the reuse and
recycling of water at all our manufacturing sites. Currently, the focus
is mainly on our top ten sites in HWSAs, which were selected after
comprehensive analysis of water consumption and withdrawal of all
58 sites. We implemented a water conservation program in 2025 to
analyze the water-saving opportunities of these water focus sites.
The water and marine resources policy is part of the annual
communication of HSE&S objectives and targets. It’s reviewed
annually and signed off by the leadership team within the HSE&S
function.
Our exposure to (future) water scarcity was included as part of the
climate risk assessment performed during 2023. Currently, there’s
no potential material financial impact identified to our own operations
in water scarce areas. For further elaboration on methodology used,
please refer to Climate change adaptation chapter.
In the coming years, we intend to expand our water consumption
reduction efforts at our water focus sites. We’ll also conduct studies
at these sites to determine the local impacts, including on
surrounding communities. We’ll continue working to further improve
the efficiency of the equipment used for cleaning activities, and
increase the reuse of process water within our manufacturing
process. We’re also rolling out plans to collect reliable data for
recycled and reused water to help us track the effectiveness of our
actions in 2026. This will be a phased approach starting with our
focus sites.
We’re still evaluating the baseline under our methodology for water
consumption calculation, which aligns with the CSRD. We'll set
targets for our focus sites once the baseline has been established.
Water use and consumption in own operations
Overall, the majority of our water is used for cooling purposes (73%
in 2025), most of which is discharged back to the environment. In
addition, we use water as a raw material in (water-based) paints and
coatings operations. The production process accounted for 13% of
water use in 2025, while a further 14% was consumed for general
household and sanitation purposes. During 2025, we implemented a
system to monitor and track water discharge using water meters
and/or water mass balance approach.
The overall company water withdrawal was 7.6 million m³ in 2025
(2024: 7.7 million). The withdrawal at sites located in HWSAs was
14% of total withdrawal (2024: 13%). Our relative water withdrawal
was 2.3 m³ per ton of production for 2025 and the relative
withdrawal in HWSAs was significantly lower at 0.7 m³ per ton of
production, the same as last year. Our overall water consumption in
HWSAs was 0.7 million m³ in 2025 (2024: 0.4 million).
In 2024, we estimated that for our sites in HWSAs, water
consumption was mainly represented by the water included in our
products. Due to the installation of metering at approximately half of
our HWSAs sites, we now have more reliable information on water
discharge figures. As a result, we’ve determined that the amount of
water consumption was underestimated in 2024. Calculations in
2025 now also capture water used for domestic use (gardening,
sanitation, etc.) separately, as well as water evaporated during
cooling and the production process. We’re unable to restate the
prior period comparative amount, as the technical infrastructure to
measure the metric was not in place in the previous year.
A
B
C
Total water withdrawal
Total water withdrawal (million m³)
u
Relative water withdrawal in m3 per ton of production
8.6
7.7
7.7
7.6
2.8
2.3
2.3
2.3
2022
2023
2024
2025
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ESRS E5
CIRCULAR ECONOMY
Materiality
Our approach to determining our material impacts, risks and
opportunities is described in General disclosures.
For circular economy, the outcome of our materiality assessment
focuses on:
• Waste: The impact of inefficient resource use, landfill and loss of
potential heat recovery from incineration. This is a material topic for
our own operations
• Resource inflows: The impact of not moving away from virgin raw
materials in our plastic packaging
• Resource outflows: Opportunity to extend the durability of our
products and therefore the durability of substrates
This chapter explains which circularity aspects are important to our
operations and value chain, including product portfolio. Actions,
resources and targets are detailed in the relevant value chain areas.
Bio-based and recycled materials are covered under our Scope 3
carbon footprint disclosure in the Climate change chapter.
For a description of our key products, refer to the boxed introduction
text at the start of the Decorative Paints and Performance Coatings
chapters (pages 16 and 18). A description of engagement with
affected communities is included under the Human rights due
diligence paragraph in General disclosures.
This chapter addresses waste first, then resource inflows and ends
with resource outflows.
Policies, actions and targets related to
resource use and circular economy
Waste management policy and targets
The objective of our waste policy is to minimize our waste through
prevention, reuse, recycling and recovery. We aim to reduce our
waste to landfill as much as possible, paying particular attention to
reducing hazardous waste to landfill through elimination, recycling or
incineration.
The Waste Management Policy is part of the annual communication
of HSE&S objectives and targets. This is reviewed annually and
signed off by the leadership team within the HSE&S function.
We currently have a long-term incentive for senior executives linked
to a target of achieving 100% circular use of materials by 2030. After
the current vesting period ends in 2025, we’ll replace this target with
one aligned with ESRS definitions. We’re reviewing our
measurement approach to help determine which ESRS-aligned
target is most suitable for our organization in the coming years.
Waste management program
Our programs aim to reduce waste directed to disposal, with an
emphasis on recycling and reusing waste, while keeping the
hierarchy of waste reduction in mind and avoiding landfill where
possible.
While overall waste was stable, we continued to make progress on
waste streams through a number of reduction initiatives. For
example, our Barcelona site successfully eliminated 8% (42 tons) of
waterborne operational waste by piloting a treatment process in
collaboration with a local university team. At our Mauá site in Brazil,
investment in process mechanization enabled reuse of 37% (425
tons) of the total sludge generated as a sustainable raw material,
thereby significantly reducing the volume of waste directed to
disposal. We also increased efforts to transfer more unintended
outflow from our manufacturing processes to by-products reused by
third parties. Another example is our material optimization process,
which aims to divert slow-moving and obsolete materials (SLOBs)
from scrapping to internal reuse and selling to preferred third parties.
These initiatives involve multi-disciplinary collaboration between our
commercial teams, supply chain, manufacturing, HSE&S, innovation
teams and third parties.
Waste reporting process
Our manufacturing sites record waste on a monthly basis against ten
waste classes (see Waste stream overview on the next page). The
numbers reported are based on shipped waste manifests and
invoices from service providers. All waste streams are assigned to
one of the overarching waste classes (W1-W10). The totals of all
waste streams by waste class are reported and reconciled in our
central reporting tool.
Our waste streams
Our primary waste consists of packaging waste, residual paint
waste, sludges from waste water treatments, powder fines and
general household waste, such as waste from canteens and offices.
In 2025, we generated 95.6 kilotons of waste (2024: 96.9), of which
50.4% was classified as hazardous waste (2024: 52.9%) and 29.1%
of the total waste was waste directed to disposal (2024: 30.6%).
For 2025, our waste directed to disposal (W1-W6) decreased by
6.0% (absolute), and our relative waste directed to disposal per ton
of production reduced by 4.9% compared with 2024. These
reductions were mainly through site waste reduction initiative
projects.
Total waste diverted from disposal (W7-W10) increased by 0.8%
compared with 2024.
Our waste to landfill (W1 and W4) decreased by 8.3% (from 2.5
kilotons in 2024 to 2.3 kilotons in 2025). The relative waste to landfill
per ton of production decreased by 7.3% compared with 2024. In
Latin America, several sites contributed to reducing waste sent to
landfill. For example, at the Pintuco Guayaquil facility, approximately
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Material flow in kilotons
3,335
W7*
W8**
21.7
26.4
15.4
W9*
W10**
67.8
10.9
8.8
95.6
* Hazardous.
W1*
W4**
** Non-hazardous.
27.8
0.1
2.2
*** Recycling includes reconditioned packaging which is prepared for
reuse, totaling 28.8 kilotons. The reconditioned packaging consists
of 16.7 kilotons of hazardous and 12.1 kilotons of non-hazardous
reconditioned packaging waste.
W2*
W5**
11.9
8.5
W3*
W6**
3.6
1.5
170 tons of waste was sent to landfill in 2024. For 2025, the site
phased out this practice by adopting alternative treatment methods.
Overall, we’ve reduced our waste to landfill by 80% versus the 2018
baseline, and 75% of our manufacturing sites are now landfill free.
In 2025, our waste to incineration (W2 and W5) decreased by 7.9%
from 22.2 kilotons in 2024 to 20.4 kilotons in 2025. The relative
waste to incineration per ton of production decreased by 6.8%
compared with 2024. The primary contribution to this reduction is
attributable to operations in the EMEA and North America region.
This is due to a strategic transition undertaken in accordance with
applicable regulatory requirements and driven by cost efficiency
considerations.
Waste stream overview (in kilotons)
2024
2025
Hazardous
Non-
hazardous
Hazardous
Non-
hazardous
Waste disposed to landfill
0.2
2.3
0.1
2.2
Waste disposed through incineration
12.6
9.6
11.9
8.5
Waste disposed through other disposal operations
3.3
1.6
3.6
1.5
Total waste directed to disposal
16.1
13.5
15.6
12.2
Waste diverted from disposal through recycling
24.5
25.6
21.7
26.4
Waste diverted from disposal through other
recovery operations
10.7
6.5
10.9
8.8
Total waste diverted from disposal
35.2
32.1
32.6
35.2
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Resource inflows
Policy
We’re committed to increasing the recycled content in plastic
packaging used by our Decorative Paints Europe business and
decreasing our dependency on virgin plastics. The policy, owned by
our Decorative Paints Europe product management team, was
adopted in 2020, formalized in 2024 and is reviewed annually. The
scope of the policy is the plastic packaging used by our Decorative
Paints Europe business.
Introduction
This section on inflows details the material topic of recycled content
in plastic packaging.
Plastic packaging
Out of all plastic packaging used, the majority is used by our
Decorative Paints business in Europe, representing 46% of our
global plastic spend for 2025 (2024: 48%). In terms of units, the
Paints business in Europe represents 47% of units bought1 (2024:
54%). Therefore, we set a target of increasing post-consumer
recycled (PCR) content in this specific segment.
Our target was to have at least 50% PCR content in plastic
packaging used by our Decorative Paints business in Europe by
2025. This target applies to our buckets and excludes lids, as we’re
currently unable to achieve the right quality of PCR for lids
throughout the regions where we operate, although we continue to
investigate this. We’re also working on trialing PCR lids and already
have some signed off and in use, for example in the UK and Spain.
We already set this target in 2020, but we treat 2024 as the official
baseline year under CSRD.
In 2025, the percentage of PCR in all our Decorative Paints Europe
buckets was, on average, 53% (2024: 43%) which is equivalent to
6,754 tons. We’ve therefore met our 2025 target.
During the year, we continued to collaborate with suppliers to ensure
that our target was achieved. If a supplier was unable to provide
PCR content in line with our target, we actively looked for alternative
suppliers to help us make progress on our sustainability goal.
For the regions outside Europe, we’ve currently set no targets, as
we’re in the process of improving the data robustness for those
regions. The estimated range of percentage PCR in the Paints
businesses outside of Europe is between 15% and 25%, which is
the same as last year.
Resource outflows: Making substrates
last longer
Introduction
Our paints and coatings contribute to circularity in two ways: first, by
protecting substrates and extending their expected lifetime
(protective durability); and secondly, by supplying products that have
a longer-lasting performance compared with the industry average
(comparative durability).
Policy
Our durability policy covers both the protective and comparative
durability of our portfolio. It’s owned by the Sustainability team and
the Director of Sustainability is accountable for its implementation. It
was adopted in 2024 and is reviewed annually. The scope is
AkzoNobel’s full product portfolio.
Contribution to durability
Paints and coatings make a vital contribution to extending the
lifespan of substrates, which effectively means circularity is built into
the benefits they offer. Our products can play a significant role in
safeguarding assets by helping to expand the expected lifetime of
substrates, especially when our products are longer-lasting
compared with the industry average. Therefore, the key opportunity
for AkzoNobel in many market segments is to offer these more
durable solutions, which have inherent protective benefits.
We aim to provide products with protective and longer-lasting
characteristics through innovation and value-selling opportunities.
We aim to do so through informing our stakeholders of our
commitment to durability, supporting the implementation of
programs and initiatives with the aim of increasing durability in the
market segments where we operate.
In addition, we continuously monitor the evolving landscape of
circularity requirements in our downstream markets, driven by
customer, societal and legislative trends, such as Ecodesign in the
EU. This information is fed into the strategic roadmaps of our
businesses.
The protective and comparative durability of our products is
interconnected and differs per end-user segment. For example, our
Interpon D2000 range of superdurable powder coatings is used to
protect metal substrates. At the same time, it makes the substrate
last longer over its lifetime, compared with the industry average. In
the following sections, we describe how we measure our protective,
as well as comparative, durability in the end-user segments where
we operate.
Built environment
Our global portfolio offers solutions for both new-build and
renovation. Many of our products have specific functionalities, such
as anti-corrosion, weatherability, aesthetic, protection, easy-clean for
high traffic resistance, anti-mold technology and anti-microbial
properties.
The protective and longer-lasting benefits are essential for the built
environment. As well as the paints and coatings we provide to
customers in the construction and architectural segment, we also
have innovative service concepts that enable customers to inspect
coated objects and facilitate preventive maintenance over time.
In addition to the SPPA methodology used to evaluate longer-lasting
products (explained in the Methodology and definitions chapter), we
comply with stringent durability norms in the construction industry,
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1 Due to data quality reasons, we currently exclude Romania from our target. This reduces the coverage from 47% to the reported 46% of plastic packaging spend (based on 2025 spend). For units, the scoping excluding Romania reduced the coverage from 48% to the reported 47% of units bought.
for example Qualicoat and AAMA, and we offer specific durability
warranties in this sector.
Industrial buildings – including manufacturing sites and factories,
power sites, data centers and wind turbines – are also crucial for
manufacturing and logistics. Our solutions are made to protect these
assets against harsh conditions and help them stand the test of
time. Functional properties relevant for the industrial sector include
heat and fire protection, chemical protection, anti-corrosion and
weather protection.
Transport
We supply performance coatings that protect and enhance the
durability of ships, cars, trucks, aircraft and yachts. Our products are
engineered to achieve functional properties such as corrosion
protection, weatherability and protection against wear and tear. In
addition, our products can increase expected lifetime compared with
the industry average, all of which enhances the durability of these
modes of transport.
Consumer goods
The consumer goods end-user segment includes electronics,
appliances, packaging and furniture. Within this sector, customers
have set performance requirements on the durability of coatings,
such as resistance to abrasion and scratching, heat resistance and
the resilience of the aesthetic finish.
For food and beverage packaging, we use our extensive experience
in the food contact and beverage markets to minimize the exposure
of risks to end-users, while ensuring that single-use items can be
recycled at end-of-life. Therefore, for this particular segment, the
longer-lasting requirements are not the same as other sectors.
Targets, metrics and 2025 performance
Protective durability benefits are embedded in our products. In
addition, a significant part of our innovation focuses on making
products last longer, which refers to our comparative durability. This
comparative durability is measured by the products that are longer-
lasting compared with the industry average metric. We haven’t yet
set specific targets for increasing the comparative durability for our
global portfolio.
In 2025, a total of 14.1% (16.5% for Paints and 12.6% for Coatings)
of revenue came from products that are considered to be longer-
lasting versus the industry average in the market for that category.
The assessment coverage of our portfolio was 80.8% for Paints and
73.7% for Coatings. For business units not yet analyzed in full, an
extrapolation was made, based on revenue of the analyzed business
units.
2024
(%)
2025
(%)
Expected durability of the products placed on the
market, in relation to the industry average for each
product group as % of revenue
13.3
14.1
Percentage of Paints revenue considered to
provide durability versus mainstream
15.5
16.5
Percentage of Coatings revenue considered to
provide durability versus mainstream
11.8
12.6
Coverage of durability assessment – Paints
84.3
80.8
Coverage of durability assessment – Coatings
76.6
73.7
The methodology for this assessment can be found in the
Methodology and definitions chapter.
One of our sites in Brazil is reusing industrial residue to make paint. It’s generally
considered to be waste, but nearly a third of the total residue generated during
industrial effluent treatment at our Mauá plant is used to manufacture Coral Pinta
Piso floor paint. As well as helping to eliminate landfill disposal, it’s also
contributing to the preservation of natural resources.
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EU TAXONOMY
The Taxonomy Regulation establishes the framework for the EU
taxonomy by setting out four conditions that an economic activity must
meet in order to qualify as environmentally sustainable.
A qualifying activity must:
1. Meet the definition of the economic activity, as included in the
Delegated Acts
2. Contribute substantially to one or more of six environmental
objectives, being:
– Climate change mitigation
– Climate change adaptation
– Sustainable use and protection of water and marine resources
– Transition to a circular economy
– Pollution prevention and control
– Protection and restoration of biodiversity and ecosystems
3. Do no significant harm to any of the other environmental objectives
4. Be carried out in compliance with minimum (social) safeguards
The technical screening criteria specify the performance requirements for
any economic activity that determine under what conditions that activity
makes a substantial contribution to a given environmental objective and
does not significantly harm the other objectives. Companies are required
to report on the proportion of turnover (revenues), capital expenditures
(CapEx) and operating expenditures (OpEx) that’s associated with
environmentally sustainable economic activities, and to what extent
these activities are aligned (i.e. contributing to one or more environmental
objectives).
The key performance indicators relevant under EU taxonomy are
turnover, CapEx and OpEx. For the purpose of the calculation of eligible
activities, the following financial information has been derived from
AkzoNobel’s Consolidated financial statements:
• Turnover under EU taxonomy is equal to consolidated external
revenues as reported in our Consolidated statement of income,
amounting to €10,158 million (2024: €10,711 million)
• CapEx under EU taxonomy is the sum of additions in property, plant
and equipment (see Note 11 of the Consolidated financial statements),
intangible assets (see Note 10 of the Consolidated financial
statements) and right-of-use assets (see Note 12 of the Consolidated
financial statements) from both investments and acquisitions resulting
from business combinations, amounting to €449 million (2024: €429
million). CapEx as included in the Consolidated financial statements,
which amounts to €310 million (2024: €306 million), includes
investments in intangible assets and investments in property, plant and
equipment, and excludes the impact from additions to right-of-use
assets of €139 million (2024: €121 million). Additions to right-of-use
assets are included in the movement schedule on right-of-use assets,
as included in Note 12 of the Consolidated financial statements
• OpEx is calculated in accordance with the EU taxonomy as direct non-
capitalized costs incurred for the day-to-day servicing of assets,
consisting of research and development costs, short-term leases,
maintenance and repair costs and other similar costs, amounting to
€383 million (2024: €404 million). This definition differs from OpEx as
included in our Consolidated statement of income. The taxonomy
OpEx (per EU taxonomy definition above) represents an insignificant
portion of our total OpEx (€8,994 million) (2024: €9,794 million). The
EU taxonomy OpEx denominator equals €383 million (2024: €404
million). As a result, we make use of the materiality exemption for the
OpEx KPI as per the Disclosure Delegated Act Annex I, Section 1.1.3.2
and disclose the numerator as equal to zero. No further assessment is
performed regarding taxonomy OpEx eligibility or alignment
AkzoNobel’s core activity, manufacturing paints and coatings (NACE
Code C20.3), is currently not defined as an eligible activity for EU
taxonomy, and hence no technical screening criteria have been
developed to measure alignment to the environmental objectives.
As a consequence, eligible activities were limited in 2025 and 2024,
mainly related to revenues from activities such as coatings for low
carbon technologies and renewable energy, and CapEx related to
investment in, and renovation of, buildings.
For the determination of eligible revenues and CapEx, we’ve performed
the following activities:
• Reviewed AkzoNobel’s activities and pre-identified potential eligible
activities
• Provided trainings to personnel involved in data-gathering, explaining
key characteristics of the EU taxonomy guidelines and potential eligible
activities
• Performed a detailed analysis of the individual taxonomy-eligible
economic activities in cooperation with key Finance and Sustainability
personnel
• Set up a multi-disciplinary team in charge of supporting and answering
questions from personnel involved in data-gathering, as well as
reviewing the reported data at a central level
• Consulted with external experts and peers to ensure a correct and
consistent interpretation of the legal requirements
The following activities have been identified as eligible (see also the
following tables):
• 3.1 Manufacture of renewable energy technologies
• 3.3 Manufacture of low carbon technologies for transport
• 3.6 Manufacture of other low carbon technologies
• 4.1 Provision of IT/OT data-driven solutions
• 5.3 Construction, extension and operation of waste water collection
and treatment
• 6.5 Transport by motorbikes, passenger cars and light commercial
vehicles
• 7.2 Renovation of existing buildings
• 7.6 Installation, maintenance and repair of renewable energy
technologies
• 7.7 Acquisition and ownership of buildings
• 8.2 Data-driven solutions for GHG emissions reductions
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Alignment has not been further assessed for the eligible activities,
primarily because the identified eligible activities are not material for our
business model. In addition, there is currently insufficient data to further
assess alignment criteria, due to the fact that it requires obtaining
information from third parties and various external verifications.
Therefore, no further work has been performed towards the Do no
significant harm (DNSH) and Minimum safeguards (MS) criteria.
There’s been no change to our business model compared with last year.
The template disclosure tables as per Annex II of the Environmental
Delegated Act are included on the next page. The limited eligibility of our
activities is determined by the limited scope of the EU taxonomy for
2025. Despite this inherent non-eligibility, we continue to focus our
efforts towards providing more sustainable solutions for our customers.
EU taxonomy CapEx in € mln
Note in FS
2024
2025
Additions to property, plant and
equipment from capital
expenditures and acquisitions
11
282
296
Additions to intangible assets from
capital expenditures and
acquisitions
10
26
14
Additions to right-of-use assets
from additions and acquisitions
12
121
139
Total
429
449
Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and
safe operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using best
available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of
existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such
as hydrogen production from nuclear energy, as well as their safety
upgrades.
No
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or
operation of electricity generation facilities that produce electricity using
fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce heat/
cool using fossil gaseous fuels.
No
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Financial year N
Year
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic activities (1)
Code
(2)
Turnover
(3)
Proportion
of
turnover,
year N (4)
Climate
change
mitigation
(5)
Climate
change
adaptation
(6)
Water (7)
Pollution
(8)
Circular
economy
(9)
Bio-
diversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water (13)
Pollution
(14)
Circular
economy
(15)
Bio-
diversity
(16)
Minimum
safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.)
or eligible
(A.2.) Turnover,
year N-1 (18)
Category
enabling
activity
(19)
Category
transition-
al activity
(20)
€ mln
%
Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
N/A
—
—%
—%
of which Enabling
—%
—%
of which Transitional
—%
—%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of renewable energy
technologies
CCM
3.1
76
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
Manufacture of low-carbon
technologies for transport
CCM
3.3
134
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
Manufacture of other low-carbon
technologies
CCM
3.6
96
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
Turnover of Taxonomy-eligible
but not environmentally
sustainable activities (not
Taxonomy-aligned activities) (A.2)
306
3%
3%
—%
—%
—%
—%
—%
3%
A. Turnover of Taxonomy-eligible
activities (A.1 + A.2)
306
3%
3%
—%
—%
—%
—%
—%
3%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-
eligible activities (B)
9,852
97%
TOTAL
10,158
100%
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EL:
Eligible
N/EL: Not eligible
Y:
Yes
N:
No
E:
Enabling
T:
Transitional
Financial year N
Year
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic activities (1)
Code
(2)
CapEx (3)
Proportion
of CapEx,
year N (4)
Climate
change
mitigation
(5)
Climate
change
adaptation
(6)
Water (7)
Pollution
(8)
Circular
economy
(9)
Bio-
diversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water (13)
Pollution
(14)
Circular
economy
(15)
Bio-
diversity
(16)
Minimum
safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.)
or eligible
(A.2.) CapEx,
year N-1 (18)
Category
enabling
activity
(19)
Category
transition-
al activity
(20)
€ mln
%
Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
N/A
—
—%
—%
of which Enabling
—%
—%
of which Transitional
—%
—%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Provision of IT/OT data-driven
solutions
CE 4.1
4
1%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—%
Construction, extension and
operation of waste water collection
and treatment
CCM
5.3
—
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Transport by motorbikes, passenger
cars and light commercial vehicles
CCM
6.5
4
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
2%
Renovation of existing buildings
CCM
7.2
36
8%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
6%
Installation, maintenance and repair
of renewable energy technologies
CCM
7.6
1
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—%
Acquisition and ownership of
buildings
CCM
7.7
98
22%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
19%
Data-driven solutions for GHG
emissions reductions
CCM
8.2
—
—%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
CapEx of Taxonomy-eligible but
not env. sustainable activities
(not Taxonomy-aligned) (A.2)
143
32%
31%
—%
—%
—%
1%
—%
28%
A. CapEx of Taxonomy-eligible
activities (A.1 + A.2)
143
32%
31%
—%
—%
—%
1%
—%
28%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities (B)
306
68%
TOTAL
449
100%
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EL:
Eligible
N/EL: Not eligible
Y:
Yes
N:
No
E:
Enabling
T:
Transitional
Financial year N
Year
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Economic activities (1)
Code
(2)
OpEx (3)
Proportion
of OpEx,
year N (4)
Climate
change
mitigation
(5)
Climate
change
adaptation
(6)
Water (7)
Pollution
(8)
Circular
economy
(9)
Bio-
diversity
(10)
Climate
change
mitigation
(11)
Climate
change
adaptation
(12)
Water (13)
Pollution
(14)
Circular
economy
(15)
Bio-
diversity
(16)
Minimum
safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.)
or eligible
(A.2.) OpEx,
year N-1 (18)
Category
enabling
activity
(19)
Category
transition-
al activity
(20)
€ mln
%
Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally
sustainable activities (Taxonomy-
aligned) (A.1)
N/A
—
—%
—%
of which Enabling
—%
—%
of which Transitional
—%
—%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
OpEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned)
(A.2)
—
—%
—%
—%
—%
—%
—%
—%
—%
A. OpEx of Taxonomy-eligible
activities (A.1 + A.2)
—
—%
—%
—%
—%
—%
—%
—%
—%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible
activities (B)
383
100%
TOTAL
383
100%
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EL:
Eligible
N/EL: Not eligible
Y:
Yes
N:
No
E:
Enabling
T:
Transitional
ESRS S1
OWN WORKFORCE
Materiality and governance
Our approach to determining material impacts, risks and
opportunities is described in General disclosures. Our assessment
showed two material topics: Health and safety and Working time.
Both topics have been identified as material for our full value chain,
including our own workforce.
We also provide additional disclosures on topics which are required
by other applicable laws or regulations, or whenever the disclosures
serve the information requirement needs of our stakeholders. These
topics are: Gender equality and equal pay; Discrimination and
harassment (including violence); Diversity and inclusion; Freedom of
association and collective bargaining.
For 2025, no material people-related impacts from climate change
transition plans have been identified, in line with last year.
The metrics related to the characteristics of our workforce can be
found in the Metrics table at the end of the Sustainability statements.
We refer to the chapter Methodology and definitions for details on
data gathering and reporting systems.
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AkzoNobel Report 2025
HIGHLIGHTS
It’s our vision to
achieve zero injuries,
waste and harm through
operational excellence
90%
participation rate achieved (2024: 89%) in our
Voices employee engagement survey, with close to
30,000 employees taking part
In 2025:
57%
of our manufacturing sites had been recordable
work-related accident free for more than a year
Our company-wide HSE&S management
system is applicable to the entire
workforce and is globally certified against
ISO 14001 and ISO 45001 standards
Our Global Working Hours Standard Policy
has been implemented and rolled out
across all our manufacturing sites
Our Business Partner Code of Conduct (BP
CoC) and the Responsible Sourcing Policy
set our core values of safety, integrity and
sustainability, as well as our commitment of
working together with our suppliers
Age distribution of our employees
A Under 30 years old
10%
B 30-50 years old
64%
C Over 50 years old
26%
8,383
679
21,695
1,401
Permanent
Temporary
8,250
813
22,437
659
Full-time
Part-time
MATERIAL TOPICS
Health and safety
Safety, as one of our core values, is embedded into everything we
do. We care deeply about the safety of our colleagues and everyone
we work with.
Policy
Through our Health, Safety, Environment and Security (HSE&S)
Policy, we acknowledge our responsibility for protecting the health
and safety of our employees, contractors, customers and neighbors,
while maintaining the security of our people and assets and
protecting the environment. The policy is owned by the HSE&S
department and reviewed and updated on at least an annual basis.
We’re committed to ensuring that business activities are conducted
to prevent harm to our customers, employees, contractors, the
public, other stakeholders and the environment through rigorous
implementation of target setting and monitoring processes,
according to the AkzoNobel HSE&S management system.
It’s our vision to achieve zero injuries, waste and harm through
operational excellence. The environmental aspects, such as waste,
energy and emissions, are covered throughout the relevant chapters
in the Environmental section, while the health and safety elements
are covered in this chapter.
Management programs in the areas of people safety, health,
process safety and security help us live up to the highest standards
in our activities and at our sites. Our commitment to running our
operations safely is underpinned by our Life-Saving Rules and
Golden Principle to stop work if conditions or behavior are unsafe.
People safety and health: Actions,
resources and targets
Strategic priorities
In line with the company’s priority to “Simplify the execution model”,
this year we took significant steps to reduce operational complexity
by streamlining workflows and improving efficiency, while maintaining
the high standards of our HSE&S programs. We also enhanced the
practicality and user-friendliness of our core processes, tools and
systems.
Adopting a stronger risk-based approach enabled better
prioritization and resource allocation, which also creates a more agile
operating environment without compromising safety, compliance or
operational excellence.
Processes for engaging with workers
Our workforce at all locations helps to establish and implement
annual HSE&S plans through workers’ representative groups, such
as works councils and labor organizations. This ensures that we
conform to regulatory requirements and/or the requirements from
our ISO certified HSE&S management systems.
Targets related to health and safety
• Fatalities own workforce: Zero
• Fatalities other workers on our locations: Zero
• Serious injuries and fatality frequency own workforce (SIF-F): <3.0
For more information, see Methodology and definitions
For benchmarking purposes, we continue to monitor the total
recordable work-related accident rate for own workforce.
Learning from high potential events
In addition to learning from actual injuries and incidents, we put
special emphasis and processes in place to learn from high potential
events (HPEs). A high potential event is an incident with a potentially
high impact, or a near miss (not causing loss or damage) that might
have, under different circumstances, resulted in high, major or
catastrophic impacts.
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AkzoNobel Report 2025
Characteristics of own workforce, in headcount
Female
Female
Male
Male
A
B
C
2025 results
In 2025, we enhanced our Life Critical Procedures (LCPs) through
comprehensive reviews and updates and introduced a global
HSE&S program which required all manufacturing locations to
revalidate their current status and define actions to close their gaps.
We continued our company-wide monthly Safety Moments for safety
awareness. They’re used by people managers in team meetings to
keep colleagues in all functions and levels of our organization
involved in – and aware of – everyday safety hazards and safe
behaviors.
Our industrial hygiene and ergonomic programs are actively
managed to support a safe work environment and reduce
occupational illness-related absenteeism.
Serious injuries and fatalities
There were no serious injuries or fatalities in our own workforce in
2025. The 2025 SIF-F was 0.0 (2024: 1.4). Our target is less than
3.0). There were no fatalities of other workers on our locations in
2025 (2024: 0).
Total recordable work-related accident rate own workforce
During 2025, there were 105 recordable work-related accidents for
our own workforce (2024: 107). The total recordable work-related
accident rate for our own workforce was 1.49 (2024: 1.46),
remaining at a similar level to last year. The rate is at an industry-
leading level, based on our benchmark analysis versus peers.
In 2025, 57% of our manufacturing sites had been recordable work-
related accident free for over a year (2024: 63%).
Total recordable work-related accident rate own workforce
(per 1,000,000 hours)
1.18
1.53
1.46
1.49
2022
2023
2024
2025
The total recordable work-related accident rate is the number of accidents resulting in a medical
treatment case, restricted work case and lost time case or fatality, per 1,000,000 hours worked.
Recordable work-related ill health of employees
During 2025, there were four cases of recordable work-related ill
health of employees (2024: two).
Process safety
In 2025, we continued to embed process safety as an integral part
of our operating culture, following the successful completion of the
dedicated Process Safety Management (PSM) improvement
program in 2024. Guided by our three-year process safety strategy,
our focus shifted from a project-based approach to sustaining
excellence through simplification, standardization and capability
building.
During the year, we further increased the maturity of our Process
Safety Fundamentals (PSFs) deployment, progressing beyond
awareness and training to achieve deeper integration into daily
operations. PSFs are now embedded within process confirmations
and Gemba walks, strengthening leadership engagement,
operational discipline and the proactive identification of potential
risks.
A key focus in 2025 was on removing complexity to improve
performance. By streamlining tools and processes, we’re enabling
sites to apply process safety principles more consistently, while
maintaining a high level of technical rigor and control. This approach
supports our ambition to achieve leading standards in process safety
performance across all operations.
Fire incident at Port Hope site, Canada
Unfortunately, during 2025, a fire occurred at our Wood Coatings
site in Port Hope, Canada. The fire suppression system in the
manufacturing area successfully extinguished the fire in a mobile
vessel, but the flames had spread to the roof, requiring support from
the local fire department. All employees evacuated promptly to their
designated muster station and no injuries were reported.
A global call to action was issued across all sites to identify similar
potential hazards, resulting in targeted action plans to eliminate or
mitigate these risks and further strengthen our commitment to a safe
workplace for all.
HSE&S management foundation
Our company-wide HSE&S management system is applicable to the
whole workforce and is globally certified against ISO 14001 and ISO
45001 standards. The management system consists of policies,
procedures, templates and best practices to promote learning
across the organization.
HSE&S audits are performed in three-year (for high-hazard sites) to
five-year (other sites) cycles.
Compliance assurance is a key HSE&S priority because it ensures
our license to operate and our business continuity in a fast-changing
regulatory environment. Our company-wide HSE&S compliance
assurance process is proactive and digitally supported by tools from
a global third party supplier.
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AkzoNobel Report 2025
Working time
Policy
As set out in our Code of Conduct, our working hours and
remuneration comply with laws and are fair and just. In 2024, we
also finalized our Global Working Hours Standard Policy, applicable
to all employees who work under a time registering system. We
concentrated on this group because, based on our double
materiality assessment, the impact of excessive working time is
mainly applicable for our factory and warehouse employees.
This policy includes – alongside compliance with local laws and
regulations on working time – maximum working hours (including
overtime) of no longer than 12 hours a day and 60 hours a week for
a full-time employee, with at least one 24-hour consecutive period of
rest in every seven-day period. The policy also includes an exception
process to the above rules, put in place to track and monitor such
exceptions, as well as for the purpose of targeting our further
improvement efforts.
Managers of employees not on a time registering system (such as
most office workers) are responsible for setting the right example
and helping employees to manage their workload in an efficient and
healthy way to avoid excessive working hours. The policy became
effective as of January 1, 2025. AkzoNobel’s Director of HR Services
owns this policy, which is reviewed annually.
Working time: Actions, resources and targets
Processes for engaging with workers on working time
Compliance with the Global Working Hours Standard Policy
In 2025, we implemented the Global Working Hours Standard Policy
and rolled it out across all our manufacturing sites. We took a risk-
based approach to assessing our compliance with the policy. A
publicly available database from the International Labour
Organization (ILO) was used to identify the countries with the highest
risk of excessive average hours worked per employee. The countries
in which we operate have been assessed against this database. As a
result, we’ve identified the top ten countries to focus on.
Subsequently, we’ve started gathering the employee attendance
records from our ten pilot countries to measure our efforts towards
compliance on Working Hours Policy. We’ll continue to monitor
these countries and deploy further actions to ensure alignment with
our policy.
In addition, an (offline) approval process for exceptions is also being
established. The intention is to move this into a central system of
record. This process will first be shared across our pilot countries,
with the aim of rolling it out to all our manufacturing sites, to ensure
the working hours exceptions are approved as per our policy.
Employee feedback through Voices survey
In 2025, we measured our efforts based on Voices survey results for
the Workload topic. These results are a direct reflection of the
perception of our employees and cover both the employees under a
time registering system and those who don’t register their time.
We reviewed relevant questions in our Voices engagement survey
(refer to Employee engagement paragraph in this chapter). On a
global level, the scores related to workload were similar to last year
(3.9 out of 5), and slightly better than the benchmark of
manufacturing companies (3.8 out of 5). The survey enabled us to
gain insights into employee concerns and identify areas for
improvement.
Global well-being portal
In addition to existing local initiatives on well-being, we also launched
a global well-being portal last year, where employees can explore
our health and well-being resources. It’s currently accessible in
seven countries (Canada, Mexico, US, Brazil, UK, Ireland and the
Netherlands), covering almost 30% of our total employees. We aim
to expand beyond the above-mentioned countries by continuing to
develop and deploy existing portals.
Targets for engaging with workers on working time
Currently, we don’t have targets in relation to engaging with workers
on working time. The policy has been shared with all our
manufacturing sites to enhance awareness. As we’ve started
tracking compliance with our global working hours rules for identified
pilot countries, we’ll be able to further analyze based on trends and
decide the next steps related to engaging our workforce.
OTHER RELEVANT TOPICS
Diversity and inclusion
We continue to work towards becoming a more diverse and
inclusive workplace. With a renewed strategy, we’ve continued to
embed D&I practices across our processes and behaviors, where
appropriate.
Our D&I position paper can be found on our website. We’ve set
targets related to female executives and employee engagement.
During 2025, initiatives from our Women Inspired Network (WIN) included
mentorship programs, leadership inspiration sessions and networking events.
The group pictured above in Sassenheim, the Netherlands, is one of many WIN
chapters around the world.
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Female executives
We set a target of reaching 30% female representation at our
executive level1 by the end of 2025. While we’ve made steady
progress toward increasing the representation of women in
executive roles, we recognize that we haven’t been able to meet our
target of 30% female executives by 2025. We’ve therefore extended
this target to 2030. Currently, the female executive ratio is at 27%
(2024: 26%), consisting of 70 female executives and 187 male
executives.
Achieving this ambition proved particularly challenging in a year of
significant organizational change, as we optimized our functional
structure to drive greater focus and efficiency. Nevertheless, we
remain committed to our ambition of 30% female executives and
have extended the timeline to 2030, with the clear intention to reach
it sooner. In 2024, we also included this target in our senior
executive long-term incentive plans (LTI), impacting 8.5% of their
total value.
Over the past year, our people managers have successfully
collaborated with our talent management and talent acquisition
teams to prioritize internal hiring decisions, further improving the
promotion rate of our internal talent. We also conducted an analysis
of diversity and inclusion across various aspects within our executive
population and talent pipeline. This will help us create a set of
tailored actions to be implemented from 2026. By maintaining our
current ambition and introducing targeted actions, we aim to further
develop our talent by strengthening credibility, trust and long-term
impact.
We also track female representation in our Supervisory Board, Board
of Management and Executive Committee. Our plans for reaching
our D&I ambitions are further described in both the D&I position
paper and the DE&I Policy for the executive level, Board of
Management and Supervisory Board, which are available on our
website. Further information on the targets applicable to the Board
of Management and the Supervisory Board can be found in the
Corporate governance statement and Metrics table. Specifically, the
gender composition in the Supervisory Board is available on page
103. The gender composition in the Board of Management is
detailed on page 101.
Female executives in %
Target
25%
26%
27%
30%
2023
2024
2025
2030
Percentage of women at executive level. Please refer to the Methodology and definitions chapter of
these Sustainability statements for the full definition.
D&I networks
Our D&I employee networks organized internal events to cover
relevant themes, celebrate diversity and increase awareness of
various topics.
One of our employee networks, Vibe, promotes cultural, inclusivity
and ethnicity matters. Through events such as charity drives, cultural
presentations and a global talent show, Vibe continued to foster
belonging and celebrate diversity across AkzoNobel. It’s our largest
network, with almost 2,300 members.
Another employee network, the Woman Inspired Network (WIN)
stands for creating a workplace where everyone can thrive. WIN
brings this vision to life by empowering women across all levels of
our organization to reach their full potential. WIN harnesses the
power of education, inspiration and empowerment to encourage all
colleagues – regardless of gender identity – to reflect on and evolve
the way we think and work together.
In addition to Vibe and WIN, we have two other employee networks
– True Colors and Equal Access Board – which raise awareness and
provide necessary support to our LGBTI+ community and
employees with disabilities, respectively.
Building an inclusive workplace
We continue to work with our manufacturing and supply chain sites
to make sure that our production population experiences a healthy
and inclusive environment. To this end, investments have been
made to better support women in production and ensure inclusivity
for all employees, upgrading the site to promote accessibility,
comfort and a sense of belonging for everyone. Key focus areas are,
for example: clean and accessible facilities; colorful social areas and
well-located breastfeeding facilities.
Turnover rate
Overall employee turnover in 2025 was 11% (2024: 12%); voluntary
turnover also showed a slight decrease to 5.9% (2024: 6.5%). For
the definition of the employee turnover rate, please refer to the
Methodology and definitions chapter.
Employee engagement
Introduced in 2023, our employee engagement survey Voices
reached its third edition in 2025. Conducted annually across all
employees, the 2025 survey featured a total of 50 questions, with
external comparative data being supplied by Eletive.
We achieved a participation rate of 90% (2024: 89%), with close to
30,000 employees taking part and providing their feedback. This
enables us to discuss and pinpoint follow-up actions to enhance our
work environment by identifying strengths and areas for
improvement, in addition to monitoring and analyzing trends.
Employee engagement scored 4.0 out of 5.0, consistent with 2024
and above the external benchmark2 average of 3.9. The employee
net promoter score (eNPS) is a global standard for organizations to
measure employee satisfaction. For eNPS, 0-20 is regarded as
good, 20-50 very good, while higher than 50 is excellent. This year,
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1 Refer to the definition of executive level (top management) in the Methodology and definitions chapter of these Sustainability statements.
2 Based on data from Eletive.
AkzoNobel’s eNPS was rated 16, well above the manufacturing
companies benchmark by 12 points.
A total of eight out of 12 drivers each increased by 0.1 points from
2024, which can be attributed to the improvements we’ve made
since the previous year. The 12 drivers are: Autonomy; Diversity,
equity and inclusion; Feedback and communication; Goals and goal
achievement; Health; Learning and development; Meaningfulness
and participation; Relationship with colleagues; Relationship with
manager; Strategy, vision and culture; Workload; Workplace and
tools.
To help monitor our progress, the 2025 survey also featured a
follow-up question asking employees if they’d noticed improvements
following the last survey. The organization scored 3.6 out of 5.0, a
growth of 0.1 compared with 2024, reflecting some of the
improvements that have been implemented. This score, however,
also indicates there’s room for improvement in the follow-up of
actions.
The most senior role at AkzoNobel with operational responsibility for
ensuring that we properly engage with our employees is the Director
of HR Services, with the results of the Voices survey also being
reviewed and discussed by the Executive Committee.
Global participation rate
Global engagement index
90%
4.0
29,746 out of
33,229 Voices
Benchmark
(manufacturing) 3.9
Employee net promoter score (eNPS)
Benchmark for manufacturing companies1
AkzoNobel
4 16
Discrimination and harassment
As set out in our Code of Conduct, we treat people with dignity and
respect, and we support diversity and inclusion. Our Code also
states that we don’t harass or discriminate, whether through culture,
nationality, race, religion, gender, disability, association, sexual
orientation or age. We strive to foster a culture of dignity and
respect, free of harassment and discrimination, as stated in our
Human Rights position paper.
Please refer to the Business conduct chapter of these Sustainability
statements for more details on the Code of Conduct and our
SpeakUp! grievance mechanism, which are among the procedures
we have in place to ensure that discrimination is prevented and
diversity and inclusion is advanced.
In our Voices survey, we asked our employees whether they’re free
from bullying or harassment in their workplace, which can be
answered anonymously. The global average score on this question
was a 4.4 out of 5.0 (2024: 4.3). We also asked whether they felt
they were not discriminated against in their workplace, which scored
4.3 out of 5.0 (2024: 4.2) and whether they felt that people of all
backgrounds are given the same opportunities in their workplace,
which scored 4.1 out of 5.0 (2024: 4.1). If an employee scored the
question on workplace discrimination low (1 or 2 on a scale of 5), the
manager and the relevant HR manager would automatically be
notified of this, without disclosing the identity of the employee. They
can then take appropriate action to address the issue.
We also analyzed SpeakUp! cases related to (alleged) discrimination
or harassment in the workplace.
The cases referred to HR have been addressed outside the
SpeakUp! process which, after review, were found to involve a
separate HR matter (e.g. complaints about noise in the open
workspace), rather than a (potential) discrimination and/or
harassment related violation.
Actions taken on the (partly) substantiated cases involved 11
dismissals, 11 mandatory trainings, one warning letter and 13 cases
where action was not needed, for example due to the person
resigning.
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1 Based on data from Eletive.
-100
0
100
SpeakUp! reports related to discrimination and harassment
Total reported cases during 2024
84
Closed cases during 2024, of which:
40
- (Partly) substantiated
15
- Unsubstantiated
9
- Referred to HR
14
- Insufficient information
2
Cases still open at the end of 2024
44
Total open cases during 2025
141
Closed cases during 2025, of which:
89
- (Partly) substantiated
36
- Unsubstantiated
26
- Referred to HR
21
- Insufficient information
6
Cases still open at the end of 2025
52
Processes for engaging with own workers
and workers’ representatives about impacts
and raising concerns
Our approach to materiality, including the engagement on impacts,
risks and opportunities, is described in Impact, risk and opportunity
management.
As described in the Integrity and compliance management chapter,
our SpeakUp! grievance mechanism offers employees a means to
raise allegations regarding compliance with our Code of Conduct
and violations of applicable laws and regulations. A dedicated team
follows an investigation protocol which adheres to strict principles of
confidentiality, objectivity, respect for anonymity, non-retaliation,
objectivity and the right to be heard.
For other concerns that might fall outside the scope of our Code of
Conduct, employees can use other formal and informal channels to
raise their concerns. Examples of formal channels are the option to
raise a formal complaint to works councils, trade unions,
occupational health services or committees, trusted persons and
harassment committees. The availability of these aforementioned
channels can differ, depending on the region or country the
employee works in. Examples of informal channels include raising
concerns to the relevant line manager, HR or site manager,
suggestion boxes at locations, or during town halls held at locations.
Freedom of association and collective
bargaining
As laid down in our Code of Conduct, we respect individual rights to
freedom of opinion and association, and we respect the right to
collective bargaining and co-determination.
AkzoNobel’s current percentage of own employees covered by a
collective bargaining agreement (CBA) is 40%.
Gender pay gap and total compensation
The gender pay gap was not determined to be a material topic,
following our double materiality assessment. However, from a
stakeholder information requirement perspective, we include this
topic.
In 2025, we performed the calculation of gender pay gap within
AkzoNobel. The results found a 3.1% gap in favor of women. We
refer to the Methodology and definitions chapter for details on the
calculation.
This year we continued the preparations for the implementation of
the EU Pay Transparency Directive, which will become applicable to
us after being transposed into national legislation.
For further compensation indicators, such as pay ratios, please refer
to page 125 in the Remuneration report.
Training and skills development indicators
Training and skills development was not determined to be a material
topic, following our double materiality assessment. However, as we
consider it good practice to provide this information, we include this
topic.
Talent development
In 2025, we strategically refined the scope of our talent assessment
process – grounded in our experience-based talent management
framework – to focus on smaller, more manageable groups, enabling
more effective and higher quality development planning and
execution. We believe in fostering a culture which actively promotes
internal mobility and talent sharing, ensuring that our people are
continuously offered meaningful opportunities to grow within the
organization. During 2025, the framework was extended to
approximately 5,000 employees, primarily in managerial roles,
representing about 16% of our total population by year-end. Within
this group, 29% were identified as key talent and 5% as high
potential talent.
From a gender perspective, we have 40% female and 60% male
colleagues among our key talent, and 37% female and 63% male
within the high potential talent group. This reflects steady progress in
strengthening female representation across our talent pipeline.
Overall, key talent represents 5% of our total employee population,
while high potential talent accounts for 1%. Please refer to the
Methodology chapter for the definition of key talent.
Looking ahead to 2026, our focus remains on further developing and
deploying our assessed talent, addressing identified talent gaps and
strengthening our internal pipeline to build a future-ready
organization.
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Training hours
We believe that investing in our employees is crucial to our continued
growth and success, and we’re proud to offer comprehensive
training and development opportunities to our teams.
We designed our learning and development framework according to
our learning formula of 70:20:10. The most effective way to learn and
develop a new skill or behavior is to apply and practice on-the-job
and in real-life situations.
When applying the formula, 70% relates to experience and on-the-
job learning – such as job shadowing and stretch projects – 20%
relates to exposure (e.g. through mentoring and masterclasses) and
10% to formal education. Our total training hours provided relate to
the 10% formal education.
In 2025, we provided a total of 121,010 (2024: 112,167) training
hours to employees, equipping them with the skills and knowledge
necessary to excel in their roles and contribute to the success of our
organization. The average number of training hours per employee
was 3.76 (2024; 2.54). This only includes training hours for
registered learning efforts and excludes compliance-based
mandatory trainings.
Transforming the learning and development landscape
AkzoNobel is taking steps to evolve from traditional classroom or
simple e-learning offerings to providing newer AI-driven learning
technology. In 2024, we introduced a new learning platform which
was further rolled out in 2025.
We aim to promote capabilities contributing to the AkzoNobel
Expectations, through personalized learning paths and AI role plays,
providing relevant content and feedback for our learners. This
approach not only focuses on the vital skills for the organization, but
also engages employees by allowing them to explore topics that
enhance their mobility.
Performance reviews
In 2025, a new key component to the annual performance review
was launched. The self-reflection form allows employees to evaluate
their performance, growth and personal demonstration of the
AkzoNobel Expectations. The process is not a self-rating, rather a
thoughtful evaluation and introspection on individual work,
contributions and development throughout the year. The optional
self-reflection process saw a total participation of 27% of online
employees (women: 32%, men: 67%).
The overall percentage of employees who participated in our annual
performance review was 95% (women: 97%; men: 94%).
Scientists at our Sassenheim research center in the Netherlands are testing the
use of electron beams to cure coatings. A special E-beam unit has been installed
to help us develop breakthrough technologies for future generations of coatings,
which could help to lower energy consumption and reduce environmental impact.
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Age distribution of our own workforce
in headcount
2024
2025
Age group
Number of
employees
Percentage
Number of
employees
Percentage
Under 30 years old
4,044
11
3,275
10
30-50 years old
21,786
62
20,476
64
Over 50 years old
9,497
27
8,420
26
Total
35,327
32,171
Characteristics of our own workforce
in headcount
2024
2025
Gender
Number of
employees
Percentage
Number of
employees
Percentage
Female
9,780
28
9,063
28
Male
25,534
72
23,096
72
Other
13
0
12
0
Total
35,327
32,171
Characteristics of our own workforce in headcount
2024
2025
Female
Male
Other
Total
Female
Male
Other
Total
Number of permanent employees
8,912
23,874
10
32,796
8,383
21,695
11
30,089
Number of temporary employees
866
1,658
3
2,527
679
1,401
1
2,081
Number of non-guaranteed employees
2
2
0
4
1
0
0
1
Number of full-time employees
8,910
24,828
13
33,751
8,250
22,437
12
30,699
Number of part-time employees
870
706
0
1,576
813
659
0
1,472
Characteristics of our own workforce in headcount
2024
2025
EMEA
Latin
America
North
America
North Asia
South APAC
Total
EMEA
Latin
America
North
America
North Asia
South APAC
Total
Number of permanent employees
15,922
4,761
2,991
3,916
5,206
32,796
14,936
4,412
2,842
3,916
3,983
30,089
Number of temporary employees
543
261
1
1,325
397
2,527
438
214
6
1,146
277
2,081
Number of non-guaranteed employees
4
0
0
0
0
4
1
0
0
0
0
1
Number of full-time employees
15,008
4,926
2,985
5,241
5,591
33,751
14,006
4,543
2,838
5,062
4,250
30,699
Number of part-time employees
1,461
96
7
0
12
1,576
1,369
83
10
0
10
1,472
Total number of employees
16,469
5,022
2,992
5,241
5,603
35,327
15,375
4,626
2,848
5,062
4,260
32,171
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ESRS S2
WORKERS IN OUR VALUE CHAIN
Materiality
Our approach to determining our material impacts, risks and
opportunities is described in General disclosures. For workers in our
value chain, our assessment showed two material topics: Working
time and Health and safety. Please also refer to the Statement on
due diligence chapter in the General disclosures chapter for
disclosures on modern slavery, which serves an information
requirement of our stakeholders.
The Workers in our value chain chapter includes the employees of
our upstream suppliers and downstream logistic service providers,
as the identified impacts are related to these workers.
MATERIAL TOPICS
Policies related to workers in our value chain
The policies described below are relevant to both of our material
topics, as well as the additional disclosures.
Business Partner Code of Conduct
Our business partners are expected to follow our company’s core
values of safety, integrity and sustainability. These are set out in our
Business Partner Code of Conduct (BP CoC). This code sets out the
ethical behavior we expect from anyone we do business with,
including our suppliers, distributors and agents. All new business
partners are expected to apply the principles laid down in the BP
CoC, or apply equivalent principles. These principles include, among
other things, respect for human rights, people, process and product
safety, fair and just working hours and remuneration, and grievance
mechanisms for their employees and other interested parties. Non-
compliance with the BP CoC may lead to measures being taken,
including termination of the business relationship.
Responsible Sourcing Policy
Our Responsible Sourcing Policy is built on our BP CoC and
provides a set of minimum expectations that all our business
partners must comply with to conduct business with AkzoNobel.
Partnerships based on responsible sourcing help us mitigate risk and
build trust among consumers and stakeholders. AkzoNobel’s
Responsible Sourcing Policy reflects our commitment of working
together with our suppliers towards a long-term, more sustainable
and successful future for all parties.
The policy covers a wide range of sustainability topics, including but
not limited to, working time, health and safety, human rights,
environment and the responsible sourcing of minerals. The scope of
the policy applies to all direct suppliers with procurable spend across
all procurement categories in those regions where we buy materials
or services.
Through the implementation of this policy, we commit to respecting
the following: the International Labour Organization (ILO) Declaration
on Fundamental Principles and Rights at Work; the Organization for
Economic Co-operation and Development (OECD) Guidelines for
Multinational Enterprises; the Universal Declaration on Human
Rights; the UN Guiding Principles on Business and Human Rights;
and the Science Based Targets initiative (SBTi).
AkzoNobel’s Chief Procurement Officer (CPO) owns this policy,
which is reviewed annually.
Processes for engaging with value chain
workers about impacts
In the Governance chapter of these Sustainability statements, we
describe how we manage our relationships with suppliers. It also
describes how we perform EcoVadis assessments through our
membership of Together for Sustainability (TfS) on high-risk and/or
high-spend suppliers. In addition, we perform third party, on-site TfS
sustainability audits on selected direct raw material and packaging
suppliers in high-risk areas. The audits address our material topics,
including but not limited to, Occupational health and safety,
Emergency preparedness and Working time. The third party auditors
(approved by TfS) are requested to verify document reviews and
conduct individual and group interviews. Candidates for these
interviews are randomly selected by the auditor, without interference
from management.
Targets related to our material topics
EcoVadis assessments
As part of our TfS membership, we perform EcoVadis assessments
on high-risk and/or high-spend direct suppliers, as further described
in the Governance chapter of these Sustainability statements. In
addition to the minimum total assessment score of 45, our target
also includes a minimum score of 50 in the labor and human rights
sub-section of these assessments, which covers our material topics
of Health and safety and Working time. We ask our suppliers to
achieve these scores through an annual assessment. For suppliers
meeting our target scores, we grant a validity of three years.
We chose our score benchmark of 50 for the labor and human rights
sub-section (which includes metrics on Working time and Health and
safety) based on the EcoVadis scoring principles, where a score of
50 is rated as “good”. We track how many suppliers meet these
requirements through our Sustainability Supplier Program.
For 2025, both the total score and the labor and human rights score
were met by 73% of our suppliers (2024: 67%). Our target is to
reach 75% of our suppliers meeting both of these scores by 2030.
The labor and human rights score was met by 75% of our suppliers
(2024: 71%). Although we’re very close to reaching our 2030 target,
we’ll retain the same goal, because as more suppliers participate in
the program and start improving, the more challenging it becomes to
keep them all engaged and maintain that high level of performance.
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In addition, we started utilizing the EcoVadis Corrective Action
Planning (CAP) tool to request suppliers with a labor and human
rights score below 50, and who have high priority action items on
any of our material topics to improve in these areas. We’re also
guiding our suppliers to specific learnings on these topics in the TfS
academy.
Suppliers meeting EcoVadis requirements (in %)
Target
63%
67%
73%
75%
2023
2024
2025
2030
During 2025, there were no suppliers with whom the contractual
relationship was terminated due to impacts on value chain workers.
Together for Sustainability (TfS) audits
Among all the major and critical findings, we specifically monitor the
completion of findings under our material topics (Occupational
health, and Safety and working time).
Processes to remediate negative impacts
and channels for value chain workers to raise
concerns
As described in the Integrity and compliance management chapter,
our SpeakUp! grievance mechanism offers employees and third
parties a means to raise concerns relating to compliance with our BP
CoC and violations of applicable laws and regulations. A dedicated
investigation team follows an investigation protocol which adheres to
strict principles of confidentially, non-retaliation, objectivity, respect
for anonymity and the right to be heard. Our partners should provide
their employees and other interested parties with a mechanism to
raise concerns about violation or potential violation of laws and the
values provided in this Code of Conduct. These concerns must be
addressed in a fair and transparent way. Our business partners
should protect confidentiality and prohibit retaliation against those
raising the concern. A review of adherence to this requirement is part
of the on-site audits.
In addition, as part of our EcoVadis assessments (described
previously), we also ask whether suppliers have implemented a
formal grievance mechanism encouraging employees and external
stakeholders to report potential violations of the partner’s external
stakeholder human rights policies.
OTHER RELEVANT TOPICS RELATED
TO VALUE CHAIN WORKERS
In addition to our material topics, we also provide additional
disclosures on other relevant topics related to value chain workers.
One of these topics is modern slavery, as these disclosures serve an
information requirement of our stakeholders. Policies related to our
BP CoC and our Responsible Sourcing Policy are also applicable to
this topic.
The additional policies in place are described in the following
paragraphs.
Policies related to workers in our value chain
Conflict minerals and mica minerals
We have separate position statements on conflict and mica minerals.
In these statements, we describe our commitment to responsible
sourcing as an important part of AkzoNobel’s supplier sustainability
strategy. We do our best to ensure that our suppliers’ products and
components don’t contribute to adverse impacts on human rights.
We do that by conducting due diligence together with our suppliers
into the conflict minerals and mica minerals supply chains, and take
appropriate action when necessary. Please refer to the Statement on
due diligence in the General disclosures chapter for more
information.
We’re a founding member of the Responsible Mica Initiative (RMI),
whose mission is to establish a fair, responsible and sustainable
mica supply chain in India that’s free of child labor by 2030. Via this
initiative, we engage with workers in the supply chain, for example
through the Supply Chain Mapping and Workplace Standards
program and the Community Empowerment program.
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ESRS G1
BUSINESS CONDUCT
Materiality
We haven’t identified any material topics related to business
conduct. However, in line with good practice, we provide
transparency on the following matters.
Corporate culture and business conduct
policies
We’re committed to leading with integrity in our industry. The
Integrity and compliance management chapter sets out in more
detail how we establish, develop and promote integrity as an integral
part of our corporate culture.
Our Code of Conduct
Our core values define the culture we’re committed to embedding
throughout AkzoNobel. We have three core values – safety, integrity
and sustainability. Our Code of Conduct, which is available in a
variety of languages via automated browser translation, defines the
way we live our core values every day. It covers various topics,
including anti-bribery and anti-corruption, competition law, conflicts
of interest, health and safety and human rights. In addition, our Code
of Conduct provides protection against retaliation, as there are no
repercussions for reporting breaches of the Code in good faith, even
if the report is unfounded.
We carry out Code of Conduct training for all our employees every
other year (both online and face-to-face, and tailored to online and
offline colleagues), as well as specific training on key risks to
targeted audiences. Completion rates for online integrity and
compliance mandatory training are positive, with the Code of
Conduct exceeding 90%. The progress on training is reported to our
Executive Committee and Audit Committee on a quarterly basis. This
is also supported by a communication program, which focuses on
having a strong tone at the top, raising greater awareness and
driving improvement. For more information on how we create
awareness of our Code of Conduct and SpeakUp! process, please
refer to the Integrity and compliance chapter.
Culture of integrity
The regional Integrity and Compliance Managers contribute to further
strengthening the culture of integrity. This includes identifying and
addressing local risks and cooperating with the business and
functional teams to tailor the program to local risks and follow up on
internal audit findings and SpeakUp! cases.
Protection of whistleblowers – SpeakUp!
Our SpeakUp! grievance mechanism offers employees and third
parties a means to raise concerns relating to compliance with our
Code of Conduct. Our dedicated investigation team follows an
investigation protocol which adheres to strict principles of
confidentiality, respect for anonymity, non-retaliation, objectivity and
the right to be heard.
Anyone who believes they’ve been retaliated against for making a
good faith concern can also report such retaliation, which will be
investigated as a potential Code of Conduct violation. As set out in
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LEADERSHIP AND GOVERNANCE
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HIGHLIGHTS
ZERO
severe human rights impacts and
incidents were reported through
our SpeakUp! mechanism relating to
own workforce and workers in our
value chain during 2025
26
TfS site audits of supplier sites in high-risk
regions were performed in 2025 (2024: 25)
73%
of suppliers in the sustainability
assessments program achieved
our expected score in EcoVadis
assessments, as part of our
Together for Sustainability (TfS) membership
100%
of our buyers completed three or more
trainings available via our SuccessFactors
learning academy and the TfS academy
2024:
67%
the Integrity and compliance management chapter, our Integrity and
Compliance SpeakUp! Committee reviews these investigations and
also decides on discipline and control improvement actions, as well
as monitoring and responding to any trends identified through
investigations. If a certain case is substantiated as a result of the
investigation, follow-up actions and (potential) sanctions are put in
place. The number of reports and the status are reported quarterly
to the Executive Committee and Audit Committee.
All reports raised through our SpeakUp! channel are tracked and
monitored by responding and acting upon any trends identified in
the investigations. Additionally, the SpeakUp! process is audited by
our Internal Audit team to propose further improvements and ensure
its effectiveness. During 2025, no severe human rights impacts and
incidents were reported through our SpeakUp! mechanism relating
to own workforce and workers in our value chain.
Management of relationships with suppliers
We work with our suppliers to create value and continuously improve
our sustainability performance and theirs. We have dedicated
programs in place to engage with suppliers on various subjects.
With regard to social and environmental impacts, all direct suppliers
with an annual spend of more than €1,000 are requested to sign our
Business Partner Code of Conduct. This is a core part of our
commercial agreement with our suppliers and enables us to do
business based on our core values of safety, integrity and
sustainability. Since 2023, we’ve been using an IT solution to collect
and file the Code of Conduct signatories in one central place. With
the implementation of this IT solution, we re-collected signatures of
all previously signed Codes of Conduct.
For direct suppliers with an annual spend between €250,000 and
€1 million, we perform an annual risk analysis, reviewing the country
and industry risks our suppliers are exposed to, using a tool from a
third-party provider (IQ Plus from EcoVadis). The threshold has been
set to ensure it also covers small and medium sized companies. Any
suppliers identified as medium high, high or very high through this
annual approach are selected for the Together for Sustainability (TfS)
Assessment. Suppliers with a spend of more than €1 million are in
scope for the assessment irrespective of their abstract risks.
Supplier risk and spend approach
Spend classes
<€250K
>€250K to €1 mln
>€1 mln
Risk analysis
(through IQ plus)
abstract country
and industry risk
––
(Very) low/
medium
low risk
Medium
high/(very)
high risk
Low to (very)
high risk
EcoVadis
assessments
––
––
All suppliers
TfS audits
––
––
Selected suppliers
BP CoC
All suppliers with an annual spend of €1,000 or more
Through this annual risk analysis, we identified 1,554 (2024: 1,557)
suppliers that were already part of our sustainability program or have
been added. These suppliers cover 83% of our global spend and
96% of our upstream carbon emissions.
With regard to carbon emission mitigation, with 46% (2024: 46%) of
our carbon emissions coming from our upstream activities, we
consider this to be an area where we can make a big impact by
collaborating and innovating with our suppliers. More details can be
found in the Climate change mitigation chapter.
TfS (of which we’ve been a member since 2013), is a procurement-
driven initiative that improves the sustainability performance of
chemical companies and their suppliers. The program is based on
the UN Global Compact and Responsible Care® principles. The TfS
sustainability assessments are performed by EcoVadis, a partner of
both TfS and AkzoNobel. EcoVadis has been rating our own
sustainability credentials (please refer to ESG ratings and
benchmarks in the Our approach to sustainability section), and many
of our suppliers, for a number of years. The assessment covers
topics in the areas of environment, labor and human rights, ethics
and sustainable procurement, based on international standards.
Suppliers in sustainability program
bar size indicates total number of suppliers
Meet our expectations
Under development
Not assessed/Lost validity
2023
2024
2025
Suppliers in this sustainability program are requested to achieve a
total score of 45 and a labor and human rights score of 50 through
an annual assessment. We’re proud to see a continuous increase in
the number of suppliers in the program achieving a score that meets
our expectations. Suppliers not yet meeting these thresholds are
shown as “under development” in the graph. Complementary to the
assessment, we perform third party TfS audits on selected supplier
sites in risk regions. In 2025, a total of 26 TfS site audits were
performed at our suppliers.
All suppliers have access to the TfS and EcoVadis academy with
dedicated courses on sustainability topics in multiple languages. In
2025, 382 suppliers completed 1,369 trainings in either of the two
academies (TfS or EcoVadis academy), or attended one of the live
webinar sessions presented by AkzoNobel experts. For more
information about our approach to human rights in our upstream
value chain, see the Workers in our value chain chapter.
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63%
67%
19%
17%
15%
73%
1,347
1,557
1,554
12%
16%
18%
For indirect suppliers, the TfS program already addresses the
sustainable procurement activities of our Tier 2 suppliers. In addition,
we have a human rights due diligence program to address potential
impacts on human rights in our value chain beyond our Tier 1
suppliers. More information can be found in the Statement on due
diligence under General disclosures.
As part of our approach to managing our relationship with suppliers,
we provide various sustainability trainings to our buyers. These
trainings are available via our SuccessFactors learning academy and
the TfS academy. In total, 100% of our buyers completed three or
more trainings in any of the formats.
Prevention and detection of bribery
and corruption
At AkzoNobel, we’re committed to conducting our business fairly,
transparently and with integrity. We don’t make, offer or authorize
bribes or conduct any other form of unethical business practice. We
believe in competing on the merits of our products.
Our policies related to anti-bribery and anti-corruption can be found
on our Policy Portal, which is accessible to our employees. The
regional Integrity and Compliance Managers provide support for
identifying and addressing local risks, and cooperating with the
business and functional teams to tailor the program to local risks and
follow up on internal audit findings and SpeakUp! cases.
Further background information on our anti-bribery and anti-
corruption program and the online training for employees can be
found in the Integrity and compliance chapter of this Report 2025.
Any alleged violation of our anti-corruption or anti-bribery rules and
procedures can be reported through our SpeakUp! process (as
previously described) which is then investigated by an independent
team.
Political engagement and lobbying activities
As a leading paints and coatings company, we participate in the
public debate about various topics within our industry. Collaborating
with stakeholders is fundamental to what we want to achieve. Our
lobbying activities and broader stakeholder engagement are guided
by our company strategy and governance and are based on material
impacts, including our approach to sustainability. Oversight for these
topics lies with the Communications function, reporting to the
Executive Committee. AkzoNobel representatives engage with
stakeholders globally – both directly and indirectly – via trade and
industry associations, as well as dedicated sustainability coalitions.
Our main topics are:
• Relationships with (local) governments and communities where the
company has operations. This includes identifying trends,
obligations and expectations in relation to our license to operate,
as well as sharing views in support of a competitive company and
industry
• Contribute to the green transition, for example by sharing expertise
about value chain carbon footprint reduction and how our
products enable others to become more sustainable
• Chemicals and environmental regulation, including sharing our
view on risk-based substance management as relevant for paints
and coatings products and manufacturing
• Innovation and R&D, in support of an innovation-friendly
environment
• International corporate social responsibility, promoting sustainable
business practices and policies
We have a global policy in place around donations and
sponsorships, rules and procedures. It states that we should not
promise, offer, give or authorize anything of value, directly or through
others, with the intent to improperly influence or reward a business
decision. The policy adds that all employees have a responsibility to
make decisions in the company’s best interest and to ensure that
our dealings with (business) partners are objective and not
influenced by donations or sponsorships. Our policy dictates that we
do not provide donations and/or sponsorships to organizations
owned, controlled by, associated with, or at the behest of
government officials.
For more information, see our position statements:
www.akzonobel.com/en/about-us/position-statements
Akzo Nobel N.V. is registered in the EU Transparency register: ID
number: 365563511941-15. Examples of collaborations can also be
found on our website: www.akzonobel.com/en/about-us/
collaborations
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SUSTAINABILITY PERFORMANCE SUMMARY1
Own workforce
ESRS 2
ESRS 2 General disclosures
Supervisory Board equal gender representation (percentage of female)
%
33
43
Own workforce
ESRS 2
ESRS 2 General disclosures
Board of Management equal gender representation (percentage of female)
%
0
0
Own workforce
ESRS 2
ESRS 2 General disclosures
Executive Committee equal gender representation (percentage of female)
%
20
11
Own workforce
ESRS 2
ESRS 2 General disclosures
Number of employees at executive level (top management)
Number
305
257
Own workforce
ESRS 2
ESRS 2 General disclosures
Female executives
%
22
26
25
26
27
30
Own workforce
ESRS 2
ESRS 2 General disclosures
Number of non-executive members
Number
9
7
Own workforce
ESRS 2
ESRS 2 General disclosures
Percentage of employees at top management level
%
1
1
Climate change
E1
E1-5
Total energy consumption related to own operations
MWh
905,814
844,508
843,146
847,081
826,606
Climate change
E1
E1-5
Non-renewable energy production
MWh
1,475
457
Climate change
E1
E1-5
Renewable energy production
MWh
9,708
12,642
18,077
20,042
26,660
Climate change
E1
E1-5
Energy intensity from activities in high climate impact sectors (total energy
consumption per net revenue)
MWh/€
0.00008
0.00008
Climate change
E1
E1-5
Total energy consumption from activities in high climate impact sectors
MWh
905,814
844,508
843,146
847,081
826,606
Climate change
E1
E1-5
Total energy consumption from fossil sources
MWh
475,835
440,448
Climate change
E1
E1-5
Total energy consumption from nuclear sources
MWh
11,092
9,821
Climate change
E1
E1-5
Total energy consumption from renewable sources
MWh
260,488
272,844
333,540
360,154
376,338
Climate change
E1
E1-5
Fuel consumption from renewable sources
MWh
1,562
1,603
Climate change
E1
E1-5
Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources
MWh
341,961
354,095
Climate change
E1
E1-5
Consumption of self-generated non-fuel renewable energy
MWh
8,759
11,139
15,957
16,631
20,641
Climate change
E1
E1-5
Fuel consumption from crude oil and petroleum products
MWh
36,516
27,431
Climate change
E1
E1-5
Fuel consumption from natural gas
MWh
270,391
253,859
246,523
239,643
235,947
Climate change
E1
E1-5
Fuel consumption from other fossil sources
MWh
0
0
Climate change
E1
E1-5
Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil
sources
MWh
199,676
177,070
Climate change
E1
E1-5
Percentage of fossil sources in total energy consumption
%
56
53
Climate change
E1
E1-5
Percentage of energy consumption from nuclear sources in total energy consumption
%
1
1
Climate change
E1
E1-5
Percentage of renewable sources in total energy consumption
%
29
32
40
43
46
Climate change
E1
E1-5
Net revenue from activities in high climate impact sectors
€ millions
10,711
10,158
Climate change
E1
E1-5
Net revenue from activities other than in high climate impact sectors
€ millions
0
0
Climate change
E1
E1-6
Net revenue2
€ millions
10,711
10,158
Climate change
E1
E1-6
Net revenue used to calculate GHG intensity
€ millions
10,711
10,158
Climate change
E1
E1-6
GHG emissions intensity, location-based (total GHG emissions per net revenue)
tCO2eq/€
0.00126
0.00122
Chapter
ESRS
DR
Metric name
Unit of
measurement
2021
2022
2023
2024
2025
Target 2030
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1 All data points with no data before 2024 are newly reported data points resulting from the implementation of CSRD, with no availability of historical reliable and/or comparative data.
2 This reconciles to revenue as included in the Consolidated statement of income of the Financial statements.
Climate change
E1
E1-6
GHG emissions intensity, market-based (total GHG emissions per net revenue)
tCO2eq/€
0.00125
0.00121
Climate change
E1
E1-6
Percentage of Scope 1 GHG emissions from regulated emission trading schemes
%
0
0
Climate change
E1
E1-6
Percentage of contractual instruments used for purchase of energy bundled with
attributes about energy generation in relation to Scope 2 GHG emissions
%
28
41
Climate change
E1
E1-6
Percentage of contractual instruments used for purchase of unbundled energy
attribute claims in relation to Scope 2 GHG emissions
%
35
26
Climate change
E1
E1-6
Percentage of contractual instruments, Scope 2 GHG emissions
%
63
67
Climate change
E1
E1-6
Percentage of GHG Scope 3 calculated using primary data
%
5
14
19
Climate change
E1
Other disclosures
Total energy consumption per ton of production
KWh/t
271
272
253
251
248
2203
Climate change
E1
Other disclosures
Renewable electricity (own operations)
%
45
50
62
65
69
100
Pollution
E2
E2-5
Total amount of substances of very high concern that are generated or used during
production or that are procured
Metric ton
23,234
22,946
Pollution
E2
E2-5
Total amount of substances of very high concern that leave our facilities
Metric ton
6,037
Water and marine
resources
E3
E3-4
Total water consumption in areas at water risk, including high water stress areas
m3
402,782
698,484
Circular economy
E5
E5-4
The % of post-consumer recycled (PCR) content in plastic packaging Decorative
Paints Europe
%
43
53
50 (by 2025)
Circular economy
E5
E5-4
Post-consumer recycled (PCR) content in plastic packaging Decorative Paints Europe
Metric ton
6,754
6,321
Circular economy
E5
E5-5
Total waste generated
Metric ton
96,910
95,646
Circular economy
E5
E5-5
Total amount of hazardous waste
Metric ton
51,295
48,224
Circular economy
E5
E5-5
Hazardous waste diverted from disposal
Metric ton
35,231
32,597
Circular economy
E5
E5-5
Hazardous waste directed to disposal
Metric ton
16,065
15,628
Circular economy
E5
E5-5
Non-hazardous waste directed to disposal
Metric ton
13,546
12,196
Circular economy
E5
E5-5
Non-hazardous waste diverted from disposal
Metric ton
32,068
35,226
Circular economy
E5
E5-5
Hazardous waste directed to disposal by incineration (W2)
Metric ton
12,567
11,874
Circular economy
E5
E5-5
Non-hazardous waste directed to disposal by incineration (W5)
Metric ton
9,568
8,507
Circular economy
E5
E5-5
Hazardous waste directed to disposal by landfilling (W1)
Metric ton
190
92
Circular economy
E5
E5-5
Non-hazardous waste directed to disposal by landfilling (W4)
Metric ton
2,352
2,239
Circular economy
E5
E5-5
Hazardous waste directed to disposal by other disposal operations (W3)
Metric ton
3,307
3,662
Circular economy
E5
E5-5
Non-hazardous waste directed to disposal by other disposal operations (W6)
Metric ton
1,625
1,450
Circular economy
E5
E5-5
Hazardous waste diverted from disposal by recycling (W7)
Metric ton
24,546
21,674
Circular economy
E5
E5-5
Non-hazardous waste diverted from disposal by recycling (W8)
Metric ton
25,619
26,373
Circular economy
E5
E5-5
Hazardous waste diverted from disposal by other recovery operations (W9)
Metric ton
10,684
10,923
Circular economy
E5
E5-5
Non-hazardous waste diverted from disposal by other recovery operations (W10)
Metric ton
6,449
8,853
Circular economy
E5
E5-5
Non-recycled waste
Metric ton
46,744
47,599
Circular economy
E5
E5-5
Percentage of non-recycled waste
%
48
50
Circular economy
E5
E5-5
Expected durability of the products placed on the market, in relation to the industry
average for each product group as % of revenue
%
13.3
14.1
Circular economy
E5
Other disclosures
Circular use of materials in our own operations
%
58
54
55
74
75
100
Chapter
ESRS
DR
Metric name
Unit of
measurement
2021
2022
2023
2024
2025
Target 2030
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3 Baseline for total energy efficiency as of 2018 is 275 KWh/t.
Own workforce
S1
S1-6
Total number of employees (headcount)
Number
35,327
32,171
Own workforce
S1
S1-6
Total number of employees - China
Number
4,278
4,156
Own workforce
S1
S1-6
Percentage of total number of employees - China
%
12
13
Own workforce
S1
S1-6
Percentage of female employees - China
%
27
Own workforce
S1
S1-6
Percentage of male employees - China
%
73
Own workforce
S1
S1-6
Average number of employees
Number
35,427
31,185
Own workforce
S1
S1-6
Total employee turnover rate
%
13
12
11
Own workforce
S1
S1-6
Total employee turnover in headcount
Number
4,657
4,410
3,622
Own workforce
S1
S1-6
Voluntary employee turnover rate
%
7.0
6.5
5.9
Own workforce
S1
S1-6
Voices - employee score on workload
Number
3.8
3.8
3.9
Own workforce
S1
S1-8
Percentage of total employees covered by collective bargaining agreements
%
40
40
Own workforce
S1
S1-8
Percentage of employees covered by collective bargaining agreements are within
coverage rate by country (in the EEA)
%
62
62
Own workforce
S1
S1-8
Percentage of own employees covered by collective bargaining agreements (outside
EEA) by region: South APAC
%
28
28
Own workforce
S1
S1-8
Percentage of own employees covered by collective bargaining agreements (outside
EEA) by region: EMEA
%
59
56
Own workforce
S1
S1-8
Percentage of own employees covered by collective bargaining agreements (outside
EEA) by region: LATAM
%
56
60
Own workforce
S1
S1-8
Percentage of own employees covered by collective bargaining agreements (outside
EEA) by region: North America
%
11
9
Own workforce
S1
S1-8
Percentage of own employees covered by collective bargaining agreements (outside
EEA) by region: North Asia
%
4
4
Own workforce
S1
S1-8
Percentage of employees in country (EEA) covered by collective bargaining
agreement
%
60
62
Own workforce
S1
S1-8
Percentage of employees in country (Non-EEA) covered by collective bargaining
agreement
%
26
27
Own workforce
S1
S1-14
Percentage of people in own workforce who are covered by health and safety
management system based on legal requirements and (or) recognized standards or
guidelines
%
100
100
Own workforce
S1
S1-14
Number of fatalities in own workforce as a result of work-related injuries and work-
related ill health
Number
1
0
0
1
0
Own workforce
S1
S1-14
Number of fatalities as a result of work-related injuries and work-related ill health of
other workers working on undertaking’s sites
Number
0
0
0
0
0
Own workforce
S1
S1-14
Number of recordable work-related accidents for own workforce
Number
75
81
110
107
105
Own workforce
S1
S1-14
Rate of recordable work-related accidents for own workforce
Number
1.07
1.18
1.53
1.46
1.49
Own workforce
S1
S1-14
Number of cases of recordable work-related ill health of employees
Number
1
1
0
2
4
Own workforce
S1
S1-14
Number of days lost to work-related injuries and fatalities from work-related
accidents, work-related ill health and fatalities from ill health related to employees
(capped at 180 days)
Number
1,550
2,081
Own workforce
S1
S1-16
Gender pay gap4
%
(3.8)
(3.1)
Chapter
ESRS
DR
Metric name
Unit of
measurement
2021
2022
2023
2024
2025
Target 2030
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4 Negative values indicate a gap in favor of women
Own workforce
S1
S1-17
Number of complaints filed to National Contact Points for OECD Multinational
Enterprises
Number
0
0
Own workforce
S1
S1-17
Number of severe human rights issues and incidents connected to own workforce
Number
0
0
Own workforce
S1
S1-17
Amount of material fines, penalties, and compensation for severe human rights issues
and incidents connected to Own workforce
Number
0
0
Own workforce
S1
Other disclosures
Serious injuries and fatalities frequency of employees and temporary workers (SIF-F)
Number
2.9
1.5
1.4
1.4
0.0
<3.0
Own workforce
S1
Other disclosures
Life-changing injuries of employees and temporary workers
Number
2
1
1
1
0
Own workforce
S1
Other disclosures
Training hours per employee
Number
2.54
3.76
Own workforce
S1
Other disclosures
Percentage of employees who participated in regular performance reviews
%
95
96
95
Own workforce
S1
Other disclosures
Voices - Overall employee engagement index
Number
4.0
4.0
4.0
Own workforce
S1
Other disclosures
Voices - Employee net promoter score (eNPS)
Number
11
10
16
Own workforce
S1
Other disclosures
Voices - Participation rate
%
89
89
90
Workers in value chain S2
Other disclosures
Number of surveys sent on minerals
Number
310
292
Workers in value chain S2
Other disclosures
Mineral survey response rate (%)
%
80
92
91
Workers in value chain S2
Other disclosures
Suppliers meeting the threshold for labor and human rights score in EcoVadis
%
71
75
Workers in value chain S2
Other disclosures
Number of individuals from suppliers attending webinars on risk materials
Number
65
114
Workers in value chain S2
Other disclosures
TfS on-site audits currently valid (absolute number)5
Number
305
303
422
Business conduct
G1
Other disclosures
Suppliers in sustainability program: Under development
%
24
19
17
15
Business conduct
G1
Other disclosures
Suppliers in sustainability program: Meet our expectations
%
52
63
67
73
75
Business conduct
G1
Other disclosures
Suppliers in sustainability program: In program
%
77
82
84
88
Chapter
ESRS
DR
Metric name
Unit of
measurement
2021
2022
2023
2024
2025
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5 Number of TfS audits including re-audits that have been requested by us or other TfS members. The validity of the performed audits is 3 years.
ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d)
Yes
Mandatory disclosure
Corporate governance statement
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)
Yes
Mandatory disclosure
Corporate governance statement
ESRS 2 GOV-4 Statement on due diligence paragraph 30
Yes
Mandatory disclosure
General disclosures
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i
No
Mandatory disclosure
Not applicable
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii
Yes
Mandatory disclosure
General disclosures
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii
No
Mandatory disclosure
Not applicable
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv
No
Mandatory disclosure
Not applicable
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14
Yes
Yes
Climate change
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)
Yes
Yes
Climate change
ESRS E1-4 GHG emission reduction targets paragraph 34
Yes
Yes
Climate change
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38
Yes
Yes
Climate change
ESRS E1-5 Energy consumption and mix paragraph 37
Yes
Yes
Climate change
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43
Yes
Yes
Metrics table
ESRS E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions paragraph 44
Yes
Yes
Climate change
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55
Yes
Yes
Climate change
ESRS E1-7 GHG removals and carbon credits paragraph 56
No
No
Not applicable
ESRS E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities
No
Yes
Subject to phase-in
ESRS E2-4 Amount of each pollutant listed in Annex II of the EPRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28
No
No
Not applicable
ESRS E3-1 Water and marine resources paragraph 9
Yes
Only for water consumption
in high water stress areas
Water and marine resources
ESRS E3-1 Dedicated policy paragraph 13
No
No
Not applicable (Policy covers all
sites)
ESRS E3-1 Sustainable oceans and seas paragraph 14
No
No
Not applicable
ESRS E3-4 Total water recycled and reused paragraph 28 (c)
No
No
Not applicable
ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29
No
No
Not applicable
ESRS 2- SBM-3 - E4 paragraph 16 (a) (Biodiversity sensitive areas exposure)
No
No
Not applicable
ESRS 2- SBM-3 - E4 paragraph 16 (b) (Biodiversity land degradation, soil and desertification)
No
No
Not applicable
ESRS 2- SBM-3 - E4 paragraph 16 (c) (Biodiversity threatened species)
No
No
Not applicable
ESRS E4-2 Sustainable land/agriculture practices or policies paragraph 24 (b)
No
No
Not applicable
ESRS E4-2 Sustainable oceans/seas practices or policies paragraph 24 (c)
No
No
Not applicable
ESRS E4-2 Policies to address deforestation paragraph 24 (d)
No
No
Not applicable
ESRS E5-5 Non-recycled waste paragraph 37 (d) (the total amount and percentage of non-recycled waste)
Yes
Yes
Circular economy - Waste
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39
Yes
Yes
Circular economy - Waste
ESRS 2- SBM-3 - S1 Risk of incidents of forced labor paragraph 14 (f)
Yes
No
General disclosures
ESRS 2- SBM-3 - S1 Risk of incidents of child labor paragraph 14 (g)
Yes
No
General disclosures
ESRS S1-1 Human rights policy commitments paragraph 20
Yes
No
General disclosures
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 21
Yes
No
General disclosures
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22
Yes
No
General disclosures
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23
Yes
Yes
Own workforce (Safety)
EU legislation disclosure
Disclosure requirement
Included in Report 2025
Material in 2025
Chapter in Report 2025
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ESRS S1-3 Grievance/complaints handling mechanism
Yes
No
Integrity and compliance
management; Governance
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)
Yes
Yes
Own workforce (Safety)
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)
Yes
Yes
Metrics table
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)
Yes
No
Own workforce (Gender pay gap
and total compensation)
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)
Yes
No
Remuneration report
ESRS S1-17 Incidents of discrimination paragraph 103 (a)
Yes
No
Own workforce
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)
Yes
No
General disclosures
ESRS 2- SBM-3 – S2 Significant risk of child labor or forced labor in the value chain paragraph 11 (b)
Yes
No
General disclosures
ESRS S2-1 Human rights policy commitments paragraph 17
Yes
No
General disclosures
ESRS S2-1 Policies related to value chain workers paragraph 18
Yes
Yes
Workers in our value chain
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19
Yes
No
General disclosures
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 19
Yes
No
General disclosures
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36
Yes
No
General disclosures
ESRS S3-1 Human rights policy commitments paragraph 16
No
No
Not applicable
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17
No
No
Not applicable
ESRS S3-4 Human rights issues and incidents paragraph 36
No
No
Not applicable
ESRS S4-1 Policies related to consumers and end-users paragraph 16
No
No
Not applicable
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17
No
No
Not applicable
ESRS S4-4 Human rights issues and incidents paragraph 35
No
No
Not applicable
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)
No
No
Not applicable (Policy available)
ESRS G1-1 Protection of whistleblowers paragraph 10 (d)
No
No
Not applicable (Policy available)
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)
No
No
Not applicable
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)
No
No
Not applicable
EU legislation disclosure
Disclosure requirement
Included in Report 2025
Material in 2025
Chapter in Report 2025
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METHODOLOGY AND DEFINITIONS
The methodology and definition descriptions below are included to
provide supplementary information on reported metrics. For further
details on reported metrics and definitions, we refer to the European
Sustainability Reporting Standards (ESRS).
Definitions
Environmental
Comparative
durability
The comparative durability of our products is
determined by using the metric “Products that are
longer-lasting compared with the industry average”.
The way we define longer-lasting differs per segment.
We compare the longer-lasting aspects of our
product versus the mainstream product in the market
for that category as a proxy for “industry average”, as
explained in the Reporting processes and
methodology in this chapter.
Direct CO2eq
emissions
(Scope 1)
The total greenhouse gas emissions from processes
and combustion at our facilities and indirect
emissions from purchased energy in absolute
measures (Mt CO2eq) and kg CO2eq per ton of
production.
We apply company established emission factors to
calculate carbon emissions, which are: Natural gas:
1,885g GHG/m³; Fuel oil: 3,101 kg/metric ton; LPG:
2,985 kg/metric ton; Other fossil fuels: 202 kg/MWh.
Hazardous
waste
Hazardous waste is waste that’s classified and
regulated as such according to the national, state,
provincial or local legislation in place. Locations in
countries where no appropriate legislation exists
should consult their regional HSE&S manager for
advice on hazardous waste classification of the
different types of waste generated.
Indirect CO2eq
emissions
(Scope 2)
Emissions from transport in our own operations is
very limited and therefore not material compared with
our other emissions for Scopes 1 and 2. As transport
is not material to Scopes 1 and 2, these exclude
transport. We measure and report CO2eq in line with
the GHG Protocol. We apply country emission factors
licensed through the International Energy Agency
(IEA) to calculate carbon emissions from purchased
electricity from grid suppliers. For 2025, we used the
IEA 2022 emission data set, which was released by
IEA in 2024. For the purchased steam and hot water
(limited use), we apply a standard company
established conversion factor of 202 kg/MWh. The
other gases from the GHG Protocol are considered
immaterial and not actively measured. For Scope 2,
we make a distinction between market-based and
location-based.
Percentage
circular use
of materials
The amount of materials reused by AkzoNobel and
third parties (waste diverted from disposal, slow-
moving and obsolete materials (SLOB) sold to
preferred outlets for remanufacturing/reuse/
repurpose and by-products) divided by the sum of
total waste, by-products and SLOB (percentage).
Percentage
renewable
electricity
Percentage of renewable electricity used in our
operations. Renewable electricity is electricity that’s
generated from inexhaustible resources, such as
wind, solar, hydro, biomass and tidal. Expressed as
the share of total renewable electricity (own
generated, plus imported from grid) AkzoNobel uses
in its own operations relative to the total electricity
consumption.
Scope 3
emissions
Scope 3 emissions comprise all other indirect
greenhouse gas emissions arising from activities
across our value chain that are not included in
Scope 2. These emissions originate from both
upstream and downstream processes outside of our
own operations. As defined by the Greenhouse Gas
Protocol’s Corporate Value Chain (Scope 3)
Standard, these categories capture emissions
outside our direct operational control, but involve
products and activities throughout the value chain.
For detailed calculation, please refer to Scope 3
reporting in the following Reporting processes and
methodology chapter.
Substances
of Very High
Concern
(SVHC)
The total quantity of SVHCs that are sourced and
leave our facilities as products – calculated based on
combining sourcing volume and sales volume of raw
materials and products containing the SVHC, based
on the relevant CAS numbers.
Total waste
Total waste in absolute measures (kilotons) and kg
per ton of production. Waste is reported as total
weight, not dry weight. Waste is any material arising
from our routine operations which is not incorporated
into final products and not directly released to
atmosphere or direct to surface water.
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Social
Business
Partner Code
of Conduct
Explains what we stand for as a company, what we
value and how we run our business. It brings our core
values of safety, integrity and sustainability to life and
shows what they mean in practice.
Code of
Conduct
Defines our core values and how we work;
incorporates fundamental principles on issues such
as business integrity, labor relations, human rights,
health, safety, environment and security and
community involvement.
Employee
turnover rate
Rate of leavers compared with total employees at the
end of the year. Leavers include the voluntary leavers
(early retirement, resignation, termination) and
involuntary leavers (dismissal, end of contract, mutual
agreement, retirement, death) and excludes leavers
due to restructuring.
Executives
(top
management)
Executive level includes all employees with an
executive employee grade at AkzoNobel and its
subsidiaries, including the members of the Executive
Committee who are not members of the Board of
Management.
Female
executives
Percentage of women at executive level.
Full-time
equivalent
(FTEs)
FTEs include the following classes: global assignees,
regular employees and trainees.
Key talent
Key talent refers to employees rated as high potential
(high performance and high potential), high performer
(high performance and medium potential), or solid
potential (medium performance and high potential) in
the Talent Assessment, following the nine-box grid
methodology.
Life-changing
injuries
The number of life-changing injuries of our own
employees and temporary workers. Injuries that are
considered life-changing include (but are not limited
to): fatalities; coma; some level of permanent disability
(including loss of sight or hearing); organ removal; the
requirement for ongoing multiple surgeries; lingering
trauma; any amputation of digits or limbs; skin grafts
and the insertion of plates, pins or screws.
Overall
employee
engagement
index and
employee net
promoter
score (eNPS)
Work engagement is defined as the employee’s
approach to their workplace. It’s the level of
commitment to the organization’s goals and values,
and the motivation to contribute to organizational
success with an enhanced sense of well-being.
eNPS stands for employee net promoter score. It’s a
universal way of measuring employee satisfaction and
engagement. eNPS is measured using one question:
“How likely is it that you would recommend your
employer to a friend or acquaintance?” It’s the only
question in the survey for which the answer options
range from 0 to 10, not 1 to 5 (with 10 indicating
“Extremely likely” and 0 indicating “Not at all likely”).
The purpose of eNPS is to get a quick overview of
employee satisfaction. Employees who give a rating
of 9 or 10 are defined as Promoters, while ratings of
7 or 8 are Passives and ratings of 0-6 are defined as
Detractors.
The eNPS is calculated as follows:
eNPS = % Promoters - % Detractors.
Serious
injuries
and fatality
frequency
The number of life-changing injuries of our own
employees and temporary workers per 100,000,000
(100 million) hours worked.
In the Social chapter, we show the annual
performance. This KPI is relevant for AkzoNobel long-
term incentives only and is measured against a three-
year average.
Suppliers
identified for
Sustainability
program
Number of suppliers who have been identified based
on their risk score and spend level to participate in
our Sustainability program (baseline).
Suppliers in
sustainability
program –
meeting our
expectations
Number of suppliers who meet our expectations in
the EcoVadis assessment (in % of baseline as
indicated under Management of relationships with
suppliers in the Business conduct section): 45 total
score and human rights and labor score of 50.
Suppliers in
Sustainability
program –
under
development
Suppliers who have performed the EcoVadis
assessment, but who don’t yet meet our
expectations. Suppliers have three years to reach the
minimum EcoVadis scores (see Suppliers meeting our
expectations).
Together for
Sustainability
(TfS) audits
On-site examination by an independent third party
auditor looking at relevant sustainability practices.
Sustainability performance is verified against a
defined set of audit criteria on Management,
Environment, Health and Safety, Labor and Human
Rights, and Governance issues. These topics have
been defined by TfS and are tailored to the
requirements of the chemical industry.
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Governance
Government
officials
• An officer or employee of any government,
department, agency, bureau, authority, or state-
owned or state-controlled entity
• Acting in an official capacity for, or on behalf of, any
government, department, agency, bureau,
authority, or state-owned or state-controlled entity
• An official, employee, or person acting on behalf of
a government-sponsored or public international
organization, such as the European Union, the
United Nations or the World Bank
• Holding a legislative, administrative, executive, or
judicial position, whether appointed or elected; a
political candidate
• An officer or employee of a political party; a
member of a royal family; or a family member of, or
otherwise closely associated with (whether family or
personal), any of the foregoing
Some examples of government officials are public
servants, public officials, administrators, police
officers, military, judges, public prosecutors, tax or
customs officials, employees in state companies,
local politicians, political parties, political officials or
candidates for political office, members of the royal
family, mayors and city council members.
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Reporting processes and methodology
Environmental
HSE&S Suite (Enablon)
Each designated environmental location reports their environmental
data monthly via the HSE&S Suite, based on local source
documentation such as meter readings and invoices. The HSE&S
manual includes detailed reporting guidance. The data is authorized
at site, regional and business level and is reviewed by the HSE&S
global team.
Renewable electricity (from grid)
Locations enter their electricity imported from the grid in the HSE&S
Suite. In cooperation with our Procurement department, we assign
the percentage of renewable electricity from suppliers to our
locations, based on the RE100 criteria. The assigned percentage
follows RE100 guidance in which renewable electricity consumption
claims are made, based on the actions that companies take to
purchase or produce the renewable electricity they consume. This
list is maintained in the HSE&S Suite as a basis for calculation and is
validated every year to enable us to make a distinction between
market-based versus location-based CO2 method.
Percentage PCR in plastic packaging
The percentage of recycled content is calculated based on actual
volumes, with a forecast for the last two months for the selected
MSU, MU or region from the demand organization. The weight is
split between virgin plastic and post-consumer recycled (PCR)
plastic, based on the documentation provided by our suppliers.
A check is then performed by our packaging experts. This is a
manually-intensive process, which includes dependency on
suppliers’ information.
Methodology portfolio comparative durability assessment
For many years, AkzoNobel has analyzed its full product
portfolio using the method of SPPA: Sustainable Product
Portfolio Assessment. We’ve phased out the overarching SPPA
metric of Sustainable solutions with the implementation of CSRD.
We continued to use this portfolio analysis tool in 2024 and 2025
to determine certain aspects of our products. One of the categories
we use to analyze our product portfolio is the longer-lasting
category, which measures the durability of the product versus the
industry average. The industry average refers to the mainstream
product in the market per product category with similar functional
effects at the time of the assessment. It’s also important to note that
the inherent protective benefits of our products also feed into
assessing our comparative durability metric. Where applicable, for
example where we are market leader, our own mainstream product
is used as a proxy for the “industry average” to assess our durability.
We believe the SPPA tool continues to serve as a helpful
assessment of comparative durability and also serves as a
sufficiently reliable data source meeting the current CSRD reporting
requirements.
In 2025, we continued to use the SPPA assessment performed in
2024 by the business unit teams using a company-wide
methodology. We’ve actualized the 2024 assessment with 2025
revenue data. We believe that the assessment performed in 2024
serves a multi-year purpose in the absence of alternative
methodologies and given that no industry standard is available.
We also believe the year-on-year changes we made in our overall
portfolio did not have a significant material impact on our longer-
lasting metric. We therefore consider the assessment performed in
2024 as the best available estimate of our comparative durability.
A classification for durable/longer-lasting, compared with the
industry average, should be justified quantitatively. We do this, for
example, by the use of lifecycle assessment, company tool, a
standard industry test or company measurement, or qualitatively by
written justification. The outcomes are verified at business unit level
and reviewed by an internal sustainability specialist. Financial data
used in this template is collected from business financial systems,
with revenue per business unit being the main financial data used for
the durability percentage calculation.
Procurement systems and databases
Business Partner Code of Conduct
We use a business spend management platform to collect Business
Partner Code of Conduct (BP CoC) signatures for our suppliers. The
progress on signed BP CoC declarations across AkzoNobel is
reported on a monthly basis. All suppliers with purchases over
€1,000 annually must sign the BP CoC or confirm in writing that it
has equivalent business principles in place.
All data on suppliers covered by the BP CoC are consolidated at
corporate level with the percentage of spend covered extracted from
master spend data. It’s reviewed at corporate level.
Together for Sustainability (TfS)
• EcoVadis assessment (online)
• TfS audit (on-site inspection)
The number of suppliers covered by assessments and audits is
collected and extracted from the EcoVadis and TfS online platform.
It’s reviewed and assessed at corporate level.
The EcoVadis assessment is a key component of our supplier
evaluation process for product related and non-product related
suppliers, and logistics providers. In scope are suppliers with an
annual spend exceeding €250,000, those who work in a risk
category or country, or have an annual spend above €1 million,
irrespective of their risk rating. Suppliers with a total EcoVadis score
<45 and human rights and labor score <50 are required to perform
an annual re-assessment until the target score is reached.
The TfS audit is focused on important suppliers based on their
location (risk country) and the type of industry.
TfS Product Carbon Footprint (PCF) exchange solution
We use the TfS PCF exchange solution featured by SiGREEN to
collect product carbon footprint according to the TfS PCF guideline
from our suppliers.
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Human rights due diligence
We make use of third party survey capabilities to collect supplier
responses as part of our human rights due diligence process.
Scope 3 reporting
Scope 3 carbon emissions methodology
Our carbon footprint in tons of CO2eq including Scope 1 (own
operations), Scope 2 (energy consumption) and Scope 3 (upstream
and downstream).
The footprint includes the six main greenhouse gases defined in the
Greenhouse Gas Protocol. Our Scope 3 target relates to four
material categories:
• Upstream: Category 1 (Purchased goods and services, including
packaging)
• Downstream: Category 10 and 11 (Application and use of sold
products), VOC emissions; and Category 12 (End-of-life)
The climate change impact of VOC emissions is included in the
cradle-to-grave footprint, due to the impact VOC emissions have
within the paints and coatings industry.
We assess our cradle-to-grave carbon footprint annually in
accordance with the Greenhouse Gas Protocol Corporate Value
Chain Accounting and Reporting standard and the World Business
Council for Sustainable Development Chemical Sector Working
Group Guidelines. Cradle-to-grave includes Scopes 1 and 2 and
Scope 3 upstream and downstream emissions. The results are given
in metric tons of carbon dioxide equivalents, independent of any
GHG trades, such as purchases, sales, or transfers of offsets or
allowances.
In line with the GHG protocol, the CO₂eq quantities calculated for
these categories (1, 10, 11, 12 and VOCs), are included in the
Scope 3 data reported. The other categories are not included,
based on the fact that these categories include a small amount of
CO₂eq for AkzoNobel as a whole and are therefore considered
immaterial.
VOC emissions for Processing and use of sold products, although
not mentioned as a separate category in the GHG protocol, has
been included as an additional category because VOC emissions
take up a significant part of the downstream emissions for the
majority of our products and, as a result, a significant amount of the
carbon emissions as a whole.
Inclusion of associates
Associates don’t have a material impact on our Scope 3 reporting.
Approach to incorporating growth
Our approach to incorporating inorganic growth is captured in our
internal re-baselining policy, which states that any acquisition
impacting our Scope 3 by more than 5% triggers a baseline
adjustment and will be disclosed in our annual report. Any impacts
below the 5% threshold are for management discretion. A baseline
adjustment was reported, for example, with the Grupo Orbis
acquisition, for which we disclosed the re-baselining exercise impact
in our Report 2023. Inorganic growth is currently not captured in our
reduction pathway, but will be compensated and absorbed by the
different segments.
Category 1. Purchased goods and services (incl. packaging)
Each of the purchased raw materials is matched with the CO₂eq/kg
related factors of that material, extracted from the CEPE and
EcoInvent databases, taking into consideration the concentration of
water, solids and solvents. These databases are updated on a
regular basis, ensuring up-to-date kgCO₂eq/kg factors for each of
the raw materials used. Supplier data for the Product Carbon
Footprint (PCF) can be used to overrule the database (CEPE and
EcoInvent) carbon footprint calculation for specific raw materials.
Overruling of the database carbon footprint calculation is only
performed when the PCF data complies with the GHG protocol and
is approved internally, which requires involvement from the
Procurement and Sustainability teams to assess if the data is of
sufficient quality. The PCF numbers provided by our suppliers are
reviewed annually.
Packaging materials are not currently included in our purchased
goods and services database and are therefore calculated
separately. The amount of CO₂eq/kg related to packaging per kg of
sold product is fixed for each business unit. These data points are
validated by each BU annually.
Category 10 and 11. Processing of sold products and use of
sold products
For paints, processing and use of sold products is not reported,
since there’s no energy consumed for curing of these products, and
therefore assumes no energy consumption or other relevant carbon
dioxide emissions in the application and use phase.
For coatings, for each key value chain (KVC), the power use (MJ) per
kg of sold product and natural gas use (MJ) per kg of sold product,
and average share of VOC incineration versus open release in
application are included in the use-phase models for our segments.
These values are multiplied by the sales volumes per KVC to
calculate the Category 10 and 11 carbon emissions.
Emission factors for power use and natural gas for all products are
assumed to be equal. The CO₂eq/kg factor for power use (kg/MJ) is
based on the IEA world average. The CO₂eq/kg factor for natural
gas (kg/MJ) is taken from DEFRA: Conversion Factors 2025 Full set
for advanced users.
In addition, the emissions caused by VOC incineration in the curing
processes was added to the application and use stage. VOC carbon
content identified based on the raw materials and procurement
database was matched with the VOC incineration scenario per
business unit. Due to the considerations outlined above,
categories 10 and 11 are reported together as one combined figure
in this Report 2025.
In prior years, we updated the KVC models for our Powder Coatings
business, part of Industrial Coatings, and our Automotive and
Specialty Coatings business. The background and impact is
included in previous annual reports. In 2025, we continued to update
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the KVC model for part of our Industrial Coatings business, which
didn’t have a material impact on our Scope 3 emissions.
Category 10 and 11 A. VOC emissions from processing and
use of sold products
Volatile organic compounds (VOCs) are emitted as gases from
certain solids or liquids, for example from solvent-based paints.
Based on IPCC 2013 data, the CO₂eq/kg factor for VOCs is set by
the European Commission (PEF method) at 4.23kg CO₂eq/kg of
VOCs.
All VOCs in raw materials are released in application and are either
emitted to the atmosphere or captured and incinerated. The
incineration of VOCs is included in the carbon footprint of Category
11 and 12 emissions. For all BUs, the share of VOCs released in
application and use are calculated based on the weighted average of
the VOCs procured and released to the atmosphere in each
considered KVC of the business unit.
Category 12. End-of-life treatment of sold products
For all segments, KVCs indicate the share of raw material reaching
end-of-life as part of a product was identified as the mass of the raw
material not lost in application and use through release or
incineration of VOCs.
Primary data used to determine the end-of-life are the purchased
goods database and the sales breakdown for each KVC. The
material codes were used to identify fossil and biogenic carbon
content of the raw materials not attributed to VOC solvents. The
fossil carbon content is multiplied by the factor 3.67, based on the
molecular mass of CO2 (44) and atom of carbon (12).
Locked-in emissions are taken into account in our Scope 3
calculations.
Social
The Sustainability section of this Report 2025 provides details on the
following themes and indicators:
Employee indicators
HR Data Management system (SuccessFactors)
SuccessFactors is our global HR system for managing employee
data, including talent and performance management, recruitment
and learning data. The system stores a range of personal and job
information, including gender, age, region, management line, salary,
job history, etc. SuccessFactors is a real-time system running our
processes and forms the basis of monthly or quarterly internal
reporting, as well as external HR reporting.
Data is entered and authorized at defined levels in country and
business organizations. There are monthly data checks for some
aspects, while data quality is being improved. Talent information is
updated annually following the end of year review process.
External reporting is managed by the HR reporting and analytics
manager, based on defined management reports. Output is
reviewed and audited at AkzoNobel HR corporate level. Crunchr, our
HR people analytics tool, is used for data visualization and analytics
on the source data derived from SuccessFactors.
In line with annual report disclosures under CSRD requirements, we
report information on a global scope, at year-end, in headcount.
Characteristics of employees in our own workforce
When reporting on our employees, we include our employees as
aligned with FTE reporting in our Financial statements (refer to Note
6 in our Financial statements) per December 31, 2025. No
estimation is applied for our employee workforce, as all data points
are actual. Data is extracted from Crunchr, and is updated twice a
month with a data feed from SAP SuccessFactors, our core HR
solution.
All people in our workforce that can be materially impacted are
included in scope for our disclosures as required under ESRS 2.
Gender pay gap
When reporting the Gender pay gap, we follow the CSRD mandated
definition, which is the difference of average pay levels between
female and male employees, expressed as a percentage of the
average pay level of male employees.
Pay levels consist of base salary, bonuses (STI/SFI and LTI) and
allowances. The base salary is considered for a representative
month, and is taken from our HR data management system. For
bonuses (actual) and allowances (estimate), payroll data for a
representative month is used. We use an estimation for allowances
due to a lack of detailed information at central reporting level. We
extrapolate the full allowance based on locally applicable allowances
in our top five countries (China, Germany, the Netherlands, UK and
US), covering approximately 55% of our total base salary cost. The
impact of allowances on total pay levels is not material.
Health and safety indicators
Reporting process
Each location reports its health and safety data on a monthly basis
via the HSE&S Suite (Enablon). The HSE&S manual includes detailed
reporting guidance. This includes performance data and progress
against company programs. The data is authorized at local and
regional level and internally reviewed and (partially) externally assured
at AkzoNobel corporate level. Locations cover the employee
population at all our premises, including manufacturing sites, offices,
stores/sales offices, etc.
HSE&S Audit summary
HSE&S Audits
The Global Audit and Compliance Manager monitors progress
against an annual plan. Results are reviewed and authorized at
AkzoNobel regional and corporate level, then reported to business
managers, the HSE&S leadership group and Audit Committee.
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METHODOLOGY AND DEFINITIONS
AkzoNobel Report 2025
AKZONOBEL CARES
For many years, our various social programs have been
demonstrating to the world that AkzoNobel cares. People
and communities across the globe benefit from the initiatives
and programs under our AkzoNobel Cares umbrella,
including “Let’s Colour”, the Pintuco Foundation, Coral
Institute and the Education Fund through our long-standing
partnership with Plan International.
Local employee volunteers from AkzoNobel work closely with
partners to transform communities and make a positive impact. As
part of our key sustainability ambitions, we aimed to empower more
than 100,000 community members with new skills by 2030. During
the course of 2024, we achieved this ambition, six years ahead of
the original planning. Despite our target being achieved, we continue
to progress with our social programs, to benefit people and
communities around the world.
Through our social programs, we’re able to positively impact lives
and communities in markets where we’re present, making the most
of our people and products. By using our decorative paints, many of
our social programs help to inspire, uplift and re-energize
communities, mainly through our global “Let’s Colour” initiative.
Thanks to the expertise of our people, we’re also actively educating,
mentoring and training future generations, making it possible for
them to broaden their expertise and improve their employment
opportunities.
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CASE STUDY: PEOPLE AND SOCIETY
AkzoNobel Report 2025
To mark the 60th anniversary of the TEB Cooperative Group in Spain, our
Bruguer brand partnered with art collective Boa Mistura to transform the TEB
Bellvitge Occupational Center into a vibrant symbol of community and
creativity. With the help of 60 AkzoNobel volunteers and 20 TEB participants,
the project involved creating a colorful mural centered around the word
“Talent.” A total of 300 liters of Bruguer paint was used, in eight different
colors.
“Let’s Colour”
We believe in the power of paint to transform lives by uplifting
communities and making living spaces more fun, liveable and
enjoyable. Our global “Let’s Colour” initiative is all about bringing
color into people’s lives. With our passion for paint, we aim to
provide opportunities for people who want to learn, grow and
flourish. A great example was in Barcelona, where AkzoNobel’s
Bruguer brand joined forces with the TEB Cooperative Group and art
collective Boa Mistura to transform the TEB Bellvitge Occupational
Center into a vibrant symbol of inclusion. The colorful mural and
renovation celebrated community spirit and the shared belief that
creativity can unlock everyone’s talent (more details can be found on
page 85).
During 2025, we also brought the power of paint to the culturally
significant Walled City of Lahore in Pakistan. Working closely with
local communities and skilled painters, we carefully revitalized
Lahore’s iconic Food Street, a heritage site visited by more than
2.5 million people each year. Over a 50-day period, local artisans
refreshed façades across restaurants and homes using more than
40 colors. The project also featured Dulux Weathershield, a heat-
reflective technology which helps reduce surface temperatures – a
major benefit given the hot conditions experienced in Pakistan. The
project preserved the area’s historic character while enhancing
pride, comfort and everyday life for residents, businesses and
visitors.
Education Fund
Through our long-standing Education Fund, established in 1994, we
continued to support Plan International during the year. The
Saksham project, delivered in collaboration with the AkzoNobel Paint
Academy in Delhi, India, continued through its final phase in 2025.
This economic empowerment initiative supports young people,
particularly women, by addressing skills gaps in the local labor
market. Since its launch, the project has equipped 90 participants
with market-driven skills, enabling sustained employment in the
painting sector for 59 young people. This particular project was
concluded in 2025, while our broader commitment to education and
employability remains unchanged.
Local AkzoNobel Cares programs
In Latin America, our Pintuco Foundation continued to champion the
ethos of AkzoNobel Cares, supporting many initiatives throughout
Colombia. The non-profit entity aims to transform lives by using the
power of paint and offers social sustainability projects that also
provide (skills) training opportunities for people in local communities.
The social projects are developed through alliances with public and
private organizations. One standout example from 2025 was the
collaboration between our Pintuco brand and Dow to revitalize ten
sports courts across Medellín, Bogotá and Cartagena. More than
670 residents took part, helping to create vibrant community spaces
that will benefit around 30,000 people. A vivid demonstration of how
paint can inspire, unite and strengthen local communities.
During 2025, we celebrated one year of Instituto Coral by expanding
our renovation efforts in Rio Grande do Sul, Brazil, following the
severe floods of 2024. After completing the first phase in December
2024, which transformed 120 houses, a second phase was
concluded in November 2025. This brought the total number of
renovated homes to 250, through partnerships with Ata Tensoativos
Ambientais, Wana and Greif. In addition, we collaborated with Seta
Assessoria and the Secretaria de Justiça e Cidadania of the Federal
District to help transform one of the largest favelas in Latin America
by painting 100 houses and a public space in Sol Nascente.
At COP30 in Belém, Brazil, Instituto Coral joined AkzoNobel and
Instituto Tomie Ohtake for the exhibition A River Does Not Exist
Alone at the Goeldi Museum. The exhibits included 41°C by
interdisciplinary artist Mariana Nagem, a powerful outdoor work
which translated scientific data from the 2023 Lake Tefé drought into
a striking visual message about the climate crisis. It was created
using our Coral Pinta Piso floor paint, which reuses industrial
residue.
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PEOPLE AND SOCIETY
AkzoNobel Report 2025
Mariana Nagem’s artwork 41°C transformed an area of
pavement at a museum in Belém, Brazil, ahead of
2025’s COP30 conference. Applied with our Coral
Pinta Piso floor paint, the design depicted the 2023
drought at Lake Tefé and offered a reflection on the
impact of human activity. It was part of a wider
exhibition highlighting the environmental challenges
facing the Amazon.
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AkzoNobel Report 2025
LEADERSHIP AND GOVERNANCE
An overview of our leadership and its activities during the year, along
with details of our corporate governance structure, risk management,
executive remuneration, integrity and compliance management, and
AkzoNobel and the capital markets.
Our Board of Management and Executive Committee
88
Statement of the Board of Management
90
Statement of the Chair of the Supervisory Board
91
Our Supervisory Board
92
Report of the Supervisory Board
93
Corporate governance statement
100
Risk management
107
Integrity and compliance management
111
Remuneration report
114
AkzoNobel and the capital markets
131
Our Powder Coatings business won the coveted 2025 Altair Enlighten Award, together with
Chinese electric car-maker NIO. The innovation prize was presented in recognition for co-
developing a new product which will help NIO achieve its 15-year EV battery longevity ambition.
Designed to protect electric battery bottom plates, the specially formulated product within the
Interpon A1000 range will triple the life of the battery shielding coatings compared with existing
solutions. AkzoNobel was the first coatings company to win the award in the Sustainable
Product category.
Leading the charge
Grégoire (Greg) Poux-Guillaume
CEO and Chair of the Board of
Management and Executive
Committee (1970, FR)
Greg joined AkzoNobel in November
2022 as CEO and Chair of the Board
of Management, bringing with him 30
years of experience in various
industrial businesses and private
equity. He was previously CEO of
Sulzer (2015 to 2022) and before
that, CEO of GE Grid Solutions. From
2011 to 2015, Greg was Executive
Vice-President of Alstom Group and
served as President and CEO of
Alstom Grid. Prior to this, he held
various other leadership positions
with Alstom Group and CVC Capital
Partners.
Maarten de Vries
CFO and member of the Board of
Management and Executive
Committee (1962, NL)
Maarten joined AkzoNobel in 2018.
He spent the previous three years as
CFO at Intertrust Group and TNT
Express. He was a member of the
Management Board of Intertrust
Group and the Executive Board of
TNT Express. From 2011 to 2014,
Maarten was CEO of TP Vision, and
prior to this, held senior positions at
Royal Philips Electronics, including
Chief Information Officer and Chief
Purchasing Officer at Group
Management Committee level.
Charlotte van Meer
General Counsel and member of the
Executive Committee (1979, NL)
Charlotte rejoined AkzoNobel in
January 2024, having previously
worked for the company for more
than ten years, when she held
various roles in the Legal function,
including Head of Legal EMEA,
Director Legal Corporate and
Corporate Secretary. Prior to
rejoining AkzoNobel, Charlotte was
Chief Legal Officer of metal
packaging company Trivium for four
years. Before joining AkzoNobel,
Charlotte was an associate at Dutch
law firm De Brauw Blackstone
Westbroek.
Armand Sohet
Chief Human Resources Officer
(CHRO) and member of the
Executive Committee (1965, FR)
Within the Executive Committee,
Armand is responsible for Human
Resources, Communications, Brand
and Sustainability. He joined
AkzoNobel in July 2023 and has
extensive experience heading the HR
function of publicly traded
companies. He has led
transformations in industrial
businesses with complex
manufacturing operations, but also
as the HR partner of multi-channel
commercial organizations. Armand
was previously CHRO and Chief
Sustainability Officer of Sulzer for
seven years.
Wiebe Wiechers
Chief Development Officer (CDO) and
member of the Executive Committee
(1980, NL)
Wiebe joined the Executive
Committee in November 2024 as
Chief Development Officer and is
responsible for overseeing
Commercial Excellence, Digital, R&D,
IT and functional ISC*. Since joining
the company in 2011, he has held
various leadership positions in R&D,
business and operations, leading
several major group transformation
and restructuring programs. Before
joining AkzoNobel, Wiebe spent
seven years with strategy consulting
firm Arthur D. Little in Europe and the
US.
* Succeeded Karen-Marie Katholm, Chief Integrated
Supply Chain Officer and member of the Executive
Committee until July 2025.
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OUR BOARD OF MANAGEMENT AND EXECUTIVE COMMITTEE
AkzoNobel Report 2025
Daniel Campos
Member of the Executive Committee
(1972, BR)
Daniel has led the Global Decorative
Paints business since July 2025. He
joined AkzoNobel in September 2015
as business unit Director for
Decorative Paints Latin America, and
has since assumed the additional
responsibility of business unit
Director for Decorative Paints EMEA*
and oversight of Decorative Paints in
Asia. Daniel previously worked at
Natura for three years, managing
Global Personal Care. Before that,
Daniel spent 19 years at Procter &
Gamble, where he held several
positions in general management,
sales and marketing.
* Succeeded Jan-Piet van Kesteren, member of the
Executive Committee until July 2025.
Patrick Bourguignon
Member of the Executive Committee
(1965, BE)
Patrick joined AkzoNobel in October
2019 as business unit Director for
Automotive and Specialty Coatings.
He has more than 35 years of
experience, having held several
positions across different industries in
sales, distribution and general
management. Previously, Patrick was
with UNILIN for 12 years.
Simon Parker
Member of the Executive Committee
(1966, UK)
Simon has 35 years of experience in
multinational businesses and more
than 25 years of experience within
Coatings, having been responsible
for many business transformations
and restructurings in the operating
units of AkzoNobel. He joined the
company in 1997 and held various
business leadership positions before
his current responsibilities as
business unit Director for both Marine
and Protective Coatings, and
Industrial Coatings.
Jeff Jirak
Member of the Executive Committee
(1969, US)
Jeff joined AkzoNobel in August
2022 as business unit Director for
Powder Coatings. Before joining
AkzoNobel, Jeff was Chief
Commercial Officer at Valtris
Specialty Chemicals. Previously, he
held senior positions at DuPont,
Chemours and Nouryon (formerly
AkzoNobel Specialty Chemicals), and
specialized in the strategic growth of
high-performance materials,
polymers and coatings. Jeff has
more than 30 years of experience in
the performance materials and
specialty chemicals sector.
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OUR BOARD OF MANAGEMENT AND EXECUTIVE COMMITTEE
AkzoNobel Report 2025
The Board of Management’s statement on
the financial statements, the management
report and internal risk management and
control systems.
We prepared this Report 2025 in line with International Financial
Reporting Standards (IFRS), as adopted by the EU and the financial
reporting requirements included in Part 9 of Book 2 of the Dutch Civil
Code.
To the best of our knowledge:
• The financial statements in this Report 2025 give a true and fair
view of the assets and liabilities, financial position and profit or loss
of our company, and the undertakings included in the
consolidation taken as a whole
• The management report in this Report 2025 includes a fair review
of the position at December 31, 2025, the development and
performance during the financial year 2025 of AkzoNobel, and the
undertakings included in the consolidation taken as a whole, and
describes our principal risks
The Board of Management is responsible for the establishment and
adequate functioning of internal risk management and control
systems within our company. Consequently, a broad range of
processes and procedures has been implemented to provide control
by the Board of Management over these systems.
Our risk management approach follows the COSO Enterprise Risk
Management Framework to identify risks, assess these against the
company’s risk appetite, implement appropriate risk response
actions and monitor the effectiveness of those responses. For a
detailed description of the company’s risk management, please refer
to the Risk management chapter.
Our internal control methodology is aligned with the COSO Internal
Control – Integrated Framework regarding the management of
process-level risks and control effectiveness. Outcomes are reported
quarterly to the relevant management levels.
The Risk and Internal Control, Integrity and Compliance, IT Security
and Health, Safety and Environment functions maintain AkzoNobel’s
internal risk management and control systems regarding compliance
with the COSO frameworks and the Dutch Corporate Governance
Code. They work closely with the first line of management to ensure
effective execution and supports the Board of Management in its
annual review of the design and effectiveness of the internal risk
management and control systems.
The Internal Audit function operates in alignment with the
International Professional Practices Framework (IPPF) of The Institute
of Internal Auditors and performs independent assessments on the
design and effectiveness of the company’s internal risk management
and control systems. The function reports functionally to the Audit
Committee and administratively to the CFO and has unrestricted
access to the Executive Committee, the Audit Committee and the
External Auditor. It operates under a risk-based audit plan approved
by the Board of Management and the Audit Committee, and audit
results are reported quarterly to these bodies.
The Board of Management acknowledges that internal risk
management and control systems have inherent limitations. While
the company routinely works towards continuous improvement of its
processes and procedures regarding operations, compliance and
reporting, these systems cannot provide absolute certainty that all
risks are identified or effectively managed. This is influenced by,
among others, inherent limitations to risk management, business
considerations such as the company’s risk appetite, operational
complexity and a continually changing business environment.
Furthermore, certain risks fall outside the company’s direct control
due to third party dependencies or external conditions beyond its
influence.
Based on its assessment, and with reference to best practice
provision 1.4.3 of the Dutch Corporate Governance Code, the Board
of Management confirms that to the best of its knowledge:
• The Report 2025 provides sufficient insights into failings in the
effectiveness of the internal risk management and control systems
• These systems provide reasonable assurance that the financial
reporting does not contain material inaccuracies
• These systems provide limited assurance that the sustainability
reporting does not contain material inaccuracies
• The Board of Management is not aware that these systems at
balance sheet date did not provide sufficient comfort that the
material operational and compliance risks identified in the Risk
management chapter are effectively managed considering the
company’s risk appetite, where “sufficient comfort” is to be read
as: comfort considering our risk appetite, the complexity of our
enterprise, inherent limitations to these systems and other
disclosures on these systems in our management report
• Based on the current state of affairs, it is justified that the financial
reporting is prepared on a going concern basis
• The Report 2025 includes those material risks, and uncertainties,
that are relevant to the expectation of the company’s continuity for
a period of 12 months after preparation of the report
Due to inherent limitations to risk management and control systems,
the above does not imply that these systems and procedures
provide certainty as to the realization of strategic, operations,
compliance and reporting objectives, nor that they can prevent all
misstatements, inaccuracies, fraud, operational issues and non-
compliance with laws and regulations.
We have discussed the above opinion and conclusions with the
Audit Committee, the Supervisory Board and the external auditor.
Amsterdam, February 23, 2026
The Board of Management
Greg Poux-Guillaume, CEO and Chair of the Board of Management
Maarten de Vries, CFO and member of the Board of Management
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STATEMENT OF THE BOARD OF MANAGEMENT
AkzoNobel Report 2025
BEN NOTEBOOM
1958, NL
Chair of the Supervisory Board
Initial appointment: 2023
Term of office: 2023-2027
Chair of the Supervisory Board of Koninklijke Vopak N.V.;
Vice-Chair of the Supervisory Board of Koninklijke KPN N.V.;
Chair of the Board of Trustees of the Cancer Center Amsterdam;
member of the Advisory Board of Stichting ADORE.
In 2025, AkzoNobel again demonstrated its agility and ability to
make progress on its strategy, despite unfavorable market
conditions. As well as maintaining a sharp focus on targeted self-
help measures, management took dynamic steps to generate further
momentum as the company took decisive command of its own
destiny.
The headwinds were significant, with geopolitical uncertainties and
adverse currencies proving to be especially challenging. However, by
building on the strategic initiatives that were already in place to
reduce complexity, improve operations, optimize the functional
organization and manage the portfolio, the company improved
profitability and is well on the way to achieving its mid-term targets.
Strong progress has been made on the industrial excellence
program, both in terms of optimizing our network and modernizing
our anchor sites, while the divestment of Akzo Nobel India Limited –
part of an extensive portfolio review – was a major step towards
sharpening the company’s strategic focus.
These carefully laid foundations have provided the solid platform
from which the company aims to return to the forefront of the paints
and coatings industry. This was underlined by our proposed all-
stock merger with Axalta. It represents a transformative step for both
companies which will create a global industry leader with $17 billion
in revenue and an enterprise value of $25 billion. By bringing
together our highly complementary strengths, we’ll drive significant
value for our shareholders, customers, employees and the
communities where we operate.
Throughout 2025, it was encouraging to see the company’s firm
commitment to sustainable innovation continue to produce positive
results. As well as making further progress on our carbon reduction
ambition, we continued to collaborate with various partners to
develop more sustainable products and solutions, while also
embracing the many possibilities offered by AI. Management is very
keen to incorporate AI into various aspects of our activities and it
clearly has the potential to be a game-changer, not only for
AkzoNobel, but also for our customers.
Another highlight was the results of our Voices survey, which
measures employee engagement across the organization. For the
third successive year, the level of engagement exceeded the industry
average, which is an impressive achievement.
Going into 2026, the Supervisory Board is convinced that AkzoNobel
is well placed to make further progress on its strategy. Management
is fully committed to accelerating the company’s growth ambitions,
while continuing to deliver for all our stakeholders.
On behalf of the Supervisory Board, I want to thank our shareholders
and all other stakeholders for their continued trust in the company,
and my Supervisory Board colleagues, the Board of Management
and Executive Committee for their efforts during 2025. Our
employees around the world also deserve deep appreciation for their
continued hard work and commitment after helping us to deliver a
strong performance in a far from ideal business climate.
Amsterdam, February 23, 2026
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STATEMENT OF THE CHAIR OF THE SUPERVISORY BOARD
AkzoNobel Report 2025
ESTER BAIGET
1971, ES
Initial appointment: 2022
Term of office: 2022-2026
CEO and President of Novonesis A/S; Co-Chair of the World
Economic Forum Alliance of the CEO Climate Leaders; member of
the Board of United Nations Global Compact; Vice-Chair of the B
Team.
HANS VAN BYLEN
1961, BE
Initial appointment: 2022
Term of office: 2022-2026
Chair and independent director of the Board of Directors of Ontex
Group NV; Chair and non-executive member of the Board of
Directors of Etex NV; member of the Supervisory Board of Lanxess
AG.
JASKA DE BAKKER
1970, NL
Initial appointment: 2024
Term of office: 2024-2028
Vice-Chair of the Supervisory Board of Redcare Pharmacy N.V.;
non-executive member of the Board of Directors of Prysmian
S.p.A.; member of the Board of Directors of Nobian Coöperatief
U.A.; member of the Supervisory Board of Stichting The Ocean
Cleanup.
WOUTER KOLK
1966, NL
Initial appointment: 2024
Term of office: 2024-2028
Member of the Supervisory Boards of WE Europe B.V. (WE
Fashion) and Goedhart Brood & Specialiteiten B.V. (Bakker
Goedhart); senior advisor to McKinsey Company, Inc.
DR. HANS-JOACHIM
MÜLLER
1959, DE
Initial appointment: 2025
Term of office: 2025-2029
Chair of the Supervisory Board of TIB Chemicals AG; member of
the Supervisory Boards of Lanxess AG and OMV
Aktiengesellschaft.
UTE WOLF
1968, DE
Initial appointment: 2024
Term of office: 2024-2028
Deputy Chair of the Supervisory Board of DWS Group GmbH &
Co. KGaA; member of the Supervisory Boards of Infineon
Technologies AG and MTU Aero Engines AG.
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OUR SUPERVISORY BOARD
AkzoNobel Report 2025
Meetings and attendance
The Supervisory Board values the attendance of its meetings by all
members. If Supervisory Board members are unable to attend a
Supervisory Board or committee meeting, they inform the relevant
Chair of their reasons. Supervisory Board members always receive
the materials for each specific meeting, allowing them to offer input
and discuss any agenda items with the relevant Chair.
In 2025, the Board of Management attended all meetings of the
Supervisory Board. The Executive Committee attended the majority
of the meetings. Almost all plenary sessions of the Supervisory
Board were preceded or succeeded by executive sessions of the
Supervisory Board, with and without the CEO in attendance. The
Chair had regular one-on-one calls with all Supervisory Board
members to discuss individual impressions on the functioning of the
Supervisory Board and items covered.
The Supervisory Board aims for all (regular) meetings to be held
physically. When needed, virtual participation is made possible with
video conference capabilities, enabling Supervisory Board members
to perform their role appropriately. During 2025, ad-hoc meetings
were also conducted virtually to allow all members of the Supervisory
Board to attend.
Strategy updates
During 2025, the Supervisory Board continued to allocate adequate
time to discuss strategic activities focused on the overarching
strategic pillars across the portfolio of businesses. It received regular
updates from the Executive Committee on the progress made
towards the ambitions of the company’s strategy, as well as on the
underlying programs supporting the strategy. In September, the
Supervisory Board and Board of Management, together with the
other members of the Executive Committee, held a full-day strategy
meeting where the Supervisory Board reviewed and advised on the
three-year strategy for each of the eight business units, as well as
the overarching group strategy, as further described in the Strategy
chapter. The Supervisory Board further reviewed and advised on the
strategic portfolio review, including the divestment of Akzo Nobel
India Limited. Additionally, and with a focus on sustainable long-term
value creation, several strategic opportunities were reviewed and
discussed, also taking into consideration various external views.
Merger
The Supervisory Board allocated significant time to overseeing the
proposed transaction for AkzoNobel and Axalta to combine in an all-
stock merger. Following thorough discussions and careful review,
the merger was deemed to be in the best interest of AkzoNobel and
its business, as it would promote sustainable long-term value
creation, taking into account the interests of the company’s
stakeholders, including its shareholders and employees. The
transaction is expected to close late 2026 to early 2027, subject to
shareholder approval and other relevant conditions being met.
Industrial excellence and simplifying execution
model
The Supervisory Board regularly received updates on the progress
made on the industrial excellence program, focused on reducing
complexity, enhancing productivity and optimizing our network
through investment and modernization at our anchor sites. The
Supervisory Board advised on optimization of the footprint of the
Decorative Paints and Performance Coatings businesses and the
improvement of industrial processes.
The Supervisory Board also reviewed and advised on simplifying the
execution model. Designed to streamline and optimize the functional
organization by simplifying operations, accelerating decision-making
and streamlining the company’s management structure, the
program involved a reduction of 2,900 positions globally. Further
details are included the Strategy chapter.
Project Ichthys
The Supervisory Board carefully followed the developments of the
Australian litigation relating to the Ichthys Onshore LNG project in
Australia. The potential impact was discussed extensively with the
Board of Management and the other members of the Executive
Committee.
Functional and business updates
Throughout the year, the Supervisory Board reviewed and discussed
updates in Finance, Procurement, Human Resources and
Sustainability. In addition, the Supervisory Board received updates
on Risk Management and Internal Control, and Investor Relations, as
well as the impact of tariffs. Updates on IT included use of data and
process intelligence and AI. The Supervisory Board received
comprehensive market and business updates.
Sustainability
The Supervisory Board views sustainability as an intrinsic value driver
in the work of all businesses and functions. During 2025, the
Supervisory Board continued to assess sustainability as part of
strategy and targets and advised on further embedding related
considerations into decision-making. During quarterly updates on
sustainability, the Supervisory Board reviewed and advised on the
progress made towards the company’s sustainability ambitions. The
company’s response to climate change was reviewed, which is
focused on efforts to reduce emissions across the whole value chain
(including Scopes 1, 2 and 3). Deep dives were carried out for
specific topics, such as the social programs and the carbon
reduction glidepath. The Supervisory Board further advised on the
diversity target for the executive level.
The company’s sustainability ambitions and progress are further
considered as part of the business reviews and functional updates,
and as part of the Supervisory Board’s review of the company’s
innovation efforts and programs. Further details are included in the
Sustainability statements.
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Supervisory Board attendance record1
SB
AC
RC
NC
Ben Noteboom
17/17
4/4
4/4
Ester Baiget1
16/17
3/3
3/3
3/3
Jaska de Bakker
17/17
9/9
Hans Van Bylen2
17/17
5/6
1/1
1/1
Byron Grote3
4/4
3/3
Wouter Kolk
17/17
4/4
4/4
Hans-Joachim Müller4
12/13
6/6
Dick Sluimers3
4/4
1/1
1/1
Patrick Thomas3
4/4
2/3
Ute Wolf
17/17
9/9
The table indicates the meeting attendance for the Supervisory Board (SB), the Audit Committee
(AC), the Remuneration Committee (RC) and the Nomination Committee (NC) for regular and
additional meetings. The meetings of the Supervisory Board concern nine regular, scheduled
meetings and eight additional meetings. The additional meetings were scheduled ad-hoc when
needed to ensure the Supervisory Board was sufficiently informed and could make considered
decisions regarding (potential) transactions.
1 Stepped down from the Audit Committee and appointed to the Remuneration Committee and
Nomination Committee as per April 25, 2025.
2 Stepped down from the Remuneration Committee and Nomination Committee and appointed to
the Audit Committee as per April 25, 2025.
3 Stepped down after the AGM held on April 25, 2025.
4 Appointed to the Supervisory Board and the Audit Committee as per April 25, 2025.
Performance and management planning
Individual Board of Management and Executive Committee
performance was addressed in Supervisory Board meetings,
following recommendations from the Remuneration Committee. For
more details, see the report of the Remuneration Committee.
Discussions on corporate performance were held at each regular
Supervisory Board meeting and included business reviews and
performance updates from corporate functions. Forward-looking
targets were also addressed in light of these reviews. The
Supervisory Board diligently reviewed budgets and operating plans,
taking into account macro-economic uncertainty. Following
assessments, the proposed budgets and operating plan for 2026
were approved.
During the year, the Supervisory Board was pleased to see the
company continuing to benefit from management’s strategic
initiatives, including the SG&A and industrial efficiency programs and
the strategic portfolio review to help drive profitable growth. The
nature of this performance and the company’s capital allocation
priorities were all considered in the Supervisory Board’s approval of
the dividend proposal. Further details on the 2025 dividend proposal
can be found in the Financial information.
Risk management
The Supervisory Board views risk management as an essential
mechanism to safeguard the business and assets of the company,
and to secure sustainable long-term performance and value
creation. As the Supervisory Board sought to assure itself of the
robustness of the company’s risk mitigation and internal controls, it
received multiple risk management updates during the year.
The Board of Management and Executive Committee maintain the
risk management framework and system of internal controls. The
Supervisory Board and the Audit Committee monitor the
implementation of risk mitigating measures for the key risks, as
identified by the Board of Management and the Executive
Committee during the year by means of risk updates and reviews.
Further details are included in the Risk management chapter.
Corporate governance
Following the implementation of the revised Dutch Corporate
Governance Code, with effect from January 1, 2025, a review of the
company’s internal risk management and control systems was
performed. Certain practices were revised and the Supervisory
Board is satisfied the company has complied with the Code on a
“comply or explain” basis. Further details can be found in the
Corporate governance statement.
Talent management and succession planning
Throughout the year, the Supervisory Board discussed and
undertook detailed succession planning.
With Maarten de Vries’ second term as CFO coming to an end at the
AGM in 2026, the Supervisory Board initiated a thorough search and
selection process, led by the Nomination Committee. After an initial
nomination, however, Maarten de Vries agreed to extend his tenure
as CFO for one year to support the proposed merger with Axalta.
Further information can be found in the report of the Nomination
Committee.
The Supervisory Board also took the time to discuss its own
composition and succession plans in order to ensure continued
effectiveness. With Byron Grote, Dick Sluimers and Patrick Thomas
stepping down after the 2025 AGM, the Supervisory Board
nominated Hans-Joachim Müller for appointment to the Supervisory
Board. The appointment was approved at the 2025 AGM.
The requirements of the Corporate Governance Code, the
Supervisory Board’s profile, skills matrix and its policy on diversity
and inclusion were considered throughout these processes.
The Supervisory Board further discussed and supported the
composition of the Executive Committee. With Karen-Marie Katholm
stepping down as Chief Integrated Supply Chain Officer per July 1,
2025, Chief Development Officer Wiebe Wiechers took over the ISC
functional responsibilities. Jan-Piet van Kesteren also stepped down
and handed over responsibility for Decorative Paints EMEA to Daniel
Campos, who assumed leadership for the global Decorative Paints
business, while Jeff Jirak was appointed to the Executive Committee
per July 1, 2025.
STRATEGY
SUSTAINABILITY
LEADERSHIP AND GOVERNANCE
FINANCIAL STATEMENTS
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Supervisory Board activities 2025
Q1
Q2
Q3
Q4
• Q4 2024 report, financials and performance
• 2024 Financial statements, annual report and profit allocation
• External audit report 2024
• Assurance report Sustainability statements 2024
• Final dividend 2024
• Final budget 2025
• Investor Relations update
• Business updates
• HSE&S full-year report
• Sustainability/ESG update
• SG&A and industrial excellence program updates
• Strategic portfolio review
• M&A strategy update
• Risk management risk session outcomes
• Supervisory Board succession planning
• Remuneration target setting
• Q1 2025 report, financials and performance
• Investor Relations update
• Business updates
• HSE&S update
• SG&A and industrial excellence program updates
• Sustainability/ESG update
• Enterprise risk management update
• Strategic portfolio review
• M&A strategy update, including proposed Axalta merger
• Divestment Akzo Nobel India Limited
• Ichthys update
• Review composition Supervisory Board committees
• CFO succession planning
• Tariffs update
• Q2 2025 report, financials and performance
• Investor Relations update
• Business updates
• HSE&S update
• SG&A and industrial excellence program updates
• Company strategy update
• Business strategy reviews
• M&A strategy update, including proposed Axalta merger
• Ichthys update
• Q3 2025 report, financials and performance
• Dividend policy
• Interim dividend 2025
• Remuneration Board of Management 2026
• Investor Relations update
• Business updates
• HSE&S update
• Industrial excellence update
• Sustainability/ESG update
• IT strategy update including cybersecurity
• Budget 2026
• M&A strategy update
• Approval of proposed Axalta merger
• Ichthys update
• Supervisory Board succession planning
• CFO reappointment
• Deep dive Decorative Paints China
Independence of the Supervisory Board
Supervisory Board members are required to act critically and
independently of one another, the Board of Management, the
Executive Committee and the company’s stakeholders. Each
Supervisory Board member meets the independence requirements
of the Corporate Governance Code and completed the annual
independence questionnaire addressing the relevant requirements
for independence.
Supervisory Board evaluation
To assess its effectiveness, the Supervisory Board carried out an
internal performance evaluation of itself, its individual members, its
Audit, Remuneration and Nomination Committees, the Chair, as well
as the relationship with the Board of Management and the Executive
Committee. The process consisted of the Supervisory Board
members completing a confidential questionnaire. The periodic
engagement of a third party to facilitate the evaluation will continue
to be taken into consideration.
In a separate meeting without the Board of Management, the
Supervisory Board discussed the results of the evaluation
questionnaires and reflected on the improvement areas raised during
last year’s evaluation. The Supervisory Board also discussed the
functioning of the Board of Management and the performance of its
individual members. Feedback was provided to, and discussed with,
the members of the Board of Management, whose input was also
taken into account.
The evaluation concluded that the Supervisory Board and its
committees continue to operate proficiently. The search and
selection process relating to the Board of Management and
Supervisory Board succession matter were professionally organized,
with positive outcomes and close involvement of all Supervisory
Board Members. There’s a dynamic and open atmosphere between
the Supervisory Board and the Board of Management, as well as the
other members of the Executive Committee. Focus items going
forward include continued attention for executive succession
planning and talent management, and the development of the group
strategy, including the R&D roadmap. Several suggestions made
during the evaluation process will be implemented in the course of
2026.
Our Vehicle Refinishes business in Poland was recognized for helping students to
pursue a successful career in the automotive industry. A special award was
presented by the Łódź Center for Teacher Development and Practical Training as
part of the Employer Shaping and Supporting Education competition. A key part
of this success is Project School, run by our Sikkens brand, which has so far
equipped more than 100 students with professional skills so they can confidently
enter the job market.
STRATEGY
SUSTAINABILITY
LEADERSHIP AND GOVERNANCE
FINANCIAL STATEMENTS
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Financial statements and profit allocation
The Board of Management submitted the report and financial
statements, including the report of the Board of Management, to the
Supervisory Board for review and approval. The financial statements
of Akzo Nobel N.V. for the financial year 2025 were audited by
PricewaterhouseCoopers Accountants N.V. (PwC).
The financial statements and the report were extensively discussed
by the Audit Committee with the external auditors, in the presence of
the CFO, and by the full Supervisory Board with the Board of
Management and the Executive Committee. Based on these
discussions, the Supervisory Board is of the opinion that the 2025
financial statements of Akzo Nobel N.\/. form an adequate basis to
account for the supervision provided (see the Financial information).
The Audit Committee monitors the follow-up by management on the
recommendations made by the external auditors.
The Supervisory Board recommends that the AGM adopts the
financial statements as presented in this Report 2025 and, as
proposed by the Board of Management, the proposed total dividend
for 2025 of €1.98 (2024: €1.98), including a final dividend of €1.54
per share. An interim dividend of €0.44 (2024: €0.44) per share was
paid in November 2025. This reflects the continued commitment to
providing a stable to rising dividend. The dividend will be paid in
cash.
In addition, it is requested that the AGM discharges the Board of
Management members from their responsibility for the conduct of
business in 2025, and the Supervisory Board members for their
supervision in 2025.
Committees of the Supervisory Board
Audit
Committee
Remuneration
Committee
Nomination
Committee
Ben Noteboom (Chair)
Member
Chair
Ester Baiget
Member
Member
Jaska de Bakker
Member
Hans Van Bylen
Member
Wouter Kolk
Chair
Member
Hans-Joachim Müller
Member
Ute Wolf (Deputy Chair)
Chair
Audit Committee
Audit Committee members have extensive accounting and financial
management expertise. Issues discussed in Audit Committee
meetings were reported back to the full Supervisory Board in
subsequent meetings.
External audit
PwC, AkzoNobel’s independent external auditor, reported in-depth
to the Audit Committee on the scope and outcome of the annual
audit of the financial statements, including the Consolidated financial
statements and the Company financial statements and related
notes, as well as on the scope and outcome of the limited assurance
engagement on the Sustainability statements. The Audit Committee
held independent meetings with the external auditor and critically
reviewed and constructively challenged their audit approach, fees,
risk assessment and audit plan. The Audit Committee performed an
annual review of the services of the external auditor, and at each
meeting considered and assessed the status of the auditor’s
independence.
The Audit Committee was regularly informed about the progress
made on the external auditor transition, whereby EY Accountants
B.V. (EY) will take over as external auditor of the financial statements
as of the financial year 2026. The appointment of EY, also to carry
out the assurance of the sustainability reporting as of the financial
year 2026, was approved at the 2025 AGM.
Further details on the external auditor can be found in the Corporate
governance statement.
Risk management and internal control systems
The Audit Committee reviewed the company’s overall approach to
governance, risk management and internal controls, its processes,
outcomes, financial and sustainability reporting and disclosures. It
received regular updates from internal auditors and functions, and
was provided with comprehensive risk and internal control reports
during the year. In addition, the Audit Committee received periodic
updates on the results of testing of internal control effectiveness,
related remediation plans and assessments of overall control
effectiveness. In its review, the Audit Committee considered the
comprehensive assessment of effectiveness of the internal risk
management and control systems and the impact of changes to
systems, processes and organization, such as digitization efforts.
The Audit Committee was regularly updated on the progress made
on actions taken on, and substantiation of, the Risk Management
Statement (“Verklaring Omtrent Risicobeheersing”), which was
incorporated in the Dutch Corporate Governance Code. The Audit
Committee also met regularly with senior executives.
In fulfilling its oversight responsibilities in relation to risk management
and internal control systems, the Audit Committee also received
updates from functions such as Finance, Treasury, Information
Technology and Tax throughout the year. In addition, the Audit
Committee reviewed the proposed budget and operating plan.
During 2025, the Audit Committee received several updates on the
IT security framework, including the corporate security program and
the security program for the manufacturing sites.
Integrity and compliance
The Executive Committee is responsible for maintaining a culture of
integrity and ensuring an effective integrity and compliance program
and control framework. Part of these responsibilities are delegated to
specific committees and the Integrity and Compliance function. The
Supervisory Board’s Audit Committee oversees this responsibility
and regularly reviews integrity and compliance reports.
STRATEGY
SUSTAINABILITY
LEADERSHIP AND GOVERNANCE
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Audit Committee activities 2025
Q1
Q2
Q3
Q4
• Q4 2024 report, financials and
performance
• 2024 financial statements, annual report
and profit allocation
• External audit report 2024
• Assurance report Sustainability
statements 2024
• Appointment sustainability statements
limited assurance provider 2024 and
2025
• Final dividend 2024
• Internal Audit Q4 2024 report
• Final budget 2025
• Investor Relations update
• External auditor transition update
• Review risk management and internal
control report 2024
• Risk management update including risk
management statement
• HSE&S audit findings
• Treasury
• Pension update
• Integrity and Compliance report 2024
• Exposure report
• IT/cybersecurity update
• Procurement update
• Q1 2025 report, financials and
performance
• Internal Audit Q1 2025 report
• Review evaluation external auditor
• Review year-to-date audit findings
• Review and approval PwC audit plan
• Audit fee 2025
• Investor Relations update
• Treasury update
• Insurance update
• ESG reporting update
• Internal Audit strategy update
• Integrity and Compliance update
• Exposure report
• Risk management update including risk
management statement
• Environmental legacy management
update
• Q2 2025 report, financials and
performance
• Internal Audit Q2 2025 report
• Investor Relations update
• Review year-to-date audit findings
• Review Q3 2025 report, financials and
performance
• Dividend Policy
• Interim dividend 2025
• Internal Audit Q3 2025 report
• ESG reporting update
• Budget 2026
• Internal Audit Plan 2026
• Investor Relations update
• Treasury update including funding
strategy
• External auditor transition update
• Integrity and Compliance update
• IT/cybersecurity update
• Tax update
• Risk management update including risk
management statement
• Ichthys update
• PCAOB audit
• Appointment Head of Internal Audit
Internal audit
The Internal Auditor presented all main audit findings to the Audit
Committee and discussed the progress of the audit plan. During the
year, the Audit Committee approved Internal Audit’s plan and
strategy, and also agreed on the budget and resource requirements
for the function. The Audit Committee met separately with the
Internal Auditor during the year to discuss the results of the audits
performed and the status of the follow-up on action plans identified.
In 2025, the Audit Committee was satisfied with the effectiveness of
the Internal Audit function.
With the former Head of Internal Audit taking on another position in
the company, the Audit Committee supported the succession of the
Head of Internal Audit, which was subsequently approved by the
Supervisory Board.
Results and financial statements
Before each publication of the quarterly results and the financial
statements, the Audit Committee reviewed the financial results. In
addition, the Audit Committee reviewed and commented on the
interim and final dividend proposals and on reports and press
releases to be published. This was in addition to the work
undertaken by the company’s Disclosure Committee in reviewing the
company’s disclosure of potentially share price sensitive information.
Based on these discussions, the Audit Committee advised the
Supervisory Board on the publications and disclosures, as well as on
proposals regarding the interim and final dividends. All quarterly and
annual releases of financial results were approved by the full
Supervisory Board prior to publication and release.
To ensure its effectiveness and expertise, the Audit Committee was
provided with regular updates on IFRS developments and the
anticipated impact of these developments on the financial
statements. In addition, the Audit Committee reviewed and assessed
management assertions made in regard to relevant accounting
treatments. This included careful consideration of the accounting
impact in regards to the Australian litigation (Project Ichthys). The
external auditor, as required by auditing standards, also considers
the risk of management override of controls. Nothing has come to
the attention of the Audit Committee to suggest any material
misstatement related to suspected or actual fraud involving
management override of controls.
Sustainability reporting
As part of its oversight of the integrity and quality of the company’s
sustainability reporting, the Audit Committee received updates on
the potential impact of legislative developments on, and progress
made, in relation to sustainability reporting. The Audit Committee
discussed the material topics. For more information, see the
Sustainability statements.
STRATEGY
SUSTAINABILITY
LEADERSHIP AND GOVERNANCE
FINANCIAL STATEMENTS
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Remuneration Committee
Management performance review
The work of the Remuneration Committee during Q1 focused on
2024 performance, individual performance reviews of Board of
Management members and the Executive Committee. The
Remuneration Committee also reviewed various incentive plans, the
economic circumstances and the relative performance compared
with top peers.
Remuneration Policy review
As required by Dutch law, remuneration policies for the Board of
Management and the Supervisory Board are submitted for
shareholder adoption at least every four years. In light of this, in
2025, the Remuneration Committee and Supervisory Board
concluded their review of the remuneration policies for the Board of
Management and the Supervisory Board to assess whether these
were still in line with the company’s strategy and financial targets,
while considering input received from stakeholders. Following such
review, the Supervisory Board, based on the recommendation of the
Remuneration Committee, submitted updated remuneration policies
for the Board of Management and Supervisory Board for
consideration by shareholders at the 2025 AGM. Both were
approved. Further information can be found in the Remuneration
report.
Management salary review
The Remuneration Committee reviewed the base salaries and
established relevant forward-looking target ranges for variable
remuneration of Board of Management members and other
Executive Committee members. The base salaries will continue to be
assessed in light of market conditions, the reward structures of peer
group companies and performance. The Remuneration Committee
considered the pay ratios within the company and how these
compare with peer group companies. Forward-looking target ranges
for variable remuneration of the Board of Management were
discussed. Further information can be found in the Remuneration
report.
Remuneration Committee activities 2025
Q1
Q2 and Q3
Q4
• Review of management
performance 2024
• Approval of 2024 pay-
out under Short-term
Incentive Plan and
vesting of shares under
Long-term Incentive
Plan
• 2024 Remuneration
report
• Review of management
base salaries for 2025
• Target setting 2025
• Review Remuneration
Policy for the Board of
Management
• Target setting 2025
• CFO remuneration
• Preparation of 2025
Remuneration report
• Review of 2025
(preliminary)
performance outlook
• Review Remuneration
Policy for the Board of
Management
• Retention planning
Nomination Committee
Supervisory Board succession
During 2025, the Nomination Committee continued to discuss the
size, structure and composition of the Supervisory Board. Following
thorough consideration, the Nomination Committee recommended
the appointment of Hans-Joachim Müller for consideration by the
shareholders at the 2025 AGM. Following his appointment, and with
the final terms of Byron Grote, Dick Sluimers and Patrick Thomas
having ended in 2025, the number of Supervisory Board members
decreased to seven.
The Supervisory Board has updated its skills matrix, as shown on
the next page. It contains full details of the current Supervisory
Board composition. The schedule of Supervisory Board succession
and the profiles of the Supervisory Board members can also be
found on our website.
Board of Management and executive
succession
With Maarten de Vries’ second term as CFO coming to an end at the
AGM in 2026, a thorough internal and external search and selection
process was initiated and conducted to find a successor. Following
extensive review, the Nomination Committee made its
recommendations that were subsequently supported by the
Supervisory Board. However, to prioritize continuity of the CFO role
in anticipation of the proposed merger with Axalta announced in
mid-November, Maarten de Vries agreed to extend his tenure as
CFO for one year. The extension of his term as a member of the
Board of Management will be proposed for shareholder approval at
the 2026 AGM.
Furthermore, during 2025, the Nomination Committee consulted and
gave its advice regarding the composition of the Executive
Committee. The Nomination Committee also considered executive
succession planning and talent management.
Nomination Committee activities 2025
Q1 and Q2
Q3 and Q4
• Supervisory Board succession
planning
• Board of Management succession
planning
• CFO succession
• Skills matrix update
• Supervisory Board succession
planning
• Review (re)appointment scheme
• CFO reappointment
• Merger project management
• Review Diversity, Equity and
Inclusion Policy
• Human Resources update: Voices
survey
STRATEGY
SUSTAINABILITY
LEADERSHIP AND GOVERNANCE
FINANCIAL STATEMENTS
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Supervisory Board skills and profiles
B. Noteboom
(m)
E. Baiget
(f)
J. de Bakker
(f)
H. Van Bylen
(m)
W. Kolk
(m)
H.J. Müller
(m)
U. Wolf
(f)
Independent
l
l
l
l
l
l
l
Consumer goods
l
l
l
l
Industrial
l
l
l
l
l
Buildings and infrastructure
l
l
l
l
Transport
l
(International) business, commerce, finance/economics
l
l
l
l
l
l
l
Scientific/information technology experience
l
l
l
l
Public sector experience
Management experience
l
l
l
l
l
l
l
Business strategy planning
l
l
l
l
l
l
l
Investor relations
l
l
l
l
l
l
l
Manufacturing experience
l
l
l
l
l
Supply chain/logistics experience
l
l
l
l
l
l
Social, environmental, sustainability experience (ESG)
l
l
l
l
l
l
l
Four or less external directorships
l
l
l
l
l
l
l
Dutch/EU national
l
l
l
l
l
l
l
Non-EU national
Pensions experience
l
l
Business-to-business sales experience
l
l
l
l
l
l
R&D experience
l
l
Legal experience
l
Industrial/employment relations
l
l
l
l
Risk management
l
l
l
Consulting
l
(f) = female, (m) = male
Additional remarks
The members of the Supervisory Board would like to reiterate their
appreciation to the Board of Management and Executive Committee,
and to all the company’s employees around the world, for their
outstanding dedication and hard work during the year.
Jeff Hope, our Manufacturing Director of Decorative Paints in the UK and Ireland,
received a rare honor when he had a building named after him at Northumberland
College. He was recognized for his extensive community involvement and
commitment to change-making education. The Hope Building, currently being
built, will form part of the college’s new Ashington Campus and will house its
construction and engineering center.
STRATEGY
SUSTAINABILITY
LEADERSHIP AND GOVERNANCE
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AkzoNobel aspires to the highest standards
of corporate governance and seeks to
consistently enhance and improve corporate
governance performance, emphasizing
transparency and a culture of sustainable
long-term value creation.
Akzo Nobel N.V. is a public limited liability company (naamloze
vennootschap) established under the laws of the Netherlands, with
common shares listed on Euronext Amsterdam. AkzoNobel has a
sponsored level 1 American Depositary Receipt (ADR) program and
ADRs can be traded on the international OTCQX platform in the US.
The company’s management and supervision are organized under
Dutch law in a so-called two-tier system, comprising a Board of
Management (solely composed of executive directors) and a
Supervisory Board (solely composed of non-executive directors). The
Supervisory Board supervises and advises the Board of
Management and ensures a strong external presence in the
governance of the company. The two Boards are independent of
each other and are accountable to the Annual General Meeting of
shareholders (AGM) for the performance of their functions.
Our corporate governance framework is based on the company’s
Articles of Association, the requirements of the Dutch Civil Code, the
Dutch Corporate Governance Code (the “Code”) and all applicable
laws and regulations, including securities laws. The Code contains
principles and best practices for Dutch companies with listed shares.
Deviations from the Code are explained in accordance with the
Code’s “comply or explain” principle. For the full version of the Code,
visit www.mccg.nl
With the exception of those aspects of our governance which can
only be amended with the approval of the AGM, the Board of
Management and the Supervisory Board may make adjustments to
the way the Code is applied, if this is considered to be in the best
interests of the company. Where changes are made, these will be
reported and explained in the annual report for the relevant year and
discussed at the subsequent AGM.
In 2025, a revised version of the Code was published by the
Corporate Governance Code Monitoring Committee (www.mccg.nl).
The revised Code, with effect from January 1, 2025, introduces the
new Risk Management Statement (“Verklaring Omtrent
Risicobeheersing”) for Dutch listed companies. A review of the
company’s internal risk management and control systems in the
context of compliance with the Code was performed and a gap
analysis was carried out highlighting certain areas or practices that
required amendment. No significant adjustments were required. The
gap analysis was reviewed by the Board of Management and the
Supervisory Board and relevant revisions to existing practices were
implemented.
The company also subscribes to, and applies, the principles of the
VNO-NCW Tax Governance Code. Further information on this is
available on our website: AkzoNobel’s approach to tax. For the full
version of the Tax Governance Code, visit www.vno-ncw.nl/
taxgovernancecode
Board of Management and Executive
Committee
The Board of Management is entrusted with the management of the
company. When it comes to the management of our business, it
operates in the context of an Executive Committee. The Executive
Committee comprises the Board of Management and other key
officers of the company, led by the CEO.
The composition of the Executive Committee ensures that functional,
operational and commercial expertise is entrenched at the highest
level of the organization. Among other responsibilities, the Board of
Management defines the company’s strategic direction. It
establishes and maintains internal policies and procedures for
effective internal risk management and control systems, manages
the realization of the company’s operational and financial targets, its
sustainability performance and its pursuit of sustainable long-term
value creation. In fulfilling their duties, Board of Management
members are assisted by the Executive Committee and guided by
the interests of the company and its affiliated enterprises, taking into
consideration the relevant interests of the company’s stakeholders.
The Board of Management takes precedence; all Executive
Committee decisions require a majority of the Board of Management
members. The Board of Management can decide to reserve
decisions for itself. The Board of Management members remain
accountable for all decisions made by the Executive Committee. The
Board of Management is accountable for its performance to the
Supervisory Board and is accountable to the shareholders of the
company at the AGM. All Executive Committee members, including
the CFO, report to the CEO.
The Supervisory Board has regular, direct interaction with Executive
Committee members, and all Executive Committee members attend
most Supervisory Board meetings.
The CEO leads the Executive Committee in its overall management
of the company. He is the main point of liaison with the Supervisory
Board. The CFO is responsible for overseeing AkzoNobel’s finances,
its corporate control, tax and investor relations.
The tasks, responsibilities and procedures of the Board of
Management and Executive Committee are set out in their Rules of
Procedure. These rules have been approved by the Supervisory
Board and are available on our website. Authority to represent the
company is vested in the two members of the Board of
Management, acting jointly. The Board of Management has also
delegated a level of authority to corporate agents, including
members of the Executive Committee. The list of authorized
signatories is available from the Dutch Chamber of Commerce.
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The Directors of the company’s business units and the Corporate
Directors in charge of the different functions report to individual
Executive Committee members with specific responsibility for their
activities and performance.
Appointment
Board of Management members are appointed and removed from
office by the AGM. The current Board of Management members
were first appointed by Extraordinary General Meetings (EGMs) held
in 2022 and 2017, with the CFO having been reappointed for
another four-year term at the 2022 AGM. The other Executive
Committee members are appointed by the CEO, after consultation
with the Supervisory Board. Members of the Board of Management
are in principle appointed for a term not exceeding four years, with
the possibility of reappointment.
As described later in this chapter, the Meeting of Holders of Priority
Shares has the right to make binding nominations for the
appointment of members of the Board of Management and the
Supervisory Board. However, as the company subscribes to the
principles of the Code in general, members of the Supervisory Board
and the Board of Management are (with the exception of those
circumstances described later in this chapter) appointed on the
basis of non-binding nominations by the Supervisory Board. In such
cases, resolutions to appoint a member of the Supervisory Board or
the Board of Management require a simple majority of the votes cast
by shareholders.
Under certain conditions specified in the Articles of Association,
shareholders may also be entitled to nominate Supervisory Board or
Board of Management members for appointment. Such
appointments require a two-thirds majority, representing at least
50% of the outstanding share capital, in order to be adopted at an
AGM (or EGM).
Diversity and inclusion
AkzoNobel believes in the strength of diversity and inclusion and, in
accordance with the Code, a policy on diversity and inclusion has
been adopted for the composition of the Board of Management and
the Executive Committee.
The policy on diversity and inclusion for the composition of the
Board of Management and Executive Committee is recognized and
described in the Diversity, Equity and Inclusion Policy (DE&I Policy)
for the executive level, Board of Management and Supervisory
Board, as published on our website. The objective of this DE&I
Policy is to enrich the Board of Management and Executive
Committee’s perspective, improve performance, increase member
value and enhance the probability of achievement of the company’s
goals and objectives.
A consistent and structured approach is applied to succession
planning for the Board of Management and Executive Committee,
taking into account the implementation of the relevant diversity and
inclusion policy.
With all of the Board of Management members being male,
AkzoNobel currently diverges from the gender diversity target of at
least 30% female and at least 30% male representation in the Board
of Management. This is primarily due to the size of the Board of
Management being only two members. This divergence is justified
and has ensured the best candidates for the roles were nominated
by the Supervisory Board and appointed by shareholders.
AkzoNobel ended 2025 with a gender diversity of 11% female
representatives at Executive Committee level. This diverges from the
gender target of at least 30% female and at least 30% male
Executive Committee members. While striving for continued
improvement of the gender balance, ultimately the selection of
candidates for appointment is based on merit.
Detailed information on diversity and inclusion, including targets, and
plans and initiatives to reach such targets, can be found in the
Sustainability statements and on our website.
Outside directorships
Specific rules on outside board positions of the Executive Committee
members – which are more stringent than the requirements of the
Dutch Civil Code – can be found in the Rules of Procedure.
Conflicts of interest
During 2025, no transactions were reported under which a member
of the Board of Management or Executive Committee had a conflict
of interest which was of material significance to the company and to
the relevant member.
Remuneration
The Remuneration Policy for the Board of Management was last
amended in full following adoption by the 2025 AGM. The details of
this policy can be found in the Remuneration report. The service
contracts of the Board of Management members contain change of
control provisions. Further details can be found in the Remuneration
report and Note 25 of the Consolidated financial statements. The
service contracts of the Board of Management are compliant with
the Code. The main elements of these contracts are available on our
website.
Operational Control Cycle
The Executive Committee holds regular meetings to discuss the
implementation of the company’s strategy and functional agendas.
Additional meetings are held to discuss specific topics as required.
The Board of Management and Executive Committee have
delegated authorities to individual Executive Committee members
and to certain committees. An Integrated Business Planning (IBP)
process is in place across the company’s global businesses and
functions. IBP provides visibility on the long-term integrated business
and financial plan, covering the product portfolio, demand and
supply. The monthly IBP cycle ends with a review by the Executive
Committee.
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Culture
The Board of Management and Executive Committee promote
openness and engagement through a SpeakUp! grievance
mechanism and have established a Code of Conduct, policies, rules
and procedures incorporated in the company’s Policy framework, in
order to drive a culture of good governance, consistency and
functional excellence. The core values of safety, integrity and
sustainability adopted by the Board of Management are incorporated
in these documents. The Board of Management believes these
values contribute to a culture focused on sustainable long-term value
creation and actively encourages these values through leading by
example.
A strong corporate culture fostering a solid and well-embedded
balance between performance and organizational health is highly
valued by the Board of Management and Supervisory Board, and is
fundamental to AkzoNobel’s strategic approach. Our corporate
culture forms an important part of discussions involving internal
organizational changes and Human Resources strategy updates, as
well as any functional updates. Since 2018, surveys have been
conducted involving all employees, covering a variety of focus areas,
such as our wider organizational health (see Employee engagement
in the Sustainability statements). The Executive Committee and
Supervisory Board regularly discuss the results of such surveys, the
targets and the actions taken to achieve those targets.
For more information on our culture, please refer to the Sustainability
statements and the Integrity and compliance management chapter.
Sustainability
The Board of Management, operating in the context of the Executive
Committee, is responsible for incorporating the sustainability agenda
into the company’s strategic approach and monitoring the
performance through the Operational Control Cycle. Within the
Executive Committee, the CHRO is responsible for sustainability.
Progress regarding sustainability objectives, development, target
setting and implementation is reviewed on a quarterly basis by the
Executive Committee and the Supervisory Board. Several bodies
report via the Director of Sustainability to the Executive Committee
and Supervisory Board, including the Raw Material Sustainability
Group (RMSG) and the Human Rights Committee. Regular deep
dives on specific sustainability topics are carried out to ensure
there’s appropriate expertise in the Executive Committee and
Supervisory Board to manage and oversee sustainability-related
matters, and to assess any associated material impacts, risks and
opportunities (IROs). In addition, training or education for the
members of the Executive Committee or the Supervisory Board on
ESG-related topics can be arranged upon request. The broad
industrial experience of both the CEO and CFO – across multiple
regions, businesses and sectors – helps them leverage their
expertise and their ability to provide guidance on how AkzoNobel
manages the IROs as identified under the CSRD. The Board of
Management is kept up to date directly by both the Director of
Sustainability and the Head of ESG reporting on the process of
identifying and managing the IROs. Further details are included in the
Sustainability statements.
The Audit Committee takes an active role in assessing the quality
and reliability of sustainability reporting and receives bi-annual
updates on sustainability reporting. External auditor PwC has been
engaged to perform a limited assurance engagement on the
Sustainability statements. Their report can be found in the Financial
information.
Committees
Integrity and Compliance governance
committees
The Executive Committee is responsible for maintaining a culture of
integrity and ensuring an effective Integrity and Compliance program
and framework and has delegated part of the responsibilities to
specific committees. The Supervisory Board’s Audit Committee
oversees this responsibility. More details on the Integrity and
Compliance governance committees can be found on page 111.
Executive Pensions Committee
The Executive Pensions Committee oversees the general pension
policies of AkzoNobel’s various pension plans and their financial
consequences for the company. The committee is chaired by the
CFO and includes the CHRO and senior executives with a
background in corporate law, treasury, pensions and rewards.
Disclosure Committee
The Board of Management has established a Disclosure Committee,
which consists of senior executives with a background in corporate
law, finance, treasury, investor relations and communication. The
task of the Disclosure Committee is to establish and maintain
disclosure controls and procedures, and to advise the CEO, CFO
and General Counsel on the accurate and timely disclosure of
material financial and non-financial information.
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Supervisory Board
This chapter provides an overview of the responsibilities and
governance of the Supervisory Board. For an understanding of the
activities of the Supervisory Board over the past year, refer to the
Statement of the Chair of the Supervisory Board and the Report of
the Supervisory Board.
The responsibility of the Supervisory Board is to supervise the
policies adopted by the Board of Management and the Executive
Committee and to oversee the general conduct of the business of
the company. In practice, this means supervising:
• The corporate strategy and sustainable long-term value creation
• The achievement of the company’s operational and financial
objectives
• The design and effectiveness of internal risk management and
control systems
• The main financial parameters, compliance with applicable laws
and regulations and risk factors
The Supervisory Board advises the Board of Management and
Executive Committee, while taking into account the interests of the
company and its stakeholders. Major investments, acquisitions and
functional initiatives are subject to Supervisory Board approval.
The Supervisory Board is governed by its Rules of Procedure
(available on our website). The Rules of Procedure include the profile
and charters of the Committees, which set out the tasks and
responsibilities of the Supervisory Board, and its operational
processes.
Composition
In compliance with the Dutch Civil Code, the Supervisory Board has
a balanced composition reflecting the nature and variety of the
company’s businesses, their international spread and expertise in
fields such as finance, economics, societal, environmental and legal
aspects of business, government and public administration.
The Supervisory Board maintains a skills matrix, which provides an
overview of the skills and experience of the individual members. The
skills matrix can be found on page 99.
In addition, in accordance with the Code, a policy on diversity and
inclusion has been adopted for the composition of the Supervisory
Board in the DE&I Policy for the executive level, Board of
Management and Supervisory Board. The objective of this policy is
to ensure a balanced composition, taking account of nationality, age,
gender, education and work background. For 2025, there are no
divergences to report. With four male and three female members,
the Supervisory Board complied with the requirements of the Dutch
Gender Diversity Bill.
Dutch law stipulates that a Supervisory Board member may not hold
more than five Supervisory Board positions in large companies or
large foundations (as defined by Dutch law), with chair positions
counting twice. The Supervisory Board annually reviews the external
positions held by its members and Board of Management members
to ensure they have adequate time to fulfill their duties and
responsibilities towards the company.
Supervisory Board
43%
57 %
Female
Male
Appointment
Supervisory Board members are nominated, appointed and
dismissed in accordance with procedures identical to those
previously outlined for the Board of Management members. When
nominating and selecting new candidates for the Supervisory Board,
we take into account the Supervisory Board profile and skills matrix,
the requirements of the Act on Management and Supervision, the
principles and provisions of the Code, as well as the DE&I Policy for
the executive level, Board of Management and Supervisory Board. In
accordance with the Code, Supervisory Board members are eligible
for re-election once for a period not exceeding four years. Members
may be re-elected a second time for a period of two years. This
period may be extended by two years at the most. In the event of a
reappointment after an eight-year period, reasons must be given in
the Report of the Supervisory Board. Terms of appointment are
based on a reappointment scheme, available on our website.
Induction and training
Following appointment to the Supervisory Board, new members
receive a comprehensive induction tailored to their individual needs.
This includes extensive briefings about all major business and
functional aspects of the company and its corporate governance
and compliance requirements. The induction includes meetings with
the CEO, CFO, all other Executive Committee members and relevant
members of senior management, as well as site visits. This enables
new Supervisory Board members to quickly build up an
understanding of AkzoNobel’s businesses and strategy, as well as
the key risks and issues the company faces. In addition, the Chair
ensures the Supervisory Board is provided with regular updates,
attends business unit deep dives and ensures that the Supervisory
Board undertakes training, for example in the area of compliance
and ethics and sustainability (reporting). To the extent required,
separate training sessions outside of regular Supervisory Board
meetings can be arranged by the company.
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Conflict of interest
Supervisory Board members may not participate in the discussions
and decision-making on a subject or transaction in relation to which
they have a conflict of interest with the company. Decisions to enter
into transactions under which Supervisory Board members have
conflicts of interest that are of material significance to the company,
and/or to the relevant Supervisory Board member, require the
approval of the Supervisory Board. Any such decisions will be
recorded in the annual report for the relevant year, with reference to
the conflict of interest and a declaration that the relevant best
practice provisions of the Code have been complied with. During
2025, no transactions were reported under which a Supervisory
Board member had a conflict of interest which was of material
significance to the company and/or to the relevant member.
Remuneration of the Supervisory Board
Supervisory Board members receive a fixed annual remuneration
and attendance fee, which is determined by the AGM. According to
the Code, it’s not possible for members to be remunerated in
shares. The Remuneration Policy for the Supervisory Board was last
amended in full following adoption at the AGM in 2025. More
information on the remuneration of Supervisory Board members and
the Remuneration Policy of the Supervisory Board can be found in
the Remuneration report and Note 25 of the Consolidated financial
statements.
Supervisory Board committees
The Supervisory Board has established three permanent committees
– the Audit Committee, Nomination Committee and Remuneration
Committee. Information on the activities, composition and
attendance of the Supervisory Board members at the meetings of
the committees during the year is set out in the Report of the
Supervisory Board. Each committee has a charter describing its role
and responsibilities, as well as the manner in which it discharges its
duties and reports to the full Supervisory Board. These charters are
included in the Rules of Procedure of the Supervisory Board. The
committees report on their deliberations and findings to the full
Supervisory Board.
Shareholders and the Annual General
Meeting
The AGM is an integral part of the governance of the company and
its system of checks and balances. The AGM reviews the annual
report and decides on the adoption of the financial statements and
the dividend proposal, as well as the discharge and (re)appointment
of members of the Supervisory Board and Board of Management.
The AGM is convened by public notice and the agenda, notes to the
agenda and the procedure for attendance and voting at the meeting
are published in advance and posted on our website. Matters
proposed for consideration, approval or adoption are tabled as
separate agenda items and explained in writing in advance of the
meeting.
These proposals include, where relevant:
• Adoption of the financial statements
• Dividend distributions
• Discharge of members of the Board of Management and
Supervisory Board
• (Re-)appointmentof members of the Board of Management and
Supervisory Board
• Advisory vote on Remuneration report
• Adoption of remuneration policies for the Board of Management
and Supervisory Board
• Other important matters, such as major acquisitions or the
divestment of a substantial part of the company, as required by
law
• Authorization of the Board of Management to issue new shares
• Authorization of the Board of Management to repurchase shares
• Amendments to the Articles of Association (for more details, see
art. 57 of the Articles of Association, available on our website)
The company provides remote voting possibilities to its
shareholders. Holding shares in the company on the record date
determines the right to exercise voting rights and other rights relating
to the AGM. All resolutions are made on the basis of the “one share,
one vote” principle (assuming an equal par value for each class of
shares). All resolutions are adopted by absolute majority, unless the
law or the company’s Articles of Association stipulate otherwise.
Holders of common shares in aggregate representing at least 1% of
the total issued capital, or, according to the Official List of Euronext
Amsterdam N.V., representing a value of at least €50 million, may
submit proposals for the AGM agenda. Such proposals must be
adequately substantiated and submitted in writing, or electronically,
to the company at least 60 calendar days in advance of the meeting.
Draft minutes of the AGM are made available on our website within
three months of the meeting date. The final minutes are made
available online within six months of the meeting date.
Share classes
AkzoNobel has three classes of shares: common shares, cumulative
preferred shares and priority shares. Common shares are traded on
the Euronext Amsterdam stock exchange. Common shares are also
traded over-the-counter on OTCQX in the US in the form of
American Depositary Receipts (each American Depositary Receipt
representing one-third of a common share). On December 31, 2025,
a total of 171.1 million common shares and 48 priority shares had
been issued. This includes shares held in treasury which cannot be
voted on and which are not eligible for dividend. Shareholders
owning 3% or more of the issued capital and/or voting rights must
report this to the Dutch Authority for the Financial Markets (AFM) as
soon as the threshold is reached or exceeded. Additional reporting
obligations apply as substantial shareholdings meet further
thresholds established under Dutch law. Relevant reporting by
shareholders can be found in the “Register of substantial holdings
and gross short positions” at www.afm.nl
The majority of shares in Akzo Nobel N.V. are included in a global
certificate and held through the system maintained by the Dutch
Central Securities Depository (Euroclear Nederland). In the past,
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Akzo Nobel N.V. also issued (physical) bearer share certificates
(Bearer Certificates).
A limited number of Bearer Certificates had not yet been
surrendered to Akzo Nobel N.V., although holders of Bearer
Certificates were entitled to a corresponding number of shares in
Akzo Nobel N.V. It is noted that, as a result of Dutch legislation
which became effective as of July 2019, the relevant shares were
registered in the name of Akzo Nobel N.V. by operation of law as per
January 1, 2021. Pursuant to this legislation, owners of Bearer
Certificates continued to be entitled to a corresponding number of
shares in Akzo Nobel N.V. until January 2, 2026. On that date, their
entitlement expired by operation of law.
Related information
For more details about AkzoNobel shares, contact Investor
Relations:
investor.relations@akzonobel.com
The priority shares are held by the Foundation Akzo Nobel (Stichting
Akzo Nobel). The priority shares are limited in transferability and
profit entitlement (see Note F of the Company financial statements).
The Foundation’s Board consists of AkzoNobel’s Supervisory Board
members who are not members of the Audit Committee. The
Meeting of Holders of Priority Shares has the nomination right for the
appointment of members of the Board of Management and the
Supervisory Board, as well as the right to approve amendments to
the Articles of Association of the company.
No cumulative preferred shares have been issued to date.
Cumulative preferred shares merely have a financing function, which
means if necessary, and possible, they will be issued at or near the
prevailing quoted price for common shares.
The 2025 AGM authorized the Board of Management for a period of
18 months after that date or, if earlier, until the date on which the
AGM again renews the authorization – subject to approval from the
Supervisory Board – to issue shares in the capital of the company
free from pre-emptive rights, up to a maximum of 10% of the issued
share capital. The Board of Management was also given a mandate
to acquire and to cancel held or acquired common shares in the
company’s share capital. The maximum number of shares that the
company will hold in its own share capital at any time shall not
exceed 10% of its issued share capital.
Anti-takeover provisions and control
According to the Code, the company is required to provide an
overview of its actual or potential anti-takeover measures, and to
indicate in what circumstances it’s expected they may be used. The
priority shares may be considered to constitute a form of anti-
takeover measure, in relation to the right of the Meeting of Holders of
Priority Shares to make binding nominations for appointments to the
Board of Management and the Supervisory Board. The Foundation
Akzo Nobel has confirmed that it intends to make use of such rights
in exceptional circumstances only. These circumstances include
situations where, in the opinion of the Board of the Foundation, the
continuity of the company’s management and policies is at stake.
This may be the case if a public bid for the common shares of the
company has been announced, or has been made, or the justified
expectation exists that such a bid will be made, without any
agreement having been reached in relation to such a bid with the
company. The same shall apply if one shareholder, or more
shareholders acting in a concerted way, hold a substantial
percentage of the issued common shares of the company without
making an offer. Or if, in the opinion of the Board of the Foundation
Akzo Nobel, the exercise of the voting rights by one shareholder or
more shareholders, acting in a concerted way, is materially in conflict
with the interests of the company. In such cases, the Supervisory
Board and the Board of Management, in accordance with their
statutory responsibility, will evaluate all available options with a view
to serving the best interests of the company, its shareholders and
other stakeholders.
The Board of the Foundation Akzo Nobel has reserved the right to
make use of its binding nomination rights for the appointment of
members of the Supervisory Board and of the Board of Management
in such circumstances. Although a deviation from provision 4.3.3 of
the Code, the Supervisory Board and the Board of Management are
of the opinion that these provisions will enhance the continuity of the
company’s management and policies. In the event of a hostile
takeover bid, or other action which the Board of Management and
Supervisory Board consider adverse to the company’s interests, the
two Boards reserve the right to use all available powers (including
the right to invoke a response time in accordance with provisions
4.1.6 and 4.1.7 of the Code), while taking into account the relevant
interests of the company and its affiliate enterprises and
stakeholders.
Auditors
The external auditor is appointed by the AGM on proposal of the
Supervisory Board. An annual evaluation of the external auditor is
reviewed by the Audit Committee and reported on to the Supervisory
Board. The external auditor attends all meetings of the Audit
Committee, and the meeting of the Supervisory Board at which the
financial statements are approved. During these meetings, the
auditor discusses the outcome of the audit procedures and the
reflections thereof in the auditors’ report. In particular, the key audit
matters are highlighted. The auditor receives the financial information
and underlying reports of the quarterly figures and can comment on
and respond to this information. The external auditor is present at
the AGM and shareholders may ask questions with regard to the
audit.
Auditor independence
The Audit Committee and Board of Management report their
dealings with the external auditor to the Supervisory Board annually,
and also discuss the external auditor’s independence.
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Other services
One area of particular focus in corporate governance is the
independence of the auditors. The Audit Committee has been
delegated direct responsibility for the compensation and monitoring
of the auditors and the services they provide to the company.
Pursuant to the Audit Profession Act, the auditors are prohibited
from providing the company with services in the Netherlands other
than “audit services aimed at providing assurance concerning the
information supplied by the audited client for the benefit of external
users of this information and also for the benefit of the Supervisory
Board as referred to in the reports mentioned”.
The company has taken the position that no additional services may
be provided by the external auditor and its global network that do
not meet these requirements, unless local statutory requirements so
dictate. In order to anchor this in our procedures, the Supervisory
Board adopted the AkzoNobel Rules on External Auditor
Independence and Selection and the related AkzoNobeI Procedure
on Auditor Independence. The aforementioned rules are available on
our website.
Internal Audit
The Internal Audit function is mandated to provide the Board of
Management, Executive Committee and Audit Committee with
independent, objective assurance on the adequacy of the design
and operating effectiveness of the Internal Control Framework
described below. The Internal Auditor reports to the Board of
Management and has direct access to the Audit Committee and its
Chair. The function performs its mandate based on a risk-based
audit plan, which is approved by the Board of Management and the
Audit Committee. It reports the audit findings quarterly to the Board
of Management, Executive Committee and the Audit Committee,
which culminates in an annual assessment of the quality and
effectiveness of the company’s internal control systems.
Share dealing rules and rules
on disclosure control
In accordance with Dutch Iaw and regulations (including the
European Market Abuse Regulation), the company maintains insider
lists and exercises controls around the dissemination and disclosure
of potentially price sensitive information.
All employees and the members of the Board of Management,
Executive Committee and Supervisory Board, are subject to the
AkzoNobel Share Dealing Rules, which limit their opportunities to
trade in AkzoNobel securities. Transactions in AkzoNobeI shares
carried out by Board of Management, Executive Committee and
Supervisory Board members (including their closely associated
persons) are, as and when required, notified to the Dutch Authority
for the Financial Markets (AFM). The Board of Management,
Executive Committee and Supervisory Board members require
authorization from the General Counsel prior to carrying out any
transactions in respect of AkzoNobeI securities, even in a so-called
“open period”. In relevant cases, the General Counsel can prohibit
carrying out transactions in respect of other companies’ securities. In
addition, all employees are subject to the AkzoNobeI Rules on
Disclosure Control.
Internal controls and risk management
Internal controls
The company maintains robust processes and procedures for
internal control. The Internal Control Framework includes the risk
assessment and the design, operation and assessment of internal
controls to ensure the effectiveness and reliability of reporting,
compliance and operational activities. Further details, including how
the Board of Management monitors the effective design and
operation of the internal control systems, are explained on page 107.
In 2025, a comprehensive evaluation of the Internal Control
Framework and processes was carried out. We continued to invest
in further enhancements, including further leveraging system
embedded and system enabled controls, standard role design and
segregation of duties monitoring, helping us to prevent fraud and
reputational damage.
Risk management
Our risk management system is explained in more detail in the next
chapter. Reference is made to the Statement of the Board of
Management relating to internal risk management and control
systems.
During the year, we launched a new water-based wood coating which features
20% bio-based content. Suitable for both interior and exterior use, Sikkens
RUBBOL WF 3350 is a sprayable opaque coating which contains renewable
materials derived from plants.
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Risk management vision and governance
AkzoNobel has a diverse portfolio of brands, geographic footprint
and business structure, which means it’s important for us to manage
risks in a proactive and responsible way. We seek to take a
balanced and integrated risk management approach. Risk
management is an essential element of our corporate governance
and strategy development. We continuously strive to foster a high
awareness of business risks and internal control to provide
transparency in our processes and operations. AkzoNobel complies
with the risk management requirements of the Dutch Corporate
Governance Code 2025. The Board of Management and Executive
Committee are responsible for the establishment and adequate
functioning of appropriate internal risk management and control
systems (see Statement of the Board of Management).
Risk management framework
Our risk management framework is in line with the Enterprise Risk
Management – Integrated Framework of COSO and the Corporate
Governance Code. It’s an embedded, company-wide activity,
integrated with the company strategy, and focused on the areas of
main risk exposure for strategy, operations, compliance and
reporting. The process begins with risk appetite setting by the Board
of Management, which serves as input for our strategy and general
risk management approach. This is followed by a structured risk
identification and risk assessment – applying a top-down and
bottom-up approach – as well as the management and monitoring
of identified risks. The risk management framework is discussed
twice a year with the Audit Committee and Supervisory Board.
Risk appetite
Our risk appetite varies depending on the type of risk (strategic,
financial and reporting, operational, compliance and ESG). Risks are
taken consciously, assessing their potential impact on the
company’s objectives. We operate within the dynamics of the paints
and coatings industry and take the risks needed to ensure our
relevance in the market.
Strategic: We take a balanced approach to risk to reach our
strategic ambitions. Risk and reward should have an equal
weighting, and the return on investment is the primary denominator
when looking at innovation, capital investments, product
development and commercial opportunities.
Financial and reporting: We have a prudent financing strategy, a
balanced cash management policy and clear capital allocation
priorities to be able to grow responsibly and profitably. We’re
committed to maintaining a strong investment grade credit rating.
Moreover, a prudent approach is taken to financial reporting risk to
ensure the accuracy, completeness and integrity of our financial
information.
Operational: Overall, we take well-balanced risk decisions when
executing our operational processes and chosen strategy. We make
the availability of our products a priority, accepting only minimal
disruptions to operations (including IT infrastructure), while taking
balanced risks commercially.
Compliance: We strive to align with relevant laws and regulations
by assessing compliance risks and taking preventive measures
accordingly.
Environmental, social and governance (ESG): We aim to ensure
that the pioneering paints and coatings we supply continue to
protect what matters – both now and in the future. We innovate with
and for customers and play an active role in supporting the
industries we supply to advance towards a more sustainable future.
We take preventive measures to ensure a healthy and safe working
environment for our people.
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Risk management in 2025
During 2025, we held a significant number of enterprise risk
workshops across the organization, as well as transition and fraud
risk workshops. Risks were identified by management teams and
functional experts, followed by the definition of adequate mitigating
actions. We consider risk assessment and corresponding risk
response to be a continuous process, carried out against the
background of an evolving risk landscape, which includes short,
medium and longer term challenges.
As part of the 2025 risk management cycle, the material risks to
which the company is exposed in relation to our risk appetite have
been identified together with the corresponding mitigation plans. The
outcome has been reviewed and confirmed by the Board of
Management and Executive Committee and subsequently discussed
with the Audit Committee and Supervisory Board. These risks are
outlined in this section. The symbols alongside the risk descriptions
represent management’s assessment of risk development,
compared with 2024. During the assessment, both our internal and
external environment were considered. For information related to
financial risk management, see Note 26 of the Consolidated financial
statements.
Symbols indicate the following:
Risk assessed to increase.
5
Risk assessed to remain fairly stable.
=
Risk assessed to decrease.
6
Strategic risks
Ability to execute =
The risk of misalignment between the business and functions and
short term versus long term, leading to inability to support and drive
the business agenda and growth plans, resulting in not delivering the
set targets.
Mitigating actions:
• Operating with a flatter structure with business representation in
the Executive Committee and operational activities integrated into
the business, coupled with significant flattening of the organization
as part of the Selling, General and Administrative Expenses (SG&A)
restructuring program
• Improving our industrial operations by reducing complexity,
improving capacity utilization and investing in the modernization of
our sites
• Continued streamlining of the execution model to avoid over-
functionalization: Research and Development (R&D) integrated into
the business units and, most recently, the Integrated Supply Chain
(ISC) model has also been aligned to the business operating
structure. This provides clear end-to-end accountability and a
simplified and de-layered organizational set-up
Geopolitical instability 5
The risk that increasing geopolitical turbulence results in declining
customer and industry confidence and a decline in key markets and
significant losses to our sales and profitability.
Mitigating actions:
• Balanced geographic presence with revenue generated from all
regions and continued investment focus on higher growth markets
to optimize geographic spread
• Geopolitical assessment as part of investment decisions and
medium-term operational planning
• Continue to drive business unit strategic initiatives underpinning
the company strategy
• Diversifying our supply chain and managing redundancy,
accelerated localization to offset direct tariff impacts
Macro-economic crisis 5
The risk of a prolonged macro-economic downturn, leading to local
currency devaluation, high inflation, customer destocking and a
reduction in volume and margin.
Mitigating actions:
• Balanced geographic presence with revenue generated from all
regions and continued investment focus on higher growth markets
to optimize geographic spread
• Increased attention on operational cost, complexity reduction,
margin management and commercial and procurement excellence
• Continue to drive business unit strategic initiatives underpinning
the company strategy
• Strategic portfolio review: Redeploy capital to create synergetic
scale in areas with clear path to leadership
Operational risks
Business continuity risk =
The risk of being unable to respond adequately to a significant
business interruption, leading to financial and reputational damage.
Mitigating actions:
• Continue to enhance our business continuity processes and plans,
supported by taking Integrated Business Planning to a next
maturity level and increasing cross-functional and business
collaboration
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Cyber security =
The risk of significant business disruption and/or inadequate
recovery following a cybersecurity or AI-enabled attack, leading to
production interruption, unauthorized access to, disclosure or loss of
business-sensitive information, compromise or misuse of AI systems
and data, financial loss, and/or inability to align or comply with laws,
regulations and contractual obligations concerning cybersecurity and
the responsible use of artificial intelligence, which can limit our
presence in some regions and markets.
Mitigating actions:
• Continually reinforcing cybersecurity and responsible AI
awareness, training and culture across the entire organization (e.g.
phishing tests), supported by clear accountability and effective
consequence management
• Strengthening protection, detection and response capabilities
across IT (cloud and on-premises) and OT (operational technology)
domains by leveraging new technologies, improving security
visibility and detection of vulnerabilities and emerging threats, and
accelerating the integration of IT and OT infrastructure of entities
incorporated into the company through mergers and acquisitions,
where this integration has not yet been fully completed
• Improving the capacity to reduce the impact of sophisticated and
AI-enabled cyber-attacks, and to recover rapidly through
enhanced incident preparedness, automated response
capabilities, professional support and strengthened back-up and
recovery solutions
• Improving our capacity for assessing cybersecurity and AI-related
risks in critical domains and monitoring their remediation
• Hardening core technology environments, including e-mail, cloud,
on-premises platforms and AI-enabled systems, to reduce
exposure, limit attack paths and improve baseline security
• Increasing the level and quality of partnerships with public and
private institutions to improve the overall security and resilience of
our business ecosystem
Integrated Business Planning (IBP) maturity =
The risk that we don’t reach the required service levels due to
inadequate end-to-end planning processes and supply chain
infrastructure, leading to loss of existing business and inability to win
new business.
Mitigating actions:
• More attention on complexity reduction and improving efficiency of
the product portfolio and supply chain
• Stronger performance management via aligned sets of lagging and
leading KPIs, and mature IBP governance
• Reintegrating our businesses and Integrated Supply Chain function
to create shorter lines of communication and ability to react to
changes in the market faster
• Increase agility and velocity in the end-to-end process through
simplification, cross-company initiatives, digitalization and data-
driven modelling
Pricing and margin management =
The risk of lower margins resulting from lower price capture (price
execution/increased competitive pressure) and/or higher inflation
and raw material cost versus plan.
Mitigating actions:
• More data-driven approach to pricing plans, based on value
pricing
• Monthly control cycle in place to monitor pricing plan execution
and pricing concessions
• Strengthening controls on price overrides and full gross to net
transactional pricing transparency
• Continue to closely monitor raw material prices and availability,
pass through of tariff impact that cannot be offset through
localization
Product portfolio =
The risk of lacking a fit-for-purpose product portfolio, leading to a
cost base that’s too high and an inability to compete in the market.
Mitigating actions:
• Continuing to reduce our product portfolio complexity, accelerated
reductions to facilitate industrial excellence footprint moves
• Constantly reengineering our products, accelerated localization to
offset direct tariff impacts
• Enhancement of our product lifecycle and product change
management
Supply shortages 6
The risk of supply shortages of key raw materials, packaging and/or
spare parts, resulting in production interruptions, additional cost and
muted organic growth.
Mitigating actions:
• Maintain and further improve strong industry and market
intelligence analysis of suppliers and raw material markets
• Assess climate change impact and develop mitigation plans for
own operations, key suppliers’ locations and logistics (see the
Sustainability statements)
• Supply chain risk management tool implemented to secure early
warnings across the globe
• New raw material risk management approach being rolled out to
define risks across regions and business units to further improve
mitigation planning
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Compliance and ESG risks
Non-compliance and litigation =
The risk of potential impact of business conduct, environmental,
social and governance (ESG) standards, product compliance, safety
and environmental regulations concerning existing and legacy
operations or assets, which may subject the company to litigation,
financial losses, or reputational harm.
Mitigating actions:
• Exposures over a defined threshold are reported, monitored and
managed by Legal and Finance, and reported to the Audit
Committee twice a year
• Developments around business conduct, ESG, product
compliance, safety and environmental legislation and the impact
thereof on our current and legacy operations and assets are
reviewed regularly by Health, Safety and Environment,
Sustainability, Product Safety and Regulatory Affairs, Legal and
Finance
• There’s a quarterly process for review of our portfolio of legacy
operations and assets, including Integrated Supply Chain, Finance
and Legal
• Updates on significant claims and litigation are regularly provided
to the Board of Management and Supervisory Board
We’re investing €50 million to upgrade our Waukegan, Illinois, facility in the US –
the company’s biggest aerospace coatings production site. As well as increasing
capacity and installing new machinery, the two-phase project will also include
creating a new warehouse space just across the state border in Wisconsin.
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We’re committed to leading with integrity in
our industry. It’s one of our three core values
for doing business. We continue to further
advance and expand our Integrity and
Compliance program to help the
organization act in compliance with laws
and regulations, empower and enable our
employees to make fair and honest
decisions and bring integrity to life.
Below is a summary of the 2025 priorities and key activities, and the
outcomes thereof, as required pursuant to the Dutch Decree on the
publication of non-financial information.
Governance and organization
The Executive Committee is responsible for maintaining a culture of
integrity and ensuring an effective Integrity and Compliance program
and control framework at AkzoNobel. The Supervisory Board’s Audit
Committee oversees this responsibility. The Executive Committee
has delegated certain responsibilities to the following working
committees and Integrity and Compliance team:
Integrity and Compliance governance
committees
The Integrity and Compliance governance committees are at the
core of our Integrity and Compliance governance model. We assess
the need for committees depending on organizational changes,
changes in the risk profile of business units, and regulatory and
legislative changes. In 2025, we had committees in place in all eight
business units, the Integrated Supply Chain (ISC) organization and
certain countries. The committee for ISC concluded in Q2 2025,
streamlining the Integrity and Compliance governance structure in
line with organizational changes. The ISC organization is now
represented by the respective business unit committees. The
committees consist of business unit leadership and key corporate
function leaders, including the Integrity and Compliance managers.
The committees drive the operationalization of the Integrity and
Compliance program into the organization, with strong attention
given to prevention. The committees discuss trends, identify,
prioritize and address risks, and share learnings from investigations
to drive continuous improvement. In 2025, each business unit
committee conducted the annual Integrity and Compliance risk
assessment. For more information on this assessment, see the
following Risk management paragraph. The committees meet at
least on a quarterly basis.
Integrity and Compliance SpeakUp! Committee
This committee reviews investigations into SpeakUp! reports
involving alleged violations of our Code of Conduct and applicable
policies and laws. The committee also decides on discipline and
control improvement actions, as well as monitoring and responding
to any trends identified in investigations. Cases are generally decided
by the SpeakUp! committee, with certain limited exceptions for (1)
certain regulatory matters where subject matter expertise is needed,
which go to the General Counsel; or (2) certain lower risk cases
which may be decided by the leader of the business unit or function
in whose organization the alleged violation occurred. The latter cases
are reviewed by the SpeakUp! Committee. The centrally established
Integrity and Compliance SpeakUp! Committee ensures
transparency and consistency of disciplinary actions throughout the
organization.
In 2025, there were no individual matters or disciplinary actions
discussed with this committee that would warrant separate
disclosure in the annual report. Should there be material compliance
matters, or material internal control weaknesses or improvements in
the future, these will be addressed through the Risk, Control and
Compliance meetings and discussed with the Audit Committee and
external auditor and, where appropriate, disclosed in accordance
with the applicable legal requirements.
Integrity and Compliance team
The day-to-day management of our Integrity and Compliance
program is delegated to the Integrity and Compliance team – which
is led by the Director of Integrity and Compliance, who reports to the
General Counsel. The team includes experts in integrity and
compliance program design and implementation, legal experts in the
field of competition law, anti-bribery and anti-corruption, data privacy
and export controls and sanctions, as well as our Integrity and
Compliance managers in all regions driving the implementation and
further tailoring of the program to address local risks.
To ensure the company maintains and strengthens its culture of
integrity, the Integrity and Compliance team – together with various
other functions and stakeholders across the organization –
concentrates its efforts on the following key areas:
• Help leaders set a strong tone at the top and lead by example
• Drive awareness and ownership of all employees through effective
policy management, training and communication
• Design and implement effective controls and monitoring
• Risk management
• Investigations of SpeakUp! matters with an emphasis on identifying
control action items and sharing lessons learned
• Driving continuous improvement
The regional Integrity and Compliance managers contribute to further
strengthening the culture of integrity. This includes identifying and
addressing local risks and cooperating with the business and
functional teams to tailor the program to local risks and follow up on
internal audit findings and SpeakUp! cases. The heads of Integrity
and Compliance, Internal Control and Internal Audit meet at least
twice a year to discuss findings and trends, and to align actions. The
Director of Integrity and Compliance also meets at least quarterly
with the Human Rights and Sustainability team to discuss the
priorities in these areas, touchpoints with the Integrity and
Compliance program and to maximize alignment and collaboration.
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Risk management
The business unit Integrity and Compliance governance committees
play a key role in the Integrity and Compliance risk assessments,
which are led by the Integrity and Compliance team. The business
unit Integrity and Compliance governance committees voted
electronically on key risks, captured in a risk heatmap for each
committee. The committees then identified their top three risks
during a workshop, after which they defined action plans and
owners to mitigate these risks. Each committee has approved its
business unit specific risk remediation plan, which is captured in the
electronic tool. The execution of the risk remediation plans is
updated and monitored through the same electronic tool on a
quarterly basis. The outcome of all Integrity and Compliance risk
assessments serves as the basis to identify the key priorities for
2026 and onwards.
Policy management
All of AkzoNobel’s global policies are available on the Policy Portal.
In 2025, the policy governance and set-up were simplified and an
automated lifecycle management tool was launched for the
processing of change requests for global policies. Technology
improvements were also made to improve the Policy Portal user
experience. These improvements facilitated the successful
completion of the annual review cycle via the automated lifecycle
tool.
Communication
In 2025, although no major risks or issues were identified in
SpeakUp! cases, we continued to release SpeakUp! Story videos to
ensure a strong tone from the top and help drive improvement.
These are short videos in which senior leaders share lessons learned
from SpeakUp! cases, as well as providing guidance to our
employees on how to prevent future misconduct. In addition, we
launched “Stories that speak” scenario-based slides designed to
reflect real-world situations, helping colleagues to better understand
key risk areas and providing clear, actionable guidance on how to
respond effectively.
Training and education
In 2025, we continued to work on increasing integrity and
compliance awareness. As part of this, the Compliance Fitness
Program has expanded. This program includes “workout cards”
designed to be easy to use, understand and assist individuals/teams
in addressing frequent challenges related to integrity and compliance
topics. The bi-annual Code of Conduct refresher training was
launched with updated content. The mandatory Integrity and
Compliance training curriculum was also strengthened by the
introduction of a new Data Privacy module. In parallel, improvements
were made to track both online and offline training completion.
These improvements include a more user-friendly administrative
process and streamlined reporting capabilities, supporting data
quality and ease of use. All mandatory Integrity and Compliance
trainings have a completion rate of at least 90%.
Competition law program
In 2025, we continued to align with relevant competition law and
promote a culture of fair competition. Our competition compliance
program remains a cornerstone to this effort, with ongoing initiatives
designed to raise awareness and understanding across all levels of
the organization, such as regular training sessions, updated and
simplified guidance materials and tailored workshops.
This year, we placed particular emphasis on reinforcing best
practices around careful communication and market intelligence. We
maintained accessible channels for employees to seek advice and
report potential concerns confidentially. In addition, the competition
law aspects of mergers, acquisitions and post-integration processes
continued to be closely monitored to ensure compliance with
regulatory requirements.
Privacy program
In 2025, we strengthened data privacy awareness, governance and
transparency across the organization. We launched a new
foundational e-learning module, Data Privacy Essentials: What
Everyone Needs to Know. This training provides practical, scenario-
based guidance to help employees recognize and apply core privacy
principles in their daily work. We enhanced the privacy guidance
materials and updated the classroom training materials, further
strengthening our culture of accountability and data protection.
In parallel, we updated both our external Privacy Statement and our
internal Employee Privacy Statement to ensure alignment with
evolving legal requirements and our continued commitment to
transparent data practices. We also completed an update of our
Binding Corporate Rules (BCRs) – our internal privacy framework
approved by European data protection authorities, which governs
how personal data is protected and transferred within AkzoNobel
globally.
Anti-bribery and anti-corruption (ABAC)
program
In 2025, our strategic focus centered on enhancing self-service
training capabilities. We introduced a suite of new materials
designed to reflect real-world scenarios, thereby improving the
accessibility and applicability of guidance materials. In parallel, we
launched an updated ABAC classroom training deck, encompassing
key topics such as gifts, hospitality, donations and sponsorships,
customer reward programs and conflicts of interest.
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Third party risk management (TPRM)
program
Following the successful launch of the automated TPRM program
with an ABAC focus in selected businesses in 2024, we transitioned
our efforts toward our legacy business partners. This included
mapping, registering and risk-based re-screening of legacy third
parties as part of a pilot program. This effort will be further expanded
in 2026.
In parallel, we expanded our internal self-help resources to support
broader understanding and adoption of TPRM. A dedicated
classroom training module was also developed to reinforce key
concepts and drive consistent application across the organization.
Export controls and sanctions
In 2025, we strengthened our export control framework through
enhanced monitoring and stakeholder engagement. We expanded
the sanctioned entities lists integrated into our compliance engine,
improving automated screening during order entry. To support our
global teams, we launched and promoted a range of self-help
resources. In addition, we provided searchable databases of
sanctioned marine vessels through our Export Control Center
SharePoint, enabling sales teams worldwide to perform pre-order
due diligence and identify potential sanctions risks.
Monitoring
We have several processes to monitor compliance with our policies
by employees and business partners. Employees are informed about
this through the Employee Privacy Statement. Managers are also
required to self-assess and confirm compliance with key company
controls as part of internal control self-assessment.
The Internal Audit function performs numerous audits on our
operations. Their audit plan is risk-based and takes account of prior
compliance and internal control findings. Internal audits were also
held or covered specific risks – at the request of the Integrity and
Compliance function – to validate compliance with our policies in
certain units, or on certain risk areas.
Grievance and investigation
Our SpeakUp! grievance mechanism offers employees and third
parties a means to raise allegations relating to compliance with our
Code of Conduct and violations of applicable policies, laws and
regulations.
Our dedicated investigation team follows an investigation protocol
which adheres to strict principles of confidentiality, respect for
anonymity, non-retaliation, objectivity and the right to be heard.
Reporting
During 2025, the Director of Integrity and Compliance reported to
the Executive Committee and the Audit Committee of the
Supervisory Board on material developments of the Integrity and
Compliance program every four months. Material investigation
matters, if any, are discussed with our external auditor on a quarterly
basis.
We were the official painting partner for the Netherlands Pavilion at Expo 2025
staged in Osaka, Japan. Designed by leading architects, it featured our advanced
decorative paints, protective coatings, woodcare solutions and coil coatings. A
key consideration was contributing to the structure’s circular design concept and
its environmental performance.
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SpeakUp! reports
2023*
2024*
2025*
Total reports and alleged violations
445
456
400
• Integrity
181
199
159
• Safety
40
64
40
• Sustainability*
224
193
200
Dismissals resulting from SpeakUp!
reports
42
62
44
Conclusions SpeakUp! reports:
• Substantiated
140
159
159
• Unsubstantiated
136
108
125
• Other (e.g. referred)
187
133
127
*Includes Grupo Orbis cases which are no longer separately tracked, and employee-related
human resources concerns.
LETTER FROM THE CHAIR OF
THE REMUNERATION COMMITTEE
Dear stakeholders
On behalf of the Remuneration Committee, I’m pleased to introduce
AkzoNobel’s 2025 Remuneration report. In this report, the company
outlines the implementation of its remuneration policies in 2025. The
2025 Remuneration report will be subject to an advisory vote at our
2026 AGM.
Our business context in 2025
While market conditions in 2025 were impacted by geopolitical
uncertainties – influencing customer demand, as well as adverse
currency impacts – AkzoNobel outperformed in select markets with
disciplined pricing and efficiency measures supporting performance.
The company continued to grow in Marine and Protective Coatings
and Aerospace. Decorative Paints also performed well, with higher
volumes in China, as we outperformed a weak market. AkzoNobel
remains focused on the elements it can control: efficiency, pricing
discipline and cash generation, as these self-help measures continue
to deliver results.
By the middle of the year, the Selling, General and Administrative
Expenses (SG&A) efficiency program was largely completed. The
plan was implemented and the efforts undertaken led to a
simplification of the company’s structure, resulting in a net reduction
of 2,900 positions globally. Significantly more than the scheduled
2,200 positions.
In a year when AkzoNobel implemented a reduction of the
workforce, the engagement has improved. For the third successive
year, the level of engagement exceeded the industry benchmark,
which is an impressive achievement.
Operationally, 2025 witnessed a sustained performance in on-time,
in-full (OTIF) delivery. This achievement underscores the company’s
commitment to operational excellence, even amid ongoing industrial
transformation initiatives.
As part of its strategic plan and broader portfolio assessment, the
company reviewed its Paints positions in South East Asia and, in
2025, divested its stake in Akzo Nobel India Limited. This significant
step emphasizes AkzoNobel’s commitment to optimizing its portfolio
by focusing on key markets where it has competitive, differentiating
scale, enabling more effective capital allocation.
Looking ahead, the company is actively progressing the proposed
merger between AkzoNobel and Axalta, with the ambition to create
a global leader in paints and coatings. This combination will
strengthen the platform for long-term growth, bringing together the
scale, capabilities and global reach to accelerate sustainable long-
term value creation, drive breakthrough innovation and serve
customers even better worldwide. The transaction remains subject
to shareholder approval and the satisfaction of customary closing
conditions.
Our stakeholder engagement
AkzoNobel actively engaged with various stakeholders in preparation
for the 2025 AGM to ensure a transparent, inclusive and well-
informed decision-making process. This engagement included
consultations with shareholders, institutional investors and board
members to align on strategic priorities, governance matters and
financial performance.
In addition to formal meetings and advisory sessions, AkzoNobel
has conducted targeted outreach initiatives, including investor
roadshows and proxy advisor discussions. These efforts aim to
address stakeholder concerns, foster an open dialog, and
incorporate feedback from stakeholders where appropriate.
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WOUTER
KOLK
Chair of the Remuneration Committee
By maintaining an open and proactive approach, the company
reinforces trust and enhances stakeholder participation.
The Remuneration Committee welcomes the positive advisory vote
on the 2024 Remuneration report at the 2025 AGM, with a majority
of 81.50%. The reduction versus the prior year largely reflects the
position of one significant shareholder, who voted against the report
due to the absence of a Total Shareholder Return (TSR) metric in the
Long-term incentive (LTI) framework. We engaged constructively
with this shareholder and other stakeholders and took their feedback
seriously. We recognize, and agree, that the introduction of a TSR
metric within our LTI framework is an important consideration and a
point of focus for a number of investors. However, given the
proposed merger between AkzoNobel and Axalta, and the
comprehensive redesign of the remuneration framework due to the
creation of the combined company, the Remuneration Committee
concluded that 2026 is not the appropriate moment to implement
this change within the current structure. The Remuneration
Committee will introduce TSR as part of the new remuneration policy
of the combined company, subject to final design parameters and
required governance approvals.
Remuneration report disclosure
AkzoNobel presents its remuneration report using the same
structure and format as in prior years, ensuring alignment with the
highest standards of governance and prevailing market practice. The
report will be reviewed in light of the intended merger with Axalta and
any consequent governance implications. Accordingly, no significant
changes have been made to the 2025 Remuneration report.
Decisions made on remuneration
Board of Management
The 2025 remuneration outcomes for the CEO and CFO are
determined in accordance with the Remuneration Policy for the
Board of Management, which was last amended and adopted in full
at the 2025 AGM.
In the adopted Remuneration Policy for the Board of Management,
the LTI weighting was amended to better align with the company’s
strategic priorities. Vesting of the conditional grant is linked to
adjusted EBITDA (40%), ROI (40%) and ESG (20%).
Covestro has been removed from the labor market peer group,
following the announcement of the intended take-over by state-
owned oil company ADNOC, United Arab Emirates.
For new Board of Management members who are attracted from
outside the company, the wording of “sign-on” is adjusted to “buy-
out” to reflect the practice to merely (partially) compensate new
members of the Board of Management for forfeited variable pay at
their previous employer.
Additional malus and claw-back triggers related to risk management,
individual misconduct and reasonableness and fairness have been
added to the updated policy.
In 2025, no changes were made to the base salary of both the CEO
and the CFO. The CEO, Greg Poux-Guillaume, earned a base salary
of €1,290,000. The CFO, Maarten de Vries, earned a base salary of
€830,000.
In 2025, the achievement on metrics for the short-term incentive
was slightly below target for the adjusted operating income objective
and above target for free cash flow. The non-financial objectives for
the members of the Board of Management were
evaluated above target on average for both the CEO and CFO. More
details can be found in the section on short-term incentives.
The achievement on the metrics of the 2023-2025 LTI Plan was
above target on the financial objectives for adjusted EBITDA, ROI,
and revenue growth. Part of the Environmental, Social and
Governance (ESG) metrics also showed good performance. Details
are provided in the section on long-term incentives.
Supervisory Board
The 2025 remuneration for Supervisory Board members is
determined in accordance with the Remuneration Policy for the
Supervisory Board, as last amended and adopted in full by the AGM
in 2025.
Implementation of our remuneration
policies in 2026
As required by Dutch law, the remuneration policies are submitted in
full every four years. Following submission and adoption in full by the
AGM in 2025, no changes are envisioned for the Remuneration
Policy for the Board of Management nor the Remuneration Policy for
the Supervisory Board for adoption in the 2026 AGM.
As AkzoNobel prepares for the proposed merger with Axalta, the
Remuneration Committee will undertake a comprehensive review of
the executive compensation framework to ensure that it aligns with
the strategic objectives of the combined company and supports the
commitment to delivering sustainable long-term value creation for
stakeholders. The proposed Remuneration Policy will be submitted
for approval at the EGM in 2026.
Amsterdam, February 23, 2026
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Remuneration at a glance – 2025
Base salary
Short-term incentive
Long-term incentive
Total pay
Greg Poux-
Guillaume
€1,290,000
Maarten
de Vries
€830,000
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STI
Adjusted OPI
FCF
Personal
STI pay-out as % of target
0%
25%
50%
75%
100% 125% 150%
Vesting % of LTI award
LTI
Adjusted
EBITDA
ROI
Revenue growth
0%
25%
50%
75%
100% 125% 150%
ESG
Total actual remuneration
Fixed remuneration
One-year variable
Multi-year variable
CEO
CFO
€0
€1,000
€2,000
€3,000
€4,000
€5,000
€6,000
€7,000
€6,294
49%
24%
27%
45%
23%
32%
in € thousands
Investment of 50% net STI proceeds
€3,345
Both the CEO and the CFO have chosen to invest an additional 25% of net
STI proceeds in the Share-Matching Plan. Total investment of net STI
proceeds equals 50% for both.
Total LTI vesting includes a cumulative dividend yield of 9.72%.
Total actual remuneration reflects full-year 2025 actual remuneration as
reported in the total remuneration table, whereby multi-year variable is on the
basis of IFRS 2 expenses.
2025 policy at a glance – Board of Management
The Remuneration Policy for the Board of Management is designed to incentivize the Board of
Management to achieve the company’s objectives while considering market competitive standards, the
ratio between fixed and variable pay, the perspective of shareholders and other key stakeholders, and ESG
related contributions of the company.
Purpose
Design and link to strategy
Value
Total direct compensation
Is the basis for benchmark efforts (i.e. the reference
to the labor market peer group).
Base salary and variable income. Variable income concerns the performance-related short-term incentive (STI), the long-term incentive (LTI) and the Share-
Matching Plan. In addition, Board of Management members are entitled to certain benefits.
Value of each respective item is specified in more
detail below.
Base salary
Basic pay for the job.
• Aims to provide a fair and competitive basis for the total pay level to attract high caliber leaders
• In-depth benchmark at least every three years
• Remuneration increases above the median market level are reserved for Board of Management members who consistently outperform their targets
• Annual amounts
CEO: €1,290,000
CFO: €830,000
Short-term incentive
Aligning short-term business objectives and business
drivers towards sustainable long-term value creation.
Driving pay for performance.
• The Supervisory Board sets strategically important operational targets for the respective performance year and determines the extent to which they’ve been
achieved
• By ensuring that sustainable long-term value creation is properly reflected in stretched yet achievable targets, the realization of strategic business objectives is
addressed
• For on-target STI, 70% is linked to financial objectives and 30% is related to quantifiable non-financial objectives
• On-target performance: 100% of annual base
salary for CEO and 80% for CFO
• Maximum opportunity of 150% of target, i.e. CEO
capped at 150% and CFO at 120% of annual
base salary
• Threshold: no STI pay-out below threshold
Long-term incentive
Encouraging sustainable long-term value creation –
both absolute and relative to competitors – and to
align Board of Management interests with those of
shareholders, as well as ensuring retention of the
members of the Board of Management.
• Performance shares are awarded every year, to be converted into shares upon realization of pre-defined targets, observing a three-year vesting period.
Performance is measured over three financial years, starting with the year of grant
• Performance targets are based on company strategy, driving sustainable long-term value creation. 80% of LTI targets are linked to financial goals and 20% are
linked to ESG goals
• An additional two-year holding period after vesting applies
• The on-target grant equals 200% of base salary
for the CEO and 150% for the CFO
• Maximum vesting opportunity is 150% of the
number of performance shares granted, which
equals 300% for the CEO and 225% for the CFO
• Threshold: no vesting if performance below
threshold
Shareholding requirement
Aligning reward to the interests of stakeholders and
emphasizing confidence in performance and
strategy.
• Members of the Board of Management are expected to build up a shareholding in the company; the minimum shareholding requirement must be accrued in five
years
• Considered are shares privately purchased and vested shares granted under AkzoNobel share-based compensation plans
• The minimum shareholding requirement is 300%
of annual base salary for the CEO and 150% for
the CFO
Share-Matching Plan
Aligning reward to the interests of stakeholders and
emphasizing confidence in performance and
strategy.
• The Share-Matching Plan awards shares to Board of Management members for shares they’ve invested in from their STI proceeds and held over a three-year
period
• When they retain these shares for three years, the company will match such shares one on one, subject to continued employment
• Members of the Board of Management are
required to invest 25% of their STI proceeds (net
after tax and other deductions)
• They may invest up to an additional 25%
(maximum investment is 50% of total net STI)
Pension and other benefits
Post-retirement remuneration and other benefits,
creates alignment with market practice.
• A company paid contribution, based on age, to allow participation in a private pension plan, as applicable to Netherlands-based employees
• Other benefits include sick pay (aligned with Netherlands-based employees) and a monthly transportation allowance of €2,000
• The CEO is also eligible for certain commuting benefits, including temporary housing and travel reimbursements, to support regular travel between Switzerland
and the Netherlands
• Pension contributions for the CEO equal 19.6% of
base salary and for the CFO equal 23.2% of base
salary
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External market context
Background of the peer group
• Air Liquide
• Arkema
• ASML
• Clariant
• DSM-Firmenich
• Evonik Industries
• Givaudan
• Henkel
• Holcim Group
• Philips
• Randstad
• RELX
• Signify
• Sika
• Solvay
• Wolters Kluwer
• The labor market peer group is used to compare AkzoNobel’s remuneration levels with
those in similar companies
• The group consists of companies of similar scale, complexity and geographic reach to
AkzoNobel. The composition is limited to European headquartered companies to reflect
local pay practices
• AkzoNobel aims to outperform its sector peers and attract and retain high caliber members
of the Board of Management. Therefore, the reference point is set at a total remuneration
package that positions between the median and third quartile of the peer group (around the
median for base salary and STI, between median and third quartile for LTI)
• Composition of the 2025 labor market peer group is presented on the left. Covestro was
removed following the announcement of the intended takeover by state-owned oil company
ADNOC, United Arab Emirates
Remuneration Policy pay-mix
CEO pay-mix in %
Base salary
LTI
STI
Share-Matching
100
24
17
24
26
46
51
6
6
Threshold
and below
Target
Maximum
CFO pay-mix in %
Base salary
LTI
STI
Share-Matching
100
29
21
23
25
42
48
6
6
Threshold
and below
Target
Maximum
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Remuneration for the Board of Management in 2025
Remuneration of Board of Management for the reported financial year in €
Fixed remuneration
Variable remuneration
Post-contract
compensation
Termination and other
benefits
Total remuneration
Fixed/
Variable
Base salary
Fringe benefits1
One-year STI2
Multi-year variable LTI
Based on
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2025
Greg Poux–
Guillaume
(CEO)
IFRS 2
expenses3
1,290,000
1,290,000
154,700
155,500
934,928
1,491,111
2,773,163
3,107,602
215,400
249,700
—
—
5,368,191
6,293,913
27/73
Market value
at year-end4
1,290,000
1,290,000
154,700
155,500
934,928
1,491,111
1,411,906
2,697,922
215,400
249,700
—
—
4,006,934
5,884,233
29/71
Maarten de
Vries (CFO)
IFRS 2
expenses3
830,000
830,000
35,400
36,200
421,474
767,518
1,457,838
1,518,645
192,600
192,600
—
—
2,937,312
3,344,963
32/68
Market value
at year-end4
830,000
830,000
35,400
36,200
421,474
767,518
838,797
1,317,378
192,600
192,600
—
—
2,318,271
3,143,696
34/66
1 Fringe benefits consist of car arrangements, social security contributions for Maarten de Vries and Greg Poux-Guillaume and for the latter also temporary housing contributions.
2 For 2024 and 2025, the Board of Management members are investing 50% of their STI proceeds (net after tax) under the Share-Matching Plan.
3 Costs relating to share awards include non-cash expenses of Performance-Related Share Plan and Share-Matching Plan.
4 Market value at year-end for multi-year variable LTI is based on the number of shares that became unconditional during the year, multiplied by the share price of €59.20 at December 31, 2025 (December 31, 2024: €57.96).
This section presents insights into how the Remuneration Policy for
the Board of Management was implemented in 2025. Actual
remuneration was determined in line with the Remuneration Policy
and no derogation of the policy has been applied. The Supervisory
Board has conducted scenario analyses when determining the
(variable) remuneration outcomes. This included the assessment on
remuneration outcomes under the various performance scenarios
and the impact of share price development (threshold and below, at-
target and maximum).
Base salary
In 2025, no salary adjustments were made for the CEO and CFO.
The salary of CEO Greg Poux-Guillaume was €1,290,000. CFO
Maarten de Vries earned a base salary of €830,000.
Short-term incentives (STI)
With regard to the 2025 STI, 70% is measured on financial
objectives that reflect the profitable growth the strategy aims for. The
remaining 30% is measured on quantifiable non-financial objectives.
For the financial objectives, 40% is based on adjusted operating
income (OPI) and 30% is based on free cash flow (FCF). For the non-
financial objectives, a combination of individual objectives for both
the CFO and CEO were selected. These objectives have been
organized around four priorities related to transformation, industrial
excellence, portfolio management and people. The allocation of
percentages to each category suggests a balanced approach,
reflecting a comprehensive strategy aimed at organizational growth,
simplification of the execution model and sustainable innovation.
The first personal objective relates to organizational efficiency and
accounted for 45%. This objective was realized at 144%. To
enhance the efficiency of its functions, the company is simplifying
operations, accelerating decision-making and streamlining the
company’s management structure. The plan for 2025 involved a
targeted reduction of 2,200 positions globally, a reduction in
managerial functions, increased team sizes and less senior executive
positions. The actual reduction in the number of positions amounted
to 2,900 positions globally. The span of control improved across the
organization by 14%. The number of managers with less than four
reports dropped by 20% and the number of senior executives was
reduced by 18%.
The second personal objective was industrial excellence, which
accounted for 30% of the individual objectives and was assessed at
98%. We initiated six site closures in 2025 as part of our industrial
excellence program, which aims to reduce complexity, improve
capacity utilization and modernize our manufacturing footprint. This
program also includes making targeted investments, such as the
recently launched upgrade to our largest Aerospace Coatings
manufacturing facility, located in Waukegan in the US, and the
upgrade to our site in Montataire (France). OTIF (on-time, in-full)
remained stable at 89%.
The third personal objective, portfolio management, accounted for
15% and was evaluated at 140%. The aim of this objective was to
invest in market leadership positions and recycle capital to priority
areas. The company sold its stake in Akzo Nobel India Limited,
including the decorative paints and liquid coatings activities in India.
The divestment, completed in December 2025, realized exceptional
value at 25x EBITDA1.
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1 EBITDA for the fiscal year ending March 31, 2025
In November 2025, AkzoNobel and Axalta agreed to combine in an
all-stock merger which will create a premier global coatings
company. The transaction is subject to shareholder approval and
other relevant conditions being met. The combined company will
have the scale, strength and reach to accelerate sustainable growth,
deliver breakthrough innovation and serve our customers even better
around the world.
The final personal objective relates to people. It was measured on
employee engagement. This objective, which accounted for 10% of
the individual objectives, was achieved at 150%. In terms of
measuring employee commitment, two indicators were used: (1) The
rate of commitment, with a target set at the benchmark for industrial
companies. This rate was exceeded, with an outcome that remained
stable at 4.0 (compared with a benchmark of 3.9.), in a year marked
by economic challenges and tough cost-cutting decisions. The
number of employees who are very positive about AkzoNobel
increased by four percentage points to 34%. (2) The employee net
promoter score (eNPS) increased by six points compared with last
year to 16, and is well above the benchmark by 12 points. The
participation rate was higher than the previous year and reached an
impressive 90%. All indicators were measured by an external and
independent company.
Following the end of the performance year, the Supervisory Board
assessed the delivered performance against the targets set. The
tables opposite and on the next page summarize the achieved
performance.
STI on financial objectives
Performance metric
Weighting
Threshold
Maximum Performance
Pay-out (as a
% of target)
Adjusted OPI (in € mln)
40%
Corresponding target
650
1,400
1,1331
Corresponding award
0%
150%
97%
38.6%
FCF (in € mln)
30%
Corresponding target
100
700
606
Corresponding award
0%
150%
126%
38.0%
Total financial
70%
109%
76.6%
1 Actual result of €1,081 mln adjusted for constant currencies and the divestment of Akzo Nobel India Limited.
STI on personal objectives
Objective
Weighting Metrics
Performance
Pay-out (as a %
of target)
Organizational
efficiency
13.5%
2,900 positions were cut globally. The span of control improved by 14%; the number of managers with
team sizes below four employees was reduced by 20% and we have 18% fewer senior executives.
144%
19.4%
Industrial
excellence
9%
We initiated six site closures in 2025 as part of our industrial excellence program, which aims to reduce
complexity, improve capacity utilization and modernize our manufacturing footprint, and launched
upgrades to our largest Aerospace Coatings manufacturing facility in Waukegan (US), and our site in
Montataire (France). OTIF (on-time, in-full) remained stable at 89%.
98%
8.8%
Portfolio
management
4.5%
Invest in market leadership positions and recycle capital to priority areas. The company sold its stake in
Akzo Nobel India Limited. An all-stock merger was announced with Axalta which will create a premier
global coatings company. The transaction is subject to shareholder approval and other relevant conditions
being met.
140%
6.3%
People
3.0%
Employee engagement survey – outcome above benchmark for both employee commitment and the
employee net promoter score (eNPS).
150%
4.5%
Total personal
30%
130%
39.0%
Following the performance assessment conducted by the
Remuneration Committee, a total pay-out of 115.59% of target
applies. This results in the following STI pay-out:
• Greg Poux-Guillaume: €1,491,111
• Maarten de Vries: €767,518
In determining the outcome of the STI elements, the Remuneration
Committee applied a reasonableness test in which the actual level of
performance, based on constant currencies, was critically assessed
in light of the assumptions made at the beginning of the year.
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Share-Matching Plan
The Share-Matching Plan reiterates the importance of share
ownership, which underpins alignment over the long term. In
addition to the required investment of 25% of STI proceeds (net after
tax and other deductions), both the CEO and CFO decided to invest
another 25%, totaling 50% of total net STI proceeds for 2025.
During 2025, 1,338 potential matching shares were matched for the
CFO, based on the investment made from the 2021 STI payment in
April 2022. As the CEO joined AkzoNobel in 2022, no potential
matching shares were applicable.
Long-term incentives (LTI)
Vesting of the 2023-2025 LTI Plan
Under the 2023-2025 LTI Share Plan, a conditional share grant of
16,111 shares was made to the CFO. The CEO received a
conditional share grant of 35,105 shares.
In line with the Remuneration Policy for the Board of Management
applicable at date of award, the performance measures (and
underlying metrics based on constant currencies) were determined
as included in the table on the next page. The consideration of
performance results on a constant currency basis, when foreign
exchange effects are assessed as sufficiently material to warrant
adjustment, was included in prior policy and has been an established
practice for over ten years. This approach was reconfirmed in 2021
and continues to guide our assessment.
At date of award, the Supervisory Board has determined for each
measure (i) the performance level below which no shares vest; (ii) the
performance level at which the target number of shares vest; and (iii)
the performance level at which the maximum number of shares vest.
Following the end of the performance period of the 2023-2025 LTI
Share Plan, the Supervisory Board assessed the delivered
performance against the targets set.
The Supervisory Board set the threshold for adjusted EBITDA at
€900 million and the maximum at €1.65 billion. The threshold for ROI
was set at 8% and the maximum at 16%. Adjusted EBITDA, as well
as ROI performance, was above target in 2025. The corresponding
vesting percentage for these specific parts of the LTI are 131% for
adjusted EBITDA and 108% on ROI.
Revenue growth as weighted average is compared with a defined
industry peer group, consisting of the following companies in the
paints and coatings sector: Sherwin-Williams, Nippon Paint, PPG,
Axalta and BASF Coatings. Organic growth rates to calculate the
performance take into consideration price, mix, volume growth and
exclude the effects of exchange rates and mergers and acquisitions.
For Axalta and Sherwin-Williams, only organic growth percentage of
the Performance Coatings business growth is taken into
consideration. Performance on this metric is measured against 33
months following the start of the conditional period for all companies,
except PPG, which is measured on full year. The Supervisory Board
set the threshold for revenue growth at -8.0% and the maximum at
2.0%. With a revenue growth of 0.55% compared with the market,
the realization on this metric is 114%.
The ESG targets consist of four equally weighted targets related to
our approach to sustainability. Actual performance on Total waste
(circular) and Renewable electricity was respectively 75% and 69%,
above the maximum target, which resulted in 150% vesting
percentage on these ESG metrics. Our Total recordable injury rate
landed at 0.3 at year-end, which means no pay-out will take place
on this metric. The performance on Energy use was 1.77, resulting in
130% vesting percentage on this final metric.
Following the performance assessment conducted by the
Remuneration Committee, a total vesting – after including the
dividend yield of 9.72% during the vesting period – of 129.82% of
the conditionally awarded number of shares is applied.
This results in the following number of shares vested:
• Greg Poux-Guillaume: 45,573
• Maarten de Vries: 20,915
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LTI on financial objectives
Performance metrics
2023-2025 LTI Share Plan
Measurement approach
Weighting
Threshold
Maximum Performance
Weighted vesting (as % of
conditional grant)
Adjusted EBITDA
(in € mln)
As is in constant currencies.
40%
Corresponding target
900
1,650
1,5551
96.8%
Corresponding award
0%
150%
131%
Return on investment
(ROI) (in %)
As is in constant currencies.
20%
Corresponding target
8%
16%
13.5 %
Corresponding award
0%
150%
108%
Revenue growth
(in %)
Organic revenue growth compared with Sherwin-Williams, Nippon Paint, PPG, Axalta and BASF Coatings. For
Axalta and Sherwin-Williams, only performance for the coatings business is taken into consideration.
Performance on this metric is measured against 33 months following the start of the conditional period for all
companies, except PPG which is measured on full year.
20%
Corresponding target
(8%)
2%
0.55%
Corresponding award
0%
150%
114%
1 Actual result of €1,444 mln adjusted for constant currencies and divestment of Akzo Nobel India Limited.
Performance metrics
2023-2025 LTI Share Plan
Measurement approach
Weighting
Threshold
Maximum Performance
Weighted vesting (as % of
conditional grant)
Total recordable injury rate
Per 200,000 hours, three-year average.
5%
Corresponding target
0.25
0.20
0.30
21.5%
Corresponding award
0%
150%
0%
Total waste – circular*
As the percentage circular waste of total waste.
5%
Corresponding target
63%
71%
75%
Corresponding award
0%
150%
150%
Energy use (GJ/ton)
Per ton of production.
5%
Corresponding target
1.90
1.75
1.77
Corresponding award
0%
150%
130%
Renewable electricity
Use of renewable electricity (own operations).
5%
Corresponding target
55%
63%
69%
Corresponding award
0%
150%
150%
* Refers to the “Circular use of materials in our own operations” metric included in our Metrics table.
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Conditional grant 2025-2027 LTI Plan
As per the Remuneration Policy for the Board of Management,
shares are conditionally granted to the members of the Board of
Management on an annual basis, following approval from the
Supervisory Board upon the recommendation of the Remuneration
Committee. The grant level is 200% of base salary for the CEO and
150% of base salary for the CFO. In 2025, the CEO received a
conditional grant of shares equivalent to 200% of his annual base
salary and the CFO received a conditional grant of shares equivalent
to 150% of his annual base salary on January 1, 2025. The grant
price was determined based on the average share price of an Akzo
Nobel N.V. common share in the two weeks following publication of
the annual results:
• 46,137 shares were conditionally granted to Greg Poux-Guillaume,
CEO
• 22,264 shares were conditionally granted to Maarten de Vries,
CFO
For both the financial and ESG metrics, the Supervisory Board
determined for each target: (i) the performance level below which no
shares vest; (ii) the performance level at which the target number of
shares vest and; (iii) the performance level at which the maximum
number of shares vest. The overview below also sets out the targets
as applicable for both our financial and ESG performance metrics.
Vesting of the conditional grant is linked to the three performance metrics presented below.
Performance metrics 2025-2027 LTI Plan
Metrics
Measurement approach
Target (100%)
Weighting
Adjusted EBITDA (in € mln)
As is
Not disclosed*
40%
Return on investment (ROI) (in %)
As is
Not disclosed*
40%
Environmental, social and governance (ESG)
Serious injuries and fatalities, measured over 100 million hours, three-year
average.
2.8
5%
Cradle-to-grave carbon footprint (Scopes 1 and 2) measured as reduction
versus 2018 baseline.
45%
10%
Cradle-to-grave carbon footprint (Scope 3 – selected categories: 1, 10, 11, 12
and VOC) measured as reduction versus 2018 baseline.
17%
5%
* Targets for the financial metrics are not disclosed on ex-ante basis given commercial sensitivity. More details about pay-out curves and actual performance will be disclosed on ex-post basis.
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Overview of share awards
Plan
Performance
/Vesting
period
Award date
End of performance period
End of holding period
Balance at
January 1,
20251
Awarded in
2025
Vested in
2025
Forfeited in
2025
Dividend in
2025
Balance at
December
31, 2025
Greg Poux-Guillaume
(CEO)
ANS2022
2022 – 2024
January 1, 2022
December 31, 2024
February 26, 2027
24,360
—
(24,360)
—
—
—
ANS2023
2023 – 2025
January 1, 2023
December 31, 2025
February 24, 2028
37,221
7,053
—
—
1,299
45,573
SMP2023
2023 – 2026
April 26, 2023
April 22, 2026
April 2028
1,046
—
—
—
—
1,046
ANS2024
2024 – 2026
January 1, 2024
December 31, 2026
February 2029
38,984
—
—
—
1,360
40,344
SMP2024
2024 – 2027
April 23, 2024
April 2027
April 2029
6,088
—
—
—
—
6,088
ANS2025
2025 – 2027
January 1, 2025
December 31, 2027
February 2030
—
46,137
—
—
1,610
47,747
SMP2025
2025 – 2028
April 23, 2025
April 2028
April 2030
—
4,276
—
—
—
4,276
Maarten de Vries
(CFO)
ANS2022
2022 – 2024
January 1, 2022
December 31, 2024
February 26, 2027
14,472
—
(14,472)
—
—
—
SMP2022
2022 – 2025
April 21, 2022
April 23, 2025
April 23, 2027
1,338
—
(1,338)
—
—
—
ANS2023
2023 – 2025
January 1, 2023
December 31, 2025
February 24, 2028
17,082
3,237
—
—
596
20,915
SMP2023
2023 – 2026
April 26, 2023
April 22, 2026
April 2028
792
—
—
—
—
792
ANS2024
2024 – 2026
January 1, 2024
December 31, 2026
February 2029
18,811
—
—
—
657
19,468
SMP2024
2024 – 2027
April 23, 2024
April 2027
April 2029
3,194
—
—
—
—
3,194
ANS2025
2025 – 2027
January 1, 2025
December 31, 2027
February 2030
—
22,264
—
—
777
23,041
SMP2025
2025 – 2028
April 23, 2025
April 2028
April 2030
—
1,928
—
—
—
1,928
1 The balance of shares at January 1, 2025, includes cumulative dividend. For ANS2023, the cumulative dividend over 2023 and 2024 of 6.03% applies, and for ANS2024, the 2024 dividend yield of 3.20% applies.
Board of Management
Shareholding requirement
2025 base salary
Number of
shares held at
December 31, 2025
Ownership ratio
Greg Poux-Guillaume
300%
€1,290,000
31,826
146%
Maarten de Vries
150%
€830,000
36,929
263%
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Shareholding requirements
Board of Management members are expected to build up a
shareholding in the company. The minimum shareholding
requirement must be accrued within five years. This includes
privately purchased shares and vested shares granted under
AkzoNobel share-based compensation plans. The overview on the
previous page provides insight into Board of Management share
ownership as per December 31, 2025.
Claw back, value adjustment and loans
In 2025, there was no cause for a claw back or value adjustment by
the Remuneration Committee. The company does not grant loans,
advance payments or guarantees to members of the Board of
Management or any family member of such persons.
Contractual arrangements
The overview below provides insight into the main contractual
arrangements of the Board of Management.
The Supervisory Board will submit a proposal for reappointment of
Maarten de Vries as Board of Management member and CFO for
approval by shareholders at the 2026 AGM for a period of one year,
as AkzoNobel prepares for its proposed merger with Axalta. The
Supervisory Board has asked Maarten de Vries to extend his tenure
as CFO for an additional year, despite his planned retirement, to
guide the organization through this complex and transformative
period. His expertise, proven leadership and intimate knowledge of
AkzoNobel’s operations are critical to ensure a successful execution
of our strategic objectives. Accordingly, the Supervisory Board
considers securing and retaining Maarten de Vries during this critical
period essential and highly valuable to the company.
Comparative information
Pay ratios
Internal pay ratios are a relevant input factor for determining the
appropriateness of the implementation of the Remuneration Policy
for the Board of Management, as recognized in the Corporate
Governance Code. In 2025, the ratio between the annual total
compensation for the CEO and the average annual compensation for
an employee was 99.8 (2024: 87.9). This pay ratio was calculated in
accordance with the guidance as provided in the Corporate
Governance Code. In addition, CEO pay ratios on the basis of
median employee remuneration have been calculated. Further details
on the development of these amounts and ratios over time can be
found in the table below.
Board of Management
Initial appointment
Start date current
appointment
Period of appointment
Notice period for
AkzoNobel
Notice period for the
Board of Management
Severance
Greg Poux-Guillaume
November 1, 2022
November 1, 2022
4.5 years*
6 months
6 months
1 time annual base salary
Maarten de Vries
January 1, 2018
April 22, 2022
4 years
6 months
6 months
1 time annual base salary
* Greg Poux-Guillaume was appointed as Chair of the Board of Management and CEO with effect from November 1, 2022, for an extended four-year term.
2021
2022
2023
2024
2025
Average salary per employee*
54,220
55,840
57,536
61,102
63,075
% change average remuneration
(3%)
6%
3%
6%
3%
CEO pay ratio (average)
115.7
59.8
85.8
87.9
99.8
CEO pay ratio % change
17%
(48%)
43%
2%
14 %
CEO pay ratio (median)
149.0
81.1
115.0
121.7
124.0
CEO pay ratio % change
18%
(46%)
42%
6%
2%
* Calculated as employee benefits on a full-time equivalent basis over average number of employees.
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Five-year analysis
The overviews below and on the next page provide illustrative insights into the Board of Management remuneration and company performance
over the last five reported financial years.
Board of Management remuneration five-year analysis in € thousands
(based on IFRS 2 expenses for multi-year variable). Percentages indicate year-on-year changes.
CEO
CFO
6,271
3,337
4,935
5,368
6,294
2,583
1,129
2,774
2,937
3,345
2021
2022
2023
2024
2025
In years of transition, the compensation for the newly appointed Board of Management member has been annualized.
• In 2021, total rewards (including benefits) for former CEO Thierry
Vanlancker included a one-off share grant to compensate for loss
of shares due to the two-year reappointment and the fact that
shares granted from 2021 would only vest on a pro-rated basis
• 2022 presented us with the continued impact of the COVID-19
pandemic, the geopolitical consequences of the war in Ukraine,
shortages and significant price increases in raw materials and
transportation. This volatile business climate had a severe impact
on the results of the company. Consequently, all financial
components of the short and long-term incentives did not meet
the threshold and delivered no pay-out. The annualized total
compensation for Thierry Vanlancker reduced by 65% compared
with 2021, to €1,912,210 versus €5,514,195 in the previous year.
This reflects the fact that his short-term incentive paid out around
half and no shares granted under the LTI plan 2020 vested
• In 2023, in response to the challenges posed by an unpredictable
macro-economic landscape, we outlined a set of strategic
priorities designed to guide us with resilience and adaptability. This
resulted in above target pay-out on the financial metrics of the
short-term incentive. Vesting under the 2021-2023 LTI Plan was
minimal, but the total compensation levels showed a better
balance between our commitment to stakeholders and our ability
to reward and retain
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+13%
-47%
+48%
+9%
-27%
-56%
+146%
+6%
+17%
+14%
• 2024 presented a complex economic environment with persistent
inflation, volatile exchange rates and unfavorable market
conditions in certain regions and segments. As a result, the
financial components of the short-term incentives delivered below
target pay-outs. Despite the difficult economic environment, we
sustained growth throughout each quarter of 2024, resulting in
above target pay-out on the 2022-2024 LTI plan
• The business challenges were considerable in 2025. We faced
geopolitical uncertainties, with tariffs complicating supply chains
and influencing customer demand, as well as adverse currency
impacts. We therefore focused on the elements we could control:
efficiency, pricing discipline and cash generation. As a result the
short-term incentives, that were partly tied to increased
organizational efficiency and free cash flow, delivered an above
target pay-out. The achievement on the metrics of the long-term
incentives was above target on all financial objectives and the
majority of the ESG metrics, resulting in an overall above target
vesting percentage
Adjusted EBITDA in € millions
(percentages indicate year-on-year changes)
1,436
1,157
1,429
1,478
1,444
2021
2022
2023
2024
2025
Adjusted OPI in € millions
(percentages indicate year-on-year changes)
1,092
789
1,074
1,113
1,081
2021
2022
2023
2024
2025
ROI in %
16.0%
9.8%
13.0%
13.3%
13.5%
2021
2022
2023
2024
2025
FCF in € millions
317
-29
840
367
606
2021
2022
2023
2024
2025
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-1%
-28%
+36%
+4%
+0%
-19%
+24%
+3%
-2%
-3%
Policy at a glance – Supervisory Board
Supervisory Board members receive a fixed annual fee for their membership and a committee fee for
membership of the committees they are member of. In addition, Supervisory Board members receive an
attendance fee for Supervisory Board or committee meetings attended outside their country of residence.
No changes were made to the annual fee and committee fees of the Supervisory Board members in 2025,
following the approval of the 2024 AGM to increase the annual fee and committee fees of the Supervisory
Board members. The overview below summarizes the key elements of the Remuneration Policy for the
Supervisory Board, following the adoption in full of the Remuneration Policy for the Supervisory Board by
the 2025 AGM.
Fixed base fee
Audit Committee fee
Remuneration Committee/
Nomination Committee fee
Chair
Deputy Chair
Member
Chair
Member
Chair
Member
€162,000
€100,000
€86,000
€27,000
€22,000
€22,000
€16,000
Fees are benchmarked against a sample of AEX companies and AkzoNobel’s European remuneration peer group. In accordance with the Corporate
Governance Code, Supervisory Board members are not remunerated in shares.
Attendance fees for meetings outside country of residence and expenses
Continental meetings
Intercontinental meetings
Travel expenses and facilities are borne by
the company and reviewed by the Audit
Committee
€2,500 per meeting
€5,000 per meeting
Remuneration for the Supervisory Board in 2025
This section presents insights into how the Remuneration Policy for the Supervisory Board was
implemented in 2025. Actual remuneration was determined in line with the Remuneration Policy and no
derogation of the policy has been applied.
Actual remuneration of the members of the
Supervisory Board
in €
Remuneration
Attendance
fee
Committee
allowance
fees
Total
remuneration
Ester Baiget
86,000
12,500
17,912
116,412
Jaska de Bakker
86,000
15,000
22,000
123,000
Hans Van Bylen
86,000
10,000
20,088
116,088
Byron Grote, Deputy Chair1
31,868
10,000
8,604
50,472
Wouter Kolk
86,000
—
20,088
106,088
Hans-Joachim Müller2
58,593
5,000
14,989
78,582
Ben Noteboom, Chair
162,000
—
22,000
184,000
Dick Sluimers1
27,407
—
7,011
34,418
Patrick Thomas1
27,407
7,500
7,011
41,918
Ute Wolf, Deputy Chair2
95,538
12,500
25,407
133,445
Total 2025
746,813
72,500
165,110
984,423
Total 2024
816,510
60,000
178,852
1,055,362
1 Until April 25, 2025.
2 As of April 25, 2025.
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Comparative information
in €
2021
2022
2023
2024
2025
Nils Smedegaard Andersen, Chair1
172,500
182,500
62,308
—
—
Ester Baiget2
—
73,956
110,000
120,500
116,412
Jaska de Bakker6
—
—
—
78,582
123,000
Hans Van Bylen2
—
70,508
107,500
112,000
116,088
Sue Clark4
29,492
—
—
—
—
Byron Grote, Deputy Chair5
120,500
130,500
133,000
142,000
50,472
Michiel Jaski4
31,044
—
—
—
—
Pamela Kirby3
95,000
105,000
107,500
35,006
—
Wouter Kolk6
—
—
—
69,494
106,088
Hans-Joachim Müller9
—
—
—
—
78,582
Ben Noteboom, Chair7
—
—
109,286
184,000
184,000
Jolanda Poots-Bijl10
100,000
100,000
100,000
9,198
—
Dick Sluimers5
100,000
100,000
100,000
108,000
34,418
Patrick Thomas5
102,500
105,000
112,500
120,500
41,918
Ute Wolf, Deputy Chair8
—
—
—
76,082
133,445
Total remuneration
751,036
867,465
942,094
1,055,362
984,423
% change total remuneration
(9.73) %
15.50 %
8.60 %
12.02 %
(6.72) %
1 Until April 21, 2023.
6 As of April 25, 2024.
2 As of April 23, 2022.
7 As of April 21, 2023, elected as Chair with effect from May 26, 2023.
3 Until April 25, 2024.
8 As of April 25, 2024, elected as Deputy Chair with effect from April 25, 2025.
4 Until April 22, 2021.
9 As of April 25, 2025.
5 Until April 25, 2025.
10 Until January 31, 2024.
Remuneration Policy for 2026
As required by Dutch law, the remuneration policies are submitted in full every four years. As such, the
Remuneration Committee and the Supervisory Board reviewed the remuneration policies for the Board of
Management and the Supervisory Board to assess whether these were still in line with the company’s
strategy and financial targets, while considering input received from stakeholders. The updated
remuneration policies for the Board of Management and the Supervisory Board were adopted in full by
shareholders at the 2025 AGM.
Remuneration Policy for the Board of Management
The Supervisory Board has concluded the Remuneration Policy for the Board of Management is in line with
the company’s objectives. The remuneration it provides is balanced and adequate.
• No change in base salary will be made for the CEO and CFO
• Metrics applied for STI will remain the same, to support the company’s strategy and will continue to
apply in 2026
• Metrics applied for LTI in 2025 were adjusted EBITDA (40%), ROI (40%) and ESG (20%). Metrics applied
for LTI in 2026 will remain the same
• As AkzoNobel prepares for its proposed merger with Axalta, it’s essential to maintain strong and stable
leadership in our financial operations. In that respect, as announced on December 19, 2025, the
Supervisory Board has asked Maarten de Vries to extend his tenure as CFO, despite his planned
retirement. His expertise, proven leadership and intimate knowledge of AkzoNobel’s operations are
critical to ensure a successful execution of our strategic objectives. Accordingly, the Supervisory Board
considers securing and retaining Maarten de Vries during this critical period essential and highly valuable
to the company. In view of all of the foregoing and taking into account the expected increase in workload
associated with the preparatory work for the merger, the Supervisory Board proposes, upon
recommendation of the Remuneration Committee, to grant Maarten de Vries a one-time retention
payment, of 90% of base salary, in addition to the remuneration he is entitled to pursuant to the
Remuneration Policy for the Board of Management, subject to and contingent upon the closing of the
intended merger and shareholder approval
• In preparation of the proposed merger, the Remuneration Committee will undertake a comprehensive
review of the executive compensation framework to ensure that it aligns with the strategic objectives of
the combined company and supports the commitment to delivering sustainable long-term value creation
for stakeholders. The proposed Remuneration Policy will be submitted for approval at the EGM in 2026
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Greg Poux-Guillaume
Maarten de Vries
Base salary
Base salary
€1,290,000
€830,000
Short-term incentives (STI)
Short-term incentives (STI)
2026 STI pay-out opportunity and performance objectives
CEO target: 100% of base
CEO maximum opportunity: 150% of base
2026 STI pay-out opportunity and performance objectives
CFO target: 80% of base
CFO maximum opportunity: 120% of base
Metrics
Measurement approach
Target (100%)
Weighting
Metrics
Measurement approach
Target (100%)
Weighting
Adjusted OPI
As is
Not disclosed1
40%
Adjusted OPI
As is
Not disclosed1
40%
FCF
As is
Not disclosed1
30%
FCF
As is
Not disclosed1
30%
Personal objective
Not disclosed1
Not disclosed1
30%
Personal objective
Not disclosed1
Not disclosed1
30%
Retention payment
Target: 90% of base. Subject to the closing of the intended merger and shareholder approval.
Long-term incentives (LTI)
Long-term incentives (LTI)
2026-2028 LTI vesting opportunity and performance objectives
CEO target: 200% of base
CEO maximum opportunity: 300% of base
2026-2028 LTI vesting opportunity and performance objectives
CFO target: 150% of base
CFO maximum opportunity: 225% of base
Metrics
Measurement approach
Target (100%)
Weighting
Metrics
Measurement approach
Target (100%)
Weighting
Adjusted EBITDA
As is
Not disclosed1
40%
Adjusted EBITDA
As is
Not disclosed1
40%
Return on investment (ROI)
As is
Not disclosed1
40%
Return on investment (ROI)
As is
Not disclosed1
40%
Environmental, social and governance (ESG)
20%
Environmental, social and governance (ESG)
20%
Serious injuries and fatalities
Measured over 100 million
hours, three-year average
2.5
5%
Serious injuries and fatalities
Measured over 100 million
hours, three-year average
2.5
5%
Carbon footprint
Carbon footprint Scopes 1 and
2 measured as reduction
versus 2018 baseline
50%
10%
Carbon footprint
Carbon footprint Scopes 1 and
2 measured as reduction
versus 2018 baseline
50%
10%
Carbon footprint
Carbon footprint Scope 3 -
selected categories: 1,
10,11,12 and VOC, measured
as reduction versus 2018
baseline
20%
5%
Carbon footprint
Carbon footprint Scope 3 -
selected categories: 1,
10,11,12 and VOC, measured
as reduction versus 2018
baseline
20%
5%
1 Targets for the financial metrics and personal objectives are not disclosed on ex-ante basis given commercial sensitivity. More details about pay-out curves and actual performance will be disclosed on ex-post basis.
Remuneration Policy Supervisory Board
The Supervisory Board concluded that the current Remuneration Policy for the Supervisory Board, as fully
adopted at the AGM in 2025, is in line with the objectives of the company. No changes will be made to the
Remuneration Policy for the Supervisory Board in 2026.
As AkzoNobel prepares for the intended merger with Axalta, the Remuneration Committee will undertake a
comprehensive review of the executive compensation framework to ensure that it aligns with the strategic
objectives of the combined company and supports the commitment to delivering sustainable long-term
value creation for stakeholders. The proposed remuneration policy will be submitted for approval at the
EGM in 2026.
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Distribution of institutional shares in 2025 in %
A US
58
B Sweden
12
C UK
11
D France
8
E Rest of Europe
8
F Rest of world
4
Analyst recommendations
A Buy
12
B Hold
6
C Sell
0
Shares
AkzoNobel’s common shares are listed on Euronext Amsterdam.
We’re included in the AEX® Index, which consists of the top 30 listed
companies in the Netherlands, ranked on the basis of stock market
turnover and free float. During 2025, 118 million AkzoNobel shares
were traded on Euronext Amsterdam, with €6.8 billion turnover
(2024: volume of 108 million, turnover of €6.7 billion).
We have a sponsored level 1 American Depositary Receipt (ADR)
program and ADRs can be traded on the international OTCQX
platform in the US. In 2025, 23 million ADRs were traded, with $499
million total turnover (2024: volume of 44 million, turnover of $989
million).
See the table below for stock codes and ticker symbols.
Euronext ticker symbol
AKZA
ISIN common share
NL0013267909
OTC ticker symbol
AKZOY
ISIN ADR
US0101995035
AkzoNobel has 100% free float and a broad base of international
shareholders. Based on an independent shareholder analysis, the
Distribution of institutional shares chart shows the geographical
spread of institutional shareholders, of which the majority are based
in the US (58%), Sweden (12%), the UK (11%) and France (8%).
Around 5% of the company’s share capital is held by private
investors, many of whom are resident in the Netherlands.
Approximately 23% of the company’s share capital was held by ESG
investors1.
Key share data*
2023
2024
2025
Year-end (share price in €)
74.82
57.96
59.20
Year-high (share price in €)**
78.82
75.24
63.50
Year-low (share price in €)**
61.42
52.82
48.64
Number of shares outstanding at
year-end (in millions)
171
171
171
Market capitalization at year-end (in
€ billions)
12.8
9.9
10.1
Dividend per share (in €)
1.98
1.98
1.98
Dividend yield (in %)
2.6
3.4
3.3
* Based on Bloomberg share data.
** Based on close value.
The AkzoNobel share price was up 2% at year-end 2025, compared
with year-end 2024. This compares with the AEX, which was up by
8% at year-end 2025. The Bloomberg Global Chemicals Index was
up 5%, our global coatings peers2 were up 13% and US peers3 were
down 10% over the same period (see Share price performance
graph on the right).
A
B
C
D
E
F
Benchmark performance indexed to AkzoNobel share price
as of December 31, 2024
AkzoNobel share price in €
AkzoNobel
Bloomberg Global Chemicals Index
AEX
US peers3
Global coatings peers2
44
48
52
56
60
64
68
Analyst recommendations
At year-end 2025, AkzoNobel was covered by 18 equity research
analysts. An overview of analyst recommendations is shown in the
graph below.
A
B
C
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AkzoNobel Report 2025
1 As calculated by Nasdaq and includes investment funds that leverage ESG criteria as part of the investment process and measurement.
2 Global coatings peer group includes Asian Paints, Axalta, Berger Paints, Chugoku, Kansai Paint, Masco, Nippon Paint, PPG, RPM, Sherwin-Williams, SKSHU Paint.
3 US peer group includes Axalta, PPG, RPM, Sherwin-Williams.
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
External benchmarks
Following 2025 reviews, our ESG performance was reaffirmed by
external rating agencies. For example, AkzoNobel maintained the
highest possible rating (AAA) from MSCI for the tenth consecutive
year, and the company has the leading score among direct peers by
Sustainalytics. AkzoNobel received the highest possible score from
CDP – in the top 4% of all companies scored. Please refer to the
Sustainability statements for a full overview of external sustainability
ratings.
Dividend
Our dividend policy is to pay a stable to rising dividend. In 2025, an
interim dividend of €0.44 per share (2024: €0.44) was paid. The
Board of Management proposes a 2025 final dividend of €1.54 per
share, which would equal a total 2025 dividend of €1.98 (2024:
€1.98) per share.
The dividend proposed to the 2026 Annual General Meeting of
shareholders, following adoption, will be payable as of May 6, 2026.
AkzoNobel’s shares will be trading ex-dividend as of April 27, 2026.
In compliance with the listing requirements of Euronext Amsterdam,
the record date for the final dividend will be April 28, 2026.
Dividend in € per share
Interim dividend
Final dividend
1.98
1.98
1.98
0.44
0.44
0.44
2023
2024
2025
* Proposed
Credit rating and bonds
AkzoNobel is committed to an investment grade credit rating.
Regular review meetings are held between rating agencies and
AkzoNobel senior management. See the table below for the current
credit ratings and outlook.
The maturity schedule of outstanding bonds is also shown below.
Bonds maturity in € millions (nominal amounts)
500
600
750
600
500
500
500
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Rating agency
Long-term rating
Outlook
Moody’s
Baa3
Stable
Standard & Poor’s
BBB
Negative
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AkzoNobel Report 2025
1.54
1.54*
1.54
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AkzoNobel Report 2025
FINANCIAL STATEMENTS
This section includes a detailed overview of our 2025 financial
performance.
Consolidated financial statements
Consolidated statement of income
134
Consolidated statement of comprehensive income
134
Consolidated balance sheet
135
Consolidated statement of cash flows
136
Consolidated statement of changes in equity
137
Notes to the Consolidated financial statements
Note 1
General information
138
Note 2
Scope of consolidation
142
Note 3
Segment information
144
Note 4
Revenue
150
Note 5
Operating income
152
Note 6
Employee benefits
153
Note 7
Financing income and expenses
156
Note 8
Income tax
158
Note 9
Earnings per share
163
Note 10
Intangible assets
165
Note 11
Property, plant and equipment
169
Note 12
Leases
171
Note 13
Investments in associates
172
Note 14
Financial non-current assets
173
Note 15
Inventories
173
Note 16
Trade and other receivables
174
Note 17
Group equity
175
Note 18
Post-retirement benefit provisions
177
Note 19
Other provisions and contingent liabilities
185
Note 20
Net debt
189
Note 21
Trade and other payables
192
Note 22
Cash flow
192
Note 23
Commitments
193
Note 24
Related party transactions
193
Note 25
Remuneration of the Supervisory Board
and the Board of Management
194
Note 26
Financial risk management
195
Note 27
Subsequent events
200
Company financial statements
Statement of income
201
Balance sheet
201
Note A
General information
202
Note B
Financing income and expenses
202
Note C
Intangible assets
203
Note D
Financial non-current assets
203
Note E
Short-term receivables
204
Note F
Shareholders’ equity
205
Note G
Net debt
206
Note H
Other current liabilities
208
Note I
Financial instruments
208
Note J
Contingent liabilities
208
Note K
Independent auditor’s fees
209
CONSOLIDATED STATEMENT OF INCOME
in € millions, for the year ended December 31
Note
2024
2025
Continuing operations
Revenue
4
10,711
10,158
Cost of sales
5
(6,374)
(6,109)
Gross profit
4,337
4,049
Selling and distribution expenses
5
(2,463)
(2,352)
General and administrative expenses
5
(655)
(649)
Research and development expenses
5
(296)
(274)
Other results
5
(6)
390
(3,420)
(2,885)
Operating income
917
1,164
Financing income
7
61
49
Financing expenses
7
(163)
(248)
Financing income and expenses
7
(102)
(199)
Results from associates
13
23
33
Profit before tax
838
998
Income tax
8
(246)
(326)
Profit for the period from continuing operations
592
672
Discontinued operations
Profit/(loss) for the period from discontinued
operations
—
(1)
Profit for the period
592
671
Attributable to
Shareholders of the company
542
635
Non-controlling interests
50
36
Profit for the period
592
671
Earnings per share, in €
Continuing operations
Basic
9
3.17
3.72
Diluted
9
3.16
3.70
Discontinued operations
Basic
9
—
(0.01)
Diluted
9
—
(0.01)
Total operations
Basic
9
3.17
3.71
Diluted
9
3.16
3.69
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
in € millions, for the year ended December 31
2024
2025
Profit for the period
592
671
Other comprehensive income/(expense)
Items that will not be reclassified to the statement of income:
Post-retirement benefits
(135)
13
Income tax
31
(8)
Net effect
(104)
5
Items that may be reclassified subsequently to the statement of income:
Exchange rate differences arising on translation of foreign operations
148
(360)
Cash flow hedges
—
15
Income tax
—
1
Net effect
148
(344)
Items that have been reclassified to the statement of income:
Recycling of cumulative translation reserve
—
113
Cash flow hedges
—
(15)
Net effect
—
98
Other comprehensive income/(expense) for the period
44
(241)
Comprehensive income/(expense) for the period
636
430
Comprehensive income attributable to
Shareholders of the company
570
418
Non-controlling interests
66
12
Comprehensive income/(expense) for the period
636
430
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FINANCIAL STATEMENTS
AkzoNobel Report 2025
CONSOLIDATED BALANCE SHEET, BEFORE ALLOCATION OF PROFIT
in € millions, at December 31
Note
2024
2025
Assets
Non-current assets
Intangible assets
10
4,049
3,798
Property, plant and equipment
11
2,122
2,039
Right-of-use assets
12
318
294
Deferred tax assets
8
422
401
Investments in associates
13
228
232
Financial non-current assets
14
1,274
1,127
Total non-current assets
8,413
7,891
Current assets
Inventories
15
1,721
1,529
Trade and other receivables
16
2,498
2,403
Current tax assets
8
150
209
Short-term investments
20
165
302
Cash and cash equivalents
20
1,302
1,618
Total current assets
5,836
6,061
Total assets
14,249
13,952
Equity and liabilities
Equity
Shareholders’ equity
17
4,574
4,659
Non-controlling interests
17
242
163
Group equity
4,816
4,822
Non-current liabilities
Post-retirement benefit provisions
18
381
300
Other provisions
19
160
466
Deferred tax liabilities
8
491
487
Long-term borrowings
20
3,671
3,670
Total non-current liabilities
4,703
4,923
Current liabilities
Short-term borrowings
20
1,697
1,192
Trade and other payables
21
2,740
2,690
Current tax liabilities
8
120
139
Current portion of provisions
18, 19
173
186
Total current liabilities
4,730
4,207
Total equity and liabilities
14,249
13,952
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FINANCIAL STATEMENTS
AkzoNobel Report 2025
CONSOLIDATED STATEMENT OF CASH FLOWS
in € millions, for the year ended December 31
Note
2024
2025
Profit for the period from continuing operations
592
672
Adjustments to reconcile profit for the period to net cash generated from operating activities:
– Amortization and depreciation
10, 11, 12
371
378
– Impairment losses
10, 11, 12
—
9
– Financing income and expenses
7
102
199
– Results from associates
13
(23)
(33)
– Pre-tax results on acquisitions and divestments
2
3
(678)
– Income tax
8
246
326
Changes in working capital
22
(206)
166
Changes in post-retirement benefit provisions
18
(17)
(12)
Changes in other provisions
19
24
299
Interest paid
(174)
(162)
Income tax paid
(291)
(268)
Other changes
46
19
Net cash generated from/(used for) operating activities
673
915
Capital expenditures*
10, 11
(306)
(309)
Interest received
54
48
Dividends from associates
14
17
Acquisition of consolidated companies, net of cash acquired
2
2
—
Investments in short-term investments
20
(320)
(314)
Repayments of short-term investments
20
423
174
Proceeds from divestments, net of cash divested
2
1
816
Other changes
—
10
Net cash generated from/(used for) investing activities
(132)
442
Proceeds from borrowings
20
2,307
2,453
Borrowings repaid
20
(2,602)
(3,035)
Dividends paid
17
(385)
(382)
Buy-out of non-controlling interests
(4)
(17)
Net cash generated from/(used for) financing activities
(684)
(981)
Net cash generated from/(used for) continuing operations
(143)
376
Net cash generated from/(used for) discontinued operations
(5)
(1)
Net change in cash and cash equivalents from continued and discontinued operations
(148)
375
Net cash and cash equivalents at January 1
20
1,453
1,273
Effect of exchange rate changes on cash and cash equivalents
(32)
(43)
Net cash and cash equivalents at December 31
1,273
1,605
* Capital expenditures comprise investments in intangible assets (refer to Note 10) and investments in property, plant and equipment (refer to Note 11).
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FINANCIAL STATEMENTS
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
in € millions
Attributable to shareholders of the company
Subscribed share
capital
Cash flow
hedge reserve
Cumulative
translation reserve
Other (legal)
reserves and
undistributed
profit
Shareholders’
equity
Non-controlling
interests
Group equity
Balance at December 31, 2023
85
—
(711)
4,948
4,322
224
4,546
Profit for the period
—
—
—
542
542
50
592
Reclassification into the statement of income
—
—
—
—
—
—
—
Other comprehensive income/(expense)
—
—
132
(135)
(3)
16
13
Tax on other comprehensive income
—
—
—
31
31
—
31
Comprehensive income for the period
—
—
132
438
570
66
636
Dividend
—
—
—
(338)
(338)
(47)
(385)
Equity-settled transactions
—
—
—
23
23
—
23
Issue of common shares
—
—
—
—
—
—
—
Acquisitions and divestments
—
—
—
(3)
(3)
(1)
(4)
Balance at December 31, 2024
85
—
(579)
5,068
4,574
242
4,816
Profit for the period
—
—
—
635
635
36
671
Reclassification into the statement of income
—
(15)
113
—
98
—
98
Other comprehensive income/(expense)
—
15
(336)
13
(308)
(24)
(332)
Tax on other comprehensive income
—
—
1
(8)
(7)
—
(7)
Comprehensive income for the period
—
—
(222)
640
418
12
430
Dividend
—
—
—
(339)
(339)
(43)
(382)
Equity-settled transactions
—
—
—
24
24
—
24
Issue of common shares
1
—
—
(1)
—
—
—
Acquisitions and divestments
—
—
—
(18)
(18)
(48)
(66)
Balance at December 31, 2025
86
—
(801)
5,374
4,659
163
4,822
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FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 1: GENERAL INFORMATION
Reporting entity and its operations
Akzo Nobel N.V. is a public limited liability company headquartered in the Netherlands. The address of our
registered office is Christian Neefestraat 2, Amsterdam; the Chamber of Commerce number is 09007809.
We have included a list of subsidiaries and associated companies, drawn up in conformity with Articles 379
and 414 of Book 2 of the Dutch Civil Code, as an appendix to our annual report. The principal activity of
AkzoNobel is the production and selling of paints and coatings.
Basis of preparation
We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance with IFRS
Accounting Standards as adopted by the European Union. The Consolidated financial statements also
comply with the financial reporting requirements included in Title 9 of Book 2 of the Dutch Civil Code.
The management report within the meaning of Article 391 of Book 2 of the Dutch Civil Code consists of the
following parts of the annual report:
• 2025 results at a glance
• CEO statement
• How we created value
• Strategy and operations
• Sustainability statements
• Leadership and governance: Our Board of Management and Executive Committee
• Leadership and governance: Statement of the Board of Management
• Leadership and governance: Corporate governance statement
• Leadership and governance: Risk management
• Leadership and governance: Integrity and compliance management
• Leadership and governance: Remuneration report
• Financial statements: Note 5 Operating income
• Financial statements: Note 26 Financial risk management
On February 23, 2026, the Board of Management authorized the financial statements for issue. The
financial statements as presented in this report are subject to adoption by the Annual General Meeting of
shareholders on April 23, 2026.
Going concern
The Consolidated financial statements have been prepared on the going concern basis of accounting. To
determine the appropriateness of the going concern assumption, management has assessed the ability of
AkzoNobel to continue as a going concern for at least 12 months from the date of preparation of this
report (the going concern period), based on an evaluation of, among others, the financial position,
expected future cash flows and expected market developments.
At December 31, 2025, cash and cash equivalents amounted to €1.6 billion. As part of our going concern
assessment, we also assessed the ability of the company to obtain financing, taking into account the
company’s external credit rating.
Expected future cash flows are based on the latest forecasts. These forecasts take into account internal
and external developments relevant in the assessment of the ability of AkzoNobel to continue as a going
concern, including but not limited to market developments, developments in the macro-economic
environment, climate-related developments (see disclosure on impact of climate change in this Note), the
potential financial implications of ongoing legal proceedings and the anticipated impact from acquisitions
and divestments, considering various scenarios and their impact on the company’s financial position.
Management’s assessment did not lead to uncertainties in relation to AkzoNobel’s ability to continue as a
going concern during the going concern period.
Impact of climate change
AkzoNobel assessed the impact of climate change on its operations, identifying climate change mitigation
and adaptation as key topics.
Climate change mitigation
For climate change mitigation in its own operations (Scope 1 and Scope 2) AkzoNobel has identified three
key levers, being decarbonization through upgrading (energy) inefficient assets, prioritizing renewable
electricity purchase and production, and reduction by transition from fossil to renewable fuels. Replaced
assets are either divested or impaired. The book value of these replaced assets is typically low.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Prioritizing renewable electricity purchase and production is mainly driven by a focus on on-site solar
panels and renewable electricity purchasing agreements. We purchase Renewable Electricity Certificates
or Guarantees of Origin, only for actual energy off take, and actively look for off-site power purchasing
agreements where possible. For the purchasing power arrangement entered into in 2025, which is
expected to be operational in 2027, the own-use exemption criteria under IFRS 9 will be met.
To become carbon neutral in 2050, we’ll shift our fossil fuel consumption towards renewable alternatives,
e.g. heat recovery from our compressors and smart electrification with heat pumps. Currently, our fossil
fuels are primarily used for heating buildings and heating within the production process.
Climate change mitigation measures within the entire value chain (Scope 3) focus on increasing our
sustainable product offering, the development of new products and engaging with our suppliers and
customers around the world to collectively find solutions towards our target of halving carbon emissions in
our value chain by 2030 through four key levers, being energy transition, process efficiency, reduced
solvent emissions and circular solutions.
Currently, this decarbonization has no material impact on our financial position and performance. The cost
for moving towards our 2030 target is mostly captured in the investments of our suppliers, with limited
direct investments required for our own operations. The financial effects, if any, would be captured in our
Cost of sales.
Climate change adaptation
Climate change adaptation is critical to our organization, with the primary risk involving insufficient
adaptation to natural hazards resulting from climate change, which include heat stress, flooding events and
water scarcity. This risk could lead to loss of assets and operational disruptions.
From a financial perspective, we have assessed the physical risks for our own operations. We assessed
the potential occurrence of material financial impacts to our own operations, focusing on heat stress and
water scarcity. We currently see no risk of material financial impact. To reach this conclusion, we analyzed
the risk related to property damage, as well as the risk related to business interruption.
Given our approximately 125 manufacturing sites, the risk of business interruption at one or a few sites
does not pose a significant interruption risk to AkzoNobel. This is primarily due to our extensive global
distribution network and the relatively low revenue exposure per site, allowing us to shift production should
a natural hazard occur.
We also analyzed historical insurance claims related to natural hazards. Over a period of 20 years, the total
indemnity paid related to natural catastrophes was below €10 million. This is the combined sum of
property damage and business interruption.
Geopolitical developments
Trade frictions
In 2025, the economic environment was marked by ongoing geopolitical tensions, increasing trade frictions
and adverse currency impacts. We faced geopolitical uncertainties, with tariffs complicating supply chains
and influencing customer demand. Our direct exposure to increased tariffs between major economies is
limited, as production and sourcing are largely localized in the markets where we operate.
The main impact on our business is therefore indirect. Tariffs and related trade measures affected our
customers through lower demand, more complex supply chains and margin pressure, which in turn
impacts our volumes. In 2025, these macro-economic uncertainties were most visible in our volumes in
North America and, to a lesser extent, in Europe. For further details on business performance, refer to Note
5 Operating income.
Further, in our forecasting process, the effects of macro-economic developments are closely monitored to
ensure that the impacts on the estimated future cash flows are reflected in the forecasts, which in turn are
included in the models which are used to calculate the recoverable amounts taken into account in the
annual impairment test. Refer to Note 10 Intangible assets.
Impact from the war in Ukraine and sanctions on Russia
In 2022, following the EU sanctions, the majority of our Performance Coatings activities in Russia were
suspended. The residual Russian business since then has been ringfenced. Since 2022, the EU has issued
further waves of sanctions against Russia. AkzoNobel continuously monitors sanction developments and
takes measures as required. Each year, the measures as implemented have been assessed for their
financial reporting impact, if any, under the applicable IFRS accounting standards. This includes, among
others, compliance with IFRS requirements on consolidation and asset impairment assessments. To date,
other than the suspension of the majority of our Performance Coating activities in 2022, there has been no
material financial reporting impact as a direct result of the measures implemented.
Our businesses in Ukraine and Russia combined represent less than 2% of our revenue both in 2025 and
2024, of which the vast majority concerned Russia.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Material accounting policies
The material accounting policies as applied throughout the financial statements are described below.
Material accounting policies relating to specific financial statement items are included in the respective
notes to the financial statements.
Consolidation
The Consolidated financial statements include the accounts of Akzo Nobel N.V. and its subsidiaries.
Subsidiaries are companies over which Akzo Nobel N.V. has control, because it is exposed, or has rights,
to variable returns from its involvement with the subsidiary and it has the ability to affect returns through its
power over the subsidiary. Non-controlling interests in equity and in results are presented separately.
Changes in accounting policies and first-time application
Accounting pronouncements with potential relevance for AkzoNobel, which became effective for 2025,
included amendments to IAS 21 “Lack of exchangeability”. These changes in accounting policies did not
have a material impact on our Consolidated financial statements.
Held for sale/Discontinued operations
Assets and liabilities are classified as held for sale if it is highly probable that the carrying value will be
recovered through a sale transaction within one year, rather than through continuing use. A discontinued
operation is a component of our business that represents a separate major line of business or geographical
area of operations that has been disposed of, or is held for sale, or is a subsidiary acquired exclusively with
a view to resale.
Foreign currencies
Transactions in foreign currencies are translated into the functional currency using the foreign exchange
rate at transaction date. Monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency using the exchange rates at the balance sheet date. The resulting foreign
currency differences are included in the statement of income in financing expenses. Non-monetary assets
and liabilities denominated in foreign currencies are translated into the functional currency at the exchange
rate at acquisition date.
The assets and liabilities of entities with functional currencies other than euro, are translated into euros (the
functional currency of the parent entity) using the exchange rates at the balance sheet date. The income
and expenses of entities with functional currencies other than euro, are translated into the functional
currency using the exchange rates at transaction date.
Foreign exchange rate differences resulting from translation into the functional currency of investments in
subsidiaries and of intercompany loans of a permanent nature with functional currencies other than euro
are recorded as a separate component (cumulative translation reserve) within Other comprehensive
income. These cumulative translation adjustments are reclassified (either fully or partly) to the statement of
income upon disposal (either fully or partly) or liquidation of the foreign subsidiary to which the investment
or the intercompany loan with a permanent nature relates. Foreign currency differences arising on the
translation of a financial liability designated as an effective hedge of a net investment in a foreign operation
are recognized in the cumulative translation reserve (within Other comprehensive income).
Exchange rates of key currencies
The principal exchange rates against the euro used in preparing the balance sheet and the statement of
income are:
Currency*
Balance sheet
Statement of income
2024
2025
%
2024
2025
%
US dollar
1.04
1.17
12.5
1.08
1.13
4.6
Pound sterling
0.83
0.87
4.8
0.85
0.86
1.2
Chinese yuan
7.62
8.19
7.5
7.80
8.12
4.1
* Foreign currency equivalent of €1.
Hyperinflation economies
When a subsidiary is operating in a hyperinflationary country, the financial statements of this entity are
restated into the current purchasing power at the end of the reporting period. In addition, exchange rates
at this balance sheet date are used to translate both the balance sheet and the statement of income into
euros. Hyperinflation accounting is applied for Argentina and Türkiye based on the historical cost approach
and using the Consumer Price Index (CPI). CPI developments for Argentina and Türkiye are included in the
table below. For reference, the balance sheet exchange rates for both countries have also been included.
CPI at December 31
Country
2023
2024
2025
Argentina
3,533
7,694
10,121
Türkiye
1,859
2,685
3,514
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Balance sheet exchange rates* at December 31
Currency
2023
2024
2025
Argentinian peso
894.91
1,072.96
1,702.53
Turkish lira
32.73
36.80
50.38
* Foreign currency equivalent of €1.
For a consolidated overview of financial impacts from hyperinflation accounting, refer to Note 7 Financing
income and expenses.
Government grants
Government grants related to costs are deducted from the relevant costs in the same period. Government
grants to compensate for the cost of an asset are deducted from the cost of the related asset.
New IFRS accounting standards
IFRS accounting standards and interpretations thereof not yet in force, which may apply to our
Consolidated financial statements for 2026 and beyond, have been assessed for their potential impact.
These include, among others, amendments to IFRS 9 and IFRS 7 "Classification and Measurement of
Financial Instruments", amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture and amendments to IFRS 9 and IFRS 7 "Contracts Referencing
Nature-dependent Electricity". These changes are not expected to have a material effect on AkzoNobel’s
Consolidated financial statements.
Further, in 2024, the IASB published IFRS 18 "Presentation and Disclosure in Financial Statements".
IFRS 18 introduces, among others, a defined structure of the statement of profit or loss with required
subtotals, required disclosures in the financial statements for certain management defined performance
measures and enhanced principles on aggregation and disaggregation which apply to the primary financial
statements. The implementation date of IFRS 18 is January 1, 2027. Based on the performed impact
assessment, we note that the primary effect of this implementation involves reallocating exchange rate
results to the categories within the statement of profit or loss where they originate from, whereas currently
these results are reported under financing expenses. In addition, certain line items will be regrouped and
relabelled in accordance with the new presentation requirements, without affecting total profit or loss. The
key performance indicators currently disclosed, adjusted operating income and adjusted EBITDA, are not
expected to change materially.
The IASB has also amended IAS 7 “Statement of Cash Flows,” requiring entities that apply the indirect
method to use operating profit (as defined by IFRS 18) as the starting point for cash flows from operating
activities. In addition, the amendments require interest and dividends paid to be presented as financing
cash flows and interest and dividends received as investing cash flows, removing the option to present
these items within operating activities. For AkzoNobel, this means that interest paid will be reclassified from
net cash generated from/(used for) operating activities to net cash generated from/(used for) financing
activities. As a result, net cash generated from/(used for) operating activities will increase, while net cash
generated from/(used for) financing activities will decrease.The implementation date of this change is
January 1, 2027.
Significant accounting estimates and judgments
The preparation of the financial statements in compliance with IFRS accounting standards requires
management to make judgments, estimates and assumptions that affect amounts reported in the financial
statements. The estimates and assumptions are based on experience and various other factors that are
believed to be reasonable under the circumstances and are used to judge the carrying values of assets
and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions
are reviewed on an ongoing basis.
The most critical accounting policies involving a higher degree of judgment and complexity in applying
principles of valuation and for which changes in the assumptions and estimates could result in significantly
different results than those recorded in the financial statements, are the following:
• Recoverability of deferred tax assets (Note 8)
• Impairment of intangible assets (Note 10)
• Post-retirement benefit provisions (Note 18)
• Provisions and contingent liabilities related to major legal matters (Note 19)
More details related to the estimates and judgments for these financial statement items are described in
the respective notes.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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NOTE 2: SCOPE OF CONSOLIDATION
Accounting policies
Upon loss of control over a subsidiary, its assets, liabilities, and non-controlling interests are
derecognized. At the same time, any cumulative translation adjustments related to this subsidiary are
reclassified to the statement of profit or loss.
The divestment result includes the consideration received, minus the carrying amount of the net
assets derecognized (including non-controlling interests) and any directly attributable costs, and the
true up to fair value of any remaining investments.
The subsidiary’s results are consolidated up to, but not after, the date of loss of control.
Material subsidiaries
The Consolidated financial statements comprise the assets, liabilities, income and expenses of 222 legal
entities. We consider legal entities material when they represent, for at least two subsequent years, more
than 5% of either revenue, operating income or total assets. Material subsidiaries included in the table
below are fully owned at year-end 2025. Refer to Note 17 Group equity for an overview of non-controlling
interests.
Material subsidiaries related to continuing operations
Legal entity
Principal place of business
Akzo Nobel Coatings Inc.
United States
Imperial Chemical Industries Limited
United Kingdom
Akzo Nobel Decorative Coatings B.V.
The Netherlands
Akzo Nobel Coatings S.P.A.
Italy
Akzo Nobel Ltda
Brazil
Akzo Nobel Paints (Shanghai) Limited
China
International Paint LLC
United States
Akzo Nobel India Limited, formerly reported as a material subsidiary, was divested on December 10, 2025.
Divestments
On December 10, 2025 AkzoNobel sold 61% of the shares of Akzo Nobel India Limited (ANIL) to the JSW
Group (JSW); as a result AkzoNobel no longer controlled the company. Prior to that transaction, on
September 24, 2025, AkzoNobel sold 5% of the share capital of ANIL through market block trades. After
the transaction with JSW, AkzoNobel retained a 9% share in ANIL, which was subsequently sold in a block
trade on December 17, 2025. As these block trades were linked to the agreement and transaction with
JSW, they have been accounted for as part of the deal result.
The deal result amounted to €555 million, the net cash inflow was €776 million. As part of the disposal,
AkzoNobel is entitled to additional contingent consideration of up to €26 million. dependent on the
occurrence of specified future events. The contingent consideration receivable is recognized at its fair value
of €20 million, determined using a probability-weighted assessment of the expected future receipts and
discounted to present value.
Prior to the sale to JSW, ANIL sold its Powder Coatings business and International Research Center to
AkzoNobel Powder Coatings India Limited, a fully owned subsidiary of Akzo Nobel N.V. At the same time,
the rights to the Dulux brand in India were sold to ANIL, the divested entity.
The divested business represented our operations in India, excluding our Powder Coatings business and
International Research Center. The divested businesses contributed €316 million in revenue in 2025, of
which €192 million related to Decorative Paints and €124 million related to Performance Coatings. In terms
of operating income, the divested business contributed €44 million, of which €29 million related to
Decorative Paints, €21 million related to Performance Coatings and negative €6 million related to other
activities.
Since the divested company did not represent a separate major line of business or geographical area, no
discontinued operations accounting was applied. The balances related to the deconsolidation of the assets
and liabilities are included in the divestment line in the various movement schedules in the financial
statements.
The deal result, with the exception of related income taxes, has been reported within “Other results” in the
Consolidated statement of income.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Deal result Akzo Nobel India Limited divestment
in € millions
2025
Consideration for shares sold
887
Contingent consideration
20
Recycling of cash flow hedge reserve to P&L
15
Derecognition of asets and liabilities (including non-controlling interest)
(137)
Cost allocated to the deal, including recycling of cumulative translation to the P&L
(130)
Pre-tax deal result
655
Income tax related to the sale
(100)
Total deal result Akzo Nobel India Limited divestment
555
Cash inflow from Akzo Nobel India Limited divestment
in € millions
2025
Consideration for shares sold (including shares sold before and after the transaction with JSW)
887
Cash and cash equivalents derecognized on disposal
(28)
Income tax paid on divestment proceeds
(98)
Proceeds from cash flow hedge
15
Total cash inflow from Akzo Nobel India Limited divestment
776
The total cash inflow from the divestment is presented in the consolidated statement of cash flows under
‘Proceeds from divestments, net of cash divested.’ The difference between the €776 million cash inflow
from divestment disclosed in this Note and the €816 million reported as ‘proceeds from divestments, net of
cash divested’ in the Cash Flow Statement, relates to cash inflows from the sale of real estate unrelated to
this transaction.
Balance sheet Akzo Nobel India Limited at divestment date
in € millions
December 10, 2025
Intangible assets
55
Property, plant and equipment
49
Other non-current assets
35
Inventories
54
Trade receivables
56
Other current assets
67
Non-current liabilities
(20)
Trade payables
(90)
Other current liabilities
(21)
Non-controlling interest
(48)
Net assets and liabilities Akzo Nobel India Limited divested
137
Mergers and acquisitions
On November 18, 2025, Akzo Nobel N.V. (“AkzoNobel”) and Axalta Coating Systems Ltd. (“Axalta”)
announced they entered into a definitive agreement to combine in an all-stock merger, creating a premier
global coatings company.
The combination will bring together two coatings industry leaders with complementary portfolios of highly
regarded brands to better serve customers across key end markets and enhance value for shareholders,
employees and other stakeholders.
The terms of the agreement stipulate that Axalta shareholders will receive 0.6539 shares of AkzoNobel
stock for each share of Axalta common stock owned, with AkzoNobel being the surviving entity.
In connection with the transaction, AkzoNobel intends to pay a special cash dividend to AkzoNobel
shareholders equal to €2.5 billion, minus the aggregate amount of any regular annual and interim dividends
paid by AkzoNobel to AkzoNobel shareholders in 2026 prior to completion. The special dividend is
conditional on completion of the transaction and on the level of regular dividends paid in 2026. The merger
agreement prohibits AkzoNobel to repurchase shares up to the merger date.
AkzoNobel shareholders will own approximately 55% and Axalta shareholders will own approximately 45%
of the combined company on a pro forma basis immediately after closing. The companies expect the
transaction to close in late 2026 to early 2027, subject to approval by shareholders of both AkzoNobel and
Axalta, the receipt of requisite regulatory approvals, authorization for the combined company’s shares to
be listed on NYSE, payment of the special dividend by AkzoNobel, completion of AkzoNobel’s works
council consultation requirements and the satisfaction of other customary closing conditions.
If either of the companies terminate the merger agreement, the terminating party may be required to pay
the other party a €150 million termination fee.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 3: SEGMENT INFORMATION
Accounting policies
We determine and present operating segments based on the information that is provided to the
Executive Committee, our chief operating decision-maker during 2025, to make decisions about
resources to be allocated to the segments and assess their performance. Segment results reported
to the Executive Committee include items directly attributable to a segment, as well as those items
that can be allocated on a reasonable basis.
In presenting and discussing segmental operating results AkzoNobel uses two operational segments,
Decorative Paints and Performance Coatings. The distinction reflects differences in customer type, product
application and performance requirements, routes to market and management oversight. Items which are
not allocated to either one of these segments, mainly comprise of corporate assets and corporate costs
and are reported in “Corporate and other”.
Decorative Paints
Decorative Paints comprises businesses that provide a full range of interior and exterior decoration and
protection products to both professional and do-it-yourself customers, including paints, enamels, varnishes
and surface preparation products. We also offer services such as mixing machines, color concepts and
advice, and training for applicators. The segment operates through our own sales and distribution network
as well as agents and distributors. In 2025, all geographical regions were brought under central/global
leadership; in addition a global commercial organization was implemented.
The business units in the operating segment Decorative Paints are set up regionally, as the paints business
is managed per region. Refer to Note 4 Revenue for a disaggregation of revenues per region.
Performance Coatings
Performance Coatings produces engineered coatings designed to deliver functional properties such as
corrosion and fouling control, anti-scratch performance and passive fire protection, to protect and enhance
ships, cars, aircraft, yachts and architectural components (structural steel, building products, flooring),
consumer goods (mobile devices, appliances, beverage cans, furniture) and oil and gas facilities.
The business units in the operating segment Performance Coatings are set up per product/end market, as
the segment is managed based on product/end market combinations. Refer to Note 4 Revenue for a
disaggregation of revenues per product/end market.
The tables in this Note include Alternative Performance Measures (APMs). For further information, refer to
the section Alternative Performance Measures in this Note.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Information per reportable segment
Revenue (third parties)
Cost of sales
Gross profit
Operating income
Identified Items
Adjusted Operating
income
in € millions
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
Decorative Paints
4,301
4,090
(2,422)
(2,282)
1,879
1,808
405
401
(80)
(102)
485
503
Performance Coatings
6,410
6,068
(3,932)
(3,802)
2,478
2,266
679
300
(56)
(365)
735
665
Corporate and other
—
—
(20)
(25)
(20)
(25)
(167)
463
(60)
550
(107)
(87)
Total
10,711
10,158
(6,374)
(6,109)
4,337
4,049
917
1,164
(196)
83
1,113
1,081
Information per reportable segment
Organic sales growth*
Adjusted EBITDA
Adjusted EBITDA
margin %*
Amortization and
depreciation
Research and
development expenses
Employee benefits
in € millions
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
Decorative Paints
1%
—%
635
648
14.8
15.8
(151)
(153)
(74)
(70)
(640)
(644)
Performance Coatings
2%
—%
913
843
14.2
13.9
(183)
(185)
(217)
(204)
(1,203)
(1,162)
Corporate and other
(70)
(47)
(37)
(40)
(5)
—
(320)
(307)
Total
2%
—%
1,478
1,444
13.8
14.2
(371)
(378)
(296)
(274)
(2,163)
(2,113)
* Organic sales growth, Adjusted gross margin and Adjusted EBITDA margin for Corporate and other is not shown, as this is not meaningful.
Information per reportable segment
Invested capital
Total assets
Total liabilities
Capital expenditures
ROI%*
in € millions
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
Decorative Paints
3,850
3,302
5,770
5,516
1,302
1,480
87
85
12.4
14.3
Performance Coatings
3,679
3,553
6,224
5,954
2,156
2,245
197
207
19.5
18.5
Corporate and other
745
738
2,255
2,482
5,975
5,405
22
17
Total
8,274
7,593
14,249
13,952
9,433
9,130
306
309
13.3
13.5
* ROI% for Corporate and other is not shown, as this is not meaningful.
Regional information
Revenue by region of destination
Intangible assets and property,
plant and equipment
Invested capital
Capital expenditures
in € millions
2024
2025
2024
2025
2024
2025
2024
2025
The Netherlands
329
330
1,201
1,175
1,783
1,696
39
29
Other EMEA countries
4,727
4,556
1,770
1,778
2,764
2,659
121
143
North Asia
1,668
1,592
1,184
1,088
1,030
876
34
33
South Asia Pacific
1,311
1,206
554
396
720
520
37
29
North America
1,363
1,264
687
637
962
909
55
54
Latin America
1,313
1,210
775
763
1,015
933
20
21
Total
10,711
10,158
6,171
5,837
8,274
7,593
306
309
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Alternative Performance Measures
In presenting and discussing AkzoNobel’s (segmental) operating results, management uses certain
Alternative Performance Measures not defined by IFRS accounting standards, which exclude the so-called
identified items. ldentified items are special charges and benefits, results on acquisitions and divestments,
major restructuring and impairment charges, charges and benefits related to major legal, environmental
and tax cases, pension curtailments and buyouts, and hyperinflation accounting adjustments for inventory
positions that exceed normal operational levels.
These Alternative Performance Measures should not be viewed in isolation as alternatives to the equivalent
IFRS measures and should be used as supplementary information in conjunction with the most directly
comparable IFRS measures. Alternative Performance Measures do not have a standardized meaning under
IFRS accounting standards and therefore may not be comparable to similar measures presented by other
companies. Where an alternative measure is used to calculate an operational or statistical ratio, this ratio is
also considered an Alternative Performance Measure.
A reconciliation of the Alternative Performance Measures to the most directly comparable IFRS measures
can be found in the tables in the remainder of this Note, for those Alternative Performance Measures which
are used to assess segment performance.
Alternative Performance Measures related to overall AkzoNobel performance have been included in the
respective notes to the most directly comparable IFRS measures:
• Adjusted earnings per share, Note 9 Earnings per share
• Free cash flow, Note 22 Cash flow
• Leverage ratio and net debt, Note 26 Financial risk management
Adjusted EBITDA and Adjusted operating income
Adjusted EBITDA is operating income excluding depreciation, amortization and identified items. Adjusted
operating income is operating income excluding identified items. The measures are used to evaluate the
performance of the company and its segments. By excluding identified items, the comparability of the
operational results increases and financial performance can be evaluated more effectively. Management
sees adjusted EBITDA and adjusted operating income as appropriate measures for (segment)
performance.
Operating income to adjusted EBITDA
2024
2025
in € millions
Decorative
Paints
Perf.
Coatings
Other
activities
Total
Decorative
Paints
Perf.
Coatings
Other
activities
Total
Operating income
405
679
(167)
917
401
300
463
1,164
Restructuring-related costs
(51)
(48)
(45)
(144)
(93)
(88)
(19)
(200)
Acquisition/divestment-related
results
(12)
(2)
(9)
(23)
(2)
—
618
616
Hyperinflation
(15)
(4)
—
(19)
(3)
(1)
—
(4)
Legal & environmental
(1)
—
(6)
(2)
—
(272)
(29)
(301)
Pension curtailments and buyouts
—
—
—
—
(1)
(3)
(6)
(10)
Other
(1)
(2)
—
(8)
(3)
(1)
(14)
(18)
Total identified items
(80)
(56)
(60)
(196)
(102)
(365)
550
83
Adjusted operating income
485
735
(107)
1,113
503
665
(87)
1,081
Depreciation and amortization*
(150)
(178)
(37)
(365)
(145)
(178)
(40)
(363)
Adjusted EBITDA
635
913
(70)
1,478
648
843
(47)
1,444
* Excluding identified items.
Restructuring-related costs
Restructuring-related costs primarily relate to costs for accruals for certain employee benefits and for other
costs which are directly associated with plans to exit or cease specific activities, closing down of facilities
and right-sizing the organization.
In both 2024 and 2025, the restructuring-related costs primarily included costs for the industrial excellence
and profitable growth plan programs.
Acquisition/divestment-related results
Acquisition/divestment-related results include all results on acquisitions and divestments of businesses,
costs directly related to such acquisitions and divestments, and post-merger integration costs. It also
includes results of divestments not being part of a business divestment when certain materiality thresholds
are met.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
In 2025, acquisition/divestment-related results primarily related to the divestment of Akzo Nobel India
Limited for an amount of €651 million, refer to Note 2 Scope of consolidation. In 2024, these costs mainly
related to post-merger integration costs for Huarun and Grupo Orbis.
Hyperinflation
Hyperinflation relates to the hyperinflation accounting impact of inventory positions that exceed normal
operational levels.
Legal and environmental
Legal and environmental mainly includes costs related to provisions for non-operational sites or employer
liabilities recorded for former employees, and to legal and environmental costs for which certain materiality
thresholds are met.
In 2025, legal and environmental costs mainly included costs related to providing for Project Ichthys, a
court case in Australian litigation brought by INPEX Operations Australia in 2021 and JKC Australia LNG in
2017 relating to the specification and use of an AkzoNobel product which was applied to part of the
pipework for the Ichthys Onshore Project in Darwin, Australia, a large LNG project, between 2013 and
2015. For further details, refer to Note 19 Other Provisions and contingent liabilities.
Adjusted EBITDA margin
Adjusted EBITDA margin is an operational profit margin. Adjusted EBITDA margin is adjusted EBITDA as a
percentage of revenue. The measure provides a clear picture of (the development of) profitability.
Adjusted EBITDA margin
in € millions
2024
2025
Revenue from third parties
Decorative Paints
4,301
4,090
Performance Coatings
6,410
6,068
Corporate and other
—
—
Total
10,711
10,158
Adjusted EBITDA
Decorative Paints
635
648
Performance Coatings
913
843
Corporate and other
(70)
(47)
Total
1,478
1,444
Adjusted EBITDA margin%
Decorative Paints
14.8
15.8
Performance Coatings
14.2
13.9
Corporate and other*
Total
13.8
14.2
*Adjusted EBITDA margin for Corporate and other is not shown, as this is not meaningful.
(Average) invested capital and Return on Investment (ROI)
Average invested capital is the average of the quarter-end invested capital balances for the last four
quarters. Invested capital is total assets (excluding cash and cash equivalents, short-term investments,
investments in associates, pension assets, and assets held for sale) less current tax liabilities, deferred tax
liabilities, and trade and other payables.
ROI is adjusted operating income of the last 12 months as a percentage of average invested capital.
Management uses ROI to assess the efficiency of investments and make informed decisions on how to
allocate capital to maximize returns and drive long-term growth.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
ROI%
in € millions
2024
2025
Average invested capital
Decorative Paints
3,921
3,525
Performance Coatings
3,773
3,595
Corporate and other
656
896
Total
8,350
8,016
Adjusted operating income
Decorative Paints
485
503
Performance Coatings
735
665
Corporate and other
(107)
(87)
Total
1,113
1,081
ROI%
Decorative Paints
12.4
14.3
Performance Coatings
19.5
18.5
Corporate and other*
Total
13.3
13.5
* ROI% for Corporate and other is not shown, as this is not meaningful.
*
Invested capital
2024
2025
in € millions
Decorative
Paints
Performance
Coatings
Corporate and
Other
Total
Decorative
Paints
Performance
Coatings
Corporate and
Other
Total
Intangible assets
2,445
1,514
90
4,049
2,289
1,426
83
3,798
Property, plant and equipment
819
1,270
33
2,122
723
1,286
30
2,039
Right-of-use assets
169
87
62
318
145
98
51
294
Deferred tax assets
71
98
253
422
49
86
266
401
Financial non-current assets (excluding pension assets)
43
141
161
345
29
132
75
236
Working capital*
544
616
349
1,509
306
585
421
1,312
Deferred tax liabilities
(241)
(47)
(203)
(491)
(239)
(60)
(188)
(487)
Invested capital
3,850
3,679
745
8,274
3,302
3,553
738
7,593
* Working capital contains inventories, trade and other receivables, trade and other payables, current tax assets and current tax liabilities.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Organic sales development
Organic sales development excludes the impact of changes in consolidation, the impact of changes in
foreign exchange rates and the impact of hyperinflation accounting. The impact of changes in foreign
exchange rates is calculated by retranslating the prior year local currency amounts into euros at the current
year’s foreign exchange rates. Organic sales development provides a better understanding of underlying
revenue growth factors. The table below provides a reconciliation between organic sales development and
revenue development.
Organic sales development 2025
in % versus 2024
Volume
Price/mix
Organic
sales
Acq./div.
FX
Other
Revenue
Decorative Paints
(1) %
1 %
— %
— %
(4) %
(1) %
(5) %
Performance Coatings
(2) %
2 %
— %
— %
(4) %
(1) %
(5) %
Total
(2) %
2 %
— %
— %
(4) %
(1) %
(5) %
Organic sales development 2024
in % versus 2023
Volume
Price/mix
Organic
sales
Acq./div.
FX
Other
Revenue
Decorative Paints
— %
1 %
1 %
1 %
(1) %
(1) %
— %
Performance Coatings
2 %
— %
2 %
— %
(1) %
— %
1 %
Total
1 %
1 %
2 %
— %
(1) %
(1) %
— %
Capital expenditures
Capital expenditures is the total of investments in property, plant and equipment and investments in
intangible assets. Reporting on capital expenditures gives insight into the investment in long-term assets.
Capital expenditures
2024
2025
in € millions
Investments
in PP&E
Investments
in Intangible
assets
Capital
expenditures
Investments
in PP&E
Investments
in Intangible
assets
Capital
expenditures
Decorative Paints
87
—
87
85
—
85
Performance Coatings
190
7
197
203
4
207
Corporate and other
5
17
22
8
9
17
Total
282
24
306
296
13
309
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 4: REVENUE
Accounting policies
Sale of goods
AkzoNobel’s main business consists of selling of goods (paints and coatings) to customers at
contractually determined prices and conditions without any additional services. Although the transfer
of risks and rewards is not the only criterion to be considered to determine whether control over the
goods has transferred, it is in most situations considered to be the main indicator of the customer’s
ability to direct the use of, and obtain the benefits from the asset, and largely also coincides with the
physical transfer of the goods and the obligation of the customer to pay.
Variable considerations, including among others rebates, bonuses, discounts and payments to
customers, are accrued for as performance obligations are satisfied and revenue is recognized.
Variable considerations are only recognized when it is highly probable that these are not subject to
significant reversal. Revenue is recognized net of rebates, discounts and similar allowances, and net of
sales tax.
In case of expected returns, revenue is not recognized for such products. Instead, we record a liability
for the refund and an asset for the products that will be returned. A provision for warranties is
recognized when the underlying products or services are sold, generally based on historical warranty
data.
Equipment provided to customers
AkzoNobel regularly provides mixing machines, store interior and other assets to its customers at the
start of a paints or coatings delivery contract. The delivery of such assets qualifies as a separate
performance obligation. Revenue can only be recognized at the moment of transfer of such assets,
when there is an agreed sales price or when there is a binding take-or-pay commitment for a minimum
quantity of paints or coatings to be purchased by the customer.
Services
AkzoNobel provides certain training, technical and/or support services to customers, as well as
shipping and handling activities for its customers. Service revenue is recognized over time when the
related services are being provided. When not separately invoiced, part of the sales price of paints or
coatings is allocated to such services.
General
The major product lines and geographical regions are as disclosed in the table in this Note.
For the receivables, which are included in Trade and other receivables, reference is made to Note 16 Trade
and other receivables.
As at December 31, 2025, and at December 31, 2024, no significant contract assets were recognized.
As at December 31, 2025, the amount of contract liabilities deferred to be recognized over time in 2026
was €4 million (2024: €4 million). These contract liabilities primarily relate to shipping, training and certain
technical services, for which revenue is recognized over time. The amount of €4 million included in contract
liabilities at the beginning of the period has been recognized as revenue during the year 2025 (2024: €4
million).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Revenue disaggregation
Decorative Paints
Performance Coatings
Total
in € millions
2024
2025
2024
2025
2024
2025
Primary geographical markets - revenue from third parties
The Netherlands
222
220
107
110
329
330
Other EMEA countries
2,240
2,192
2,487
2,364
4,727
4,556
North Asia
459
426
1,209
1,166
1,668
1,592
South Asia Pacific
555
494
756
712
1,311
1,206
North America
—
—
1,363
1,264
1,363
1,264
Latin America
825
758
488
452
1,313
1,210
Total
4,301
4,090
6,410
6,068
10,711
10,158
Major goods/service lines - revenue from third parties
Decorative Paints Europe, Middle East and Africa
2,462
2,412
—
—
2,462
2,412
Decorative Paints Latin America
825
758
—
—
825
758
Decorative Paints China and North Asia
459
426
—
—
459
426
Decorative Paints South East and South Asia
555
494
—
—
555
494
Powder Coatings
—
—
1,365
1,280
1,365
1,280
Marine and Protective Coatings
—
—
1,575
1,570
1,575
1,570
Automotive and Specialty Coatings
—
—
1,434
1,347
1,434
1,347
Industrial Coatings
—
—
2,036
1,871
2,036
1,871
Total
4,301
4,090
6,410
6,068
10,711
10,158
Timing of revenue recognition - revenue from third parties
Goods transferred at a point in time
4,237
4,027
6,196
5,850
10,433
9,877
Services transferred over time
64
63
214
218
278
281
Total
4,301
4,090
6,410
6,068
10,711
10,158
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 5: OPERATING INCOME
Accounting policies
Operating income is the income generated from our core business activities, before financing
income and expenses, results from associates and income tax. Operating income includes identified
items.
Cost of sales
Cost of sales comprises the costs of purchase, conversion and other costs incurred to bring the
products sold into the condition and location to be ready for sale. This includes the cost of raw
materials, labor, warehousing of raw materials, production overhead and changes in inventory
provisions for raw materials and semi-finished goods.
Selling and distribution expenses
Selling and distribution expenses comprise the costs associated with promoting and selling
products or services, as well as delivering them to customers. These costs include sales, marketing,
distribution, warehousing of finished goods, supply chain management costs and changes in
inventory provisions related to finished goods.
General and administrative expenses
General and administrative expenses include costs for support functions and other general and
administrative expenses.
Research and development expenses
Research and development expenses include costs incurred in the process of developing new
products, or improving existing products. Development costs are capitalized as an internally
generated intangible asset, if it is probable that sufficient future economic benefits will be generated
by the development.
Other results
Other results include items not considered to be normal operational items (from ordinary activities);
these costs include gains and losses that cannot be reported in any of the categories above,
amongst others impairment of goodwill, significant additions to provisions, and results on certain
divestments.
Development of operating income
Operating income at €1,164 million (2024: €917 million) was impacted by the divestment of Akzo Nobel
India Limited for €655 million, a charge of €272 million related to Project Ichthys and our restructuring
programs for €200 million. The Akzo Nobel India Limited divestment and Project Ichthys were reported
within “Other results”; restructuring costs are reporting in the applicable functional cost line in the income
statement. For more details on the result on the disposal of Akzo Nobel India Limited, refer to Note 2
Scope of consolidation, for more details on the provision for Project Ichthys, refer to Note 19 Other
provisions and contingent liabilities, and for more details on restructuring related costs, refer to Note 3,
section Alternative Performance Measures.
The impact of revenue developments on operating income was limited. While revenue was down 5%, this
was largely driven by negative currency translation, which impacted revenue with 4%. Volumes were down
2% and price/mix was up 2%. Structural cost measures helped offset most of the impact from lower
volumes, keeping operating expenses lower year-on-year despite wage and general inflation.
Costs by nature 2025
in € millions
Employee
benefits Amortization Depreciation
Purchases
and
other costs
Result on
disposal of
business
(India)
Total
Cost of sales
(637)
(1)
(169)
(5,302)
—
(6,109)
Selling and distribution expenses
(1,004)
(50)
(98)
(1,200)
—
(2,352)
General and administrative expenses
(282)
(22)
(17)
(328)
—
(649)
Research and development expenses
(190)
(5)
(16)
(63)
—
(274)
Other results*
—
—
—
(265)
655
390
Total
(2,113)
(78)
(300)
(7,158)
655
(8,994)
*Purchases and other costs in Other results contain a €272 million charge related to the provision made for Project Ichthys. The result on disposal of
business (India) has been included to allow reconciliation of total costs with consolidated statement of income.
Costs by nature 2024
in € millions
Employee
benefits Amortization Depreciation
Purchases
and
other costs
Total
Cost of sales
(583)
(1)
(166)
(5,624)
(6,374)
Selling and distribution expenses
(1,078)
(51)
(94)
(1,240)
(2,463)
General and administrative expenses
(293)
(21)
(18)
(323)
(655)
Research and development expenses
(209)
(5)
(15)
(67)
(296)
Other results
—
—
—
(6)
(6)
Total
(2,163)
(78)
(293)
(7,260)
(9,794)
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 6: EMPLOYEE BENEFITS
Accounting policies
Salaries and wages are recognized in the statement of profit and loss in the period in which the
employee has rendered services to AkzoNobel.
The accounting policies for post-retirement costs are described in Note 18 Post-retirement benefit
provisions.
AkzoNobel has a performance-related and a restricted share plan, as well as a share-matching plan,
under which equity-settled shares are granted to certain employees. The fair value is measured at
grant date and amortized over the three-year period during which the employees normally become
unconditionally entitled to the shares with a corresponding increase in shareholders’ equity.
Amortization is accelerated in the event of earlier vesting or settlement.
Salaries, wages and other employee benefits
Salaries and wages decreased in 2025, primarily due to cost reductions as a result from a lower FTE
count, partly offset by wage bill inflation and an increase in severance costs.
Salaries, wages and other employee benefits in operating income
in € millions
2024
2025
Salaries and wages
(1,702)
(1,633)
Post-retirement cost
(145)
(146)
Other social charges
(316)
(334)
Total
(2,163)
(2,113)
Share-based compensation
Share-based compensation relates to the equity-settled performance-related share plans and the
restricted share plans, as well as the share-matching plan. Charges recognized in the 2025 statement of
income for share-based compensation amounted to €24 million and are included in salaries and wages
(2024: €23 million).
Performance-related and restricted share plans
Under the performance-related share plan and the restricted share plans, a number of conditional shares
are granted to the members of the Board of Management, members of the Executive Committee,
executives and certain other employee categories each year. The number of participants of the
performance-related share plan and the restricted share plans at year-end 2025 was 628 (2024: 694). The
shares of the performance-related and restricted share plan series 2022-2024 have vested and were
delivered to the participants in 2025.
The performance targets for the conditional grant of performance-related shares of the Board of
Management and the Executive Committee (series 2023-2025) are linked to revenue growth (20%),
adjusted EBITDA (40%), ROI ( 20%), and Environmental, Social and Governance (ESG) KPIs (20%).
The performance targets for the conditional grant of performance-related shares of the Board of
Management, the Executive Committee, and the executives (series 2024-2026), are linked to adjusted
EBITDA (33%), ROI ( 33%), and Environmental, Social and Governance (ESG) KPIs (34%).
The performance targets for the conditional grant of performance-related shares of the Board of
Management, the Executive Committee, and the executives (series 2025-2027), are linked to adjusted
EBITDA (40%), ROI ( 40%), and Environmental, Social and Governance (ESG) KPIs (20%).
For the Board of Management and the Executive Committee, a two-year holding restriction after vesting
applies. The executives have no holding restriction.
The plans for the executives (series 2023-2025) and certain non-executive employee categories are
restricted share plans without any performance conditions, whereby the conditional grant of shares will
vest upon the condition that they remain in service with the company during the three-year vesting period.
A one-year holding restriction after vesting applies for the executives.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
The conditional shares of the 2023-2025 performance share plan for the AkzoNobel participants vested for
118.32% (series 2022-2024: 112.35%), including dividend shares of 9.72% (series 2022-2024: 8.76%),
the final vesting percentage amounted to 129.82% (series 2022-2024: 122.19%).
The share price of a common share of Akzo Nobel N.V. at year end 2025 amounted to €59.20 (2024:
€57.96).
Fair value of performance-related and restricted shares
The fair value of the performance shares of the 2025-2027 grant to executives, amounting to €56.33, is
based on the opening share price on March 17, 2025, of €62.08 and the expected dividend yield of
3.19%.
The fair value of the restricted shares of the 2025-2027 grant to non-executives, amounting to €53.91, is
based on the opening share price on July 1, 2025, of €59.66 and the expected dividend yield of 3.32%.
The fair value of the performance-related 2025-2027 grant for the Board of Management and the Executive
Committee, based on the opening share price on April 25, 2025, amounts to €56.20.
Fair value performance-related shares in €
Series
Opening share price per:
Fair Value5
Share price
Dividend yield
2022 - 2024
February 23, 2022
88.28
88.28
NA
2022 - 2024
October 3, 20221
57.70
57.70
NA
2023 - 2025
February 23, 2023
69.26
69.26
NA
2023 - 2025
July 3, 20232
74.78
74.78
NA
2023 - 2025
January 2, 20242
74.82
74.82
NA
2024 - 2026
April 2, 2024
63.75
69.52
2.85 %
2024 - 2026
April 25, 20243
62.80
62.80
NA
2025 - 2027
March 17, 2025
56.33
62.08
3.19 %
2025 - 2027
April 25, 2025
56.20
56.20
NA
2025 - 2027
December 10, 20254
53.80
53.80
NA
1 Date on which Greg Poux-Guillaume started working for AkzoNobel.
2 Dates on which members of the Executive Committee started working for AkzoNobel.
3 Date of the AGM at which the new LTI performance criteria for the Board of Management were approved.
4 Date of additional grant to 3 executives when the company sold 61% of its shares in Akzo Nobel India Limited to JSW Group.
5 No market conditions, hence the fair value is equal to share price taking into account dividend yield, if applicable.
Share-matching plan
The members of the Board of Management and the members of the Executive Committee are eligible to
participate in the share-matching plan. Under certain conditions, members who invest part of their short-
term incentive payment in AkzoNobel shares may have such shares matched by the company one-on-one.
During 2025, 1,364 potential matching shares were forfeited and 2,955 potential matching shares were
matched for the members of the Board of Management and the members of the Executive Committee. In
2025, the members of the Board of Management and the members of the Executive Committee invested
part of their 2024 short-term incentive in AkzoNobel shares, leading to 11,787 potential matching shares.
The total number of matching shares outstanding per December 31, 2025, is 26,797. For an overview of
the matching shares outstanding for the members of the Board of Management per December 31, 2025,
we refer to the Remuneration report.
Fair value of matching shares
The fair value of the matching shares of €49.57 was based on the opening share price on the investment
date of April 23, 2025, being €55.30, discounted for expected dividends over the vesting period (dividend
yield: 3.58%).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Share plans of AkzoNobel employees
Share plan
Performance/
Vesting
period
Award
date
Vesting
date
End of
holding
period
Balance at
January 1,
2025
Awarded
in 2025
Vested in
2025
Forfeited
in 2025
Dividend in
2025
Subject to
performance
condition
Unvested
in 2025
Subject to
holding
period
Balance at
December
31, 2025
2022 – 2024 Restricted Share Plan E*
3 years
4/1/2022
4/1/2025
4/1/2026
123,166
—
(123,008)
(158)
—
NA
—
123,008
—
2022 – 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
71,939
—
(71,939)
—
—
—
—
71,939
—
2022 – 2024 Restricted Share Plan NE*
3 years
4/1/2022
4/1/2025
NA
40,756
—
(40,366)
(390)
—
NA
—
—
—
2023 – 2025 Restricted Share Plan E*
3 years
4/1/2023
4/1/2026
4/1/2027
192,158
—
(27,561)
(14,288)
—
NA
150,309
150,309
150,309
2023 – 2025 Performance Share Plan
3 years
1/1/2023
1/1/2026
1/1/2028
116,841
21,556
—
(2,949)
3,779
139,227
139,227
139,227
139,227
2023 – 2025 Restricted Share Plan NE*
3 years
4/1/2023
4/1/2026
NA
58,570
—
(3,750)
(2,672)
—
NA
52,148
—
52,148
2024 – 2026 Performance Share Plan E*
3 years
4/2/2024
4/2/2027
NA
181,399
—
(12,767)
(22,525)
—
146,107
146,107
—
146,107
2024 – 2026 Performance Share Plan
3 years
1/1/2024
1/1/2027
1/1/2029
118,062
—
—
(9,307)
3,485
112,240
112,240
112,240
112,240
2024 – 2026 Restricted Share Plan NE*
3 years
4/2/2024
4/2/2027
NA
43,220
—
(717)
(2,393)
—
NA
40,110
—
40,110
2025 – 2027 Performance Share Plan E*
3 years
4/1/2025
4/1/2028
NA
—
218,648
(1,991)
(24,149)
—
192,508
192,508
—
192,508
2025 – 2027 Performance Share Plan
3 years
1/1/2025
1/1/2028
1/1/2030
—
145,911
—
(10,655)
4,720
139,976
139,976
139,976
139,976
2025 – 2027 Restricted Share Plan NE*
3 years
4/1/2025
4/1/2028
NA
—
48,670
—
(780)
—
NA
47,890
—
47,890
Total
946,111
434,785
(282,099)
(90,266)
11,984
730,058
1,020,515
736,699
1,020,515
* E means executive plan; NE means non-executive plan.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Number of employees
Average number of employees during the year total AkzoNobel
In FTEs
2024
2025
Decorative Paints
14,100
13,000
Performance Coatings
17,800
17,200
Corporate and other
3,500
3,300
Total
35,400
33,500
Average number of employees during the year in the Netherlands
In FTEs
2024
2025
Decorative Paints
600
500
Performance Coatings
1,100
1,100
Corporate and other
700
600
Total
2,400
2,200
Number of employees at year-end
In FTEs
2024
2025
Decorative Paints
13,600
11,800
Performance Coatings
17,500
16,500
Corporate and other
3,500
3,200
Total
34,600
31,500
The average number of employees (in FTEs) working outside the Netherlands was 31,300 (2024: 33,000).
In 2025, the number of employees (in FTEs) decreased to 31,500 people (year-end 2024: 34,600 people).
On a comparable basis (excluding the impact of the India divestment), headcount was down 1,800
employees driven by efficiency programs.
NOTE 7: FINANCING INCOME AND EXPENSES
Accounting policies
Net interest on net debt is measured using the effective interest method.
Financing income related to post-retirement benefits includes the interest on the net defined benefit
liability/asset. Interest on provisions contains the movement of provisions as a result of the passage
of time, as well as the impact from changes in discount rates and the component of a provision that
relates to interest.
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents,
derivatives, loans, receivables and payables.
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain
or loss of purchase power by either having a net monetary liability or net monetary asset position. It
includes the restatement of non-monetary assets and liabilities, equity and items in the statement of
profit and loss.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Financing income and expenses
Financing income and expenses
in € millions
2024
2025
Net interest on net debt
Financing income
61
49
Financing expenses
(187)
(176)
Net interest on net debt
(126)
(127)
Other financing income and expenses
Financing income related to post-retirement benefits
27
32
Interest related to provisions
(3)
(35)
Exchange rate results
(47)
(49)
Hyperinflation: gain/(loss) on net monetary position
15
(26)
Other items
32
6
Net other financing income and expenses
24
(72)
Total financing income and expenses
(102)
(199)
Total financing income and expenses for the year were €199 million (2024: €102 million). Significant
variances include:
• Interest related to provisions was negative €35 million (2024: negative €3 million). The increase of €32
million compared to previous year is mainly the result of a charge of €21 million related to the interest
portion of the provision for Project Ichthys
• Hyperinflation: the net loss on monetary position was €26 million (2024: gain €15 million). The change of
€41 million compared to prior year is the result of the company moving from a net monetary liability to a
net monetary asset position in hyperinflation economies
• Other items decreased by €26 million, mainly due to the interest impact related to the release of
provisions for uncertain tax positions in 2024 (refer to Note 8 Income tax for more details)
Interest income from financial assets measured at amortized cost amounted to approximately €7 million in
2025 (2024: €10 million). The remainder was generated by financial assets measured at fair value through
profit and loss.
The average interest rate used for capitalized interest was 2.5% (2024: 2.3%). Capitalized interest was
negligible in both 2025 and 2024. The average interest rate on total debt was 3.2% (2024: 3.4%).
Impact hyperinflation accounting
The impact of the application of hyperinflation accounting and the use of end of period rates to translate
the statement of the income statement, is shown in the table below.
Hyperinflation accounting
in € millions
2024
2025
Revenue
67
(17)
Operating income
(47)
(22)
Other financing income/expenses
(3)
1
Hyperinflation: gain/(loss) on net monetary position
15
(26)
Financing income and expenses
12
(25)
Profit before tax
(35)
(47)
Income tax
(18)
(4)
Profit for the period
(53)
(51)
Attributable to
Shareholders of the company
(43)
(42)
Non-controlling interests
(10)
(9)
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 8: INCOME TAX
Accounting policies
Income tax expenses comprise both current and deferred tax, including the effects of changes in
tax rates. In determining the amount of current and deferred tax, we also take into account the
impact of uncertain tax positions and whether additional taxes may be due. Income tax is
recognized in the statement of income, unless it relates to items recognized in other comprehensive
income or equity.
Current tax includes the expected tax payable and receivable on the taxable income for the year,
using tax rates enacted or substantively enacted at reporting date, as well as (any adjustments to)
tax payables and receivables with respect to previous years.
Deferred tax is recognized using the liability method on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the Consolidated financial
statements. We do not recognize deferred tax for the initial recognition of goodwill, the initial
recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences
related to investments in subsidiaries to the extent that they will probably not reverse in the
foreseeable future and we can control the timing of the reversal of the temporary difference.
Deferred tax assets are recognized for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future taxable profits will be available against which
they can be utilized.
AkzoNobel has applied the exemption for recognizing and disclosing information about deferred tax
assets and liabilities related to Pillar Two income taxes.
Measurement of deferred tax assets and liabilities is based upon the enacted or substantively
enacted tax rates expected to apply to taxable income in the years in which temporary differences
are expected to be reversed. Deferred tax positions are not discounted.
Significant accounting estimates and judgments
Recoverability of deferred tax assets
When assessing the recognition of deferred tax assets, management considers whether it is
probable that some portion or all of the deferred tax assets will be realized. Management considers
the scheduled reversal of deferred tax liabilities, projected future taxable income, tax planning
strategies and the application of local tax legislation in making this assessment.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable
income against which the deductible temporary differences, unused tax losses and unused tax
credits can be utilized.
The assessment of the recoverability of deferred tax assets involves significant judgment, mainly in
relation to the long-term profitability forecasts that are prepared to estimate the projected future
taxable income. The projections used to assess recoverability are, in general, based on a ten year
period. Specific facts and circumstances per country may lead to shorter or longer projection
periods being used. Growth in profitability is projected using GDP growth, adjusting (where needed)
for specific factors affecting profitability of our operations within the country.
Effective tax rate
Pre-tax income from continuing operations for the year amounted to a profit of €998 million (2024: €838
million). The net tax charges related to continuing operations are included in the statement of income as
shown in this Note and amount to €326 million (2024: €246 million), leading to an effective tax rate of
32.7% (2024: 29.4%). The impacts from the divestment of Akzo Nobel India Limited and the derecognition
of deferred tax assets on a net basis increased the tax rate with 4.0%.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Classification of current and deferred tax result
A breakdown into current and deferred tax expenses and a split of the main categories is provided in the
table below.
Classification of current and deferred tax result
in € millions
2024
2025
Current tax expense for
The year
(259)
(324)
Adjustments for previous years
62
—
Total current tax expense
(197)
(324)
Deferred tax expense for
Origination and reversal of temporary differences and tax losses
14
86
(Derecognition)/recognition of deferred tax assets
(64)
(80)
Changes in tax rates
1
(8)
Total deferred tax expense
(49)
(2)
Total
(246)
(326)
Adjustments for previous years in 2025 are net nil and contain various true-ups as a result of tax audits and
a release of provisions for uncertain tax positions, while in 2024 adjustments for previous years mainly
related to the release of provisions for uncertain tax positions.
Origination and reversal of temporary differences and tax losses is driven, among others, by timing
differences between recognition and payments for provisions, timing differences on depreciation and
amortization for tax purposes versus the consolidated financial statements and tax loss carryforwards
utilized against profits of the year or new tax losses incurred. The origination of temporary differences in
2025 includes temporary differences related to Project Ichthys, which subsequently was one of the causes
for the derecognition of the deferred tax assets for unused tax losses.
The net derecognition of deferred tax assets in 2025 is mainly due to a combination of changes in
forecasted taxable income in certain jurisdictions and increased deferred tax assets related to temporary
differences (Project Ichthys); the latter increased the balance under review and therefore was one of the
causes for the derecognition. Additionally, part is related to technical limitations to deduct interest. The
derecognition of deferred tax assets in 2024 mainly related to technical limitations to deduct interest and
derecognition of tax losses carried forward outside of the Netherlands due to (planned) repatriation of funds
to the Netherlands.
Changes in tax rates in 2025 mainly relate to phased changes in the German tax rate from 2028 onwards.
Effective tax rate reconciliation
In 2025, the effective income tax rate based on the statement of income was 32.7% (2024: 29.4%). A
reconciliation between the effective tax rate and the weighted average statutory income tax rate is provided
in the table.
Effective tax rate reconciliation
in %
2024
2025
Corporate tax rate in the Netherlands
25.8
25.8
Effect of tax rates in other countries
(0.8)
(0.6)
Weighted average statutory income tax rate
25.0
25.2
Divestment Akzo Nobel India Limited
—
(4.0)
Non-taxable income
(2.6)
(2.3)
Non-deductible expenses
1.6
3.1
Non-refundable withholding taxes
1.8
0.7
(Recognition)/derecognition of deferred tax assets
7.6
8.0
Adjustments for previous years
(7.4)
—
Hyperinflation impact
3.5
1.1
Deferred tax adjustment due to changes in tax rates
(0.1)
0.9
Effective tax rate
29.4
32.7
The effective tax rate was impacted by the divestment of Akzo Nobel India Limited. This impact relates to
the combination of a lower tax rate on the sales proceeds of the share sale and the tax impact on internal
transfers prior to the divestment. Refer to Note 2 Scope of consolidation for more details on this
transaction.
Non-taxable income in both 2025 and 2024 was mainly related to incentives in various countries.
Non-deductible expenses are related to certain non-deductible costs in various countries.
The impact of non-refundable withholding tax on the effective tax rate is dependent on our relative share in
the profit of subsidiaries in countries that levy withholding tax on dividends and on the timing of the
remittance of such dividends. Based on the Dutch tax system there is a limited credit for such taxes.
For details on derecognition of deferred tax assets and adjustments for previous years, for both 2025 and
2024, refer to section Classification of current and deferred tax result in this Note.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
The net effect of hyperinflation accounting in Argentina and Türkiye combined in 2025 is an increase in
effective tax rate of 1.1% (2024: 3.5%). This mainly relates to the restatement of reserves, which results in
a non-taxable, non-cash impact on the effective tax rate.
Origination of deferred tax assets and liabilities
Deferred tax assets and liabilities originate from temporary differences in various balance sheet line items,
as well as from tax credits and tax loss carryforwards. The tables show the origination of deferred tax
assets and liabilities, and the movements thereof, for the financial years 2025 and 2024.
Origination of deferred tax assets and liabilities 2025
in € millions
Balance at January 1,
2025
Changes in
exchange rate
Recognized
in income
Recognized in
equity/Other
comprehensive
income
Divestment
Balance at
December 31, 2025
Intangible assets
(528)
16
26
—
(14)
(500)
Property, plant and equipment
27
7
(20)
—
(3)
11
Financial non-current assets
(224)
12
—
4
—
(208)
Post-retirement benefit provisions
73
(4)
(13)
(13)
—
43
Other provisions
23
(4)
76
1
—
96
Other items
97
(8)
(23)
—
3
69
Temporary differences
(532)
19
46
(8)
(14)
(489)
Tax credits
234
—
(10)
—
—
224
Tax loss carryforwards
229
(13)
(38)
1
—
179
Deferred tax assets (liabilities)
(69)
6
(2)
(7)
(14)
(86)
Origination of deferred tax assets and liabilities 2024
in € millions
Balance at January 1,
2024
Changes in
exchange rate
Recognized
in income
Recognized in
equity/Other
comprehensive
income
Balance at
December 31, 2024
Intangible assets
(533)
1
4
—
(528)
Property, plant and equipment
49
1
(23)
—
27
Financial non-current assets
(247)
(12)
(6)
41
(224)
Post-retirement benefit provisions
85
—
(2)
(10)
73
Other provisions
28
—
(5)
—
23
Other items
91
—
6
—
97
Temporary differences
(527)
(10)
(26)
31
(532)
Tax credits
222
—
12
—
234
Tax loss carryforwards
260
4
(35)
—
229
Deferred tax assets (liabilities)
(45)
(6)
(49)
31
(69)
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Reconciliation deferred tax assets and liabilities to the balance sheet
The table below provides a reconciliation of the total deferred tax amounts for each of the originating items
to the deferred tax asset and liability positions as included in the balance sheet.
Deferred tax assets and liabilities per balance sheet item
December 31, 2024
December 31, 2025
in € millions
Net balance
Assets
Liabilities
Net balance
Assets
Liabilities
Intangible assets
(528)
14
542
(500)
52
552
Property, plant and equipment
27
174
147
11
79
68
Financial non-current assets
(224)
14
238
(208)
11
219
Post-retirement benefit provisions
73
76
3
43
55
12
Other provisions
23
34
11
96
105
9
Other items
97
118
21
69
87
18
Temporary differences
(532)
430
962
(489)
389
878
Tax credits
234
234
—
224
224
—
Tax loss carryforwards
229
229
—
179
179
—
Tax assets/liabilities
(69)
893
962
(86)
792
878
Set-off of tax
—
(471)
(471)
—
(391)
(391)
Net deferred tax positions
(69)
422
491
(86)
401
487
Deferred tax assets recoverability assessment
All deferred tax asset positions have been supported by a deferred tax asset recoverability assessment,
which is based on the scheduled reversal of deferred tax liabilities, projected future taxable income, tax
planning strategies and the application of local tax legislation, as described in the accounting estimates
and judgments section above. These assessments involve significant judgments and estimation uncertainty
as the amount of deferred tax assets considered realizable could change if future estimates of projected
taxable income during the carryforward period, or other variables, are revised.
The net derecognition of deferred tax assets in 2025 is mainly due to a combination of changes in
forecasted taxable income in certain jurisdictions and increased deferred tax assets related to temporary
differences (Project Ichthys); the latter increased the balance under review and therefore was one of the
causes for the derecognition. Additionally, part is related to technical limitations to deduct interest. The
derecognition of deferred tax assets in 2024 mainly related to technical limitations to deduct interest and
derecognition of tax losses carried forward outside of the Netherlands due to (planned) repatriation of funds
to the Netherlands.
At year-end 2025, recognized deferred tax assets amounted to €401 million (2024: €422 million), or which
approximately 70% (2024: approximately 55%) concerned the UK and the Netherlands.
From the total amount of recognized deferred tax assets, €219 million (2024: €102 million) is related to
entities that have suffered a loss in either the current or the previous year and where utilization is
dependent on future taxable profit in excess of the profit arising from the reversal of existing taxable
temporary differences. Of this €219 million, €203 million relates to one jurisdiction that suffered a fiscal loss
in 2025. This jurisdiction was profitable in previous years and is expected to be profitable again as of 2026,
among others due to changes in funding structure.
The vast majority of the tax credits of €224 million (2024: €234 million) is related to withholding tax credits
in the Netherlands. While we expect that we are able to generate sufficient profits in the Dutch fiscal unity
to realize these credits, the amount which can be utilized per year is limited due to additional criteria which
apply for tax credit utilization. As these tax credits have an unlimited expiration period, we have applied a
projection period beyond our normal 10-year horizon.
At year-end 2025, deferred tax assets not recognized include €629 million of tax loss carryforwards (2024:
€615 million) and €100 million of mainly non-deductible interest (2024: €74 million). The losses in the tables
on tax losses carried forward hereafter are gross amounts, with the tax impact included in the last column
of the table. The derecognized non-deductible interest has an unlimited expiry period.
A deferred tax liability is recognized for taxable temporary differences related to investments in subsidiaries,
branches and associates and interests in joint arrangements, to the extent that it is probable that these will
reverse in the foreseeable future. The expected net tax impact of the remaining differences for which no
deferred tax liabilities have been recognized is €89 million (2024: €56 million).
Most of the amount of the deferred taxes will be recovered after more than 12 months.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Expiration year of loss carryforwards 2025
in € millions
2026
2027
2028
2029
2030
Later
Unlimited
Total Deferred tax
Total loss carryforwards
3
4
23
22
14
66
3,058
3,190
808
Loss carryforwards not recognized in deferred tax assets
(2)
(4)
(8)
(9)
(6)
(61)
(2,390)
(2,480)
(629)
Total loss carryforwards recognized
1
—
15
13
8
5
668
710
179
Expiration year of loss carryforwards 2024
in € millions
2025
2026
2027
2028
2029
Later
Unlimited
Total Deferred tax
Total loss carryforwards
1
4
6
59
26
40
3,149
3,285
844
Loss carryforwards not recognized in deferred tax assets
(1)
(1)
(5)
(10)
(11)
(27)
(2,389)
(2,444)
(615)
Total loss carryforwards recognized
—
3
1
49
15
13
760
841
229
Uncertain tax positions
Liabilities for uncertain tax positions are recognized if and to the extent it is probable that additional taxes
will become due, and the amount can be measured reliably. Judgment is involved in the determination of
such liabilities. Probability is assessed by applying interpretation of legislation and relevant case law.
Our assessments of uncertain tax positions are based on our best estimate of how the tax authorities
concerned are likely to evaluate and respond to the cases in question, taking into account expert advice as
needed. Uncertain tax positions for which liabilities have been recorded, mainly relate to international
transfer pricing and deductibility of expenses.
In certain cases, uncertain tax positions are related to disputes with tax authorities. Such cases are usually
strongly contested and defended by the company, often assisted by outside counsel and/or experts.
The net carrying amount of liabilities for uncertain tax positions is €39 million (2024: €71 million); this
amount is included in the appropriate tax balances. The net decrease is mainly due to utilization of a liability
for an uncertain tax position following settlement of the related tax audit in 2025.
Impact OECD Pillar Two framework
AkzoNobel is within the scope of the OECD Pillar Two rules. Pillar Two legislation was enacted in the
Netherlands, and is effective for AkzoNobel as of January 1, 2024. The 2025 current tax expense related to
Pillar Two is approximately €2 million (2024: €1 million), which is attributable to earnings in a limited number
of countries.
Income tax recognized in equity
The following table shows income tax items recognized in equity by category.
Income tax recognized in equity
in € millions
2024
2025
Currency exchange differences on intercompany loans of a permanent nature
—
1
Share-based compensation
—
—
Post-retirement benefits
31
(8)
Total
31
(7)
Current tax
1
1
Deferred tax
30
(8)
Total
31
(7)
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 9: EARNINGS PER SHARE
Accounting policies
Basic earnings per share is calculated by dividing the profit for the period attributable to
shareholders of the company by the weighted average number of common shares outstanding
during the year, adjusted for any repurchased shares.
Diluted earnings per share is calculated by adjusting the weighted average number of common
shares outstanding during the year for the diluting effect of the shares of the performance-related
share plan, the restricted share plan and the share-matching plan.
Adjusted earnings per share represents the basic earnings per share from continuing operations
excluding identified items, after taxes.
General
Profit for the period attributable to the shareholders of the company was €635 million (2024: €542 million).
Profit for the period
in € millions
2024
2025
Profit before tax from continuing operations
838
998
Income tax
(246)
(326)
Profit from continuing operations
592
672
Profit for the period attributable to non-controlling interests
(50)
(36)
Profit for the period from continuing operations attributable to shareholders
of the company
542
636
Profit for the period from discontinued operations attributable to shareholders of the company
—
(1)
Profit for the period attributable to shareholders of the company
542
635
Weighted average number of common shares
Number of shares
2024
2025
Issued common shares at January 1
170,600,675 170,784,638
Effect of issued common shares during the year
128,195
200,207
Shares for basic earnings per share for the year
170,728,870 170,984,845
Effect of dilutive shares
For performance-related and restricted shares
871,692
1,007,225
For share-matching plan
12,313
22,868
Shares for diluted earnings per share
171,612,875 172,014,938
Earnings per share
in €
2024
2025
Continuing operations
Basic
3.17
3.72
Diluted
3.16
3.70
Discontinued operations
Basic
—
(0.01)
Diluted
—
(0.01)
Total operations
Basic
3.17
3.71
Diluted
3.16
3.69
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Adjusted earnings per share
Adjusted earnings per share is an Alternative Performance Measure used to provide additional insight into
the underlying profitability per share of the company. It helps comparing performance over time, as well as
to industry benchmarks and peers. For more details on Alternative Performance Measures refer to Note 3,
section Alternative Performance Measures.
Adjusted earnings per share*
in € millions
2024
2025
Profit for the period attributable to shareholders of the company from continuing operations
592
672
APM adjustments to operating income
196
(83)
APM adjustments to interest
(21)
20
APM adjustments to income tax
(54)
47
Non-controlling interests
(50)
(36)
Adjusted profit from continuing operations attributable to shareholders of the company*
663
620
Weighted average number of shares (in millions)
170.7
171.0
Adjusted earnings per share from continuing operations (in €)
3.88
3.63
* Refer to the glossary for definitions of the APMs.
Adjustments to operating income
For details on the adjustments to operating income, refer to Note 3, section Alternative Performance
Measures.
Adjustments to interest
Adjustments to interest include the interest impact of identified items, amongst others the interest
component of provisions qualifying for identified item treatment and the discounting of such provisions, and
hyperinflation accounting impact.
In 2025, these adjustments mainly related to the interest component included in the addition to the
provision for Project Ichthys (refer to Note 19 - Other provisions and contingent liabilities). Adjustments to
interest in 2024 mainly related to the hyperinflation accounting impact of inventory positions that exceeded
normal operational levels.
Adjustments to income tax
Adjustments to income tax include the tax impact of identified items as well as certain specific income tax
identified items.
In 2025, adjustments to income tax mainly related to the tax impact on the identified items included in
interest and operating income, including adjustments related to the divestment of Akzo Nobel India
Limited. Refer to Note 8 Income Tax for more details.
In 2024, adjustments to income tax mainly related to the tax impact on the identified items included in
interest and operating income. Further, €14 million related to the ACT case, which is a UK group litigation
case the company participates in (“Franked Investment Income litigation/case”; filed in 2003) in order to
seek recovery of Advance Corporation Tax.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 10: INTANGIBLE ASSETS
Intangible assets
in € millions
Goodwill
Brands
Customer lists
Other intangibles
Total
Balance at January 1, 2024
Cost of acquisition
1,458
2,255
1,151
180
5,044
Cost of internally developed intangibles
—
—
—
273
273
Accumulated amortization/impairment
(28)
(238)
(660)
(310)
(1,236)
Carrying value at January 1, 2024
1,430
2,017
491
143
4,081
Movements in 2024
Acquisitions through business combinations
3
—
(1)
—
2
Investments - including internally developed intangibles
—
—
—
24
24
Amortization
—
(17)
(32)
(29)
(78)
Hyperinflation adjustment
5
10
—
—
15
Changes in exchange rates
5
11
(8)
(3)
5
Total movements
13
4
(41)
(8)
(32)
Balance at December 31, 2024
Cost of acquisition
1,472
2,274
1,136
190
5,072
Cost of internally developed intangibles
—
—
—
287
287
Accumulated amortization/impairment
(29)
(253)
(686)
(342)
(1,310)
Carrying value at December 31, 2024
1,443
2,021
450
135
4,049
Movements in 2025
Investments - including internally developed intangibles
—
—
—
13
13
Divestments
(3)
(51)
(1)
—
(55)
Amortization
—
(16)
(31)
(31)
(78)
Impairments, including reversals thereof
—
—
—
(1)
(1)
Hyperinflation adjustment
2
2
—
—
4
Changes in exchange rates
(50)
(80)
(3)
(1)
(134)
Total movements
(51)
(145)
(35)
(20)
(251)
Balance at December 31, 2025
Cost of acquisition
1,419
2,131
1,053
183
4,786
Cost of internally developed intangibles
—
—
—
296
296
Accumulated amortization/impairment
(27)
(255)
(638)
(364)
(1,284)
Carrying value at December 31, 2025
1,392
1,876
415
115
3,798
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Accounting policies
Intangible assets are valued at cost less accumulated amortization and impairment charges.
Intangible assets with an indefinite useful life, such as goodwill and certain brands, are not
amortized, but tested for impairment annually.
Intangible assets with a finite useful life, such as licenses, know-how, certain brands, customer
relationships, intellectual property rights, software expenditures (in as far as AkzoNobel controls the
software configured or customized) and capitalized development costs, are capitalized at historical
cost and amortized on a straight-line basis over the estimated useful life of the assets, which
generally ranges from 5 to 40 years for brands with finite useful lives, 5 to 25 years for customer
relationships, and 3 to 15 years for other intangibles. Amortization methods, useful lives and residual
values are reassessed annually.
Research expenditures are expensed as incurred.
Impairment
We assess the carrying value of intangible assets, property, plant and equipment and right-of-use
assets whenever events or changes in circumstances indicate that the carrying value of an asset
may not be recoverable as a result of e.g. changes in cash flow forecasts, damages, market
developments or environmental and climate change risks. In addition, for goodwill and other
intangible assets with an indefinite useful life, the carrying value is reviewed at least annually or when
circumstances indicate the carrying amount may be impaired. If the carrying value of an asset or its
cash-generating unit exceeds its estimated recoverable amount, an impairment loss is recognized in
the statement of income on the functional level of the asset impaired.
Except for goodwill, we reverse impairment losses in the statement of income if and to the extent we
have identified a change in estimates used to determine the recoverable amount.
Significant accounting estimates and judgments
The cash flow projections used in the value in use calculations for the annual impairment test for
goodwill and other intangibles assets with indefinite life, require significant judgment. The various
judgments and estimations are described in the Annual impairment testing section in this Note.
The assessment for impairment is performed at the lowest level of assets generating largely
independent cash inflows. For goodwill and other intangible assets with an indefinite life, we have
determined this to be at business unit level (one level below operating segment).
General
Brands include both brands with indefinite useful lives and brands with finite useful lives. Brands with
indefinite useful lives are predominantly attributable to Dulux, a major premier brand, reflecting its global
presence, strong recognition, and strategic importance. Other intangibles include licenses, know-how,
intellectual property rights, software and development cost.
Both at year-end 2025 and 2024, there were no material purchase commitments for individual intangible
assets. No intangible assets were registered as security for bank loans.
Divestments
Divestments in 2025 related to the divestment of Akzo Nobel India Limited. Refer to Note 2 Scope of
consolidation for disclosures on divestments.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Annual impairment testing
Goodwill and other intangibles with indefinite useful lives are tested for impairment at business unit level
(the applicable cash-generating-unit for goodwill impairment testing, which is one level below segment
level) annually or whenever an impairment trigger exists, applying the value-in-use method.
The impairment test is based on the three-year plan, which contains euro-denominated cash flow
projections for each of the business units, and two years of extrapolation. After the initial five-year period,
the terminal growth rate is applied, unless a different approach would be more appropriate. Elements
considered to determine if a different approach would be more appropriate include high growth/emerging
economies, geographic expansion opportunities, introduction of new product ranges and opportunities
from market consolidation. In 2025 and 2024, no exception was applied.
Macro-economic developments and other relevant variables (e.g. inflation, geopolitical uncertainties,
climate risks) are closely monitored to ensure that the impact on the estimated future cash flows is
reflected in the models which are used to assess the value of AkzoNobel’s asset base. The impact of
climate change did not have a significant effect on the estimated future cash flows.
In 2025, organizational changes were implemented in the Decorative Paints segment. Following these
changes, as from 2025, the Dulux brand is managed under global leadership and through a global
commercial organization. This has led to a revision of how Dulux is tested for impairment annually.
Previously, as the brand was managed in a more decentralized manner, the brand value was allocated to
the individual business units in accordance with the values measured per the purchase price allocation
date.
Following the organizational change, the brand is now treated as a corporate asset for impairment testing
purposes. Each year, the brand’s value is allocated to the carrying values of relevant individual business
units, based on the business unit’s relative share of the global Dulux revenues. We consider this to be a
reasonable and consistent basis, as the business units generate the cash flows to recover the central
brand value.
This change resulted in a modification to the carrying values of the business units Decorative Paints
Europe, Middle East and Africa (€125 million increase), Decorative Paints China and North Asia (€239
million decrease), and Decorative Paints South East and South Asia (€113 million increase). Prior to the
change, under the pre-existing method, an impairment assessment was performed for these business
units. No impairment loss was recognized as a result of this assessment. Due to the inherent complexity of
impairment testing and its reliance on multiple inputs, some of which are forward-looking or only become
available in future periods, the impact of this change on future periods cannot be reliably assessed.
Goodwill and other intangibles per business unit
in € millions
Goodwill
Brands with indefinite useful lives
Other intangibles with finite useful lives
Total intangibles
2024
2025
2024
2025
2024
2025
2024
2025
Decorative Paints Europe, Middle East and Africa
110
107
836
961
116
103
1,062
1,171
Decorative Paints Latin America
169
168
90
87
164
158
423
413
Decorative Paints China and North Asia
32
30
663
378
32
27
727
435
Decorative Paints South East and South Asia*
7
6
217
257
9
6
233
269
Powder Coatings
149
131
—
—
35
28
184
159
Marine and Protective Coatings
213
212
—
—
91
85
304
297
Automotive and Specialty Coatings
304
299
—
—
144
135
448
434
Industrial Coatings
459
439
—
—
119
105
578
544
Corporate and other
—
—
—
—
90
76
90
76
Total
1,443
1,392
1,806
1,683
800
723
4,049
3,798
*Brands with indefinite useful lives in Decorative Paints South East and South Asia decreased with €51 million due to the divestment of Akzo Nobel India Limited.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
The key assumptions used in the projections for annual impairment testing are revenue growth, margin
development and the applied discount rate.
Revenue growth assumptions are derived from (i) historical volume and price performance (ii) external
market information (including industry forecasts and GDP growth outlooks), and (iii) management’s
expectations for market share development, considering capacity, customer pipeline and competitive
dynamics. Deviations from historical trends or external market forecasts reflect unit specific factors (e.g.
contract wins/losses, planned pricing actions) and align with management-approved plans.
Revenue forecasts for business unit Decorative Paints China and North Asia deviate from historical trends
as revenues in recent years were impacted by a combination of significant events (e.g. China real estate
crisis, Covid-19, strategic changes within the business unit) which are not considered reflective of future
circumstances. Revenue forecasts for this business unit are based on a detailed updated plan aimed at
revenue growth and margin improvements (to the extent that measures meet the criteria in IAS 36.33). The
plan began to deliver initial benefits during 2025.
Margin assumptions are based on historical margins, adjusted for expected operational changes and
management actions, considering (i) pricing and sales mix developments, (ii) relevant external input cost
trends (e.g. inflation, commodity and wage trends), and (iii) approved efficiency and cost saving initiatives,
to the extent that measures meet the criteria in IAS 36.33. Deviations from historical trends are attributable
to identified drivers (e.g. restructuring & efficiency programs like Industrial Excellence, cost reduction
programs like Path to Profitable Growth, scale effects, or changes in competitive intensity) and align with
management-approved plans.
Impacts from the global Industrial Excellence & Path to Profitable Growth programs vary per business unit,
with the most evident impact to date observed in Decorative Paints Europe, Middle East and Africa. For
Decorative Paints China and North Asia, the aforementioned plan also addressed margins.
Discount rates applied are based on a weighted cost of capital (WACC), which is adjusted for the risks
specifically associated with each business unit. The WACC represents the post-tax cost of equity and cost
of debt, and is based on market inputs that reflect changes in the time value of money, such as the risk
free rate, market risk premium and beta factor. Country risk premium is used to address the risks specific
to the geographic footprint of each business unit. Value-in-use is calculated using post-tax cash flows and
a post-tax discount rate; the pre-tax discount rate is derived iteratively for disclosure purposes.
For all business units, a terminal value was calculated based on long-term inflation expectations of 2%
(2024: 2%). The pre-tax discount rates for business units whose goodwill or indefinite-life intangibles is
considered significant in comparison with the total carrying amount of goodwill or indefinite-life intangibles,
are disclosed in the table below.
Pre-tax discount rate
In % per year
2024
2025
Decorative Paints Europe, Middle East and Africa
10.4 %
10.8 %
Decorative Paints China and North Asia
9.8 %
10.3 %
Automotive and Specialty Coatings
9.7 %
10.4 %
Industrial Coatings
10.1 %
10.6 %
Marine and Protective Coatings
9.7 %
10.3 %
Both the long-term inflation expectations and the discount rates are reflective of the inflation expectation in
the eurozone.
In 2025 and 2024, no impairment charges were recognized in relation to the annual impairment test.
The sensitivity tests performed show that reasonably possible changes in key assumptions would not
cause carrying amounts to exceed recoverable amounts for any of the business units.
Impairment of specific intangible assets
For intangible assets excluding goodwill and other intangible assets with indefinite useful life, estimates are
required to determine the (remaining) useful lives.
Periodical evaluations are performed in order to ensure timely detection of triggers that might indicate
impairment of specific assets. Whenever such triggers are noted, the related assets are assessed for
impairment as appropriate. In 2025 and 2024, no significant impairment charges were recorded in relation
to specific assets.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
in € millions
Land and buildings
Plant equipment and
machinery
Other equipment
Construction in
progress and
prepayments on
projects
Assets not used
Total
Balance at January 1, 2024
Cost of acquisition
1,656
2,310
904
354
10
5,234
Accumulated depreciation/impairment
(817)
(1,647)
(766)
(2)
(8)
(3,240)
Carrying value at January 1, 2024
839
663
138
352
2
1,994
Movements in 2024
Divestments
(5)
(2)
(2)
—
—
(9)
Investments
2
8
3
269
—
282
Additions to asset retirement obligations
2
—
—
—
—
2
Transfer between categories
54
163
50
(267)
—
—
Depreciation
(43)
(116)
(33)
—
(1)
(193)
Hyperinflation adjustment
18
8
2
5
—
33
Changes in exchange rates
2
3
3
5
—
13
Total movements
30
64
23
12
(1)
128
Balance at December 31, 2024
Cost of acquisition
1,737
2,438
932
365
10
5,482
Accumulated depreciation/impairment
(868)
(1,711)
(771)
(1)
(9)
(3,360)
Carrying value at December 31, 2024
869
727
161
364
1
2,122
Movements in 2025
Divestments
(31)
(12)
(15)
(7)
—
(65)
Investments
9
18
3
266
—
296
Transfer between categories
80
183
43
(306)
—
—
Depreciation
(46)
(115)
(35)
—
(1)
(197)
Impairments, including reversals thereof
(1)
(2)
(3)
—
—
(6)
Hyperinflation adjustment
9
7
—
(1)
—
15
Changes in exchange rates
(50)
(45)
(11)
(20)
—
(126)
Total movements
(30)
34
(18)
(68)
(1)
(83)
Balance at December 31, 2025
Cost of acquisition
1,678
2,398
859
298
10
5,243
Accumulated depreciation/impairment
(839)
(1,637)
(716)
(2)
(10)
(3,204)
Carrying value at December 31, 2025
839
761
143
296
—
2,039
STRATEGY
SUSTAINABILITY
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FINANCIAL STATEMENTS
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Accounting policies
Property, plant and equipment are valued at cost less accumulated depreciation and impairment
charges. Costs include expenditures that are directly attributable to the acquisition of the asset,
including borrowing cost of capital investment projects under construction.
Depreciation is calculated using the straight-line method, based on the estimated useful life of the
asset components. The useful life of plant equipment and machinery generally ranges from 10 to 25
years, and for buildings ranges from 20 to 50 years. Land is not depreciated. Other equipment
contains assets with a useful life ranging from 3 to 20 years. In the majority of cases, residual value
is assumed to be not material. Depreciation methods, useful lives and residual values are
reassessed annually.
Costs of major maintenance activities are capitalized and depreciated over the estimated useful life.
Maintenance costs which cannot be separately defined as a component of property, plant and
equipment are expensed in the period in which they occur. Asset retirement obligations are
recognized as soon as sufficient information becomes available to reasonably estimate the cash
outflow.
Refer to Note 10 Intangible assets, for a description of the accounting policies for asset impairment,
which equally apply to property, plant and equipment.
Divestments
The divestments in 2025 primarily relate to the disposal of Akzo Nobel India Limited. Refer to Note 2 Scope
of consolidation for disclosures on divestments.
Investments in property, plant and equipment
In both 2025 and 2024 we invested in multiple large projects, which in both years contained investments
for the Industrial Coatings facility in Barcelona, Spain, and continued investments in our Wood Coatings
site in High Point, US.
Impairment of specific property, plant and equipment assets
Periodical evaluations are performed in order to ensure timely detection of triggers that might indicate
impairment of specific assets. Whenever such triggers are noted, the related assets are assessed for
impairment as appropriate. In 2025 and 2024, no significant impairment charges were recognized.
STRATEGY
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 12: LEASES
Accounting policies
As a lessee, we assess whether a contract is, or contains, a lease at inception. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for a consideration. Right-of-use assets are measured at costs less
accumulated depreciation and impairment losses, adjusted for any remeasurements.
For contracts that contain a lease component, we allocate consideration based on relative stand-
alone price, with the exception of lease cars where non-lease components are not separated.
Short-term leases and low value leases are expensed on a straight-line basis over the lease term.
Refer to Note 10 Intangible assets, for a description of the accounting policies for asset impairment,
which equally apply to right-of-use assets.
General
AkzoNobel mainly leases land, office spaces, stores and cars. Some leases provide for additional rent
payments that are based on changes in local price indices.
Some property leases contain extension options exercisable by AkzoNobel up to one year before the end
of the non-cancellable contract period. We have estimated that the lease liability would increase by less
than 20%, if we would exercise the extension options which are currently not included in the valuation of
the lease liability. This excludes so-called “evergreens” or perpetual leases.
Total net cash outflow from financing activities related to leases recognized on the balance sheet was
€116 million (2024: €114 million). Net cash outflow for leases not recognized on the balance sheet was
€37 million (2024: €39 million).
Refer to Note 26 Financial risk management for the maturities of lease liabilities.
Right-of-use assets
in € millions
Land
Buildings
Other
Total
Balance at January 1, 2024
Cost of acquisition
77
399
123
599
Accumulated depreciation/impairment
(23)
(215)
(59)
(297)
Carrying value at January 1, 2024
54
184
64
302
Movements in 2024
Additions/modifications
1
71
49
121
Disposals
—
(5)
(4)
(9)
Depreciation
(2)
(64)
(34)
(100)
Changes in exchange rates
1
3
—
4
Total movements
—
5
11
16
Cost of acquisition
77
424
130
631
Accumulated depreciation/impairment
(23)
(235)
(55)
(313)
Carrying value at December 31, 2024
54
189
75
318
Movements in 2025
Additions/modifications
4
97
38
139
Disposals
(18)
(21)
(5)
(44)
Depreciation
(2)
(65)
(36)
(103)
Impairments, including reversals thereof
—
—
(2)
(2)
Changes in exchange rates
(4)
(7)
(3)
(14)
Total movements
(20)
4
(8)
(24)
Cost of acquisition
57
429
130
616
Accumulated depreciation/impairment
(23)
(236)
(63)
(322)
Carrying value at December 31, 2025
34
193
67
294
The table below shows the total impact from leases on our profit and loss account.
Income/(expenses) recognized in profit and loss
in € millions
2024
2025
Depreciation right-of-use assets
(100)
(103)
Impairments for right-of-use assets
—
(3)
Interest expense on lease liabilities
(9)
(10)
Short-term lease expenses
(13)
(11)
Expenses relating to low-value assets
(6)
(5)
Variable lease expenses
(20)
(22)
Total expenses
(148)
(154)
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Impairments of specific right-of-use assets
Periodical evaluations are performed in order to ensure timely detection of triggers that might indicate
impairment of specific assets. Whenever such triggers are noted, the related assets are assessed for
impairment as appropriate.
In 2025 and 2024, no significant impairment charges were recognized.
NOTE 13: INVESTMENTS IN ASSOCIATES
Accounting policies
Associates are accounted for using the equity method and are initially recognized at cost. The
Consolidated financial statements include our share of the income and expenses of the associates,
whereby the result is determined using our accounting principles. When the share of losses exceeds
the interest in the investee, the carrying amount is reduced to nil and recognition of further losses is
discontinued, unless we have further legal or constructive obligations.
The total value of investments in associates at December 31, 2025, amounted to €232 million (2024: €228
million) and included our equity share of €232 million (2024: €227 million). At year-end 2025, there were no
outstanding loans (2024: €1 million).
Balance sheet information of our share in associates
Associates
in € millions, at December 31
2024
2025
Condensed balance sheet
Non-current assets
115
118
Current assets
159
170
Total assets
274
288
Shareholders’equity
227
232
Non-current liabilities
5
6
Current liabilities
42
50
Total liabilities and equity
274
288
Profit and loss of our share in associates
Associates
in € millions
2024
2025
Condensed statement of income
Revenue
222
216
Profit before tax
33
47
Profit for the period
23
33
In 2025, the results from associates amounted to a profit of €33 million (2024: €23 million). No significant
contingent liabilities exist related to associates. The largest associate of AkzoNobel is Metlac S.p.A,
incorporated in Italy. None of the associates are considered individually material to the group.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 14: FINANCIAL NON-CURRENT ASSETS
Accounting policies
Pension assets are accounted for in accordance with IAS 19; for more details on the accounting
policies refer to Note 18 Post-retirement benefits.
Loans and receivables are initially measured at fair value plus transaction costs. Subsequent
measurement is at amortized cost, using the effective interest method, less any impairment losses.
Other financial non-current assets contain different types of financial instruments, for which
treatment is dependent on the specific facts and circumstances of these assets. For more details on
the accounting policy with regards to classification, measurement and impairment of financial
assets, refer to Note 26 Financial risk management.
Financial non-current assets
in € millions, at December 31
2024
2025
Pension assets
929
891
Loans and receivables
158
57
Other financial non-current assets
187
179
Total
1,274
1,127
Financial non-current assets can be broken down as per the table above. Pension assets (€891 million)
relate to pension plans in an asset position (2024: €929 million).
The decrease in loans and receivables is mainly due to the transfer of the subordinated loan (€99 million)
granted to the Pension Fund APF in the Netherlands (2024: €91 million) to other short-term receivables.
Loans and receivables are considered to have low credit risk; the impairment provision recognized during
the period was limited to 12 months expected losses, which was less than €1 million in both 2025 and
2024.
NOTE 15: INVENTORIES
Accounting policies
Inventories are measured at the lower of cost and net realizable value. Costs of inventories comprise
all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to the
present location and condition. The costs of inventories are determined using weighted average
cost.
Inventories
in € millions, at December 31
2024
2025
Raw materials and supplies
601
507
Work in progress
101
87
Finished products and goods for resale
1,019
935
Total
1,721
1,529
Inventories can be broken down as per the table above. Of the total carrying value of inventories at year-
end 2025, €9 million was measured at net realizable value (2024: €14 million). In 2025, €70 million was
recognized in the statement of income for the write-down of inventories (2024: €64 million), while
€14 million of write-downs were reversed (2024: €19 million). There are no inventories subject to retention
of title clauses.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 16: TRADE AND OTHER RECEIVABLES
Accounting policies
Trade receivables are initially measured at fair value plus transaction costs. Subsequent
measurement is at amortized cost, using the effective interest method, less any impairment losses.
Positions are netted if there is an intention to set off and when netting is legally enforceable.
FX contracts are measured at fair value through profit and loss, unless hedge accounting is applied.
Other receivables contain various types of (financial) assets, for which treatment is dependent on the
specific facts and circumstances of these assets.
For more details on the accounting policy with regards to classification, measurement and
impairment of financial assets, refer to Note 26 Financial risk management.
General
Trade and other receivables can be broken down as per the table below.
Trade and other receivables
in € millions, at December 31
2024
2025
Trade receivables
2,144
1,990
Prepaid expenses
42
35
Tax receivables other than income tax
167
156
FX contracts
16
16
Other short term receivables
129
206
Total
2,498
2,403
In 2025, other short term receivables include the subordinated loan granted to the Dutch Pension Fund
APF, which was reclassified from financial non-current assets. Due to changes in Dutch pension legislation,
which the pension fund expects to implement by January 1, 2027, Pension Fund APF must repay the loan
before the transition. Consequently, the expected repayment timing was revised and the carrying amount
was adjusted to reflect the loan’s present value, resulting in a valuation of €99 million (2024: €91 million).
Ageing and impairment of trade receivables
Ageing of trade receivables
in € millions, at December 31
2024
2025
Performing trade receivables
2,003
1,867
Past due trade receivables
< 3 months
113
90
> 3 months
62
61
Allowance for impairment
(34)
(28)
Total trade receivables
2,144
1,990
Allowance for impairment of trade receivables
in € millions
2024
2025
Balance at January 1
39
34
Additions charged to income
15
24
Release of unused amounts
(9)
(10)
Utilization
(11)
(17)
Divestments
—
(1)
Currency exchange differences
—
(2)
Balance at December 31
34
28
Since the total amount of impairment losses under IFRS 9 is not material, no separate disclosure was
made in the statement of income.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 17: GROUP EQUITY
Accounting policies
Shares are classified as equity and recorded at the value of the proceeds received. Own equity
instruments that are bought back (treasury shares) are deducted from equity. Incremental costs that
are directly attributable to issuing or buying back own equity instruments are recognized directly in
equity, net of the related tax.
Dividends are recognized as liability when they are declared.
Composition of share capital at year-end 2025
in €
Authorized
share capital
Subscribed
share capital
Priority shares (48 with nominal value of €400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of €0.50)
100,000,000
—
Common shares (500 million with nominal value of €0.50)
250,000,000
85,534,571
Total
350,019,200
85,553,771
Composition of share capital at year-end 2024
in €
Authorized
share capital
Subscribed
share capital
Priority shares (48 with nominal value of €400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of €0.50)
100,000,000
—
Common shares (500 million with nominal value of €0.50)
250,000,000
85,392,319
Total
350,019,200
85,411,519
Outstanding common shares
Number of shares
2024
2025
Outstanding at January 1
170,600,675
170,784,638
Issued in connection to performance-related share plan, restricted share plan
and share-matching plan
183,963
284,504
Outstanding at December 31
170,784,638
171,069,142
Weighted average number of common shares
Number of shares
2024
2025
Weighted average number of common shares
170,728,870
170,984,845
Subscribed share capital
For further details on subscribed share capital, refer to Note F Shareholders’ equity in the Company
financial statements.
Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair value
of hedging instruments used in cash flow hedges, pending subsequent recognition in the statement of
income or in the initial cost or other carrying amount of a non-financial asset or non-financial liability.
Cumulative translation reserve
The cumulative translation reserve comprises all foreign exchange differences arising from the translation of
the financial statements of foreign operations, as well as from the translation of intercompany loans with a
permanent nature and liabilities and derivatives that hedge the net investments in a foreign subsidiary.
In 2025, net negative currency effects of €222 million (net of taxes) were driven by strengthening of the
euro versus most other currencies, in particular the US dollar, Chinese yuan, and pound sterling, partly
offset by the recycling of the cumulative translation reserve related to Akzo Nobel India Limited in the
statement of income.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Equity-settled transactions
Equity-settled transactions relate to the performance-related and restricted share plans and the share-
matching plan, whereby shares are granted to the Board of Management, Executive Committee, other
executives and certain non-executive employee categories. For details on share-based compensation,
refer to Note 6 Employee benefits.
Dividend
Our dividend policy is to pay a stable to rising dividend. In 2025, an interim dividend of €0.44 (2024: €0.44)
per common share was paid. We propose a 2025 final dividend of €1.54 (2024: €1.54) per common share,
which would equal a total 2025 dividend of €1.98 (2024: €1.98).
Non-controlling interests
None of the non-controlling interests are considered individually material to the group. The effects of share
transactions with non-controlling interest shareholders are recorded in equity insofar these do not lead to
changes in control.
In 2025, following the divestment of Akzo Nobel India Limited, the related non-controlling interest of €48
million was derecognized. Refer to Note 2 Scope of consolidation for more details. Furthermore, in 2025,
we have acquired the remaining stake of €18 million in Akzo Nobel Paints (Malaysia) Sdn. Bhd. from non-
controlling interest shareholders.
Non-controlling interests
2024
2025
Group entity
Partner during 2025
%
Equity stake
in € millions
%
Equity stake
in € millions
Akzo Nobel Kemipol Kimya Sanayi ve Ticaret A.Ş., Izmir, Türkiye
Altan, Eyyüp and other family members
49.00
30
49.00
27
International Paint of Shanghai Company Ltd, Shanghai, China
Shanghai Huayi Fine Chemical Co. Ltd and China National Shipbuilding Equipment & Materials Corp.
49.00
22
49.00
27
PT ICI Paints Indonesia, Jakarta, Indonesia
PT DWI Satrya Utama, Indonesia
45.00
30
45.00
23
Akzo Nobel Saudi Arabia Ltd, Dammam, Saudi Arabia
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia
40.00
20
40.00
19
Akzo Nobel UAE Paints L.L.C., United Arab Emirates
Kanoo Group, United Arab Emirates
40.00
17
40.00
15
Société Tunisienne de Peintures Astral S.A., Megrine, Tunisia
S.A.I. SICAF and several people
40.00
11
40.00
11
International Paint (Korea) Ltd, Busan, South-Korea
Noroo Holdings, South Korea
40.00
8
40.00
11
Akzo Nobel Oman SAOC, Muscat, Oman
Omar Zawawi Establishment LLC, Oman
50.00
12
50.00
10
Akzo Nobel India Limited, Kolkata, India
Publicly held, India
25.24
50
N/A
N/A
Akzo Nobel Paints (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia
Permodalan Nasional Berhad, Malaysia
40.05
19
—
—
Others
23
20
Total
242
163
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 18: POST-RETIREMENT BENEFIT PROVISIONS
Accounting policies
Defined contribution plans
Contributions to defined contribution plans are recognized in the statement of income as incurred.
Defined benefit plans
Most of our defined benefit pension plans are funded with plan assets that have been segregated in
a trust or foundation. We also provide post-retirement benefits other than pensions, including
healthcare and welfare plans, to certain employees, which are generally not funded.
Valuations of both funded and unfunded plans are carried out by independent actuaries, based on
the projected unit credit method. Post-retirement costs primarily represent the increase in the
actuarial present value of the obligation for projected benefits, based on employee service during the
year, and interest on the net defined benefit liability/asset.
When actuarial calculations result in a net future benefit to AkzoNobel, recognition of the asset is
limited to the present value of economic benefits available in the form of any future refunds from the
plan or reductions in future contributions to the plan. An economic benefit is available if it is realizable
during the life of the plan, or upon settlement of the plan liabilities. The effects of these so-called
asset ceiling restrictions and any changes therein are recognized in Other comprehensive income.
Actuarial gains and losses, which arise upon remeasurement of our plans assets and obligations, are
recognized in Other comprehensive income. When the benefits of a plan improve, the portion of the
increased benefits related to past service by employees is recognized as an expense in the
statement of income immediately. We recognize gains and losses on the curtailment or settlement of
a defined benefit plan in the statement of income when the curtailment or settlement occurs.
Interest on the net defined benefit liability/asset is included in financing expenses related to post-
retirement benefits. Other charges and benefits recognized are reported in operating income, unless
recorded in other comprehensive income.
Significant accounting estimates and judgments
In order to measure defined benefit obligations, key actuarial assumptions are required. These key
assumptions are:
• Discount rate
• Price inflation
• Pension increases
• Mortality/life expectancy
These assumptions are determined with the assistance of external actuaries using relevant market
data, such as corporate bond yields and yield curves to set the discount rate, published inflation
expectations to derive price and salary growth, and standard mortality tables to estimate life
expectancy and pension payment periods.
Introduction
Post-retirement benefit provisions relate to defined benefit pension plans and other post-retirement benefit
plans, including healthcare and welfare plans. The largest defined benefit pension plans are the ICI Pension
Fund (ICIPF) and the Akzo Nobel (CPS) Pension Scheme (CPS) in the UK which together account for 89%
of defined benefit obligations (DBO) and 94% of plan assets. Other defined benefit pension plans include
the largely unfunded plans in Germany, the plans in the US and certain other smaller plans in the UK and
Ireland. The benefits of these pension plans are based primarily on years of service and employees’
compensation. The funding policy for the plans is consistent with local requirements in the countries of
establishment. We also provide certain healthcare and life insurance benefits to retired employees, mainly
in the US and the Netherlands.
Governance
Governance of the benefit plans is the responsibility of the Executive Pensions Committee. This committee
provides oversight of the costs and risks of the plans including oversight of the impact of the plans on the
company in terms of cash flow, pension expenses and the balance sheet. The committee develops and
maintains policies on benefit design, funding, asset allocation and assumption setting.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Pension plan de-risking
Almost all of the defined benefit plans have been closed to new members since the early to mid-2000s,
although in many plans long-serving employees continue to accrue benefits. For plans in the US, benefit
accrual is frozen and employees participate in defined contribution plans for future service. In countries
where plans are closed, new employees are eligible to join a defined contribution arrangement. In countries
in high growth markets, pension schemes currently are not material. Unless mandated by law, it is our
policy that any new plans are established as defined contribution plans.
The most significant risks that we run in relation to defined benefit plans are investment returns falling short
of expectations, low discount rates, inflation exceeding expectations, retirees living longer than expected
and legislation changes. The assets and liabilities of each of the funded plans are held outside of the
company in a trust or a foundation, which is governed by a board of fiduciaries or trustees, depending on
the legal arrangements in the country concerned. The primary objective with regards to the investment of
pension plan assets is to ensure that each individual plan has sufficient funds available to satisfy future
benefit obligations in accordance with local legal and legislative requirements. For this purpose, we work
closely with plan trustees or fiduciaries to develop investment strategies. Studies are carried out
periodically to analyze and understand the trade-off between expected investment returns, volatility of
outcomes and the impact on cash contributions. We aim to strike a cautious balance between these
factors in order to agree affordable contribution schedules with plan fiduciaries.
Plan assets principally consist of insurance (annuity) policies, long-term interest-earning investments and
investment funds with holdings primarily in quoted equity securities. Our largest plans use derivatives (such
as index futures, currency forward contracts and swaps) to reduce volatility of underlying variables, for
efficient portfolio management and to improve the liability matching characteristics of the assets. Limits
have been set on the use of derivatives which are periodically subject to review for compliance with the
pension fund’s investment strategy.
In line with our proactive pension risk management strategy, we seek to reduce risk in our pension plans
over time. We evaluate potential de-risking opportunities on an ongoing basis. Future de-risking
transactions may have both cash flow and balance sheet impacts which may be substantial, as had some
of the de-risking actions already taken. The cost of fully removing risk would exceed estimated funding
deficits.
Between 2014 and 2022, ICIPF invested in annuity buy-in contracts that aim to hedge all key risks related
to its pensioner population. Between 2015 and 2023, a smaller UK plan, the ICI Specialty Chemicals
Pension Fund (ISCPF), invested in annuity buy-in contracts that aim to hedge all key risks related to their
pensioner and deferred member populations. In 2022, CPS also invested in an annuity buy-in contract that
aims to hedge all key risks related to 40% of their pensioner liabilities. CPS also has an insurance contract
to hedge longevity risk in respect of a portion of its pensioners not impacted by the buy-in transaction.
By purchasing bulk annuities, the ICIPF, CPS and ISCPF Trustees have taken significant steps in actively
de-risking liabilities and reducing the risk that AkzoNobel will be required to contribute additional cash in
the future.
In October 2025, the Trustee of the ISCPF entered into a buy-out agreement which completed in
December 2025. Residual risks and run-off insurance premia, together with some member benefit
enhancements and associated administration costs, are disclosed as buy-out costs in the reconciliation
table. The remaining cash in the fund (less than €1 million) was returned to the Company in December
2025 as a negative contribution. When individual policies for all members were written in December 2025,
liabilities were transferred to the insurers (Prudential and PIC) and reported as a settlement of €352 million
of both DBO and associated plan asset annuity policies. The trustees expect to wind up the ISCPF in
2026.
Regulatory developments
On November 25, 2020, correspondence between the Chancellor of the Exchequer and the UK Statistics
Authority (UKSA) was published regarding the future of the Retail Price Index (RPI) measurement of
inflation. With effect from February 2030 onwards, increases in the RPI will be aligned with those under the
Consumer Prices Index (CPI) with owner occupiers’ housing costs (CPIH). Broadly this is expected to result
in RPI inflation being 1% lower in the longer term than under the existing methodology. The inflation
assumption continues to be calculated using a market breakeven inflation rate and the CPI inflation
assumption, on which the benefits of some plans are based, is set with reference to RPI. Until 2030, the
CPI inflation assumption is calculated as 1% below RPI and from 2030 onwards as 0.1% below RPI.
The Virgin Media Ltd versus NTL Pension Trustees decision, handed down by the UK High Court on June
16, 2023, has implications for the validity of trust deeds between 1997 and 2016. In July 2024, the Court
of Appeal upheld the original June 2023 High Court decision and further court cases were scheduled to
clarify the scope of the judgments. High-level reviews have been carried out by the UK defined benefit
scheme trustees, assessing whether relevant deeds were validly executed. The conclusions of the reviews,
which have been shared with the Company, show only very limited potential effects on member benefits if
the judgment is upheld. For this reason, and because of the uncertain application of the judgment, no
changes have been made to the defined benefit obligation. On June 5, 2025, the UK Government
announced it will introduce legislation to give affected pension schemes the ability to retrospectively obtain
written actuarial confirmation that historic benefit changes met the necessary standards.
STRATEGY
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Defined contribution plans
The remaining pension plans primarily represent plans accounted for as defined contribution plans. This
includes, among others, the Pension Fund APF in the Netherlands and the 401k Plan in the US. The new
pension legislation in The Netherlands, which the pension fund must implement ultimately by January 1,
2028, has no material impact other than the reassessment of the expected repayment date of AkzoNobel’s
outstanding loan to Pension Fund APF. Refer to Note 16 Trade and other receivables for more details.
The ITP2 plan in Sweden is financed through insurance with the Alecta insurance company and is
classified as a multi-employer defined benefit plan. As AkzoNobel does not have access to sufficient
information from Alecta to enable defined benefit accounting treatment, it is accounted for as a defined
contribution plan. Contributions in 2025 were nil (2024: nil). Alecta’s funding ratio is normally allowed to
vary between 125% and 170%. The most recently quoted ratio at September 2025 stood at 167%.
The expenses of all plans accounted for as defined contribution plans in AkzoNobel totaled €94 million in
2025 (2024: €101 million).
Other post-retirement benefit plans
AkzoNobel provides certain healthcare and life insurance benefits to retired employees, mainly in the US
and the Netherlands. The risks to which the US healthcare plans expose AkzoNobel include the risk of
future increases in the cost of healthcare, which would increase the cost of maintaining the plans. The
benefit payments to retirees under the Dutch plan are frozen. Both plans expose AkzoNobel to the risk of a
decline in discount rates, which increases the plan obligations, and longevity risk as the plans generally pay
lifetime benefits.
DBO at funded and unfunded pension plans
Of the €7,723 million of defined benefit obligations, €7,641 million relates to pension plans, with the table
below specifying the funded and unfunded amounts.
DBO at funded and unfunded pension plans*
in € millions, at December 31
2024
2025
Wholly or partly funded plans
8,620
7,422
Unfunded plans
243
219
Total
8,863
7,641
* Excludes other post-retirement benefit plans.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Reconciliation to the balance sheet
The 2025 closing net balance sheet position of €543 million net asset (2024: €505 million net asset)
includes the pension plans (€625 million net asset; 2024: €598 million net asset) and other post-retirement
plans (€82 million liability; 2024: €93 million liability).
Reconciliation to the balance sheet
2024
2025
in € millions
DBO
Plan assets
Total
DBO
Plan assets
Total
Balance at the beginning of the period
(9,510)
10,066
556
(8,956)
9,479
523
Statement of income
Current service cost
(30)
—
(30)
(28)
—
(28)
Past service cost
(1)
—
(1)
(3)
—
(3)
Buy-out costs
—
—
—
(7)
—
(7)
Settlements
2
(2)
—
353
(353)
—
Net interest (charge)/income on net defined benefit (liability)/asset
(427)
454
27
(441)
473
32
Cost recognized in statement of income
(456)
452
(4)
(126)
120
(6)
Remeasurements recognized in Other comprehensive income
Actuarial (loss)/gain due to liability experience
(14)
—
(14)
11
—
11
Actuarial (loss)/gain due to liability financial assumption changes
618
—
618
130
—
130
Actuarial (loss)/gain due to liability demographic assumption changes
16
—
16
(36)
—
(36)
Return on plan assets (less than)/greater than discount rate
—
(742)
(742)
—
(100)
(100)
Remeasurement effects recognized in Other comprehensive income
620
(742)
(122)
105
(100)
5
Cash flow
Employer contributions
—
48
48
—
48
48
Employee contributions
(2)
2
—
(2)
2
—
Benefits and administration costs paid from plan assets
799
(799)
—
793
(793)
—
Net cash flow
797
(749)
48
791
(743)
48
Other
Acquisitions/divestments/transfers
—
—
—
39
(30)
9
Changes in exchange rates
(407)
452
45
424
(452)
(28)
Total other
(407)
452
45
463
(482)
(19)
Balance at the end of the period
(8,956)
9,479
523
(7,723)
8,274
551
Asset restriction
(18)
(8)
Net balance sheet position
505
543
Presentation of Net balance sheet position
Financial non-current assets
929
891
Post-retirement benefit provisions
(381)
(300)
Current portion of provisions
(43)
(48)
Net balance sheet position
505
543
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Administrative expenses
Where pension plans bear their own administrative expenses using plan assets, those costs are reflected
within the current service cost line. Administrative expenses borne by funds of €11 million are included in
2025 current service cost (2024: €13 million). In addition to the expenses borne by the funds themselves,
some expenses are borne directly by AkzoNobel. Administrative expenses, borne directly by AkzoNobel,
of €14 million are included in 2025 operating income (2024: €13 million). In addition, we directly incurred
asset management expenses of €1 million (2024: €2 million), which have been included in Other
comprehensive income.
Interest costs
Interest costs on the DBO for both pensions and other post-retirement benefits, together with the interest
income on plan assets, comprise the financing income related to post-retirement benefits of €32 million
(2024: €27 million), refer to Note 7 Financing income and expenses.
Pension plans in asset position
Pension balances recorded under Financial non-current assets totaled €891 million (2024: €929 million).
The €38 million decrease in 2025 is due to €19 million of net actuarial losses and exchange rate translation
losses of €46 million, partly offset by €1 million of employer contributions and net income of €26 million.
Plan assets have been recognized in the company’s balance sheet under IFRIC 14 to the extent future
economic benefits are available to AkzoNobel in the form of future refunds from the plan or reductions in
future contributions to the plan, either during the life of the plan or upon (final) settlement of the plan
liabilities.
Plan assets
The equities and government bond debt assets have quoted prices in active markets, although most are
held through funds comprised of such instruments which are not actively traded themselves. The UK buy-
in annuity policies have a value that is equal to the DBO of the pensioners covered by the policies.
The total value of plan assets not quoted in active markets is €5,212 million (2024: €6,174 million),
including the UK buy-in annuity policies totaling €4,785 million (2024: €5,735 million), investments in real
estate totaling €217 million (2024: €245 million) and other investments in infrastructure and insurance
policies.
Plan assets did not directly include any of AkzoNobel’s own transferable financial instruments, nor any
property occupied by or assets used by the company.
Plan assets
2024
2025
in € millions, at December 31
Total
% of total
Total
% of total
Equities
189
2
171
2
Debt - fixed interest government bonds
396
4
396
5
Debt - index-linked government bonds
1,140
12
1,060
13
Debt - corporate and other bonds
1,531
16
1,418
17
UK buy-in annuity policies
5,735
61
4,785
58
Cash and cash equivalents
143
2
111
1
Other
345
3
333
4
Total
9,479
100
8,274
100
Cash flows
In 2026, we expect to contribute €41 million (2025: €40 million) to our defined benefit pension plans. We
expect to pay a further €9 million (2025: €10 million) to our other post-retirement benefit plans. No
allowance is made for any special one-off contributions that may arise in relation to new de-risking
opportunities.
Cash flows
Pensions
Other post-
retirement benefits
in € millions
2025
2026
2025
2026
Regular contributions
36
36
10
9
Top-ups
4
5
—
—
Total
40
41
10
9
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Sensitivity of DBO
The actuarially calculated sensitivity effects on DBO shown in the table allow for an alternative value for
each assumption while the other actuarial assumptions remain unchanged. This table illustrates the overall
impact on DBO for the changes shown, which management assessed could be reasonably possible over a
longer term from a sensitivity test perspective. It should be noted, however, that this analysis does not
indicate any probability of such changes occurring, nor does it preclude larger changes in any given period
or longer term.
In addition, the significance of the impact and the range of reasonably possible alternative assumptions
may differ between the different plans that comprise the total DBO. In particular, the plans differ in benefit
design, currency and average term, meaning that different assumptions have different levels of significance
for each plan.
The sensitivity analysis is intended to illustrate the inherent uncertainty in the valuation of the DBO under
market conditions at the measurement date. Its results, in principle, cannot be extrapolated due to
increasing non-linear effects that changes in the key actuarial assumptions, when deviating further from the
assumptions presented, may have on the total DBO. Any management actions that may be taken to
mitigate the inherent risks in the post-retirement defined benefit plans are not reflected in this analysis, as
they would normally be reflected in plan asset changes rather than DBO changes.
The sensitivities in the table only apply to the DBO and not to the net amounts recognized in the balance
sheet. Movements in the fair value of plan assets (which include the de-risking instruments) would, to a
significant extent, be expected to offset movements in the DBO resulting from changes in the given
assumptions.
At ICIPF, the annuity buy-in contracts cover 96% of pensioner liabilities (2024: 97%) and 87% of total
liabilities (2024: 88%). At CPS, the annuity buy-in contract covers 40% of pensioner liabilities (2024: 39%)
and 29% of total liabilities (2024: 28%). Also at CPS, the longevity hedge contract covers 45% of pensioner
liabilities (2024: 45%) and 32% of total liabilities (2024: 32%).
Sensitivity of DBO to change in assumptions
in € millions
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
Discount rate: 0.5% decrease
188
108
40
3
339
Price inflation: 0.5% increase*
117
65
21
—
203
Pension increases: 0.5% increase
165
98
22
—
285
Life expectancy: one year increase from age 60
253
79
24
3
359
Maturity information
Weighted average duration of DBO (years)
7.8
10.3
10.7
7.9
8.8
*The sensitivity to price inflation assumption includes corresponding changes to all inflation-related compensation increases, pensions in payment and
pensions in deferment.
Future benefit payments
The figures in the table below are the estimated future benefit payments to be paid from the plans to
beneficiaries over the next ten years.
Future benefit payments
in € millions
Pensions
Other post-
retirement
benefits
2026
737
9
2027
740
8
2028
744
8
2029
750
8
2030
758
7
2031-2035
3,869
33
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Key figures and assumptions by plan
2024
2025
in € millions or %
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
Percentage of total DBO
60%
25%
14%
1%
100 %
62%
27%
10%
1%
100%
Defined Benefit Obligation at year-end
(5,395)
(2,243)
(1,225)
(93)
(8,956)
(4,817)
(2,073)
(751)
(82)
(7,723)
Fair value of plan assets at year-end
5,721
2,814
944
—
9,479
5,123
2,630
521
—
8,274
Plan funded status
326
571
(281)
(93)
523
306
557
(230)
(82)
551
Restriction on asset recognition
—
—
(18)
—
(18)
—
—
(8)
—
(8)
Amounts recognized on the balance sheet
326
571
(299)
(93)
505
306
557
(238)
(82)
543
Percentage of total current service cost
3%
33%
64%
—
100%
4%
37%
59%
—
100%
Current service cost
(1)
(10)
(19)
—
(30)
(1)
(10)
(17)
—
(28)
Employer contributions
—
1
37
10
48
—
1
38
9
48
Discount rate
5.4%
5.5%
4.7%
6.1%
5.3%
5.3%
5.5%
4.6%
6.3%
5.3%
Rate of compensation increase
1.5%
1.4%
2.2%
—
1.5%
1.4%
1.4%
2.4%
—
1.5%
Inflation
3.3%
3.2%
2.3%
—
3.1%
2.8%
2.8%
1.9%
—
2.7%
Pension increases
3.0%
2.7%
2.2%
—
2.8%
2.7%
2.4%
1.8%
—
2.6%
Life expectancy (in years)
Currently aged 60
Males
25.7
25.5
26.0
25.9
25.7
26.0
25.8
26.1
25.9
26.0
Females
27.4
28.6
28.7
27.8
27.9
27.4
28.6
28.8
28.0
27.9
Currently aged 45, from age 60
Males
26.8
26.6
27.4
26.8
26.8
27.1
26.9
27.7
26.8
27.1
Females
28.5
29.7
29.9
28.8
29.0
28.6
29.8
30.2
28.9
29.1
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Key plan details for the two largest pension plans1
ICI Pension Fund, UK
Akzo Nobel (CPS) Pension Scheme, UK
Type of plan
Defined benefit, based upon years of service and final salary
Defined benefit, based upon years of service and final salary
Benefits
Retirement pension for employee
Dependants’ pensions on death of employee/pensioner
Options for ill health early retirement
Retirement pension for employee
Dependants’ pensions on death of employee/pensioner
Options for ill health early retirement
Pension increases (main benefit section)
Annually linked to UK RPI with a maximum of 5%
Annually linked to UK CPI with a maximum of 5%
Plan structure
Plans are set up under a trust and are tax approved
Plans are set up under a trust and are tax approved
Governance
Trustee directors:
Three member-nominated
Three appointed with the agreement of Law Debenture
One independent (Law Debenture)
Trustee directors:
Three member-nominated
Three company-nominated
Two independent (Law Debenture and Ross)
Regulatory framework
The plans are tax approved and assets are held in trust for the benefit of participants. The trustees have a legal duty to manage the trust in the best interests of
participants. Investment strategy is controlled by the trustees in consultation with the company.
Funding basis
A plan specific funding basis must be agreed with each trustee board in accordance with UK regulations. This basis is not the same as the IFRS calculation as it uses more
prudent assumptions about life expectancy and the discount rates reflect prudent estimates of the expected return on assets actually held, thus the trustees’ investment
strategies will impact the discounted value of liabilities.
Frequency of funding reviews
Normally every three years
Normally every three years
Latest completed valuation
March 31, 2023
March 31, 2023
Funding surplus/deficit at latest completed valuation1,2
€56 million surplus
€218 million surplus
Recovery plan
As there were sufficient assets to cover the Fund’s technical provisions, a recovery
plan is not required.
As there were sufficient assets to cover the Fund’s technical provisions, a recovery
plan is not required.
Next funding review
March 31, 2026 (due to be completed before June 30, 2027)
March 31, 2026 (due to be completed before June 30, 2027)
Asset allocation at March 31, 2025
Matching:
Return seeking:
100%
0%
Buy-in annuity contracts cover 96% of pensioner liabilities and 87% of total liabilities.
87%
13%
Buy-in annuity contract covers 40% of pensioner liabilities and 29% of total liabilities.
The longevity hedge contract covers 45% of pensioner liabilities and 32% of total
liabilities.
Membership at March 31, 2025
Active members
48
185
Deferred members
4,103
4,277
Pensioners, spouses and dependants
30,781
15,647
Total
34,932
20,109
1 Amounts in euro are a convenience translation using the December 31, 2025, exchange rate.
2 Based on local valuation regulations.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 19: OTHER PROVISIONS AND CONTINGENT LIABILITIES
Accounting policies
We recognize provisions when a present legal or constructive obligation as a result of a past event
exists, it is probable that an outflow of economic benefits is required to settle the obligation and the
amount can be reliably estimated.
Provisions for restructuring of activities are recognized when a detailed and formal restructuring plan
has been approved, and the restructuring has either commenced or has been announced publicly.
We do not provide for future operating costs.
Provisions for liabilities to (former) employees are measured at present value, using actuarial
assumptions and other methods. Any actuarial gains and losses are recognized in the statement of
income in the period in which they arise.
Leased sites, offices or stores may have to be restored to their original condition or sometimes
decontaminated before being handed back at the end of the contractual period. If such legal
obligations exist, and a reliable estimate of future expenses can be made, a provision is formed.
Provisions are measured at net present value. The change of provisions as a result of the passage of
time, changes in discount rates and changes to spend patterns are recognized in the statement of
income under financing expenses.
A contingent liability is a liability of uncertain timing or amount. Contingent liabilities are not
recognized in the balance sheet because they are dependent on the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the entity, or because (i) it is
not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability.
Significant accounting estimates and judgments
Provisions and contingent liabilities related to major legal matters
Provisions and contingencies related to major legal matters require significant judgment. When legal
matters are at an early stage, accounting judgments can be significant because of the high degree
of uncertainty associated with determining whether a present obligation exists. Significant judgment
also is required when estimating the probability, amount and timing of any outflows that may arise.
As legal matters progress, management and legal advisers continuously assess the recognition
criteria in to determine whether a provision should be recognized or adjusted. Professional advice
guides the evaluation of litigation and similar obligations.
Estimates for legal proceedings and regulatory matters remain sensitive to potential changes in
assumptions used in determining the estimate. A wide range of possible outcomes may be
applicable to pending legal proceedings, investigations or inquiries. As a result, quantifying a range
of possible outcomes for individual matters may be impracticable.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Movements in other provisions
in € millions
Restructuring of
activities
Environmental costs
Liabilities to (former)
employees
Sundry
Total
Balance at January 1, 2025
70
37
103
80
290
Additions made during the year
138
19
17
347
521
Utilization
(89)
(9)
(22)
(37)
(157)
Amounts reversed during the year
(21)
—
(5)
(8)
(34)
Unwind of discount
—
2
4
(1)
5
Divestments
(2)
—
(2)
(3)
(7)
Changes in exchange rates
(1)
(3)
(7)
(3)
(14)
Balance at December 31, 2025
95
46
88
375
604
Non-current portion of provisions
14
30
77
345
466
Current portion of provisions
81
16
11
30
138
Balance at December 31, 2025
95
46
88
375
604
Provisions for restructuring of activities
Provisions for restructuring of activities comprise of accruals for certain employee benefits and for costs
which are directly associated with plans to exit or cease specific activities, organizational optimization
programs and closing down of facilities. For all restructuring provisions, a detailed formal plan exists and
the implementation of the plan has started or the plan has been announced before the balance sheet date.
Most restructuring plans are expected to be completed within one year from the balance sheet date; no
discounting is applied.
Environmental liabilities
We are confronted with costs arising out of environmental laws and regulations, which include obligations
to eliminate or limit the effects on the environment of the disposal or release of certain wastes or
substances at various sites.
Estimating the impact of environmental liabilities is complex and requires the assessment of many (often
interconnected) elements, which contain varying levels of uncertainty. Environmental liabilities can change
substantially, among others due to the emergence of additional information on the nature or extent of the
contamination, the geological circumstances, changes in (the interpretation and/or enforcement of)
environmental regulations, new and evolving analytical and remediation techniques, success or lack of
success of currently anticipated clean-up methods, actions by governmental agencies or private parties,
success or lack of success in allocating liability to other potentially responsible parties, the financial viability
of other potentially responsible parties and third-party indemnitors, and/or other factors.
Proceedings involving environmental matters, such as the alleged discharge of chemicals or waste
materials into the air, water, or soil, are pending against us in various countries. In some cases, this
concerns sites divested in prior years or derelict sites belonging to companies acquired in the past. The
majority of the cash outflows relating to the environmental liabilities is expected to be within one to five
years, whilst some one-third is projected to be spent after ten years. The provision has been discounted
using an average pre-tax discount rate of 4.3% (2024: 4.3%).
For some sites for which we are faced with relatively new legislation, which are in the early stages of
discussions with regulators, and/or where there is limited information available from earlier experience,
there may be considerable variability between the clean-up activities that are currently being undertaken or
planned and the ultimate actions that could be required. For such sites, the costs for the earlier years might
be rather reliably estimable, while for later years it is much more difficult, if possible at all, to estimate the
cost of environmental compliance and remediation. If the level of uncertainty is such that no reliable
estimate can be made for the longer-term costs, no provision for such longer-term costs is recorded. While
it is not feasible to predict the outcome of all pending environmental exposures, it is reasonably possible
that there will be a need for future (changes to) provisions for environmental costs which, in management’s
opinion, based on information currently available, would not have a material effect on the company’s
financial position but could be material to the company’s results of operations in any one accounting
period.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Liabilities to (former) employees
The majority of the cash outflows related to liabilities to (former) employees is expected to be after five
years. In calculating the liabilities to (former) employees, an average pre-tax discount rate of 4.8% (2024:
4.4%) has been used.
Sundry provisions
Sundry provisions relate to a variety of provisions, including provisions for legal claims, sales returns,
guarantees, asset retirement obligations and other operational provisions. (Customer) claims provisions
reflect the best estimate of the expected outflow, if applicable supported by case law and internal or
external legal counsel opinions.
Due to possible future developments, such as potential additional lawsuits, possible future settlements and
rulings or judgments in pending lawsuits, certain cases may result in additional liabilities and related costs.
At this point in time, we cannot estimate any additional amount of loss or range of loss in excess of the
recorded amounts with sufficient certainty to allow such amount or range of amounts to be meaningful.
In Q3 2025, AkzoNobel recognized a provision of €300 million for the Australian litigation matter, in respect
of claims related to Project Ichthys, with €275 million being reported within Other results and €25 million
within interest expense. This provision relates to the elements in the claims for which the IAS 37 recognition
criteria are met. Other elements not meeting the requirements are presented as contingent liabilities and
remain unprovided for. For a full description on this ongoing court case, refer to the contingent liabilities
section in this Note. The provision for Project Ichthys is the only major legal matter for which a provision
was recorded.
The majority of the cash outflows related to sundry provisions is expected to be within one to five years. In
calculating the sundry provisions, a pre-tax discount rate of on average 2.4% (2024: 3.8%) has been used.
The lower discount rate compared to prior year is mainly due to the inclusion of Project Ichthys, which has
a relatively low discount rate.
Current portion of provisions
The current portion of post-retirement benefit provisions (€48 million) and the current portion of other
provisions (€138 million) add up to €186 million (2024: €173 million), as reflected in the balance sheet.
Discount rates
The discount rates used in calculating the provisions recognized at December 31, 2025, are mentioned in
the paragraphs on provisions for environmental costs, liabilities to (former) employees and sundry
provisions. Provisions for restructuring of activities are not discounted. Changes in discount rates will affect
our consolidated financial position. A sensitivity test showed that a one percentage point increase or
decrease of discount rates will have an impact down of €8 million and up €8 million, respectively, on the
provisions recognized at December 31, 2025 (2024: down €5 million and up €6 million, respectively).
Contingent liabilities
Legal and other proceedings
The company and certain of its (former) group companies are involved in legal proceedings as well as other
proceedings by and discussions with, governments, tax authorities, environmental agencies and other
authorities.
While it is not feasible to predict or determine the outcome of all pending and threatening legal proceedings
and proceedings by/discussions with governments, tax authorities, environmental agencies and other
authorities, the company is of the opinion that the litigation described below (Project Ichthys) may have a
significant impact on the company’s consolidated financial position, results of operations and cash flows.
In accordance with IAS 37.92, certain information is not disclosed for legal proceedings for which the
company concludes that disclosure can be expected to seriously prejudice the outcome of the matter.
STRATEGY
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Project Ichthys
AkzoNobel is defending claims brought by INPEX Operations Australia in 2021 and JKC Australia LNG in
2017 relating to the specification and use of an AkzoNobel product which was applied to part of the
pipework for the Ichthys Onshore Project in Darwin, Australia, a large LNG project, between 2013 and
2015. The claims allege that AkzoNobel is liable for significant damages (relating to degradation of the
coating on extensive parts of the pipework) and associated remediation costs are sought under the
Australian Consumer Law. The vast majority of the damages claimed for remediation costs have not yet
been incurred, rather they relate to (modelled) future inspection and remediation costs. AkzoNobel denies
liability and contests the quantum of alleged damages.
In 2024, the case proceeded to trial in the Federal Court of Australia. As part of the proceedings, the
Federal Court of Australia appointed a Referee for the consideration of the potential quantum should any
liability be established. Following issuance of the Referee’s quantum report, INPEX has sought damages in
the amount of AUD 4.8 billion (€2.7 billion). There are several other scenarios in the Referee’s quantum
report for calculating potential damages with significantly lower amounts. Following the completion of the
main hearing phase in May 2025, the Federal Court continues to address various procedural and
substantive matters as part of the ongoing proceedings.
AkzoNobel maintains that it is not liable for any alleged damages and thus argues its liability towards both
INPEX and JKC should be zero (0). The Federal Court of Australia has yet to decide on liability, and if
AkzoNobel is found liable, on the appropriate amount of damages that AkzoNobel is liable for (including
whether any liability should be shared with other parties involved).
In Q3 2025, AkzoNobel recognized a provision of €300 million in respect of Project Ichthys, relating to the
elements in the claims for which the IAS37 recognition criteria are met. Other elements not meeting the
requirements are presented as contingent liabilities and remain unprovided for. AkzoNobel is insured with a
maximum coverage of €500 million for cash outflows, whether presented as a provision or as a contingent
liability.
In accordance with IAS 37.92, no further information is disclosed, as such disclosure might seriously
prejudice the outcome of the matter.
The timing of the Federal Court of Australia’s judgment remains uncertain, although it is not anticipated
before 2027. Either party can appeal the first instance decision to the Full Court of the Federal Court of
Australia. A further appeal can be made to the High Court of Australia if special leave is granted. Under
Australian law, a verdict would be payable soon after being issued, unless a stay would be obtained. The
amounts in such verdict could be significantly higher than the amount currently provided for.
Other (legal) disputes and disputes with tax authorities
We are also involved in other (legal) disputes and disputes with tax authorities in several jurisdictions. Those
disputes include situations in which AkzoNobel has provided various indemnities and guarantees in respect
of past divestments to the relevant purchasers and their permitted assigns (if applicable), which in general
are capped in time and/or amount (in proportion to the value received). The provided guarantees and
indemnities have varying maturity periods. AkzoNobel has received various claims under such indemnities
and guarantees. In some instances, AkzoNobel has been named as a direct defendant despite the
divestments.
STRATEGY
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 20: NET DEBT
Accounting policies
Cash and cash equivalents are measured at amortized cost, short-term investments are measured at fair value through profit and loss. Cash and cash equivalents include all cash balances and other investments that
are directly convertible into known amounts of cash. Changes in fair values are included in financing expenses. For more details on the accounting policy with regards to classification, valuation and impairment of
financial assets, refer to Note 26 Financial risk management.
Long-term and short-term borrowings are initially measured at fair value net of directly attributable transaction costs. Subsequent measurement is at amortized cost, using the effective interest rate method. The
interest expense on borrowings is included in financing income and expenses.
The fair value of borrowings, used for disclosure purposes, is determined based on listed market prices, if available. If a listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date, considering AkzoNobel’s credit risk.
Net debt
in € millions
Long-term
borrowings
Short-term
borrowings
Short-term
investments
Cash and
cash
equivalents
Net debt
in € millions
Long-term
borrowings
Short-term
borrowings
Short-term
investments
Cash and
cash
equivalents
Net debt
Net debt at January 1, 2024
3,165
2,398
(265)
(1,513)
3,785
Net debt at January 1, 2025
3,671
1,697
(165)
(1,302)
3,901
Net cash from operating activities
—
—
—
(673)
(673)
Net cash from operating activities
—
—
—
(915)
(915)
Acquisitions
3
—
—
(2)
1
Acquisitions
—
—
—
—
—
Divestments
—
—
—
—
—
Divestments
(7)
(2)
4
(816)
(821)
Investments in short-term investments
—
—
(320)
320
—
Investments in short-term investments
—
—
(314)
314
—
Repayments of short-term investments
—
—
423
(423)
—
Repayments of short-term investments
—
—
174
(174)
—
Net cash from other investing activities
—
—
—
237
237
Net cash from other investing activities
—
—
—
234
234
Buy-out of non-controlling interests
—
—
—
4
4
Buy-out of non-controlling interests
—
—
—
17
17
Net gain/loss from changes in fair value
—
—
(3)
—
(3)
Net gain/loss from changes in fair value
—
—
(2)
—
(2)
Unwind of discount and amortized cost
12
6
—
—
18
Unwind of discount and amortized cost
13
(12)
—
—
1
Proceeds from borrowings
499
1,808
—
(2,307)
—
Proceeds from borrowings
507
1,946
—
(2,453)
—
Borrowings repaid
—
(2,602)
—
2,602
—
Borrowings repaid
—
(3,035)
—
3,035
—
New/modification/disposal of lease contracts
112
—
—
—
112
New/modification/disposal of lease contracts
107
—
—
—
107
Transfers from long-term to short-term
(121)
121
—
—
—
Transfers from long-term to short-term
(614)
614
—
—
—
Movement bank overdrafts and short-term bank loans
—
(31)
—
31
—
Movement bank overdrafts and short-term bank loans
—
(13)
—
13
—
Dividends
—
—
—
385
385
Dividends
—
—
—
382
382
Net cash impact from discontinued operations
—
—
—
5
5
Net cash impact from discontinued operations
—
—
—
1
1
Changes in exchange rates
1
(3)
—
32
30
Changes in exchange rates
(7)
(3)
1
46
37
Net debt at December 31, 2024
3,671
1,697
(165)
(1,302)
3,901
Net debt at December 31, 2025
3,670
1,192
(302)
(1,618)
2,942
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Analysis of net debt by category
in € millions, at December 31
2024
2025
Bonds issued
3,433
3,434
Lease liabilities
201
194
Other long-term borrowings
37
42
Long-term borrowings
3,671
3,670
Current portion of long-term borrowings
87
586
Current portion of lease liabilities
91
80
Debt to credit institutions
1,515
523
Other short-term borrowings
4
3
Short-term borrowings
1,697
1,192
Total borrowings
5,368
4,862
Short-term investments
(165)
(302)
Cash and cash equivalents
(1,302)
(1,618)
Net debt
3,901
2,942
AkzoNobel’s net debt is mainly denominated in euro.
Multi-currency revolving credit facility
We have a multi-currency revolving credit facility of €1.3 billion which runs until 2027. This facility does not
contain financial covenants or acceleration provisions that are based on adverse changes in ratings or
material adverse change. At year-end 2025 and 2024, this facility has not been drawn.
Long-term borrowings
At year-end 2025, bonds issued amounted to €3,434 million (2024: €3,433 million); a specification of the
long-term portion of the bonds issued is included in the table in this Note.
Bonds issued
in € millions, at December 31
2024
2025
1 1/8% 2016/26 (€500 million)
499
—
1 1/2% 2022/28 (€600 million)
598
599
1 5/8% 2020/30 (€750 million)
746
747
2% 2022/32 (€600 million)
596
597
4% 2023/33 (€500 million)
496
496
3 3/4% 2024/34 (€500 million)
498
498
4% 2025/35 (€500 million)
—
497
Total
3,433
3,434
In March 2025, a bond was issued with a nominal value of €500 million and a coupon of 4%, maturing in
2035. A bond with a nominal value of €500 million maturing in 2026 was reclassified to short-term
borrowings.
For details on the exposure to interest rate and foreign currency risk, refer to Note 26 Financial risk
management.
The average effective interest rate of the bonds included in long-term borrowings at year-end 2025 was
2.7% (year-end 2024: 2.2%).
Aggregated maturities of long-term borrowings
in € millions
2027-2030
After 2030
Bonds issued
1,346
2,088
Lease liabilities
168
26
Other long-term borrowings
17
25
Total
1,531
2,139
The blended incremental borrowing rate applied to the lease liabilities at year-end 2025 was 3.6%
(2024: 3.1%).
At year-end 2025 and 2024, none of the borrowings was secured by collateral.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Short-term borrowings
The current portion of long-term borrowings increased mainly due to the reclassification of a €500 million
bond maturing in 2026.
At year-end 2025, our debt to credit institutions amounted to €523 million (2024: €1,515 million). Debt to
credit institutions includes short-term bank loans of €0.5 billion (2024: €0.5 billion) against a three-months
Euribor rate plus a mark-up (2024: three-months Euribor rate plus a mark-up). None of these facilities
contain financial covenants.
Debt to credit institutions also includes commercial paper. At year-end 2025 no commercial paper was
outstanding (2024: €1.0 billion). We have US dollar and euro commercial paper programs in place of $3.0
billion (€2.6 billion) and €1.5 billion respectively, which we intend to use only to the extent that the
equivalent portion of the €1.3 billion multi-currency revolving credit facility is not used.
Short-term investments
At year-end 2025, we had short-term investments for an amount of €302 million (2024: €165 million).
Short-term investments almost entirely consist of time deposits, money market funds and other marketable
securities with a life time at investment date longer than three months but shorter than 12 months. For
more information on credit risk management, refer to Note 26 Financial risk management.
Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in € millions, at December 31
2024
2025
Cash on hand and in banks
848
789
Short-term investments with a life up to three months
454
829
Cash and cash equivalents in the balance sheet
1,302
1,618
Debt to credit institutions
(29)
(13)
Net cash and cash equivalents per statement of cash flows
1,273
1,605
Short-term investments with a life up to three months include deposits and money market funds. Deposits
and money market funds within cash and cash equivalents almost entirely consist of time deposits
immediately convertible into known amounts of cash and with a maturity of three months or less from the
date of purchase, and marketable securities that can be redeemed immediately when called.
We face cross-border foreign exchange controls and/or other legal restrictions in a few countries that
(currently) limit the ability to make these balances available for general use by the group. At December 31,
2025, an amount of €9 million in cash and cash equivalents (2024: €19 million) was restricted. The vast
majority of these funds are available for use in the relevant subsidiaries’ day-to-day business.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 21: TRADE AND OTHER PAYABLES
Accounting policies
Trade and other payables are measured at amortized cost, using the effective interest rate method.
Trade and other payables
in € millions, at December 31
2024
2025
Trade payables
2,220
2,157
Taxes and social security contributions
160
197
Amounts payable to employees
245
222
Interest
59
76
FX contracts
16
10
Dividends
2
1
Other current liabilities
38
27
Total
2,740
2,690
Trade and other payables can be broken down as per the above table. Other current liabilities consist of a
large number of individually immaterial items.
Supplier finance arrangements
AkzoNobel has entered into a limited number of supplier finance arrangements related to payables
presented within trade and other payables. These arrangements provide suppliers with the option to
receive early payment from banks before the due date, based on our terms and conditions. In line with the
nature of these arrangements, fees are typically charged by the bank to the supplier for early settlement.
At year end, the total carrying amount of trade payables for which suppliers have the option to apply early
settlements was €108 million (2024: €115 million). At reporting date, suppliers had applied this option and
received payments from banks for an amount of €63 million (2024: €69 million).
NOTE 22: CASH FLOW
Accounting policies
AkzoNobel uses the indirect cash flow model. Interest paid is classified as an operating cash flow
and interest received as an investing cash flow. Dividends received are classified as investing cash
flow and dividends paid are classified as financing cash flow. Acquisitions or divestments of
subsidiaries are presented net of cash and cash equivalents acquired or disposed of,
respectively, and net of taxes paid. Cash flows from derivatives are recognized in the statement of
cash flows in the same category as the hedged items.
Changes in working capital
Operating activities in 2025 resulted in a cash inflow of €915 million (2024: cash inflow of €673 million). This
includes changes in working capital as specified in the below table.
Changes in working capital as per consolidated statement of cash flows
in € millions
2024
2025
Trade and other receivables
12
(50)
Inventories
(83)
49
Trade and other payables
(135)
167
Total
(206)
166
The amounts in the table above cannot be reconciled directly to the respective balance sheet positions.
They reflect changes in balance sheet positions only to the extent these have a cash flow impact, or they
reverse the non-cash impact as included in profit for the period. These amounts exclude non-cash
movements such as unwinding of discount, movements through Other comprehensive income,
acquisitions and divestments, and changes in exchange rates.
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AkzoNobel Report 2025
Free cash flow
Free cash flow is an alternative performance measure. AkzoNobel reports on free cash flow as
management believes it to be a useful measure to provide additional insight into the cash generating
capability of its operations. For more details on Alternative Performance Measures refer to Note 3, section
Alternative Performance Measures.
Free cash flow
in € millions
2024
2025
Net cash generated from/(used for) operating activities
673
915
Capital expenditures
(306)
(309)
Free cash flow
367
606
NOTE 23: COMMITMENTS
Purchase commitments for property, plant and equipment at year-end 2025 aggregated €71 million (2024:
€23 million).
NOTE 24: RELATED PARTY TRANSACTIONS
We purchased and sold goods and services to various related parties in which we hold a 50% or less
equity interest (associates). These transactions were not material to the financial statements.
During 2025, we considered the members of the Executive Committee and the Supervisory Board to be
the key management personnel as defined in IAS 24 “Related parties”. Transactions with board members
are limited to those conducted in their capacity as members of the Supervisory Board or Board of
Management. For details on their remuneration, as well as on shares held by members of the Supervisory
Board or Board of Management, refer to Note 25 Remuneration of the Supervisory Board and the Board of
Management.
For related party transactions with pension funds, refer to Note 14 Financial non-current assets, Note 16
Trade and other receivables and Note 18 Post-retirement benefit provisions.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 25: REMUNERATION OF THE SUPERVISORY BOARD AND THE
BOARD OF MANAGEMENT
Total compensation for key management personnel expensed during the period amounted to €24.2 million
(2024: €19.7 million). An amount of €12.5 million relates to short-term employee benefits (2024: €10.4
million); €1.0 million relates to post contract benefits and other post contract compensation (2024: €0.9
million); €9.5 million relates to share-based compensation (2024: €8.4 million); and €1.2 million relates to
termination of employment (2024: €nil). In 2025, an amount of €0.8 million was accrued which relates to
taxation on excessive pay (“Belasting heffing excessieve beloningsbestanddelen”) (2024: €nil).
This compensation includes total remuneration for the members of the Supervisory Board of €1.0 million
(2024: €1.1 million) and for the members of the Board of Management of €9.6 million (2024: €8.3 million).
For more details on the remuneration of the individual members of the Supervisory Board and the Board of
Management reference is made to the Remuneration report.
In accordance with the Articles of Association and good corporate governance practice, the remuneration
of Supervisory Board members is not dependent on the results of the company. We do not grant share-
based compensation to our Supervisory Board members.
An overview of shares held by the Supervisory Board members is provided on this page. A similar overview
is provided of the shares held by the Board of Management.
Shares held by the members of the Supervisory Board
Number of shares at year-end
2024
2025
Ben Noteboom
2,300
2,300
Ester Baiget
—
—
Hans Van Bylen
—
—
Jaska de Bakker
—
—
Hans-Joachim Müller
—
—
Wouter Kolk
—
—
Ute Wolf
—
—
Shares held by the Board of Management
Number of shares at year-end
2024
2025
Greg Poux-Guillaume
7,134
31,826
Maarten de Vries
26,617
36,929
Loans
The company does not grant loans, advance payments or guarantees to members of the Supervisory
Board, members of the Executive Committee or any family members of such persons.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE 26: FINANCIAL RISK MANAGEMENT
Accounting policies
Classification and measurement
On initial recognition, financial assets are measured at fair value (plus transaction costs, in the case
of assets not subsequently measured at fair value through profit or loss (FVTPL)).
For the purpose of subsequent measurement, financial assets are classified as measured at
amortized cost, fair value through profit or loss or fair value through other comprehensive income
(FVOCI). The classification of a financial asset is determined at initial recognition, but if certain
conditions are met, an asset may be subject to reclassification.
A financial asset is measured at amortized cost if it meets both of the following conditions:
1. It is held within a business model, the objective of which is to hold assets to collect contractual
cash flows; and
2. Its contractual terms give rise, on specified dates, to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not
designated as FVTPL:
1. It is held within a business model, the objective of which is achieved by both collecting
contractual cash flows and selling financial assets; and
2. Its contractual terms give rise, on specified dates, to cash flows that are SPPI on the principal
amount outstanding.
All financial assets not classified as measured at amortized cost or measured at FVOCI, as
described above, (e.g. financial assets held for trading and those that are managed and whose
performance is evaluated on a fair value basis) are measured at FVTPL.
Derivatives
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values are
derived from market prices and quotes from dealers and brokers, or are estimated using observable
market inputs. When determining fair values, credit risk for our counter party, as well as for
AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge accounting
or net investment hedge accounting is applied. In those cases, the effective part of the fair value
changes is deferred in other comprehensive income and released to the related specific lines in the
statement of income or balance sheet at the same time as the hedged item.
Impairment
Financial assets are assessed for impairment either according to the general approach or a
simplified approach.
The calculation of impairment under the general approach uses the following stages:
• 12-months expected credit losses, taking into account possible default events within one year
• Lifetime expected credit losses in case of an increase in credit risk, through recognition of
expected credit losses over the remaining life of the exposure
• Lifetime expected credit losses, where interest is calculated on the net amount of the receivables
less impairment loss.
In all above stages, the impairment calculation used is based on external credit ratings of involved
parties or default rates published by well-known credit risk agencies.
The financial assets included in the general impairment approach are long-term loans and other
long-term receivables.
The calculation of impairment under the simplified approach requires recognition of lifetime expected
credit loss (no tracking of changes in credit risk). The financial assets included in the simplified
impairment approach are trade receivables and the remaining financial assets.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Financial Risk Management Framework
Our activities expose us to a variety of financial risks: liquidity risk, credit risk, foreign exchange rate risk,
interest rate risk and capital risk. Foreign exchange, interest rate, and capital risks are collectively referred
to as market risk. These risks are inherent to the way we operate as a multinational with a large number of
locally operating subsidiaries. Our overall risk management program seeks to identify, assess, and – if
necessary and possible – mitigate these financial risks in order to minimize potential adverse effects on our
financial performance.
Our risk mitigating activities include the use of derivative financial instruments to hedge certain risk
exposures. The Board of Management is ultimately responsible for risk management. We centrally identify,
evaluate and hedge financial risks, and monitor compliance with the corporate policies approved by the
Board of Management, except for commodity risks, which are subject to identification, evaluation, hedging
and monitoring in the businesses. In addition to our centralized Treasury organization in Amsterdam, we
have treasury hubs located in Brazil and China that are primarily responsible for regional cash management
and short-term financing. We do not allow extensive treasury operations directly with external parties at
subsidiary level.
Liquidity risk management
The primary objective of our liquidity risk management is to provide for sufficient cash and cash equivalents
at all times and any place in the world to enable us to meet our payment obligations. We aim for a well-
spread maturity schedule of our long-term borrowings and a strong liquidity position. At year-end 2025, we
had available €1.6 billion of cash and cash equivalents (2024: €1.3 billion) and €302 million of short-term
investments (2024: €165 million); reference is made to Note 20 Net debt.
In addition, we have a multi-currency revolving credit facility of €1.3 billion which runs until 2027. This
facility does not contain financial covenants or acceleration provisions that are based on adverse changes
in ratings or on other material adverse changes. At year-end 2025 and 2024, this facility had not been
drawn. Further, we have US dollar and euro commercial paper programs in place of $3.0 billion (€2.6
billion) and €1.5 billion respectively, which we intend to use only to the extent that the equivalent portion of
the €1.3 billion multi-currency revolving credit facility is not used. We had no commercial paper outstanding
at year end 2025 (2024: €1.0 billion against an average interest rate of 3.4%). Further, at year-end 2025,
we had €0.5 billion short-term bank loans outstanding against three-months Euribor rate plus a mark-up
(2024: €0.5 billion against three-months Euribor rate plus a mark-up). None of these facilities contain
financial covenants. The table on maturity of liabilities and cash outflows in this Note shows the timing of
cash outflows per maturity group. The amounts disclosed in the table are the contractual, undiscounted
cash flows.
Maturity of liabilities and cash outflows*
in € millions
Less than
1 year
Between 1
and 5 years
Over 5
years
At December 31, 2024
Borrowings
1,606
1,111
2,376
Interest on borrowings
134
287
187
Lease liabilities
92
184
50
Trade and other payables
2,676
FX contracts (hedges)
Outflow
2,714
—
—
Inflow
(2,714)
—
—
Total
4,508
1,582
2,613
At December 31, 2025
Borrowings
1,112
1,367
2,125
Interest on borrowings
120
351
217
Lease liabilities
82
184
36
Trade and other payables
2,618
—
—
FX contracts (hedges)
Outflow
2,514
—
—
Inflow
(2,518)
—
—
Total
3,928
1,902
2,378
*Amounts are the contractual, undiscounted cash flows
Credit risk management
Credit risk arises from financial assets such as cash and cash equivalents, deposits with financial
institutions, money market funds, trade receivables and derivative financial instruments with a positive fair
value. We have a credit risk management policy in place to limit credit losses due to non-performance of
financial counterparties and customers. We monitor our exposure to credit risk on an ongoing basis at
various levels. We only deal with financial counterparties that have a sufficiently high credit rating. Generally,
we do not require collateral in respect of financial assets. Investments in cash and cash equivalents, short-
term investments and transactions involving derivative financial instruments are entered into with
counterparties that have sound credit ratings and a good reputation. Derivative transactions are concluded
mostly with parties with whom we have contractual netting agreements and ISDA agreements in place. We
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
set limits per counterparty for the different types of financial instruments we use. We closely monitor the
acceptable financial counterparty credit ratings and credit limits and revise these where required in line with
market circumstances. We do not expect non-performance by the counterparties for these financial
instruments. Due to our geographical spread and the diversity of our customers, we were not subject to
any significant concentration of credit risks at balance sheet date.
The credit risk from trade receivables is measured and analyzed by dedicated teams in the businesses,
mainly by means of ageing analysis (refer to Note 16 Trade and other receivables). Additionally, trade
receivables and financial assets measured at amortized cost are subject to the expected credit loss
impairment model either using the general or the simplified approach. For more information on the applied
impairment approaches per financial asset type, refer to Note 1 General information.
The maximum exposure to credit risk is represented by the carrying value of financial assets in the balance
sheet, which at year-end 2025 was €4.4 billion (2024: €4.1 billion) for cash and cash equivalents, short-
term investments, loans and trade and other receivables. Our credit risk is well spread among both global
and local counterparties. Our largest counterparty risk amounted to €224 million at year-end 2025 (2024:
€259 million).
Foreign exchange risk management
Trade and financing transactions
We operate in a large number of countries, where we have clients and suppliers, many of whom are
outside of the local functional currency environment. This creates currency exposures which are partly
netted out on group level. The purpose of our foreign currency hedging activities is to protect us from the
risk that the functional currency net cash flows resulting from trade or financing transactions are adversely
affected by changes in exchange rates. Our policy is to hedge our transactional foreign exchange rate
exposures above predefined thresholds from recognized assets and liabilities. Hedge accounting is
generally not applied for foreign currency hedging activities, except for certain specific forecasted
transactions.
As from July 2025, cash flow hedge accounting was applied on an INR 59.6 billion hedge of (part of) the
foreign currency risk exposure related to the sale of the controlling shareholding in Akzo Nobel India
Limited which was finalized in December 2025, refer to Note 2 Scope of consolidation for further details.
During 2025 the spot result of this hedge of €15 million positive was recognized in other comprehensive
income and accumulated in the cash flow hedge reserve; after completion of the transaction it was
released from other comprehensive income and allocated to the sales proceeds. During 2025 the hedge
was fully effective.
In general, our forward exchange contracts have a maturity of less than one year. When necessary,
forward exchange contracts are rolled over at maturity. Currency derivatives are not used for speculative
purposes.
Hedged notional amounts at year-end1
Buy
Sell
Buy
Sell
in € millions
2024
2024
2025
2025
US dollar
362
678
339
576
Pound sterling
820
46
925
52
Chinese yuan
66
128
99
52
Brazilian real
26
38
10
147
Thai baht
16
116
8
109
Australian dollar
1
78
—
51
Korean won
5
30
8
41
Moroccan dirham
—
21
12
37
Taiwan dollar
13
47
4
34
South African rand
6
63
—
47
Other2
192
298
158
205
Total
1,507
1,543
1,563
1,351
1 No hedge accounting was applied on these notional amounts in 2025.
2 No individually significant position is included in Other, the amounts per currency are highly disaggregated.
Investments in foreign subsidiaries and associates
During 2025 no net investment hedge accounting was applied on hedges of net investments in foreign
operations. In 2024, net investment hedge accounting was applied on hedges of certain net investments in
foreign operations, which were partly hedged. The main net investments included in 2024 were related to
Chinese yuan, Brazilian real, Vietnamese dong, Indian rupee, Indonesian rupiah and Taiwanese dollar,
which were hedged with forward exchange contracts for the same currencies. The spot results related to
these hedges were recognized in other comprehensive income and accumulated in the cumulative
translation reserves. At year-end 2025 and 2024, no hedges of net investments were outstanding. During
2024, the hedges of net investments were fully effective.
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AkzoNobel Report 2025
Interest rate risk management
We are partly financed with debt in order to obtain more efficient leverage. Interest rate risk is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Fixed rate debt results in fair value interest rate risk. Floating rate debt results in cash flow
interest rate risk. At the end of 2025, 81% of our total debt consisted of fixed rate bonds (2024: 64%) and
and 12% of short-term loans (2024: 11%). We had no commercial paper at the end of 2025 (2024: 18%).
The fixed/floating ratio of our outstanding bonds was 100% fixed (2024: 100% fixed). The weighted
average maturity of our outstanding bonds at year-end is 5.3 years (2024: 5.8 years). The remainder of our
total debt consisted of leas liabilities and other debt. For more information about our debt, refer to Note 20
Net debt. During 2025 and 2024, we have not used any interest rate derivatives.
Capital risk management
Our objectives when managing capital are to safeguard our ability to satisfy our capital providers and to
maintain a capital structure that optimizes our cost of capital. For this we maintain an adequate financial
strategy, with the objective to retain a strong investment grade credit rating as assigned by the rating
agencies Moody’s and Standard & Poor’s. The capital structure can be altered, among others, by
adjusting the amounts of dividends paid to shareholders, return of capital to capital providers, or issuance
of new debt or shares. In March 2025, a bond was issued with a nominal value of €500 million and a
coupon of 4%, maturing in 2034.
Leverage ratio
Consistent with other companies in the industry, we monitor capital headroom based on the leverage ratio
net debt/adjusted EBITDA, for which we have set a target range of around 2 for the mid-term. At
December 31, 2025, net debt/adjusted EBITDA was 2.0 (December 31, 2024: 2.6).
Adjusted EBITDA
in € millions
2024
2025
Operating income
917
1,164
Depreciation and amortization*
365
363
Identified items
196
(83)
Adjusted EBITDA
1,478
1,444
* Excluding identified items.
Leverage ratio
in € millions
2024
2025
Net debt*
3,901
2,942
Net debt/Adjusted EBITDA
2.6
2.0
*Breakdown of net debt is available in the Note 20 Net debt.
For the calculation of net debt, refer to Note 20 Net debt. Leverage ratio is an Alternative Performance
Measure. For more details refer to Note 3, section Alternative Performance Measures.
Fair value of financial instruments and IFRS 9 categories
In the table “Fair value per financial instrument category” on the next page, insight is provided in the
recognition of the respective financial instruments per IFRS 9 category. The total carrying value is based on
the accounting principles in this Note. Financial instruments are recognized at fair value and subsequently
recognized either at fair value or at amortized cost, using the effective interest method. The financial
instruments accounted for at fair value through profit or loss are derivative financial instruments and
securities included in financial non-current assets, other current liabilities and short-term investments. The
remaining financial instruments are accounted for at amortized cost.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Fair value per financial instrument category
Carrying value per IFRS 9 category
in € millions
Carrying
amount
Out of scope
of IFRS7
Measured at
amortized
cost
Measured at
fair value
through profit
or loss
Total carrying
value
Fair value of items
measured at
amortized cost
December 31, 2024
Financial non-current assets1
1,274
1,013
242
19
261
250
Trade and other receivables2
2,498
258
2,224
16
2,240
2,224
Short-term investments
165
—
—
165
165
—
Cash and cash equivalents
1,302
—
1,302
—
1,302
1,302
Total financial assets
5,239
1,271
3,768
200
3,968
3,776
Long-term borrowings
3,671
—
3,671
—
3,671
3,559
Short-term borrowings
1,697
—
1,697
—
1,697
1,697
Trade and other payables3
2,740
405
2,319
16
2,335
2,319
Total financial liabilities
8,108
405
7,687
16
7,703
7,575
December 31, 2025
Financial non-current assets1
1,127
966
155
6
161
155
Trade and other receivables2
2,403
226
2,161
16
2,177
2,162
Short-term investments
302
—
—
302
302
—
Cash and cash equivalents
1,618
—
1,618
—
1,618
1,618
Total financial assets
5,450
1,192
3,934
324
4,258
3,935
Long-term borrowings
3,670
—
3,670
—
3,670
3,577
Short-term borrowings
1,192
—
1,192
—
1,192
1,190
Trade and other payables3
2,690
419
2,261
10
2,271
2,261
Total financial liabilities
7,552
419
7,123
10
7,133
7,028
1 €966 million (2024: €1,013 million) out of scope for IFRS7 mainly relates to pension assets (refer to Note 14), €155 million (2024: €242 million) measured at amortized cost relates to loans and receivables and various other financial non-current assets (refer to Note 14); €6 million (2024: €19 million) measured at FVTPL
relates to other financial instruments (2024: €12 million long-term investments and €7 million other financial instruments) (refer to Note 14).
2 €226 million (2024: €258 million) out of scope for IFRS7 mainly relates to (non-)income taxes receivable (refer to Note 16), €2,161 million (2024: €2,224 million) relates to the remainder of trade and other receivables (refer to Note 16) and €16 million (2024: €16 million) relates to FX contracts measured at fair value through
profit or loss (refer to Note 16).
3 €419 million (2024: €405 million) out of scope for IFRS7 mainly relates to payables to employees and (non-)income taxes payable (refer to Note 21), €2,261 million (2024: €2,319 million) relates to the remainder of trade and other payables (refer to Note 21) and €10 million (2024: €16 million) relates to FX contracts
measured at FVTPL (refer to Note 21).
The following valuation methods for financial instruments carried at fair value through profit or loss are
distinguished:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable)
For the purpose of determining the fair value per financial instrument category, shown in the column fair
value, the following valuation methods were used:
• A Level 1 valuation method was used to estimate the fair value of the bonds issued included in our long-
term and short-term borrowings. The estimate is based on the quoted market prices for the same or
similar issues or on the current rates offered to us for debt with similar maturities
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
• A Level 2 valuation method was used to determine the fair value of marketable securities included in
cash and cash equivalents and short-term investments by obtaining the market price at reporting date.
The fair value of foreign currency contracts and swap contracts was also determined by Level 2 valuation
techniques using market observable input (such as foreign currency interest rates based on Refinitiv/
LSEG) and by obtaining quotes from dealers and brokers. Further, a level 2 valuation method was used
to determine the fair value of time deposits included in cash and cash equivalents and short-term
investments using the market interest rate. Finally, the carrying amounts of cash and banks, trade
receivables less allowance for impairment, other short-term borrowings and other current liabilities
approximate fair value due to the short maturity period of those instruments and were determined using
Level 2 fair value methods
Sensitivities of financial instruments recorded in the balance sheet at year-end 2025
Sensitivity object
Sensitivity
Hypothetical impact
Foreign currencies:
We perform foreign currency sensitivity analysis by applying an adjustment to the spot rates prevailing at year-end. This adjustment is based
on observed changes in the exchange rate in the past and management’s expectation for reasonably possible* future movements over a
longer term from a sensitivity test perspective. We then apply the expected possible volatility to revalue all monetary assets and liabilities
(including derivative financial instruments) in a currency other than the functional currency of the subsidiary in the balance sheet at year-end.
These effects are of a fairly linear nature.
A 10% (2024: 10%) strengthening of other currencies versus US dollar
A 10% (2024: 10%) strengthening of other currencies versus the pound sterling
A 10% (2024: 10%) strengthening of other currencies versus Chinese yuan
Profit €33 million (2024: profit €21 million).
Loss €1 million (2024: profit €1 million)
Profit €1 million (2024: profit €1 million)
Interest rate:
We perform interest rate sensitivity analysis by applying an adjustment to the interest rate curve prevailing at year-end. This adjustment is
based on observed changes in the interest rate in the past and management’s expectation for reasonably possible* future movements over a
longer term from a sensitivity test perspective. We then apply the expected possible volatility to revalue all interest bearing assets and liabilities.
These effects are of a fairly linear nature.
A 100 basis points (2024: 100 basis points) increase of EUR interest rates
A 100 basis points (2024: 100 basis points) increase of USD interest rates
A 100 basis points (2024: 100 basis points) increase of GBP interest rates
Loss €1 million (2024: loss €10 million)
Profit €1 million (2024: profit €1 million)
Nil (2024: profit €1 million)
* This analysis does not indicate any probability of such changes occurring; nor does it preclude larger changes in any given period or longer term.
Master netting agreements
We enter into derivative transactions under International Swaps and Derivatives Association (ISDA) master
netting agreements. In general, under such agreements the amounts owed by each counterparty on a
single day in respect of transactions outstanding in the same currency may be aggregated into a single net
amount that is payable by one party to the other. In certain circumstances – e.g. when a credit event such
as a default occurs – all outstanding transactions under the agreement may be terminated, the termination
value is assessed and a net amount is payable in settlement of the transactions. We have evaluated the
potential effect of netting agreements, including the effect of rights of set-off, and concluded that the
impact is immaterial. We did not offset any amounts regarding derivative transactions.
NOTE 27: SUBSEQUENT EVENTS
On November 18, 2025, Akzo Nobel N.V. (“AkzoNobel”) entered into a definitive agreement to merge with
Axalta Coating Systems Ltd. (“Axalta”) in an all-stock transaction. The merger remains subject to
shareholder and regulatory approvals, as well as other customary closing conditions, and is expected to
close in late 2026 to early 2027. For more details refer to Note 2, section Mergers and acquisitions.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AkzoNobel Report 2025
Statement of income
in € millions, for the year ended December 31
Note
2024
2025
General and administrative expenses
(31)
(48)
Operating income
(31)
(48)
Financing income
B
80
77
Financing expenses
B
(264)
(201)
Financing income and expenses
B
(184)
(124)
Net income from subsidiaries
D
732
787
548
663
Profit before tax
517
615
Income tax
25
20
Net income
542
635
Balance sheet, before allocation of profit
in € millions, at December 31
Note
2024
2025
Assets
Fixed assets
Intangible assets
C
93
80
Financial fixed assets
D
10,996
10,838
Total fixed assets
11,089
10,918
Current assets
Short-term receivables
E
463
531
Short-term investments
G
162
300
Cash and cash equivalents
G
504
734
Total current assets
1,129
1,565
Total assets
12,218
12,483
Equity and liabilities
Equity
Subscribed share capital
85
86
Cash flow hedge reserve
—
—
Other legal reserves
319
312
Cumulative translation reserves
(579)
(801)
Actuarial gains and losses
(3,117)
(3,112)
Other reserves
7,399
7,615
Undistributed results
467
559
Shareholders’ equity
F
4,574
4,659
Provisions
—
6
Long-term liabilities
G
3,550
3,550
Current liabilities
Short-term borrowings
G
4,011
4,101
Other current liabilities
H
83
167
Total current liabilities
4,094
4,268
Total equity and liabilities
12,218
12,483
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE A: GENERAL INFORMATION
Akzo Nobel N.V. is a company headquartered in the Netherlands. The address of our registered office is
Christian Neefestraat 2, Amsterdam; the Chamber of Commerce number is 09007809.
The financial statements of Akzo Nobel N.V. have been prepared in accordance with Part 9 of Book 2 of
the Dutch Civil Code, making use of the option of Article 362 of the Code, meaning that the accounting
principles used are the same as for the Consolidated financial statements. These principles also include the
classification and presentation of financial instruments, being equity instruments or financial liabilities.
Foreign currency amounts have been translated, assets and liabilities have been valued, and net income
has been determined in accordance with the principles of valuation and determination of income presented
in the relevant notes of the Consolidated financial statements.
Investments in subsidiaries are measured using the net asset value method, based on the measurement of
assets, provisions and liabilities and determination of profit based on the principles applied in the
consolidated financial statements.
The remuneration paragraph is included in Note 25 of the Consolidated financial statements. The number
of employees having a contract with the company at year-end 2025 was six (2024: six). All employees are
based in the Netherlands.
NOTE B: FINANCING INCOME AND EXPENSES
Financing income and expenses are specified in the table below.
Financing income and expenses
in € millions
2024
2025
Financing income - third parties
17
17
Financing income - subsidiaries
63
60
Financing expense - third parties
(142)
(138)
Financing expense - subsidiaries
(129)
(65)
Net interest on net debt
(191)
(126)
Other items
7
2
Net other financing income/(expenses)
7
2
Total financing income and expenses
(184)
(124)
Other items in 2025 and 2024 mainly include foreign currency exchange results.
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE C: INTANGIBLE ASSETS
Intangible assets mainly include (internally developed) software.
Intangible assets
in € millions
Other intangibles
Balance at January 1, 2024
Cost of (internally developed) intangibles
153
Accumulated amortization
(56)
Carrying value at January 1, 2024
97
Movements in 2024
Additions
17
Amortization
(21)
Total movements
(4)
Cost of (internally developed) intangibles
170
Accumulated amortization
(77)
Balance at December 31, 2024
93
Movements in 2025
Additions
9
Amortization
(22)
Total movements
(13)
Cost of (internally developed) intangibles
179
Accumulated amortization
(99)
Balance at December 31, 2025
80
NOTE D: FINANCIAL FIXED ASSETS
Financial fixed assets
Subsidiaries
in € millions
Share in
capital
Loans
Other non-
current
assets
Total
Balance at January 1, 2024
10,198
635
131
10,964
Investments/acquisitions/capital contributions
374
—
1
375
Divestments/capital repayments/dividends
(1,181)
—
—
(1,181)
Net income from subsidiaries
732
—
—
732
Equity-settled transactions
14
—
—
14
Loans granted
—
178
—
178
Loans transferred from long-term to short-term
—
(100)
—
(100)
Repayment of loans
—
(8)
—
(8)
Post-retirement benefits
(104)
—
—
(104)
Deferred tax assets
—
—
5
5
Changes in exchange rates
131
(10)
—
121
Balance at December 31, 2024
10,164
695
137
10,996
Investments/acquisitions/capital contributions
34
—
—
34
Divestments/capital repayments/dividends
(778)
—
—
(778)
Remeasurement of financial assets
—
—
6
6
Net income from subsidiaries
787
—
—
787
Equity-settled transactions
15
—
—
15
Cash flow hedges
16
—
—
16
Loans granted
—
214
—
214
Loans transferred from long-term to short-term
—
(69)
(99)
(168)
Repayment of loans
—
(19)
—
(19)
Post-retirement benefits
4
—
—
4
Deferred tax assets
—
—
(5)
(5)
Changes in exchange rates
(235)
(29)
—
(264)
Balance at December 31, 2025
10,007
792
39
10,838
Loans to subsidiaries that will mature between two and five years amounted to €786 million (2024: €692
million). An amount of €6 million will mature after five years (2024: €3 million).
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
AkzoNobel Report 2025
Intercompany loans and in-house bank positions are priced at arm’s length, taking into consideration
factors like the credit quality of AkzoNobel and the counterparty, country and currency risk. The carrying
amount of the loans to subsidiaries approximates the fair value. The loans are not secured by collateral.
The subordinated loan granted to the Pension Fund APF in the Netherlands was transferred to short-term
receivables.
Other non-current assets contain €39 million deferred tax assets (2024: €44 million). Akzo Nobel N.V. is
head of the Dutch fiscal unity for corporate income tax. Members of the fiscal unity reflect taxes in their
accounts as if they are taxable on a standalone basis and are charged or credited accordingly by the
company.
NOTE E: SHORT-TERM RECEIVABLES
Short-term receivables
in € millions, at December 31
2024
2025
Receivables from subsidiaries
436
387
FX contracts
15
15
Other receivables
12
129
Total
463
531
Short-term receivables are expected to be settled within one year. Receivables from subsidiaries include
interest to be received on intercompany loans of €15 million (2024: €15 million) and the current portion of a
loan to a subsidiary maturing in 2025 with a value of €128 million. The carrying value of the receivables
from subsidiaries approximates the fair value. For more details on intercompany loans and in-house bank
positions, refer to Note D Financial non-current assets.
In 2025, other short term receivables include the subordinated loan granted to the Dutch Pension Fund
APF, which was reclassified from financial non-current assets. Due to changes in Dutch pension legislation,
which the pension fund expects to implement by January 1, 2027, APF must repay the loan before the
transition. Consequently, the expected repayment timing was revised and the carrying amount was
adjusted to reflect the loan’s present value, resulting in a valuation of €99 million (2024: €91 million).
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
AkzoNobel Report 2025
NOTE F: SHAREHOLDERS’ EQUITY
Statement of changes in equity
Legal reserves
in € millions
Subscribed
share capital
Cash flow hedges
Other
legal reserves
Cumulative
translation reserves
Actuarial gains
and losses
Other reserves
Undistributed
results
Shareholders’
equity
Balance at January 1, 2024
85
—
312
(711)
(3,013)
7,282
367
4,322
Changes in exchange rates in respect of subsidiaries
—
—
—
132
—
—
—
132
Post-retirement benefits
—
—
—
—
(104)
—
—
(104)
Net income
—
—
—
—
—
—
542
542
Comprehensive income
—
—
—
132
(104)
—
542
570
Dividend
—
—
—
—
—
—
(338)
(338)
Equity-settled transactions
—
—
—
—
—
23
—
23
Acquisition of non-controlling interests
—
—
—
—
—
(3)
—
(3)
Addition to other reserves
—
—
7
—
—
97
(104)
—
Balance at December 31, 2024
85
—
319
(579)
(3,117)
7,399
467
4,574
Changes in exchange rates in respect of subsidiaries
—
—
—
(222)
—
—
—
(222)
Post-retirement benefits
—
—
—
—
5
—
—
5
Net income
—
—
—
—
—
—
635
635
Comprehensive income
—
—
—
(222)
5
—
635
418
Dividend
—
—
—
—
—
—
(339)
(339)
Issue of common shares
1
—
—
—
—
(1)
—
—
Equity-settled transactions
—
—
—
—
—
24
—
24
Acquisition of non-controlling interests
—
—
—
—
—
(18)
—
(18)
Addition to other reserves
—
—
(7)
—
—
211
(204)
—
Balance at December 31, 2025
86
—
312
(801)
(3,112)
7,615
559
4,659
The holders of common shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at the Annual General Meeting of shareholders. The holders of the priority
shares are entitled to a dividend of 6% per share or the statutory interest in the Netherlands, whichever is
lower, plus any accrued and unpaid dividends. They are entitled to 800 votes per share (in accordance
with the 800 times higher nominal value per share) at the Annual General Meeting of shareholders. In
addition, the holders of priority shares have the right to draw up binding lists of nominees for appointment
to the Supervisory Board and the Board of Management; amendments to the Articles of Association are
subject to the approval of the Meeting of Holders of Priority Shares.
Priority shares may only be transferred to a transferee designated by a Meeting of Holders of Priority
Shares and against payment of the par value of the shares, plus interest at the rate of 6% per annum or the
statutory interest in the Netherlands, whichever is lower, for the period between the beginning of the year
and the date of transfer. There are no restrictions on voting rights of holders of common or priority shares.
The Articles of Association set out procedures for exercising voting rights. The Annual General Meeting of
shareholders has resolved in 2025 to authorize the Board of Management for a period of 18 months (i) to
issue shares (or grant rights to shares) in the capital of the company up to a maximum of 10% of the total
number of shares outstanding (and to restrict or exclude the pre-emptive rights to those shares) and (ii) to
acquire shares in the capital of the company, provided that the shares that will at any time be held will not
exceed 10% of the issued share capital. The issue or repurchase of shares requires the approval of the
Supervisory Board.
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Unrestricted reserves at year-end
in € millions
2024
2025
Shareholders’ equity at year-end
4,574
4,659
Subscribed share capital
(85)
(86)
Subsidiaries’ restrictions to transfer funds
(225)
(231)
Reserve for development costs
(94)
(80)
Unrestricted reserves
4,170
4,262
Of the shareholders’ equity of €4.7 billion (2024: €4.6 billion), €4.3 billion (2024: €4.2 billion) was
unrestricted and available for distribution, subject to the relevant provisions of our Articles of Association
and Dutch law.
Legal reserves include the €231 million reserve relating to earnings retained by subsidiaries after the year
1983, to the extent that there are limitations to arrange profit distributions, and the €80 million reserve for
capitalized development costs.
Dividend
Our dividend policy is to pay a stable to rising dividend.
In 2025, an interim dividend of €0.44 (2024: €0.44) per common share was paid. We propose a 2025 final
dividend of €1.54 (2024: €1.54) per common share, which would equal a total 2025 dividend of €1.98
(2024: €1.98).
NOTE G: NET DEBT
Analysis of net debt by category
in € millions, at December 31
2024
2025
Bonds issued
3,433
3,434
Debt to subsidiaries
117
116
Long-term borrowings
3,550
3,550
Current portion of long-term borrowings
—
500
Debt to credit institutions
1,486
500
Debt to subsidiaries
2,521
3,098
Other
4
3
Short-term borrowings
4,011
4,101
Total borrowings
7,561
7,651
Short-term investments
(162)
(300)
Cash and cash equivalents
(504)
(734)
Net debt
6,895
6,617
Multi-currency revolving credit facility
We have a multi-currency revolving credit facility of €1.3 billion which runs until 2027. This facility does not
contain financial covenants or acceleration provisions that are based on adverse changes in ratings or
material adverse change. At year-end 2025 and 2024, this facility had not been drawn.
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Long-term borrowings
At year-end 2025, bonds issued amounted to €3,434 million (2024: €3,433 million); a specification of the
long-term portion of the bonds issued is included in the table below.
Bonds issued
in € millions, at December 31
2024
2025
1 1/8% 2016/26 (€500 million)
499
—
1 1/2% 2022/28 (€600 million)
598
599
1 5/8% 2020/30 (€750 million)
746
747
2% 2022/32 (€600 million)
596
597
4% 2023/33 (€500 million)
496
496
3 3/4% 2024/34 (€500 million)
498
498
4% 2025/35 (€500 million)
—
497
Total
3,433
3,434
For the fair value of the bonds issued, refer to Note 26 Financial risk management in the Consolidated
financial statements. We estimated the fair value of the bonds issued based on the quoted market prices
(Level 1) for the same or similar issues or on the current rates offered to us for debt with similar maturities.
At year-end 2025, the fair value of the bonds included in long-term and short-term borrowings was €3,840
million (2024: €3,321 million).
In March 2025, a bond was issued with a nominal value of €500 million and a coupon of 4%, maturing in
2035. A bond with a nominal value of €500 million maturing in 2026 was reclassified to short-term
borrowings.
The average effective interest rate of the bonds included in long-term borrowings outstanding at year-end
2025 was 2.7% (year-end 2024: 2.2%).
At year-end 2025 and 2024, none of the borrowings was secured by collateral.
An amount of €1,346 million (2024: €1,097 million) of bonds issued will mature between two and five years.
An amount of €2,088 million (2024: €2,336 million) will mature after five years.
An amount of €117 million (2024: €116 million) of debt to subsidiaries will mature between two and five
years. An amount of €1 million (2024: €1 million) will mature after five years.
Short-term borrowings
The current portion of long-term borrowings increased due to the reclassification of a €500 million bond
maturing in 2026.
At year-end 2025, our debt to credit institutions amounted to €500 million (2024: €1,486 million). For the
fair value of the debt to credit institutions, refer to Note 26 Financial risk management in the Consolidated
financial statements. We have US dollar and euro commercial paper programs in place of $3.0 billion (€2.6
billion) and €1.5 billion respectively, which we intend to use only to the extent that the equivalent portion of
the €1.3 billion multi-currency revolving credit facility is not used. We had no commercial paper outstanding
at year-end 2025 (2024: €1.0 billion against an average interest rate of 3.4%).
At year-end 2025, we had short-term bank loans outstanding of €0.5 billion (2024: €0.5 billion) against a
three-month Euribor plus a mark-up rate (2024: three-month Euribor plus a mark-up rate). None of these
facilities contain financial covenants.
Debt to subsidiaries consists of the current portion of intercompany loans and in-house bank positions
which are expected to be settled within one year or have no fixed repayment schedule. The debt is not
secured by collateral. For more details on intercompany loans and in-house bank positions, refer to note D.
The carrying amounts of short-term borrowings and other current liabilities approximate fair value due to
the short maturity period of those instruments.
Short-term investments
At year-end 2025, we had short-term investments outstanding for an amount of €300 million (2024: €162
million). Short-term investments almost entirely consist of time deposits, money market funds and
marketable securities with a lifetime at investment date longer than three months but shorter than twelve
months.
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Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in € millions, at December 31
2024
2025
Cash on hand and in banks
291
239
Deposits and money markets funds with a maturity less than three months
213
495
Included under cash and cash equivalents in the balance sheet
504
734
Deposits and money market funds within cash and cash equivalents almost entirely consist of time
deposits immediately convertible into known amounts of cash and with a maturity of three months or less
from the date of purchase, and marketable securities that can be redeemed immediately when called.
NOTE H: OTHER CURRENT LIABILITIES
Other current liabilities
in € millions, at December 31
2024
2025
Suppliers
—
39
Payables to subsidiaries
18
52
FX contracts
14
10
Interest payable
48
62
Other liabilities
3
4
Total
83
167
The carrying amount of payables to subsidiaries approximates the fair value.
Other current liabilities are expected to fall due in less than one year.
NOTE I: FINANCIAL INSTRUMENTS
At year-end 2025, Akzo Nobel N.V. had foreign exchange contracts outstanding to buy currencies for a
total of €1.5 billion (year-end 2024: €1.4 billion), while contracts to sell currencies totaled €1.4 billion (year-
end 2024: €1.4 billion). The contracts mainly relate to US dollars, pound sterling, Chinese yuan, Thai baht,
Brazilian real, Australian dollars, Korean won, Moroccan dirham, South African rand and Taiwanese dollars
and all have maturities within one year. These contracts were partly offset by the foreign exchange
contracts concluded with subsidiaries; fair value changes are recognized in the statement of income, or
recognized in other comprehensive income in case hedge accounting is applied. For information on risk
exposure and risk management, see Note 26 Financial risk management in the Consolidated financial
statements.
NOTE J: CONTINGENT LIABILITIES
Akzo Nobel N.V. is parent of the group’s fiscal unity in the Netherlands, and is therefore liable for the
liabilities of said fiscal unity as a whole.
Akzo Nobel N.V. has declared in writing that it accepts joint and several liability for contractual debts of
certain Dutch and Irish consolidated companies (Article 403 of Book 2 of the Dutch Civil Code and section
357(1) of the Irish Companies Act 2014, respectively). These debts at year-end 2025 aggregate to €0.4
billion (2024: €0.5 billion), and are included in the consolidated balance sheet.
At year-end 2025, guarantees were issued on behalf of consolidated companies for an amount of €0.2
billion (2024: €0.2 billion). The debts and liabilities of the consolidated companies underlying these
guarantees are included in the consolidated balance sheet.
A number of claims against Akzo Nobel N.V. are pending, which are contested. This includes those where
Akzo Nobel N.V. and two of its subsidiaries are defending claims brought by INPEX Operations Australia in
2021 and JKC Australia LNG in 2017 relating to the specification and use of an AkzoNobel product which
was applied to part of the pipework for the Ichthys Onshore Project in Darwin, Australia, a large LNG
project, between 2013 and 2015. At year-end 2025, no provision was recorded at Akzo Nobel N.V. level
(in the parent company balance sheet). For more details on these claims and the provision that was made
in the consolidated books in 2025, reference is made to Note 19 Other provisions and contingent liabilities
in the Consolidated financial statements.
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NOTE K: INDEPENDENT AUDITOR’S FEES
Our independent auditor, PricewaterhouseCoopers Accountants N.V., has rendered, for the period to
which the audit of the financial statements relates, in addition to the audit of the Consolidated financial
statements, mainly statutory audit services for controlled entities.
Fees PricewaterhouseCoopers 2025
in € millions
In the
Netherlands
Network
outside the
Netherlands
Total
Audit of the financial statements
4.2
5.8
10.0
Other audit services
—
0.2
0.2
Review of the Sustainability statements
0.6
—
0.6
Tax services
—
0.2
0.2
Other non-audit services
—
—
—
Total
4.8
6.2
11.0
Fees PricewaterhouseCoopers 2024
in € millions
In the
Netherlands
Network
outside the
Netherlands
Total
Audit of the financial statements
4.9
5.2
10.1
Other audit services
0.1
0.1
0.2
Review of the Sustainability statements
0.6
—
0.6
Tax services
—
—
—
Other non-audit services
—
—
—
Total
5.6
5.3
10.9
Amsterdam, February 23, 2026
The Board of Management
Greg Poux-Guillaume, Maarten de Vries
The Supervisory Board
Ben Noteboom, Ester Baiget, Jaska de Bakker, Hans Van Bylen, Wouter Kolk, Hans-Joachim Müller,
Ute Wolf
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OTHER INFORMATION
Proposal for profit allocation
211
Profit allocation and distributions
211
Special rights to holders of priority shares
211
Independent auditor’s report
212
Limited assurance report on the Sustainability statements
224
Financial summary
227
Glossary
231
List of affiliated legal entities and corporations
233
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Proposal for profit allocation
With due observance of Dutch law and the Articles of Association, it is proposed that net income of €296
million is carried to the other reserves. Furthermore, with due observance of article 43, paragraph 7, it is
proposed that dividend on priority shares of €1,152 and on common shares of €339 million (to be
increased by dividend on shares issued in 2026 before the ex-dividend date) will be distributed. Following
the acceptance of this proposal, the holders of common shares will receive a total dividend of €1.98 per
share, of which €0.44 was paid earlier as an interim dividend. The final dividend of €1.54 per share will be
made available from May 7, 2026.
Profit allocation and distributions
The following articles of our Articles of Association govern profit allocation and distribution:
Article 43
43.6
The Board of Management shall be authorized to determine, with the approval of the Supervisory Board,
what share of profit remaining after application of the provisions of the foregoing paragraphs shall be
carried to reserves. The remaining profit shall be placed at the disposal of the Annual General Meeting of
shareholders, with due observance of the provisions of paragraph 7, it being provided that no further
dividends shall be paid on the preferred shares.
43.7
From the remaining profit, the following distributions shall, to the extent possible, be made as follows:
a.To the holders of priority shares: 6% per share or the statutory interest referred to in paragraph 1 of
article 13, whichever is lower, plus any accrued and unpaid dividends
b.To the holders of common shares: a dividend of such an amount per share as the remaining profit, less
the aforesaid dividends and less such amounts as the Annual General Meeting of shareholders may
decide to carry to reserves, shall permit
43.8
Without prejudice to the provisions of paragraph 4 of this article and of paragraph 4 of article 20, the
holders of common shares shall, to the exclusion of everyone else, be entitled to distributions made from
reserves accrued by virtue of the provision of paragraph 7b of this article.
43.9
Without prejudice to the provisions of article 42 and paragraph 8 of this article, the Annual General Meeting
of shareholders may decide on the utilization of reserves only on the proposal of the Board of Management
approved by the Supervisory Board.
Article 44
44.7
Cash dividends by virtue of paragraph 4 of article 20, article 42, or article 43 that have not been collected
within five years of the commencement of the second day on which they became due and payable shall
revert to the company.
Special rights to holders of priority shares
The priority shares are held by Stichting Akzo Nobel (Foundation Akzo Nobel), whose board is composed
of the members of the Supervisory Board who are not members of the Audit Committee. They each have
one vote on the board of the Foundation.
The Meeting of Holders of Priority Shares has the right to draw up binding lists of nominees for
appointment to the Supervisory Board and the Board of Management. Amendments to the Articles of
Association are subject to the approval of this meeting.
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INDEPENDENT AUDITOR’S
REPORT
To: The Annual General Meeting and the Supervisory Board of Akzo
Nobel N.V.
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS 2025
Our opinion
In our opinion:
• The Consolidated financial statements of Akzo Nobel N.V. together
with its subsidiaries (“the Group”) give a true and fair view of the
financial position of the Group as at December 31, 2025, and of its
result and cash flows for the year then ended in accordance with
IFRS Accounting Standards as adopted by the European Union
(“EU”) and with Part 9 of Book 2 of the Dutch Civil Code
• The Company financial statements of Akzo Nobel N.V. (“the
Company”) give a true and fair view of the financial position of the
Company as at December 31, 2025, and of its result for the year
then ended in accordance with Part 9 of Book 2 of the Dutch Civil
Code
What we have audited
We have audited the accompanying financial statements 2025 of
Akzo Nobel N.V., Amsterdam, the Netherlands. The financial
statements comprise the Consolidated financial statements of the
Group and the Company financial statements.
The Consolidated financial statements comprise:
• The Consolidated balance sheet as at December 31, 2025
• The following statements for 2025: the Consolidated statements of
income, of comprehensive income, of cash flows and of changes
in equity
• The Notes to the Consolidated financial statements, including
material accounting policies and other explanatory information
The Company financial statements comprise:
• The Balance Sheet as at December 31, 2025
• The Statement of income for 2025
• The Notes to the Company financial statements, comprising a
summary of the accounting policies applied and other explanatory
information
The financial reporting framework applied in the preparation of the
financial statements is IFRS Accounting Standards as adopted by
the EU and the relevant provisions of Part 9 of Book 2 of the Dutch
Civil Code for the Consolidated financial statements, and Part 9 of
Book 2 of the Dutch Civil Code for the Company financial
statements.
The basis for our opinion
We conducted our audit in accordance with Dutch law, including the
Dutch Standards on Auditing. We have further described our
responsibilities under those standards in the section “Our
responsibilities for the audit of the financial statements” of our report.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of Akzo Nobel N.V. in accordance with the
European Union Regulation on specific requirements regarding
statutory audit of public-interest entities, the “Wet toezicht
accountantsorganisaties” (Wta, Audit firms supervision act), the
“Verordening inzake de onafhankelijkheid van accountants bij
assuranceopdrachten” (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to independence) and other
relevant independence regulations in the Netherlands. Furthermore,
we have complied with the “Verordening gedrags- en beroepsregels
accountants” (VGBA, Dutch Code of Ethics).
Our audit approach
We designed our audit procedures with respect to the key audit
matters, fraud and going concern, and the matters resulting from
that, in the context of our audit of the financial statements as a whole
and in forming our opinion thereon. Therefore, we do not provide
separate opinions or conclusions on information in support of our
opinion, such as our findings and observations related to individual
key audit matters and the audit approach to address fraud risk and
going concern.
Overview and context
Akzo Nobel N.V. is a global paints and coatings company
headquartered in the Netherlands. The Group is comprised of
several components and therefore we considered our group audit
scope and approach as set out in the section “The scope of our
group audit”. In our audit we paid specific attention to the areas of
focus driven by the operations of the Group, as set out below.
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial
statements. In particular, we considered where the Board of
Management made important judgments, for example, in respect of
significant accounting estimates that involved making assumptions
and considering future events that are inherently uncertain. In Note 1
of the Consolidated financial statements, the Company describes
the areas of judgment in applying accounting policies and the key
sources of estimation uncertainty. We considered the measurement
of deferred tax assets, the valuation of goodwill and brands with
indefinite useful lives for Decorative Paints China and North Asia, the
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measurement of post-retirement benefit provisions and the
recognition, measurement and disclosure of the provision and
contingent liability related to Project Ichthys to be key audit matters
as set out in the section “Key audit matters” of this report, given the
significant estimation uncertainty, the judgmental nature, the
magnitude of the balances involved and the related higher inherent
risk of material misstatement.
Another area of focus, that was not considered to be a key audit
matter, was related to the divestment of Akzo Nobel India Limited.
Akzo Nobel N.V. assessed the potential effects of climate change
and developed plans to meet the Group’s announced emissions
reduction commitments. The Group considered, among others,
physical risks, such as those associated with heat stress, flooding
events and water scarcity, as well as transition risks, such as those
associated with upgrading (energy) inefficient assets, prioritizing
renewable electricity purchase and production and transitioning from
fossil to renewable fuels. Management also assessed the resulting
impact on the financial position, including underlying assumptions
and estimates. As part of our audit risk assessment, we gained an
understanding of the Group’s strategy and sustainability targets,
evaluated the potential impact on the financial statements and
discussed the assessment and governance thereof with
management. We did not consider the effects of climate change to
be a key audit matter.
We ensured that the audit teams at both group and component level
included the appropriate skills and competences which are needed
for the audit of the Group. We therefore included experts in the areas
of pensions, share-based payments, forensics and valuations, and
specialists in the areas of tax, IT and treasury in our teams.
The outline of our audit approach was as follows:
Materiality
• Overall materiality: €49.9 million
Audit scope
• We conducted audit work at 45 components in 18 countries
• Site visits were conducted for six countries – this included visits to
our component teams in China, India, United Kingdom, United
States of America, Italy and the Netherlands, which collectively
cover 26 components within our audit
• Audit coverage: 65% of consolidated revenue, 71% of
consolidated total assets and 97% of consolidated profit before
tax
Key audit matters
• Measurement of deferred tax assets
• Valuation of goodwill and brands with indefinite useful lives for
Decorative Paints China and North Asia
• Measurement of post-retirement benefit provisions
• Recognition, measurement and disclosure of the provision and
contingent liability related to Project Ichthys
Materiality
The scope of our audit was influenced by the application of
materiality, which is further explained in the section “Our
responsibilities for the audit of the financial statements”.
Based on our professional judgment, we determined certain
quantitative thresholds for materiality, including the overall materiality
for the financial statements as a whole, as set out in the table
opposite. These, together with qualitative considerations, helped us
to determine the nature, timing and extent of our audit procedures
on the individual financial statement line items and disclosures and to
evaluate the effect of identified misstatements, both individually and
in aggregate, on the financial statements as a whole and on our
opinion.
Overall
group
materiality
€49.9 million (2024: €41.9 million).
Basis for
determining
materiality
We used our professional judgment to determine
overall materiality. As a basis for our judgment, we
used 5% of profit before tax.
Rationale
for
benchmark
applied
We used profit before tax as the primary benchmark,
a generally accepted auditing practice, based on our
analysis of the common information needs of the
users of the financial statements. On this basis, we
believe that profit before tax is the most relevant
metric for the financial performance of the Company.
Component
materiality
Based on our judgment, we allocate materiality to
each component in our audit scope that is less than
our overall group materiality. The range of materiality
allocated across components was between €8
million and €37 million.
We also take misstatements and/or possible misstatements into
account that, in our judgment, are material for qualitative reasons.
We agreed with the Supervisory Board that we would report to them
any misstatement identified during our audit above €2.5 million
(2024: €2 million) as well as misstatements below that amount that,
in our view, warranted reporting for qualitative reasons. Where
misstatements have no impact on profit before tax, we agreed that
we would report those above €24.9 million.
The scope of our group audit
Akzo Nobel N.V. is the parent company of a group of entities. The
financial information of this group is included in the Consolidated
financial statements of Akzo Nobel N.V.
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We are responsible for the identification and assessment of the risks
of material misstatement of the financial statements of the group,
including those with respect to the consolidation process. Based on
our risk assessment, we tailored the scope of our audit to ensure
that we, in aggregate, performed sufficient work on the financial
statements to enable us to provide an opinion on the financial
statements as a whole.
In setting the scope of our group audit we determined what audit
work needed to be performed at group level or component level and
whether involvement of component auditors was necessary. Based
on this outcome, we used component auditors who are familiar with
the local laws and regulations to perform the audit work. We
subjected 30 components to audits of their complete financial
information. We further subjected 15 components for audit
procedures to achieve appropriate coverage on financial line items in
the Consolidated financial statements such as financial non-current
assets, inventories, customer-related receivables, short-term
investments, revenue and cost of sales.
In total, in performing these procedures, we achieved the following
coverage on the financial line items:
Revenue
65%
Total assets
71%
Profit before tax
97%
None of the remaining components represented more than 4% of
total group revenue, total group assets or total group profit before
tax. For those remaining components we performed, among others,
analytical procedures to corroborate our assessment that there were
no significant risks of material misstatements within those
components.
Where component auditors performed the work, we determined the
nature, timing and extent of direction and supervision of the
component auditors and review of their work. We furthermore:
• Issued group audit instructions to component auditors to set
expectations for the component auditor’s work and facilitate our
direction and supervision of the component auditor and review of
their work
• Participated in discussions with component auditors as part of
planning the engagement, including when we as the group auditor
assigned tasks or procedures to component auditors, such as the
performance of risk assessment procedures or determining the
nature, timing and extent of audit responses to identified and
assessed risks of material misstatement
• Communicated with component auditors throughout the course of
the group audit, either virtually by leveraging technology solutions,
in-person meetings (e.g. as part of a site visit to the component
auditor’s territory), or through a combination of these, in order to
monitor the progress of the component auditor’s work. These
ongoing communications included matters affecting the execution,
completion and reporting of the group audit
• Reviewed relevant parts of the component auditor’s work,
including the component auditor’s communication of matters
relevant to our conclusion with regard to the group audit. Our
review of the component auditor’s work took place throughout the
engagement. This included on-site and/or virtual reviews, including
the review of component auditor’s working papers
• Reviewed formal written communications prepared by the
component auditor
• Attended certain key client meetings (e.g. certain planning,
execution and closing meetings) between the component auditor
and component management
The group engagement team performed the audit work on the
Group consolidation, financial statement disclosures and a number
of more complex items and processes controlled and monitored
centrally by Akzo Nobel N.V. These include the impairment test of
goodwill and other intangible assets with indefinite useful lives,
share-based payments, recoverability of deferred tax assets,
provisions and contingent liabilities, treasury, IT general controls
testing and the procedures over the Company financial statements.
By performing the procedures outlined above at the components,
combined with additional procedures exercised at Group level, we
have been able to obtain sufficient and appropriate audit evidence
on the Group’s financial information, to provide a basis for our
opinion on the financial statements.
Audit approach fraud risks
We identified and assessed the risks of material misstatements of
the financial statements due to fraud. During our audit, we obtained
an understanding of Akzo Nobel N.V. and its environment and the
components of the internal control system. This included
management’s risk assessment process, management’s process for
responding to the risks of fraud and monitoring the internal control
system and how the Supervisory Board exercised oversight, as well
as the outcomes.
We evaluated the design and implementation of relevant aspects of
the internal control system with respect to the risks of material
misstatements due to fraud and in particular the fraud risk
assessment and the processes for identifying and responding to the
risk of fraud and the internal control that management has
established to mitigate these risks. Akzo Nobel N.V. has an integrity
and compliance program, which includes a governance and
organization structure that focuses on policies and procedures
around risk management, policy management, communication,
training and education, a competition law program, privacy program,
anti-bribery and anti-corruption program, third party risk
management program, export controls and sanctions, monitoring,
grievance and investigation procedures, and reporting. We evaluated
the design and the implementation of certain internal controls
designed to mitigate fraud risks.
We asked members of the Board of Management, the Executive
Committee, the Supervisory Board and others within the Group,
including the Internal Audit and Integrity and Compliance functions,
whether they are aware of any actual or suspected fraud. This did
not result in signals of actual or suspected fraud that may lead to a
material misstatement.
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As part of our process of identifying fraud risks, we evaluated fraud
risk factors with respect to financial reporting fraud, misappropriation
of assets and bribery and corruption. We evaluated whether these
factors indicate that a risk of material misstatement due to fraud is
present.
.
We identified the following fraud risks and performed the following specific procedures:
Identified fraud risks
Our audit work and observations
Risk of fraud through management
override of control
Management is in a unique position to
perpetrate fraud because of management’s
ability to manipulate accounting records and
prepare fraudulent financial statements by
overriding controls that otherwise appear to be
operating effectively. That is why, in all our
audits, we pay attention to the risk of
management override of controls:
(i) the appropriateness of journal entries and
other adjustments made in the preparation of
the financial statements, (ii) accounting
estimates and (iii) significant transactions, if
any, outside the normal course of business of
the entity.
We have evaluated the design and implementation of internal control measures in the processes of generating and processing
journal entries and forming estimates. This includes assessing access safeguards in the IT system and the possibility that these
lead to violations of the segregation of duties.
In testing journal entries, we have selected journal entries on the basis of risk criteria and performed audit procedures on them,
including inspection of the source documentation to assess the validity of the business rationale, and substantiation of
corroborating evidence. In this context, we also tested the consolidation and elimination entries, evaluated transactions outside
the normal course of business and tested them where this was relevant in our audit.
We performed audit procedures related to the significant estimates and judgments by management, as listed in Note 1 to the
Consolidated financial statements. These procedures include assessing management’s ability to estimate by assessing previous
estimations with actual outcomes, performing sensitivity analyses, testing the models, methodology and inputs to supporting
evidence and challenging management’s forecasts as applicable. For each estimate, we paid attention to the inherent risk of bias
of management in estimates.
Our audit procedures did not lead to specific indications of fraud or suspicions of fraud with respect to management override of
control.
The risk of fraud in revenue recognition
Based on our risk assessment procedures, we
concluded that the risk of fraud in revenue
recognition is related to the occurrence of
revenue transactions, due to the Group’s
strategy to continuously grow and expand
market share.
We evaluated the design of the internal control measures that are intended to mitigate the risk of fraud in revenue recognition and
where relevant to our audit, assessed the effectiveness of those measures in the processes of recognizing revenue.
Through data analysis, we tested unexpected journal entries based on revenue recognition criteria, performed relevant testing on
revenue transactions throughout the year and the receivable balances at year end.
We tested, on a sample basis, the delivered performance and transaction prices of the revenue transactions based on sales
agreements, delivery documents, sales invoices and cash receipts.
Our audit procedures did not lead to specific indications of fraud or suspicions of fraud with respect to occurrence of the revenue
reporting.
We incorporated an element of unpredictability in our audit. During the audit, we remained alert to indications of fraud. Furthermore, we considered the outcome of our other audit procedures and evaluated whether any
findings were indicative of fraud.
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Audit approach going concern
As disclosed in Note 1 of the Consolidated financial statements, the
Board of Management prepared the financial statements on the
assumption that the Company is a going concern and that it will
continue all its operations for at least 12 months from the date of
preparation of the financial statements. Our procedures to evaluate
the Board of Management’s going concern assessment included,
among others:
• Considering whether the Board of Management identified events
or conditions that may cast significant doubt on the entity’s ability
to continue as a going concern (hereafter: going concern risks)
• Analyzing the Company’s financial position per the balance sheet
date, such as financial leverage and cash positions, in relation to
the financial position per prior year balance sheet date to assess
whether events or circumstances exist that may lead to a going
concern risk, and the liquidity risk management has disclosed in
Note 26 of the Consolidated financial statements
• Evaluating the Board of Management’s current budget, including
cash flows, taking into account current developments in the
market and all relevant information of which we were aware as a
result of our audit
• Analyzing whether the current and the required financing has been
secured to enable the continuation of the entirety of the entity’s
operations, including compliance with relevant covenants
• Performing inquiries of the Board of Management and other
management as to their knowledge of going concern risks beyond
the period of the Board of Management’s assessment
Our procedures did not result in outcomes contrary to the Board of
Management’s assumptions and judgments used in the application
of the going concern assumption.
Key audit matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in the audit of the financial
statements. We have communicated the key audit matters to the
Supervisory Board. The key audit matters are not a comprehensive
reflection of all matters identified by our audit, and that we
discussed. In this section, we described the key audit matters and
included a summary of the audit procedures we performed on those
matters. The valuation of goodwill and brands with indefinite useful
lives for Decorative Paints China and North Asia and the
Recognition, measurement and disclosure of the provision and
contingent liability related to Project Ichthys are included as new key
audit matters when compared with the prior year.
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Measurement of deferred tax assets
Note 8
Management’s assessment of the recoverability of deferred tax assets in the Netherlands and the UK, as
included in the total amounts reported for tax credits (€224 million) and tax loss carryforwards (€179
million), is significant to our audit as the positions are material to the Group, calculations are complex and
involve high estimation uncertainty and judgmental assumptions, which could be subject to management
bias. The key assumptions include the scheduled reversal of deferred tax liabilities, projected future
taxable income, tax planning strategies and the application of local fiscal regulations and developments.
The Group’s disclosures concerning income taxes are included in Note 8 of the Consolidated financial
statements.
We evaluated management’s assessment of the recoverability of the deferred tax assets by evaluating the
key data inputs, assumptions and models applied by management. We performed procedures to validate
the mathematical accuracy of management's models and traced management’s key inputs to appropriate
supporting documentation.
We challenged and corroborated management’s key assumptions utilized in arriving at their estimated
future taxable income which included, among others, growth rates used to estimate future taxable profits,
the impacts of company plans/initiatives on the Company’s future taxable profits and the ability and intent
of management to execute tax planning strategies which could impact future taxable profits.
With the assistance of our tax specialists, we assessed the applicable local fiscal regulations and
developments, interest limitation rules and specific requirements of the settlement of tax credits.
We assessed the adequacy of the disclosures on deferred tax assets within Note 8.
Our procedures did not result in material findings with respect to the measurement of deferred tax assets
and related disclosures at December 31, 2025.
Key audit matter
Our audit work and observations
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Valuation of goodwill and brands with indefinite useful lives for Decorative Paints China and
North Asia
Note 10
As at December 31, 2025, the allocated value for goodwill and brands with indefinite useful lives for the
Decorative Paints China and North Asia (DP CNA) business unit amounted to €408 million. Management
assesses this balance for impairment, together with the other goodwill and indefinite life brand balances,
at least annually and whenever a triggering event occurs. This assessment involves comparing the
forecasted recoverable amount of DP CNA, as well as the other CGUs, with their respective carrying
amounts.
In 2025, we identified this as a key audit matter due to the inherent complexity of the impairment testing
process, which requires significant management judgment, the historical revenue trends in DP CNA in
recent years, and the implications of the transition to a new, more centralized organizational structure for
the global Decorative Paints business on the impairment testing model for DP CNA.
We evaluated management’s process over the impairment test for goodwill and other intangible assets
with indefinite useful lives by evaluating the key data inputs, assumptions and models applied by
management; just before and after the change to a more centralized organizational structure for the global
Decorative Paints business. We also assessed the revision in the treatment of the Dulux brand in the
impairment test following organizational changes in 2025, which was tested to corroborative evidence.
For the existing and new impairment testing model, we have challenged management’s key assumptions
for DP CNA such as the projected sales growth, margin development and discount rate.
We reconciled management’s key assumptions and certain other inputs to appropriate supporting
documentation and, where considered relevant, developed independent estimates of the recoverable
amount by aligning certain key assumptions to historical company trends or observable market
information.
We involved our valuation experts to assist us in evaluating the appropriateness and mechanical accuracy
of the impairment testing models used and the discount rates and terminal value growth rate assumptions
applied.
We assessed management’s comparison of the sum of the future cash flow forecasts of all CGUs to the
Company’s market capitalization.
We assessed the adequacy of the disclosures on management’s impairment testing within Note 10.
Our procedures did not result in material findings with respect to the valuation of goodwill and brands with
indefinite useful lives for DP CNA and related disclosures at December 31, 2025.
Key audit matter
Our audit work and observations
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Key audit matter
Our audit work and observations
Measurement of defined benefit obligations
Note 18
The post-retirement benefit provisions consist of defined benefit obligations (€7.7 billion), more than offset
by plan assets (€8.3 billion). The largest defined benefit pension plans are the ICI Pension Fund and the
Akzo Nobel (CPS) Pension Scheme in the UK, which together account for 89% of the defined benefit
obligation (DBO) and 94% of the plan assets.
We consider the valuation of the largest defined benefit obligations to be a key audit matter because
positions are significant to the Group and the assessment process is complex and involves significant
management judgment, which could be subject to management bias. The key actuarial assumptions used
include discount rate, price inflation, pension increase and mortality – life expectancy. The Group’s
disclosures are included in Note 18 of the Consolidated financial statements.
With the assistance of our actuarial experts, we have evaluated management’s key actuarial assumptions
and the valuation methodologies applied, as well as the objectivity and competence of the Group’s
external pension experts used for the calculation of the defined benefit obligations.
We have challenged management on the key assumptions, primarily on their assumptions applied to
which the defined benefit obligations are most sensitive (discount rate, price inflation, pension increases
and mortality – life expectancy assumptions), by performing independent testing over the assumptions
and methodologies used and comparing these to published actuarial tables, among others. Furthermore,
we tested the census data of participants.
We also assessed the adequacy of the Group’s disclosures on post-retirement benefit provisions and
assumptions within Note 18.
Our procedures did not result in material findings with respect to the measurement of defined benefit
obligations at December 31, 2025.
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Key audit matter
Our audit work and observations
Recognition, measurement and disclosure of the provision and contingent liability related to
Project Ichthys
Note 19
The company and certain of its (former) group companies are involved in legal proceedings, as well as
proceedings by/discussions with, governments, tax authorities, environmental agencies and other
authorities. As further disclosed in Note 19 “Other provisions and contingent liabilities”, this includes
several material claims collectively identified as Project Ichthys.
In Q3 2025, AkzoNobel recognized a provision of €300 million in respect of Project Ichthys, relating to the
elements in the claims for which the IAS 37 recognition criteria are met. Other elements not meeting the
requirements for provision recognition are presented as contingent liabilities and have remained
unprovided for.
Auditing the recognition, measurement and disclosure of the provision and contingent liability related to
Project Ichthys is complex because it requires specialized legal expertise to assess possible outcomes
and their likelihood and subsequent judgment from management for meeting the recognition,
measurement and disclosure requirements as outlined in IAS 37. Additionally, estimating the potential
impact of unfavorable results - and the amounts involved - can be significant for the Group’s financial
statements as a whole.
We obtained an understanding of the company’s process relating to the identification and evaluation of
legal claims, litigation and investigations, and the recognition, measurement and continuous
re-assessment of the related provisions, contingent liabilities and disclosures.
We discussed the status of the claims identified as Project Ichthys with both internal and external legal
counsel. We challenged management’s assumption for claim recognition (or not) and corroborated such
position, among others with customary year-end lawyers’ letters requested from external legal counsel
involved in the proceedings and other relevant evidence of the court proceedings. For the elements
recognized as a provision, we tested the calculation of management’s estimate.
We evaluated the adequacy of the company’s disclosure for Project Ichthys against the customary year-
end lawyers’ letters received, other information relevant to the court proceedings and the disclosure
requirements of IAS 37, including the appropriateness of applying disclosure exemptions as defined by
IAS 37.92, where such disclosure might seriously prejudice the outcome of the matter.
Our procedures did not result in material findings with respect to the recognition, measurement and
disclosures of Project Ichthys at December 31, 2025.
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REPORT ON THE OTHER INFORMATION
INCLUDED IN THE ANNUAL REPORT
The annual report contains other information. This includes all
information in the annual report in addition to the financial
statements and our auditor’s report thereon.
Based on the procedures performed as set out below, we conclude
that the other information:
• Is consistent with the financial statements and does not contain
material misstatements
• Contains all the information regarding the management report and
the other information that is required by Part 9 of Book 2 and
regarding the remuneration report required by the sections 2:135b
and 2:145 subsection 2 of the Dutch Civil Code
We have read the other information. Based on our knowledge and
the understanding obtained in our audit of the financial statements or
otherwise, we have considered whether the other information
contains material misstatements.
By performing our procedures, we comply with the requirements of
Part 9 of Book 2 and section 2:135b subsection 7 of the Dutch Civil
Code and the Dutch Standard 720. The scope of such procedures
was substantially less than the scope of those procedures
performed in our audit of the financial statements.
The Board of Management is responsible for the preparation of the
other information, including the management report and the other
information in accordance with Part 9 of Book 2 of the Dutch Civil
Code. The Board of Management and the Supervisory Board are
responsible for ensuring that the remuneration report is drawn up
and published in accordance with sections 2:135b and 2:145
subsection 2 of the Dutch Civil Code.
REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS AND ESEF
Our appointment
We were appointed as auditors of Akzo Nobel N.V. on April 29,
2014, by the Supervisory Board. This followed the passing of a
resolution by the shareholders at the Annual General Meeting held
on April 29, 2014. Our appointment has been renewed annually by
shareholders and now represents a total period of uninterrupted
engagement of ten years.
European Single Electronic Format (ESEF)
Akzo Nobel N.V. has prepared the annual report in ESEF. The
requirements for this are set out in the Delegated Regulation (EU)
2019/815 with regard to regulatory technical standards on the
specification of a single electronic reporting format (hereinafter: the
RTS on ESEF).
In our opinion, the annual report prepared in XHTML format,
including the marked-up Consolidated financial statements, as
included in the reporting package by Akzo Nobel N.V., complies in
all material respects with the RTS on ESEF.
The Board of Management is responsible for preparing the annual
report, including the financial statements in accordance with the RTS
on ESEF, whereby the Board of Management combines the various
components into a single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion
whether the annual report in this reporting package complies with
the RTS on ESEF.
We performed our examination in accordance with Dutch law,
including Dutch Standard 3950N “Assuranceopdrachten inzake het
voldoen aan de criteria voor het opstellen van een digitaal
verantwoordingsdocument” (assurance engagements relating to
compliance with criteria for digital reporting).
Our examination included among others:
• Obtaining an understanding of the entity’s financial reporting
process, including the preparation of the reporting package
• Identifying and assessing the risks that the annual report does not
comply in all material respects with the RTS on ESEF and
designing and performing further assurance procedures
responsive to those risks to provide a basis for our opinion,
including:
– Obtaining the reporting package and performing validations to
determine whether the reporting package containing the Inline
XBRL instance document and the XBRL extension taxonomy
files have been prepared in accordance with the technical
specifications as included in the RTS on ESEF
– Examining the information related to the Consolidated financial
statements in the reporting package to determine whether all
required mark-ups have been applied and whether these are in
accordance with the RTS on ESEF
No prohibited non-audit services
To the best of our knowledge and belief, we have not provided
prohibited non-audit services as referred to in article 5(1) of the
European Regulation on specific requirements regarding statutory
audit of public-interest entities.
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Services rendered
The services, in addition to the audit, that we have provided to the
Company or its controlled entities, for the period to which our
statutory audit relates, are disclosed in Note K to the Company
financial statements.
RESPONSIBILITIES FOR THE FINANCIAL
STATEMENTS AND THE AUDIT
Responsibilities of the Board of Management
and the Supervisory Board for the financial
statements
The Board of Management is responsible for:
• The preparation and fair presentation of the financial statements in
accordance with IFRS Accounting Standards as adopted by the
EU and Part 9 of Book 2 of the Dutch Civil Code
• Such internal control as the Board of Management determine is
necessary to enable the preparation of the financial statements
that are free from material misstatement, whether due to fraud or
error
In preparing the financial statements, the Board of Management is
responsible for assessing the Company’s ability to continue as a
going concern. Based on the financial reporting frameworks
mentioned, the Board of Management should prepare the financial
statements using the going concern basis of accounting, unless the
Board of Management either intends to liquidate the Company or to
cease operations or has no realistic alternative but to do so. The
Board of Management should disclose in the financial statements
any event and circumstances that may cast significant doubt on the
Company’s ability to continue as a going concern.
The Supervisory Board is responsible for overseeing the Company’s
financial reporting process.
Our responsibilities for the audit of the
financial statements
Our responsibility is to plan and perform an audit engagement in a
manner that allows us to obtain sufficient and appropriate audit
evidence to provide a basis for our opinion. Our objectives are to
obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to
fraud or error and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high but not absolute level of
assurance, and is not a guarantee that an audit conducted in
accordance with the Dutch Standards on Auditing will always detect
a material misstatement when it exists. Misstatements may arise due
to fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial
statements.
Materiality affects the nature, timing and extent of our audit
procedures and the evaluation of the effect of identified
misstatements on our opinion.
We have exercised professional judgment and have maintained
professional skepticism throughout the audit in accordance with
Dutch Standards on Auditing, ethical requirements and
independence requirements. Our audit consisted, among other
things, of the following:
• Identifying and assessing the risks of material misstatement of the
financial statements, whether due to fraud or error, designing and
performing audit procedures responsive to those risks, and
obtaining audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or intentional override of internal
control
• Obtaining an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control
• Evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related
disclosures made by the Board of Management
• Concluding on the appropriateness of the Board of Management’s
use of the going concern basis of accounting, and based on the
audit evidence obtained, concluding whether a material uncertainty
exists related to events and/or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report and are
made in the context of our opinion on the financial statements as a
whole. However, future events or conditions may cause the
Company to cease to continue as a going concern
• Evaluating the overall presentation, structure and content of the
financial statements, including the disclosures, and evaluating
whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation
We are responsible for planning and performing the group audit to
obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a
basis for forming an opinion on the financial statements. We are also
responsible for the direction, supervision and review of the audit
work performed for purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Supervisory Board regarding, among
other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit. In this respect, we
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also issue an additional report to the Audit Committee in accordance
with article 11 of the EU Regulation on specific requirements
regarding statutory audit of public-interest entities. The information
included in this additional report is consistent with our audit opinion
in this auditor’s report.
We provide the Supervisory Board with a statement that we have
complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and
where applicable, related actions taken to eliminate threats or
safeguards applied.
From the matters communicated with the Supervisory Board, we
determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Amsterdam, February 23, 2026
PricewaterhouseCoopers Accountants N.V
Original has been signed by D. van Ameijden RA
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LIMITED ASSURANCE
REPORT OF THE
INDEPENDENT AUDITOR ON
THE SUSTAINABILITY
STATEMENTS
To: The Annual General Meeting and the Supervisory Board of Akzo
Nobel N.V.
Our limited assurance conclusion
Based on the procedures we have performed and the assurance
evidence we have obtained, nothing has come to our attention that
causes us to believe that the Sustainability statements of Akzo Nobel
N.V. (the Company) for 2025 are not, in all material respects:
• Prepared in accordance with the European Sustainability
Reporting Standards (ESRS) as adopted by the European
Commission and in accordance with the process, carried out by
the Company, to identify the information to be reported pursuant
to the ESRS
• Compliant with the reporting requirements provided for in Article 8
of Regulation (EU) 2020/852 (“the Taxonomy Regulation”)
The subject matter of our limited assurance
procedures
We have conducted a limited assurance engagement on the
Sustainability statements of Akzo Nobel N.V., Amsterdam for 2025,
included in the section Sustainability statements of the management
report, including the information incorporated in the Sustainability
statements by reference (hereafter: “the Sustainability statements”).
In the Sustainability statements, references are made to external
sources or websites. The information on these external sources or
websites is not subject to our limited assurance procedures for the
Sustainability statements. We therefore do not provide assurance on
this information.
The basis for our conclusion
We conducted our limited assurance engagement in accordance
with Dutch law, including the Dutch Standard 3810N
“Assuranceopdrachten inzake
duurzaamheidsverslaggeving” (assurance engagements relating to
sustainability reporting), which is a specific Dutch Standard that is
based on the International Standard on Assurance Engagements
(ISAE) 3000 (Revised) “Assurance engagements other than audits or
reviews of historical financial information”.
Our responsibilities under this standard are further described in the
section “Our responsibilities for the limited assurance engagement
on the Sustainability statements” of our report. We believe that the
assurance evidence we have obtained is sufficient and appropriate
to provide a basis for our conclusion.
Our independence and quality management
We are independent of Akzo Nobel N.V. in accordance with the
“Verordening inzake de onafhankelijkheid van accountants bij
assuranceopdrachten” (ViO, Code of ethics for professional
accountants, a regulation with respect to independence) and other
relevant independence regulations in the Netherlands.
Furthermore, we have complied with the “Verordening gedrags- en
beroepsregels accountants” (VGBA, Dutch Code of ethics for
professional accountants).
PwC applies the applicable quality management requirements
pursuant to the “Nadere voorschriften
kwaliteitsmanagement” (NVKM, regulations for quality management)
and the International Standard on Quality Management (ISQM) 1 and
accordingly maintains a comprehensive system of quality
management, including documented policies and procedures
regarding compliance with ethical requirements, professional
standards and other relevant legal and regulatory requirements.
Inherent limitations in preparing the
Sustainability statements
In reporting forward-looking information in accordance with the
ESRS, the Board of Management of the Company is required to
prepare the forward-looking information based on disclosed
assumptions about events that may occur in the future and possible
future actions by the Company. The actual outcome is likely to be
different, since anticipated events frequently do not occur as
expected. Forward-looking information relates to events and actions
that have not yet occurred and may never occur.
The comparability of sustainability information between entities and
over time may be affected by the lack of historical sustainability
information in accordance with the ESRS and by the absence of a
uniform practice on which to draw, to evaluate and measure this
information. This allows for the application of different, but
acceptable, measurement techniques, especially in the initial years.
The quantification of greenhouse gas emissions is subject to inherent
limitations because of evolving methods and knowledge, underlying
emissions factors and other assumptions, including those sourced
from third parties.
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Responsibilities of the Board of Management
and the Supervisory Board for the Sustainability
statements
The Board of Management of Akzo Nobel N.V. is responsible for the
preparation of the Sustainability statements in accordance with
ESRS, including the development and implementation of the double
materiality process, which is a process to identify the information
reported in the Sustainability statements in accordance with the
ESRS and for disclosing this process in the Sustainability
statements.
This responsibility includes:
• Understanding the context in which Akzo Nobel N.V.’s activities
and business relationships take place and developing an
understanding of its affected stakeholders
• The identification of the actual and potential impacts (both negative
and positive) related to sustainability matters, as well as risks and
opportunities that affect, or could reasonably be expected to
affect, the Company’s financial position, financial performance,
cash flows, access to finance or cost of capital over the short,
medium, or long term
• The assessment of the materiality of the identified impacts, risks
and opportunities related to sustainability matters by selecting and
applying appropriate thresholds
• Making assumptions and estimates that are reasonable in the
circumstances
The Board of Management is also responsible for preparing the
disclosures in compliance with the reporting requirements provided
in the Taxonomy Regulation.
The Board of Management is also responsible for selecting and
applying additional entity-specific disclosures to enable users to
understand the Company’s sustainability-related impacts, risks or
opportunities and for determining that these additional entity-specific
disclosures are suitable in the circumstances and in accordance with
the ESRS.
Furthermore, the Board of Management is responsible for such
internal control as the Board of Management determines is
necessary to enable the preparation of the Sustainability statements
that are free from material misstatement, whether due to fraud or
error.
The Supervisory Board is responsible for overseeing the Company’s
sustainability reporting process including the double materiality
process carried out by the Company.
Our responsibilities for the limited assurance
engagement on the Sustainability statements
Our responsibility is to plan and perform the limited assurance
engagement in a manner that allows us to obtain sufficient
appropriate assurance evidence to provide a basis for our
conclusion.
Our objectives are to obtain a limited level of assurance, as
appropriate, about whether the Sustainability statements are free
from material misstatements, and to issue a limited assurance
conclusion in our report. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence decisions of users taken
on the basis of the Sustainability statements. The procedures vary in
nature and timing from, and are less in extent than for, a reasonable
assurance engagement. The level of assurance obtained in a limited
assurance engagement is therefore substantially lower than the
assurance obtained in a reasonable assurance engagement.
Our responsibilities in respect of the Sustainability statements, in
relation to the process to identify the information to be reported in
the Sustainability statements (the process) include:
• Obtaining an understanding of the process, but not for the
purpose of providing a conclusion on the effectiveness of the
process, including the outcome of the process
• Considering whether the information identified addresses the
applicable disclosure requirements of the ESRS; and
• Designing and performing procedures to evaluate whether the
process is consistent with the Company’s description of its
process set out in the Sustainability statements
Our other responsibilities in respect of the limited assurance
engagement on the Sustainability statements include:
• Performing risk assessment procedures, including obtaining an
understanding of internal control relevant to the engagement, to
identify where material misstatements are likely to arise, whether
due to fraud or error
• Designing and performing procedures responsive to where
material misstatements are likely to arise in the Sustainability
statements. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control
Summary of procedures performed
The nature, timing and extent of procedures selected depend on
professional judgment, including the identification of disclosures
where material misstatements are likely to arise in the Sustainability
statements, whether due to fraud or error.
We have exercised professional judgment and have maintained
professional skepticism throughout the assurance engagement, in
accordance with the Dutch Standard 3810N, ethical requirements
and independence requirements. Our procedures included, among
others, the following:
• Performing inquiries and an analysis of the external environment
and obtaining an understanding of relevant sustainability themes
and issues, the characteristics of the Company, its activities and
the value chain and its key intangible resources to assess the
process to identify the information to be reported carried out by
the Company as the basis for the Sustainability statements and
disclosure of all material sustainability-related impacts, risks and
opportunities in accordance with ESRS
• Obtaining through inquiries a general understanding of the internal
control environment, the Company’s processes for gathering and
reporting entity-related and value chain information, the
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information systems and the Company’s risk assessment process
relevant to the preparation of the Sustainability statements and for
identifying the Company’s activities, determining eligible and
aligned activities and preparation of the disclosures provided for in
the Taxonomy Regulation, without testing the operating
effectiveness of controls
• Assessing the double materiality process carried out by the
Company and identifying and assessing areas of the Sustainability
statements, including the disclosures provided for in the
Taxonomy Regulation where misleading or unbalanced information
or material misstatements, whether due to fraud or error, are likely
to arise. We designed and performed further assurance
procedures aimed at determining that the Sustainability
statements are free from material misstatements responsive to this
risk analysis
• Considering whether the description of the process to identify the
information to be reported in the Sustainability statements made
by the Board of Management appears consistent with the process
carried out by the Company
• Evaluating the methods, assumptions and data for developing
estimates and forward-looking information. Assessing whether the
Company’s methods for developing estimates are appropriate and
have been consistently applied for selected disclosures. Our
procedures did not include testing the data on which the estimates
are based or separately developing our own estimates against
which to evaluate the Company’s estimates. We do not provide
assurance on the achievability of this forward-looking information
• Analyzing, on a limited sample basis, relevant internal and external
documentation at the level of the Company (including other entities
or value chain from which the information may stem) for selected
disclosures
• Determining the nature and extent of the procedures to be
performed for the locations. For this, the nature, extent and/or risk
profile of these locations are decisive. Based thereon, we selected
locations to visit, being García Nuevo León, Mexico; Hilden,
Germany. Of these, one was a physical visit and one was virtual.
These visits are aimed at, on a local level, observing parts of the
Company’s Health, Safety, Environment and Security (HSE&S)
audits, validating source data and obtaining through inquiries a
general understanding of the control environment, processes and
information relevant to the preparation of the Sustainability
statements
• Considering whether the disclosures provided to address the
reporting requirements provided for in the Taxonomy Regulation
for each of the environmental objectives reconcile with the
underlying records of the Company and are consistent or coherent
with the Sustainability statements, appear reasonable, in particular
whether anything came to our attention that would cause us to
believe that the eligible economic activities do not meet the
cumulative conditions to qualify as aligned and the technical
criteria are not met, and the accompanying key performance
indicators disclosures have not been defined and calculated in
accordance with the Taxonomy reference framework, and do not
comply with the reporting requirements provided for in the
Taxonomy Regulation, including the format in which the activities
are presented
• Reconciling the relevant financial information to the financial
statements
• Considering the overall presentation, structure and the balanced
content of the Sustainability statements, including the reporting
requirements provided for in the Taxonomy Regulation
• Considering, based on our limited assurance procedures and
evaluation of the assurance evidence obtained, whether anything
came to our attention that would cause us to believe that the
Sustainability statements as a whole, including the sustainability
matters and disclosures, is not clearly and adequately disclosed in
accordance with ESRS
• Reading the other information in the annual report to identify
material inconsistencies, if any, with the Sustainability statements
Calculations to determine information as included in the
Sustainability statements could be based on assumptions and
sources from third parties that include information about, among
others, value chain and information collected from actors in the value
chain, when appropriate. We have not performed procedures on the
content of these assumptions and these external sources, other than
evaluating the suitability and plausibility of these assumptions and
sources from third parties used.
We communicate with the Supervisory Board regarding, among
other matters, the planned scope and timing of the limited assurance
engagement and significant findings that we identify during our
limited assurance engagement.
Amsterdam, February 23, 2026
PricewaterhouseCoopers Accountants N.V.
Original has been signed by D. van Ameijden RA
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Consolidated statement of income
in € millions, for the year ended December 31
20163,4
2017
2018
20195
2020
2021
2022
2023
2024
2025
Revenue
9,434
9,612
9,256
9,276
8,530
9,587
10,846
10,668
10,711
10,158
Operating income1
923
825
605
841
963
1,118
708
1,029
917
1,164
Adjusted operating income1
928
905
798
991
1,099
1,092
789
1,074
1,113
1,081
Adjusted EBITDA1
1,210
1,181
1,037
1,341
1,442
1,436
1,157
1,429
1,478
1,444
Financing income and expenses
(91)
(78)
(52)
(76)
(69)
(39)
(124)
(272)
(102)
(199)
Income tax
(234)
(253)
(118)
(230)
(241)
(246)
(214)
(296)
(246)
(326)
Results from associates
18
17
20
20
25
26
18
27
23
33
Profit/(loss) for the period from continuing operations
616
511
455
555
678
859
388
488
592
672
Discontinued operations
436
393
6,274
22
(7)
6
(10)
(5)
—
(1)
Non-controlling interests
(82)
(72)
(55)
(38)
(41)
(36)
(26)
(41)
(50)
(36)
Net income, attributable to shareholders
970
832
6,674
539
630
829
352
442
542
635
Common shares, in millions at year-end
252.2
252.6
256.2
199.6
190.6
181.6
174.4
170.6
170.8
171.1
Dividend2
239
1,287
390
1,423
366
365
347
338
338
339
Number of employees at year-end (FTE)
36,300
35,700
34,500
33,800
32,200
32,800
35,200
35,200
34,600
31,500
Average number of employees (FTE)
36,200
36,200
34,900
34,200
33,000
32,700
35,100
34,900
35,400
33,500
Employee benefits
1,794
1,935
1,976
1,875
1,850
1,773
1,960
2,008
2,163
2,113
Ratios
Adjusted EBITDA margin%1
12.8
12.3
11.2
14.4
16.9
15.0
10.7
13.4
13.8
14.2
ROI%1
14.4
13.9
12.6
14.1
16.1
16.0
9.8
13.0
13.3
13.5
Per share information
Net income
3.87
3.31
26.19
2.53
3.29
4.48
2.01
2.59
3.17
3.71
Adjusted earnings per share1
3.80
4.40
1.91
3.10
3.88
4.07
2.45
3.07
3.88
3.63
Highest share price during the year
64.74
82.64
82.70
91.86
91.60
107.80
98.50
78.82
75.24
63.50
Lowest share price during the year
50.17
59.11
68.82
69.12
48.50
83.50
56.22
61.42
52.82
48.64
Year-end share price
59.39
73.02
70.40
90.69
87.86
96.50
62.56
74.82
57.96
59.20
1 Refer to the glossary for definitions.
2 Cash dividend paid to shareholders of AkzoNobel.
3 Re-presented to present the Specialty Chemicals business as discontinued operations.
4 Re-presented to the new adjusted earnings per share definition, which no longer excludes post-tax amortization charges.
5 Includes the impact of the adoption of IFRS 16 “Leases”.
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Consolidated balance sheet
In € millions at December 31
20161
2017
2018
20192
2020
2021
2022
2023
2024
2025
Intangible assets
4,413
3,409
3,458
3,625
3,554
3,690
4,072
4,081
4,049
3,798
Property plant and equipment
4,190
1,832
1,748
1,700
1,621
1,800
1,968
1,994
2,122
2,039
Right-of-use assets
—
—
—
374
324
304
291
302
318
294
Other non-current assets
1,736
1,894
1,965
2,541
2,614
2,736
2,166
2,137
1,924
1,760
Total non-current assets
10,339
7,135
7,171
8,240
8,113
8,530
8,497
8,514
8,413
7,891
Inventories
1,532
1,094
1,139
1,139
1,159
1,650
1,843
1,649
1,721
1,529
Trade and other receivables
2,787
1,964
2,141
2,133
1,994
2,339
2,447
2,483
2,498
2,403
Current tax assets
59
62
74
63
55
149
168
134
150
209
Short-term investments
—
—
5,460
138
250
58
336
265
165
302
Cash and cash equivalents
1,479
1,322
2,799
1,271
1,606
1,152
1,450
1,513
1,302
1,618
Assets held for sale
—
4,601
—
—
—
—
—
—
—
—
Total current assets
5,857
9,043
11,613
4,744
5,064
5,348
6,244
6,044
5,836
6,061
Shareholders’ equity
6,553
5,865
11,834
6,350
5,746
5,425
4,333
4,322
4,574
4,659
Non-controlling interests
481
442
204
218
204
211
215
224
242
163
Group equity
7,034
6,307
12,038
6,568
5,950
5,636
4,548
4,546
4,816
4,822
Provisions
1,938
964
899
981
896
812
554
584
541
766
Other non-current liabilities
367
285
368
391
467
567
561
557
491
487
Long-term borrowings
2,644
2,300
1,799
2,042
2,771
1,994
3,332
3,165
3,671
3,670
Total non-current liabilities
4,949
3,549
3,066
3,414
4,134
3,373
4,447
4,306
4,703
4,923
Short-term borrowings
87
973
599
169
119
1,556
2,543
2,398
1,697
1,192
Trade and other payables
3,475
2,794
2,645
2,406
2,580
2,948
2,801
2,933
2,740
2,690
Current tax liabilities
229
118
225
196
162
216
236
211
120
139
Current portion of provisions
422
241
211
231
232
149
166
164
173
186
Liabilities held for sale
—
2,196
—
—
—
—
—
—
—
—
Total current liabilities
4,213
6,322
3,680
3,002
3,093
4,869
5,746
5,706
4,730
4,207
Average invested capital3
6,422
6,494
6,340
7,026
6,834
6,829
8,062
8,233
8,350
8,016
Capital expenditures3,4
634
613
184
214
258
288
292
286
306
309
Depreciation
206
202
181
293
297
281
281
277
293
300
Trade working capital3,5
1,405
927
898
1,068
878
1,247
1,760
1,524
1,645
1,362
Net debt
1,252
1,951
(5,861)
802
1,034
2,340
4,089
3,785
3,901
2,942
Ratios
Operating working capital (Trade) as % of revenue3
10.2
10.2
9.7
11.9
9.9
13.0
16.9
15.1
15.7
14.4
Net debt/Adjusted EBITDA
1.0
1.7
(5.7)
0.6
0.7
1.6
3.5
2.6
2.6
2.0
1 2016 is re-presented to present the Specialty Chemicals business as discontinued operations.
2 Includes the impact of the adoption of IFRS 16 “Leases”.
3 Refer to glossary for definition.
4 Capital expenditures include investments in intangible assets as from 2018.
5 As from 2018 trade payables include certain other payables, which were previously classified as Other working capital. Trade payables, Operating working capital and Other working capital
items have been re-presented for this change of definition for some €240 million.
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Segment statistics
in € millions, for the year ended December 31
2016
2017
2018
20191,2
2020
20213
20224
2023
2024
2025
Decorative Paints
Revenue
3,835
3,898
3,699
3,670
3,558
3,979
4,344
4,300
4,301
4,090
Operating income
366
334
308
425
551
622
388
500
405
401
Adjusted operating income
357
351
346
418
573
580
393
500
485
503
Adjusted EBITDA
491
472
438
573
714
728
548
645
635
648
Adjusted EBITDA margin%
12.8
12.1
11.8
15.6
20.1
18.3
12.6
15.0
14.8
15.8
Average invested capital
2,783
2,803
2,798
3,106
2,799
2,872
3,677
3,755
3,921
3,525
ROI%
12.8
12.5
12.4
13.4
20.5
20.2
10.7
13.3
12.4
14.3
Capital expenditures
107
112
50
62
77
108
91
99
87
85
Average number of employees (FTE)
14,800
14,700
14,100
12,900
12,100
12,500
13,800
14,000
14,100
13,000
Performance Coatings
Revenue
5,665
5,775
5,587
5,549
4,957
5,603
6,499
6,368
6,410
6,068
Operating income
735
668
577
565
665
616
448
698
679
300
Adjusted operating income
759
669
629
688
700
614
497
685
735
665
Adjusted EBITDA
899
817
767
861
854
773
668
854
913
843
Adjusted EBITDA margin%
15.9
14.1
13.7
15.5
17.2
13.8
10.3
13.4
14.2
13.9
Average invested capital
2,586
2,860
3,066
3,325
3,388
3,520
3,895
3,725
3,773
3,595
ROI%
29.4
23.4
20.5
20.7
20.7
17.4
12.8
18.4
19.5
18.5
Capital expenditures
159
129
107
113
146
147
167
165
197
207
Average number of employees (FTE)
19,300
19,800
19,200
18,000
17,500
17,000
18,000
17,600
17,800
17,200
1 The 2019 figures are restated to represent revenue from third parties instead of group revenue.
2 Includes the impact of the adoption of IFRS 16 “Leases”.
3 Operating income, adjusted EBITDA and adjusted operating income (and related measures) per segment for 2021 have been updated to reflect changes in the financial reporting structure related to a narrower definition of corporate activities and corporate costs in corporate and other activities.
4 Revenue, operating income, adjusted operating income, adjusted EBITDA, average invested capital (and related measures) for 2022 have been updated to reflect changes in the financial reporting structure.
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Regional statistics
In € millions
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
The Netherlands
North America
China
Revenue by destination
335
319
315
329
330
1,163
1,416
1,379
1,363
1,264
1,418
1,396
1,400
1,331
1,266
Revenue by origin
445
409
409
465
467
1,194
1,445
1,403
1,385
1,291
1,389
1,387
1,392
1,329
1,283
Capital expenditures
45
45
34
39
29
37
42
29
55
55
30
32
36
28
25
Average invested capital
1,701
2,038
2,013
2,012
1,864
784
899
817
892
980
876
878
887
951
860
Number of employees at year-end (FTE)
2,400
2,300
2,300
2,400
2,100
3,100
3,100
3,100
3,000
2,800
4,400
4,300
4,600
4,300
4,200
UK
Latin America
Other Asian countries and Pacific
Revenue by destination
882
900
1,013
980
961
744
1,298
1,278
1,313
1,210
1,454
1,703
1,624
1,648
1,532
Revenue by origin
1,034
1,092
1,097
1,128
1,082
724
1,282
1,262
1,292
1,195
1,416
1,647
1,569
1,591
1,459
Capital expenditures
26
24
15
20
17
15
16
22
20
21
61
62
63
43
37
Average invested capital
553
503
609
589
579
315
823
1,070
980
898
684
834
778
814
677
Number of employees at year-end (FTE)
3,000
3,000
3,000
2,900
2,700
2,400
5,100
5,200
4,900
4,600
6,200
6,300
6,300
6,500
5,100
Other EMEA countries
Revenue by destination
3,591
3,814
3,659
3,747
3,595
Revenue by origin
3,385
3,584
3,536
3,521
3,381
Capital expenditures
74
71
87
101
125
Average invested capital
1,916
2,087
2,059
2,112
2,158
Number of employees at year-end (FTE)
11,300
11,100
10,700
10,600
10,000
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AGM or EGM
Annual General Meeting of shareholders; Extraordinary General
Meeting of shareholders.
Alternative Performance Measures (APMs)
Performance measures which are not defined by IFRS and which
exclude the so-called identified items. Alternative Performance
Measures include, but are not limited to, adjusted operating income,
(adjusted) EBITDA (margin), adjusted earnings per share and ROI.
Capital expenditures
Capital expenditures is the total of investments in property, plant and
equipment and investments in intangible assets.
Carbon footprint
The total amount of greenhouse gas (GHG) emissions caused during
a defined period of a product’s lifecycle. It is expressed in terms of
the amount of carbon dioxide equivalents CO2eq emitted.
Greenhouse gases include CO2, CO, CH4, N2O and HFCs, which
have a global warming impact. We also include the impact of VOCs
in our targets.
Comprehensive income
Comprehensive income is the change in equity during a period
resulting from transactions and other events, other than those
changes resulting from transactions with shareholders in their
capacity as shareholders.
Constant currencies
Constant currencies calculations exclude the impact of changes in
foreign exchange rates by retranslating the prior year local currency
amounts into euros at the current year’s foreign exchange rates.
CSRD
Corporate Sustainability Reporting Directive.
(Adjusted) earnings per share
Earnings per share are net income attributable to shareholders
divided by the weighted average number of common shares
outstanding during the year.
Adjusted earnings per share are the basic earnings per share,
excluding identified items and taxes thereon.
(Adjusted) EBITDA
EBITDA is operating income excluding depreciation and
amortization.
Adjusted EBITDA is operating income excluding depreciation,
amortization and identified items.
EMEA
Europe, Middle East and Africa.
ESG
Environmental, social and governance.
Free cash flow
Free cash flow is cash generated from/(used for) operating activities,
minus capital expenditures.
Huarun business
The acquired Chinese decorative paints business of Sherwin-
Williams.
HSE&S
Health, safety, environment and security.
Identified items
Identified items are special charges and benefits, (post-) acquisition
and divestment related items, major restructuring and impairment
charges, charges and benefits related to major legal, environmental
and tax cases, pension curtailments and buy-outs, and hyperinflation
accounting adjustments for inventory positions that exceed normal
operational levels.
(Average) invested capital
Invested capital is total assets (excluding cash and cash equivalents,
short-term investments, investments in associates, pension assets,
assets held for sale) less current tax liabilities, deferred tax liabilities
and trade and other payables.
Average invested capital is the average of the quarter-end invested
capital balances for the last four quarters.
Latin America/LATAM
Excludes Mexico.
Leverage ratio
Leverage ratio is net debt divided by Adjusted EBITDA; calculated as
the total of the last 12 months.
Net debt
Net debt is defined as long-term borrowings plus short-term
borrowings less cash, cash equivalents and short-term investments.
North America
Includes Mexico.
North Asia
Includes, among others, China, Japan and South Korea.
(Adjusted) operating income
Operating income is defined in accordance with IFRS and includes
identified items (to the extent these relate to operating income).
Adjusted operating income excludes identified items.
Trade working capital
Trade working capital is defined as the sum of inventories, trade
receivables and trade payables. When expressed as a ratio, trade
working capital is measured against four times last quarter revenue.
Management uses trade working capital to evaluate our cash flow
management, identify opportunities to improve efficiency in
generating cash, and ensure that we maintain low balances to
minimize our need for excess cash reserves.
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GLOSSARY
AkzoNobel Report 2025
Organic sales
Organic sales compares sales between periods, excluding the
impact of changes in consolidation, the impact of changes in foreign
exchange rates and the impact of hyperinflation accounting. Refer to
“Constant currencies” for details on the calculation of the foreign
exchange rate impact.
R&D
Research and development.
Relevant markets
Segments and regions of the paints and coatings industry from
which AkzoNobel generates revenue.
ROI (return on investment)
ROI is adjusted operating income of the last 12 months as a
percentage of average invested capital.
Shareholders’ equity per share
Akzo Nobel N.V. shareholders’ equity divided by the number of
common shares outstanding at year-end.
SESA
South East and South Asia, includes the Pacific.
SSPs
Shared Socio-economic Pathways are scenarios that help model
future changes, including climate change.
TSR (total shareholder return)
Compares the performance of different companies’ stocks and
shares over time. Combines share price appreciation and dividends
paid to show the total return to shareholders. The relative TSR
position reflects the market perception of overall performance
relative to a reference group.
VOC
Volatile organic compounds.
STRATEGY
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GLOSSARY
AkzoNobel Report 2025
List of affiliated legal entities and corporations
List at December 31, 2025, of affiliated legal entities and
corporations in conformity with articles 379 and 414, Book 2 of the
Dutch Civil Code belonging to Akzo Nobel N.V., Amsterdam.
List of consolidated legal entities and corporations
Ownership %1
Argentina
Akzo Nobel Argentina S.A.
Buenos Aires
99.999
Aruba
Arubaanse Verffabriek N.V.
Oranjestad
50.394
Australia
Akzo Nobel Coatings (Holdings) Pty Limited
Sunshine
100
Akzo Nobel Pty Limited
Sunshine
100
Austria
Akzo Nobel Coatings GmbH
Salzburg
100
Akzo Nobel Holding Österreich GmbH
Vienna
100
Bahrain
AkzoNobel Bahrain W.L.L.
Manama
100
Belgium
Akzo Nobel Paints Belgium NV
Vilvoorde
100
Auto Body Services CV (ABS)
Zaventem
84.615
Bolivia
Pinturas Coral De Bolívia Ltda
Santa Cruz de
la Sierra
100
Botswana
Dulux (Botswana) (Pty) Limited
Gaborone
100
Brazil
Akzo Nobel Ltda
São Paulo
100
Canada
Akzo Nobel Coatings Ltd
Ontario
100
Akzo Nobel Wood Coatings Ltd
Port Hope
100
Cayman Islands
ICI International Investments
George Town
100
Chile
International Paint (Akzo Nobel Chile) Ltda
Santiago
100
China
Akzo Nobel (China) Investment Co., Ltd.
Shanghai
100
Akzo Nobel Chang Cheng Coatings (Guangdong)
Co., Ltd.
Shenzhen
100
Akzo Nobel Coatings (Dongguan) Co., Ltd.
Dongguan
100
Akzo Nobel Coatings (Jiaxing) Co., Ltd.
Jiashan
100
Akzo Nobel Coatings (Tianjin) Co., Ltd.
Tianjin
100
Akzo Nobel Decorative Coatings (China) Ltd.
Guangzhou
100
Akzo Nobel Decorative Coatings (Langfang) Co.,
Ltd.
Langfang
100
Akzo Nobel International Paint (Suzhou) Co., Ltd.
Suzhou
100
Akzo Nobel Paints (Chengdu) Limited
Chengdu
100
Akzo Nobel Paints (Guangzhou) Limited
Guangzhou
90
Akzo Nobel Paints (Shanghai) Limited
Shanghai
100
Akzo Nobel Performance Coatings (Changzhou)
Co., Ltd.
Changzhou
100
Akzo Nobel Performance Coatings (Shanghai) Co.,
Ltd.
Shanghai
100
Akzo Nobel Powder Coatings (Chengdu) Co., Ltd.
Chengdu
100
Akzo Nobel Powder Coatings (Langfang) Co., Ltd.
Langfang
100
Akzo Nobel Powder Coatings (Wuhan) Co., Ltd.
Wuhan
100
International Paint of Shanghai Co., Ltd.
Shanghai
51
Sikkens Coatings (Guangdong) Limited
Foshan
100
Colombia
AkzoNobel Colombia S.A.S.
Medellin
100
Anhidridos y Derivados de Colombia S.A.S.
Medellin
100
Cacharreria Mundial S.A.S.
Medellin
100
Compania Global de Pinturas S.A.S.
Medellin
100
Interquim S.A.S.
Medellin
100
Oceanic Paints S.A.S.
Medellin
100
Costa Rica
Pintuco Costa Rica PCR, S.A.
Cartago
100
Curacao
Macomoca B.V.
Willemstad
100
Pintuco Curacao B.V.
Willemstad
100
Czech Republic
Akzo Nobel Coatings CZ, a.s.
Prague
100
Denmark
Akzo Nobel Deco A/S
Copenhagen
100
International Farvefabrik A/S
Herlev
100
Ecuador
Interquimec S.A.
Quito
100
Pinturas Ecuatorianas S.A.
Guayaquil
100
Poliquim, Polimeros y Quimicos C.A.
Guayaquil
100
Egypt
Akzo Nobel Egypt LLC
6th of October
City
100
Akzo Nobel Powder Coatings S.A.E.
Giza
100
El Salvador
Pintuco el Salvador S.A. de C.V.
San Salvador
100
Estonia
Akzo Nobel Baltics AS
Tallinn
100
Eswatini
Dulux Swaziland (Pty) Limited
Matsapha
100
Finland
Oy International Paint (Finland) Ab
Helsinki
100
France
Akzo Nobel Decorative Paints France SAS
Thiverny
99.983
Akzo Nobel Distribution SAS
Corbas
99.983
Akzo Nobel SAS
Montataire
100
Mapaero SAS
Pamiers
100
SAS BOUCHER
Pamiers
100
Germany
Akzo Nobel Coatings GmbH
Stuttgart
100
Akzo Nobel Deco GmbH
Wunstorf
100
Akzo Nobel GmbH
Cologne
100
Akzo Nobel Hilden GmbH
Hilden
100
Akzo Nobel Powder Coatings GmbH
Reutlingen
100
International Farbenwerke GmbH
Börnsen
100
Schramm Coatings GmbH
Offenbach am
Main
100
Schramm Holding GmbH
Offenbach am
Main
100
Greece
Akzo Nobel Anonymous Company of Paints and
Related Products
Athens
100
Varnishes and Paints Industry Vivechrom Dr.
Stefanos D. Pateras S.A.
Mandra Attica
79.184
Guatemala
Pintuco Guatemala S.A.
Guatemala
100
Guernsey
Impkemix Trustee Limited
St. Peter Port
100
Honduras
Pintuco de Honduras, S.A.
Choloma
100
STRATEGY
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LIST OF AFFILIATED LEGAL ENTITIES AND CORPORATIONS
AkzoNobel Report 2025
Hong Kong SAR2
Akzo Nobel Chang Cheng Limited
Hong Kong
100
Akzo Nobel HK (Holdings) Limited
Hong Kong
100
Akzo Nobel Huarun Paints (HK) Holding Limited
Hong Kong
100
International Paint (Hong Kong) Limited
Hong Kong
100
Hungary
Akzo Nobel Coatings Zrt
Budapest
100
India
Akzo Nobel Global Business Services LLP
Pune
100
Akzo Nobel Powder Coatings India Private Limited
Bangalore
100
Indonesia
PT Akzo Nobel Car Refinishes Indonesia
Jakarta
100
PT Akzo Nobel Wood Finishes and Adhesives
Indonesia
Jakarta
100
PT ICI Paints Indonesia
Jakarta
55
PT International Paint Indonesia
Jakarta
100
Ireland
Akzo Nobel (CR9) Limited
Dublin
100
Akzo Nobel Car Refinishes (Ireland) Limited
Dublin
100
Dulux Paints Ireland Limited3
Dublin
100
ICI Fertilisers (Ireland) Limited
Dublin
100
ICI Ireland Limited
Dublin
100
Italy
Akzo Nobel Coatings S.P.A.
Como
100
Japan
Akzo Nobel Coatings K.K.
Tokyo
100
Kenya
Akzo Nobel Kenya Limited
Nairobi
100
Kuwait
International Warba Coatings Paint Mfg Co. W.L.L.
Kuwait
49
Latvia
Akzo Nobel Baltics SIA
Riga
100
Lithuania
Akzo Nobel Baltics, UAB
Vilnius
100
Malaysia
Akzo Nobel Industrial Coatings Sdn Bhd
Kuala Lumpur
100
Akzo Nobel Paints (Malaysia) Sdn Bhd
Kuala Lumpur
100
Akzo Nobel Paints Marketing Sdn Bhd
Selangor
59.949
International Paint Sdn Bhd
Johor Darul
Takzim
70
Mauritius
Akzo Nobel (Mauritius) Limited
Les Pailles
100
Mexico
Akzo Nobel Performance Coatings S.A. de C.V.
Mexico City
100
Morocco
Akzo Nobel Coatings S.A.
Casablanca
59.628
Akzo Nobel Performance Coatings Morocco
S.A.R.L.
Casablanca
100
Distral Maroc S.A.
Rabat
59.608
Sadvel S.A.
Casablanca
59.625
Myanmar
Akzo Nobel (M) Co. Ltd.
Yangon
100
Netherlands4
*Akzo Nobel (C.) Holdings B.V.
Woerden
100
Akzo Nobel Assurantie N.V.
Arnhem
100
*Akzo Nobel Car Refinishes B.V.
Sassenheim
100
*Akzo Nobel Coatings International B.V.
Arnhem
100
*AKZO Nobel Decorative Coatings B.V.
Sassenheim
100
*Akzo Nobel Insurance Management B.V.
Arnhem
100
*Akzo Nobel Management B.V.
Arnhem
100
*Akzo Nobel Nederland B.V.
Arnhem
100
*Akzo Nobel Sino Coatings B.V.
Sassenheim
100
*Akzo Nobel Sourcing B.V.
Arnhem
100
*B.V. Alabastine (Holland)
Ammerzoden
100
*ICI Omicron B.V.
Rotterdam
100
ICI Theta B.V.
Rotterdam
100
*International Paint (Nederland) B.V.
Rhoon
100
*Panter B.V.
Hoofddorp
100
New Zealand
Akzo Nobel Coatings Ltd
Avondale
100
Nicaragua
Industrial Pintuco Nicaragua S.A.
Managua
100
Norway
Akzo Nobel Coatings AS
Oslo
100
Oman
Akzo Nobel Oman SAOC
Muscat
50
Pakistan
Akzo Nobel Pakistan Limited
Karachi
98.315
Panama
Centro de Pinturas Pintuco, S.A.
Panama City
100
International Paint (Panama) Inc.
Mercantil
100
Papua New Guinea
Akzo Nobel Limited
Geheru
100
Peru
Akzo Nobel Peru S.A.C.
Lima
100
Poland
Akzo Nobel Car Refinishes Polska Sp. z o.o.
Warsaw
100
Akzo Nobel Decorative Paints Sp. z o.o.
Warsaw
100
Akzo Nobel Industrial Coatings Sp. z o.o.
Kostrzyn Wlkp.
100
International Paint Sp. z o.o.
Gdansk
100
Portugal
Akzo Nobel Coatings, Unipessoal Lda.
Matosinhos
100
Qatar
Akzo Nobel LLC
Doha
100
Romania
Akzo Nobel Coatings S.R.L.
Popesti-
Leordeni
100
Russian Federation
Akzo Nobel Dekor CJSC
Balashikha
100
OOO "Akzo Nobel Coatings"
Moscow
100
OOO "Akzo Nobel Lakokraska"
Orehovo-
Zuevo
100
Saudi Arabia
Akzo Nobel Saudi Arabia Ltd
Dammam
60
Singapore
Akzo Nobel Paints (Singapore) Pte Ltd
Singapore
100
International Paint Singapore Pte Ltd
Singapore
100
Slovenia
Akzo Nobel Adhezivi d.o.o.
Ljubljana
100
South Africa
AkzoNobel South Africa (Pty) Ltd
Johannesburg
100
ICI Dulux (Pty) Ltd
Johannesburg
100
South Korea
Akzo Nobel Industrial Coatings Korea Ltd
Ansan
100
Akzo Nobel Powder Coatings Korea Co., Limited
Ansan
100
International Paint (Korea) Ltd
Busan
60
International Paint (Research) Ltd
Geoje City
100
Spain
Akzo Nobel Coatings, S.L.U.
Barcelona
100
Sri Lanka
Akzo Nobel Paints Lanka (Pvt) Ltd
Colombo
40
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LIST OF AFFILIATED LEGAL ENTITIES AND CORPORATIONS
AkzoNobel Report 2025
Sweden
Akzo Nobel Adhesives AB
Stockholm
100
Akzo Nobel Car Refinishes AB
Tyresoe
100
Akzo Nobel Decorative Coatings AB
Malmö
100
Akzo Nobel Industrial Coatings AB
Malmö
100
Akzo Nobel Industrial Finishes AB
Västervik
100
Akzo Nobel Sweden Finance AB
Malmö
100
International Färg AB
Göteborg
100
Switzerland
Akzo Nobel Coatings AG
Neuenkirch
100
Taiwan
Akzo Nobel Paints Taiwan Limited
Chung Li
100
International Paint (Taiwan) Limited
Kaohsiung
100
Thailand
Akzo Nobel Paints (Thailand) Limited
Amphur
Pakkred
100
Tunisia
Société Tunisienne de Peintures Astral S.A.
Megrine
60
Türkiye
Akzo Nobel Boya Sanayi ve Ticaret A.S.
Izmir
100
Akzo Nobel Kemipol Kimya Sanayi ve Ticaret A.Ş.
Izmir
51
Akzo Nobel Server Boya Sanayi ve Ticaret A.S.
Dilovası
55
International Paint Pazarlama Limited Sirketi
Istanbul
100
Marshall Boya Ve Vernik Sanayii A.S.
Dilovasi
93.609
Tekyar Teknik Yardim A.S.
Dilovasi
100
Uganda
Akzo Nobel Uganda Limited
Kampala
100
Ukraine
LLC "Akzo Nobel Holding Ukraine"
Kiev
100
United Arab Emirates
Akzo Nobel Decorative Paints L.L.C.
Dubai
49
Akzo Nobel ME Coatings FZE
Jebel Ali Free
Zone
100
Akzo Nobel UAE Paints L.L.C.
Dubai
48.979
United Kingdom
Akzo Nobel (CPS) Pension Trustee Limited
Slough
100
Akzo Nobel (NSC) Limited
Slough
99.902
Akzo Nobel Aerospace Coatings Limited
Slough
100
Akzo Nobel CIF Nominees Limited
Slough
100
Akzo Nobel Coatings (BLD) Limited
Slough
100
Akzo Nobel Coatings Limited
Slough
100
Akzo Nobel Decorative Coatings Limited
Slough
100
Akzo Nobel ICI Holdings
Slough
100
Akzo Nobel Industrial Coatings Limited
Slough
100
Akzo Nobel Limited
Slough
100
Akzo Nobel Packaging Coatings Limited
Slough
100
Akzo Nobel Powder Coatings Limited
Slough
100
Akzo Nobel UK Ltd
Slough
100
Cuprinol Limited
Slough
100
Dulux Limited
Slough
100
Ergon Investments International Limited
Slough
100
Ergon Investments UK Limited
Slough
100
Flexcrete Technologies Limited
Slough
100
Hammerite Products Limited
Slough
100
Holywell-Halkyn Mining and Tunnel Company
Limited
Slough
96.955
I C I Finance Limited
Slough
100
ICI Chemicals & Polymers Limited
Slough
100
Imperial Chemical Industries Limited
Slough
100
International Coatings Limited
Slough
100
International Paint Limited
Slough
100
International Paints (Holdings) Limited
Slough
100
Intex Yarns (Manufacturing) Limited
Slough
100
J.P. McDougall & Co. Limited
Slough
100
Mortar Investments International Limited
Slough
100
Mortar Investments UK Limited
Slough
100
Polycell Products Limited
Slough
100
Sales Support Group Limited
Slough
100
Stevenston Holdings Limited
Edinburgh
100
United States of America
Akzo Nobel Coatings Inc.
Delaware
100
Akzo Nobel Inc.
Delaware
100
Akzo Nobel Services Inc.
Delaware
100
Blue Water Marine Paint LLC
Delaware
100
Expert Management Inc.
Delaware
100
ICI Americas Inc.
Delaware
100
International Paint LLC
Delaware
100
New Nautical Coatings Inc.
Florida
100
Uruguay
Pinturas Inca S.A.
Montevideo
100
Vietnam
Akzo Nobel Vietnam Limited
Binh Duong
100
Zambia
Dulux Zambia (2005) Limited
Lusaka
100
List of non-consolidated legal entities and corporations
Ownership %1
Colombia
Minerales Industriales S.A.S.
Sabaneta
40
Italy
Metlac Holding S.r.l.
Alessandria
49
Metlac S.p.A.
Alessandria
71.667
Spain
Okore Tech, S.L.
Madrid
24.981
1 The ownership percentage represents the interest Akzo Nobel N.V. or one or more of its majority
subsidiaries singly or jointly have in the issued share capital of the participation. The list does not
include entities that are of insignificant relevance in respect of the insight required by law, such as
dormant companies and companies in liquidation.
2 Hong Kong Special Administrative Region.
3 Akzo Nobel N.V. has declared in writing that it guarantees the commitments entered into by Dulux
Paints Ireland Limited, in conformity with section 357(1) of the Irish Companies Act 2014.
4 With respect to the Dutch legal entities marked *, Akzo Nobel N.V. has declared in writing that it
accepts joint and several liability for contractual debts of the relevant companies, in conformity with
article 403, Book 2, of the Dutch Civil Code.
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LIST OF AFFILIATED LEGAL ENTITIES AND CORPORATIONS
AkzoNobel Report 2025
Safe harbor statement
This Report 2025 contains statements which address such key
issues as AkzoNobel’s growth strategy, future financial results,
market positions, product development, products in the pipeline and
product approvals. Such statements should be carefully considered,
and it should be understood that many factors could cause
forecasts and actual results to differ from these statements. These
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pensions, physical and environmental risks, legal issues, and
legislative, fiscal, and other regulatory measures, as well as
significant market disruptions. Stated competitive positions are
based on management estimates, supported by information
provided by specialized external agencies.
Important information regarding the proposed Axalta
transaction
General restrictions
This communication is not for release, publication, or distribution, in
whole or in part, in or into, directly or indirectly, any jurisdiction in
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or sell, or the solicitation of an offer to buy or sell, any securities, or
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securities of AkzoNobel or Axalta or any other financial products or
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Any decision to purchase, subscribe for, otherwise acquire, sell or
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Additional information and where to find it
In connection with the proposed transaction between AkzoNobel
and Axalta, AkzoNobel will file with the U.S. Securities and Exchange
Commission (the “SEC”) a registration statement on Form F-4, which
will include a proxy statement of Axalta that also constitutes a
prospectus with respect to the shares to be offered by AkzoNobel in
the proposed transaction. The definitive proxy statement/prospectus
will be sent to the shareholders of Axalta. Each of AkzoNobel and
Axalta will also file other relevant documents in connection with the
proposed transaction. This communication is not a substitute for any
registration statement, proxy statement/prospectus or other
documents AkzoNobel and/or Axalta may file with the SEC or any
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is not intended to form the basis of any investment decision or any
other decision in respect of the proposed transaction. BEFORE
MAKING ANY VOTING OR INVESTMENT DECISIONS,
INVESTORS, STOCKHOLDERS AND SHAREHOLDERS OF
AKZONOBEL AND AXALTA ARE URGED TO READ
CAREFULLY AND IN THEIR ENTIRETY THE PROXY
STATEMENT/PROSPECTUS, AS APPLICABLE, AND ANY
OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL
BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS
OR SUPPLEMENTS TO THESE DOCUMENTS, IN
CONNECTION WITH THE PROPOSED TRANSACTION WHEN
THEY BECOME AVAILABLE, AS THEY CONTAIN OR WILL
CONTAIN IMPORTANT INFORMATION ABOUT AKZONOBEL,
AXALTA, THE PROPOSED TRANSACTION AND RELATED
MATTERS. The registration statement and proxy statement/
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Axalta with the SEC, when filed, will be available free of charge at the
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statement/prospectus and other documents filed with the SEC from
Axalta’s investor relations webpage at https://ir.axalta.com/sec-
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The contents of this communication should not be construed as
financial, legal, business, investment, tax or other professional
advice. Each recipient should consult with its own professional
advisors for any such matter and advice.
Disclaimer
In this Report 2025, great care has been taken in drawing up the
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“AkzoNobel” and “the company” refer to Akzo Nobel N.V. and its
consolidated companies in general. The company is a holding
company registered in the Netherlands. Business activities are
conducted by operating subsidiaries throughout the world. The
terms “we”, “our” and “us” are used to describe the company; in the
individual business overviews within the Strategy and operations
section, they mainly refer to the business concerned. Throughout
this Report 2025, reference is made to documents on AkzoNobel’s
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annual report.
Brands and trademarks
In this Report 2025, reference is made to brands and trademarks
owned by, or licensed to, AkzoNobel. Unauthorized use of these is
strictly prohibited.
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COLOPHON
AkzoNobel Report 2025
We welcome feedback on our Report 2025.
You can contact us as follows:
Akzo Nobel N.V.
Christian Neefestraat 2
P.O. Box 75730
1070 AS Amsterdam, the Netherlands
T +31 88 969 7555
www.akzonobel.com
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T +31 88 969 7833
E media.relations@akzonobel.com
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T +31 88 969 0139
E investor.relations@akzonobel.com
Editor
David Lichtneker
Art Director
John O’Neill
Design and artwork
KentieDesign
Photography
Menno Noordanus
David Lichtneker
www.akzonobel.com
Since 1792, we’ve been supplying the innovative paints and
coatings that help to color people’s lives and protect what matters
most. Our world class portfolio of brands – including Dulux,
International, Sikkens and Interpon – is trusted by customers around
the globe. We’re active in more than 150 countries and use our
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every surface is an opportunity. It’s what you’d expect from a
pioneering and long-established paints company that’s dedicated to
providing more sustainable solutions and preserving the best of what
we have today – while creating an even better tomorrow. Let’s paint
the future together.
© 2026 Akzo Nobel N.V. All rights reserved.
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AkzoNobel Report 2025