Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Impact Minimization
• Community Support
• Employee Well-being
• Responsible Waste Management
• Circular Economy
• Ethical Conduct

Environmental Achievements

• Reduced sulfur dioxide emissions to almost zero from 2014 to 2018
• Reduced energy usage per ton of products produced from 2014 to 2018
• Achieved a nearly 30 percent reduction in CO2 emissions from 2014 to 2018
• Joined the Alliance to End Plastic Waste (AEPW)
• Joined the Materials Recovery for the Future (MRFF) initiative
• Vinnolit (German subsidiary) received a Gold level rating from EcoVadis in 2018
• Energy savings projects in 2017 and 2018 saved over 10 million kilowatt-hours

Social Achievements

• Approximately 3,000 employees and their families participated in Global Service Month in 2019
• Awarded scholarships to 116 college-bound students of employees in 2018
• Houston headquarters office awarded a Top Workplaces honor by the Houston Chronicle in 2018
• Community involvement projects including environmental education garden in Germany, packing backpacks for children in Houston, waste collection in West Virginia, and siding installation for homeless youth shelter in Canada

Governance Achievements

• Upholds high ethical standards and complies with laws and regulations
• Westlake Code of Conduct with employee training every two years
• Independent whistleblower helpline available 24/7 globally

Climate Goals & Targets

Environmental Challenges

• Maintaining a balance in the German power grid due to the energy transition
• Preventing resin pellet loss to protect the marine environment

Mitigation Strategies

• Vinnolit adjusts its chloro-alkali electrolysis to help stabilize the German power grid
• Partnership with Operation Clean Sweep® (OCS) to prevent resin pellet loss

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 2
• 3
• 4
• 6
• 8
• 9
• 12
• 14
• 15

Westlake's activities support many of the UN's 17 Sustainable Development Goals, including those related to hunger, health, education, clean water, economic growth, industry, responsible consumption, ocean pollution, and life on land.

Awards & Recognition

• Top Workplaces honor by the Houston Chronicle (2018)

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Impact Minimization
• Community Support
• Employee Well-being
• Sustainable Practices

Environmental Achievements

• Nearly 30 percent reduction in CO2 emissions from 2014 to 2017
• Reduced sulfur dioxide emissions to almost zero from 2014 to 2017
• Reduced energy usage per ton of products produced from 2014 to 2017
• Saved in excess of 10 million kilowatt-hours through energy savings projects in 2017 and 2018
• Saved 130 million gallons of water in 2017
• Annual emission reduction of approximately 450,000 tons of CO2 at Natrium, WV facility after boiler conversion in 2016

Social Achievements

• Approximately 1,800 employees volunteered more than 5,000 hours during Global Service Month in 2017
• Awarded the Top 25 Company for Diversity in Texas Award
• Westlake Chemical Awarded Scholarships to 116 Students of Employees in 2017
• 81% of employees are “Sustainably Engaged” according to 2017 Employee Survey

Governance Achievements

• Several Westlake chemical facilities earned OSHA Star status
• Numerous annual awards for outstanding safety record in the shipment of chemical materials by rail during 2017

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 2 Zero Hunger
• 3 Good Health and Well-Being
• 4 Quality Education
• 6 Clean Water and Sanitation
• 8 Decent Work and Economic Growth
• 9 Industry, Innovation and Infrastructure
• 12 Responsible Consumption and Production
• 14 Life Below Water
• 15 Life on Land

Westlake’s corporate activities support many of the UN’s 17 Sustainable Development Goals.

Awards & Recognition

• Vinyl Institute Safety Excellence Award
• Vinyl Institute Safety Performance Awards
• BNSF Product Stewardship Award
• Non-Accidental Release (NAR) Grand Slam Award
• CSX Chemical Safety Excellence Award
• Chlorine Institute - Diamond Leadership Award
• American Water Works Association 2017 Award for 50 Years of Service to the Water Industry
• Vinyl Institute Environmental Excellence Award
• Industry of the Year award from the Prentiss County (Miss.) Development Association
• Greater Longview United Way Gene Dworsky Humanitarian Award

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Performance
• Community Engagement
• Employee Well-being
• Ethical Conduct

Environmental Achievements

• Reduced greenhouse gas intensity by 10% in the last 4 years
• Reduced water usage by more than 13% in 4 years
• Reduced hazardous air pollutant emissions by 15% over the last four years
• DaVinci Roofscapes recycled over a million pounds of scrap materials in 2019 resulting in net zero landfill scrap for the third year in a row.

Social Achievements

• Injury rates near historic lows
• Global Service Month with nearly 10,000 volunteer hours
• Supported United Way campaigns
• Awarded 103 Westlake Scholarships

Governance Achievements

• Published first Suppliers Code of Conduct
• Biannual review and certification to the Code of Conduct for each employee
• Engaged with EcoVadis to assess chemical operations

Climate Goals & Targets

Environmental Challenges

• Plastic waste entering rivers and oceans
• Managing waste in areas with lacking waste management systems

Mitigation Strategies

• Partnership with Alliance to End Plastic Waste (AEPW)
• Operation Clean Sweep initiative to prevent resin pellet loss
• Investment in technologies and collaboration with industry partners to reduce waste

Supply Chain Management

Responsible Procurement

• Suppliers Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: EcoVadis

UN Sustainable Development Goals

• 2
• 3
• 4
• 6
• 8
• 9
• 12
• 14
• 15

Westlake’s corporate activities support many of the UN Sustainable Development Goals.

Environmental Metrics

ESG Focus Areas

• Process Safety and Emergency Preparedness
• Value Generation and Distribution
• Health and Safety
• Competitiveness and Reliability
• Environmental Compliance
• Ethics and Compliance
• Air Quality
• Climate Change and Energy
• Waste and Circular Economy
• Water and Effluents
• Community Engagement and Impact Management
• Diversity and Inclusion
• Cyber Security
• Product Responsibility

Environmental Achievements

• Reduced total waste generated by 31.1%, including a 15.2% reduction in hazardous wastes over 2019.
• Reduced water footprint by 31,889,182 gallons and reduced total water usage rate by 4.38% from 2019 despite increased production.
• Implemented several efficiency measures which contributed to the reduction of 1,063,094 MMBTUS of energy. This resulted in an associated reduction of 28,953 tons of greenhouse gas emissions.
• Between 2016 and 2020, recorded a decrease in total Scope 1 and Scope 2 emissions by 8.73% despite a 4.84% increase in production.

Social Achievements

• Launched a 10-Step Diversity Action Plan to ensure a more diverse, equitable, and inclusive environment.
• Launched Women of Westlake (WOW) Leadership Group to support women's professional and personal growth.
• Spent approximately US$1.56 million globally on community investment projects.
• US employees donated US$1.4 million to the United Way or equivalent agencies.

Governance Achievements

• Amended the charter of the Board’s Corporate Risk Committee, changing its name to the Corporate Risk and Sustainability Committee to emphasize sustainability's importance.
• A global rollout of the updated Corporate Code of Conduct was launched in the fall of 2021, including a training module in nine languages.

Climate Goals & Targets

Environmental Challenges

• Potential hazards associated with the manufacturing of petrochemicals, polymers, and building products.
• Potential for process safety events and occupational health and safety incidents.
• Potential physical risks to operations from climate change (e.g., storms, sea level rise).
• Corporate-level transition risks from evolving fiscal and legislative responses to climate change.

Mitigation Strategies

• Implementation of HSE Management System, certified to BS OHSAS 18001 and ISO 45001 in some locations.
• Data-driven, risk-based HSE Management System audit programs.
• Continuous tracking of process safety KPIs and monthly assessments.
• Emergency response teams and plans in place.
• Continuous improvement efforts to reduce energy use and emissions.
• Water reuse and recycling to reduce water footprint.
• Compliance with all laws and regulations.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heightened storm risks
• Long-term sea level rise

Transition Risks

• Evolving fiscal and legislative responses to climate change

Reporting Standards

Frameworks Used: GRI, SASB, UN Sustainable Development Goals

Certifications: ISO 14001 (global compounding facilities), ISO 45001 (Vinnolit, Germany), ISO 50001 (Vinnolit operations)

Sustainable Products & Innovation

• Aspire Vinyl compounds (35%+ renewable content)
• Bio-based solutions for building materials
• Post-consumer resin solutions

Environmental Metrics

ESG Focus Areas

• Process Safety and Emergency Preparedness
• Value Generation And Distribution
• Health and Safety
• Competitiveness and Reliability
• Environmental Compliance
• Ethics and Compliance
• Air Quality
• Climate Change and Energy
• Waste and Circular Economy
• Water and Effluents
• Community Engagement And Impact Management
• Diversity and Inclusion
• Cyber Security
• Product Responsibility

Environmental Achievements

• Between 2016 and 2021, total Scope 1 and Scope 2 emissions intensity decreased by 14.75%
• In 2021, Westlake announced its commitment to reduce Scope 1 and Scope 2 CO2 equivalent emissions intensity by 20% by 2030 from a 2016 baseline.
• In 2021, we made capital expenditures of $33 million related to environmental compliance.
• All of our business units are committed to incorporating almost 100% of their in-house generated waste into their normal manufacturing process, or provide their post-industrial recycled material to other sister-plants for material input.
• Our Form-A-Drain is manufactured with 100% post-industrial recycled polyvinyl chloride.
• Our Royal Building Products business manufactures three stone products…with a minimum of 45% and up to 55% of pre-consumer recycled content.
• Westlake also produces a “one-pellet solution” which consists of up to 45% post-consumer polyethylene resin used for flexible-packaging.
• The Aspire Vinyl compounds are phthalate-free, bio-based compounds that contain more than 35% renewable content…

Social Achievements

• Launched a 10-Step Diversity Action Plan in 2020 to ensure a more diverse, equitable, and inclusive environment.
• Launched Women of Westlake (WOW) Leadership Group in 2018 to support women at Westlake.
• Employees in Kentucky, Louisiana, Mississippi, Texas and West Virginia donated US$1.4 million to the United Way or equivalent agencies in 2021.
• In 2021, we invested in opportunities for students, including scholarships…provided materials and financial contributions for COVID-19 and hurricane relief efforts and volunteered.

Governance Achievements

• In February 2021, the Board amended the charter of the Board’s Corporate Risk Committee, changing its name to the Corporate Risk and Sustainability Committee.
• Refreshed its Code of Conduct in 2021 and implemented a global roll-out of the Code.

Climate Goals & Targets

Environmental Challenges

• Potential hazards associated with the manufacturing of petrochemicals, polymers, and building products.
• Potential impacts on human and environmental health from chemicals during the use-phase.
• Climate change poses physical risks to our operations (e.g., heightened storm risks and long-term sea level rise) and transition risks (e.g., evolving fiscal and legislative responses).

Mitigation Strategies

• Application of rigorous health and safety practices.
• Implementation of HSE Management System.
• Data-driven, risk-based HSE Management System audit programs.
• Continuous improvement efforts across many manufacturing sites to limit impacts on local communities (e.g., adopting new technologies and making operations more efficient to reduce pollution risks).
• Product stewardship requirements designed to prevent and mitigate health and safety impacts.
• Closely monitoring the developing policy environment at an international and national level and adapting accordingly.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heightened storm risks
• Long-term sea level rise

Transition Risks

• Evolving fiscal and legislative responses to climate change

Reporting Standards

Frameworks Used: GRI, SASB, UN Sustainable Development Goals

Certifications: ISO 14001, ISO 45001, ISO 50001 (Vinnolit operations), BS OHSAS 18001 (European operations)

Sustainable Products & Innovation

• Polyethylene
• Low-carbon caustic soda
• Vinyl building products
• Aspire Vinyl compounds

Environmental Metrics

ESG Focus Areas

• Process Safety + Emergency Response
• Value Generation + Distribution
• Health + Safety
• Competitiveness + Reliability
• Environmental Compliance
• Ethics + Compliance
• Air Quality
• Climate Change + Energy
• Waste + Circular Economy
• Water + Effluent
• Community Engagement + Impact Management
• Diversity + Inclusion
• Cyber Security
• Product Responsibility
• Employee Engagement
• Public Policy
• Training + Development
• Responsible Supply Chain Management
• Employee Recruitment + Retention
• Human Rights
• Biodiversity
• Community Development

Environmental Achievements

• Achieved an 18% reduction in Scope 1 and Scope 2 GHG emissions intensity from a 2016 baseline by December 31, 2022.
• Expanded production of high-performance molecular-oriented PVC C909 Pipe.
• Introduced GreenVin bio-attributed PVC to EU markets, resulting in approximately 90% CO2 savings compared to conventionally produced PVC.
• Expanded capacity to produce existing products or introduced new products with sustainability benefits.
• Produced approximately 400 million pounds of total recycled final products from in-house generated process regrind, post-industrial recycled material, or post-consumer recycled material in product formulas.

Social Achievements

• Launched a new employee resource group: African Diaspora of Westlake.
• Achieved over 300,000 hours of employee training and development.
• Expanded Women of Westlake (WoW) ERG to have global representation.
• WoW organized a leadership-skills training series: The Ignite Your Impact: Women in Leadership℠.
• Added expanded benefits for U.S. employees, including a Health Advocate’s Expert Medical Opinion Program and a new coaching and therapy employee assistance program.

Governance Achievements

• Established a major climate goal: a 20% reduction in Scope 1 and Scope 2 CO2e emissions per ton of production by 2030 from a 2016 baseline.
• Conducted a TCFD gap assessment to determine alignment with the framework.
• Global rollout of the Code of Conduct for newly acquired subsidiaries in 2022, with training in 13 languages.

Climate Goals & Targets

Environmental Challenges

• Global inflation
• Persistently higher energy costs in some operating regions
• Demand weakness in other regions
• Supply chain disruptions
• Climate-related risks (severe weather, natural disasters, regulatory changes)

Mitigation Strategies

• Maintaining fiscal discipline and strength
• Finding and funding growth opportunities
• Developing and deploying product and operational improvements
• Allocating capital for maintenance, compliance, and growth
• Investing in employees
• Robust HSE management systems
• Insurance coverage
• Capital spending on projects to make physical assets more resilient
• Closely monitoring the developing policy environment
• Leveraging local expertise, industry associations, outside legal counsel, and technology to monitor regulatory requirements and standards changes
• Incorporating additional sustainability and safety-related questions in supplier questionnaires
• Expanding the scope of ESG-related questions to strategic sourcing evaluation forms

Supply Chain Management

Supplier Audits: EcoVadis audit in 2022; aim to expand in 2023

Responsible Procurement

• Supplier Code of Conduct
• Sustainability and safety-related questions in supplier questionnaires
• ESG-related questions in strategic sourcing evaluation forms

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Natural disasters

Transition Risks

• Changes in carbon regulation
• Reputational risks
• Increased customer demand for low-carbon circular solutions
• Emerging technologies

Opportunities

• Development of energy-efficient products
• Access to new markets (e.g., wind power, electric vehicles)
• Increased demand for sustainable materials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISCC PLUS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 6
• Goal 8
• Goal 9
• Goal 12
• Goal 14

Westlake's products contribute to food preservation, medical supplies, clean water access, economic growth, infrastructure development, sustainable consumption and production, and ocean conservation.

Sustainable Products & Innovation

• GreenVin bio-attributed PVC
• PIVOTAL™ one-pellet solution
• High-performance molecular-oriented PVC C909 Pipe
• Epoxy systems for wind turbine blades and hydrogen pressure vessels

Awards & Recognition

• EcoVadis Platinum awards (Westlake Vinnolit and Westlake Epoxy)
• CSX Chemical Safety Excellence Award
• BNSF Product Stewardship Award

Environmental Metrics

ESG Focus Areas

• Process Safety + Emergency Response
• Value Generation + Distribution
• Health + Safety
• Competitiveness + Reliability
• Environmental Compliance
• Ethics + Compliance
• Air Quality
• Climate Change + Energy
• Waste + Circular Economy
• Water + Effluent
• Community Engagement + Impact Management
• Diversity + Inclusion
• Cyber Security
• Product Responsibility
• Employee Engagement
• Public Policy
• Training + Development
• Responsible Supply Chain Management
• Employee Recruitment + Retention
• Human Rights
• Biodiversity
• Community Development

Environmental Achievements

• Achieved a 16% reduction in Scope 1 and Scope 2 carbon dioxide emissions intensity from a 2016 baseline.
• Expanded high-performance molecular-oriented PVC C909 Pipe production.
• Introduced Lower Carbon GreenVin™ PVC and GreenVin bio-attributed PVC.
• Commercialized Pivotal® polyethylene incorporating PCR materials.
• Installed a solar-power farm at the Barbastro, Spain Epoxy plant.
• Geismar, Louisiana plant participated in a renewable power purchasing program.

Social Achievements

• Received an “America's Greatest Workplaces for Diversity 2024” accolade from Newsweek.
• Launched a six-month program for 50 front-line supervisors.
• Established GROW program for engineering graduates.
• Provided over 360,000 hours of employee training and development.
• Awarded over 1,600 scholarships to children of employees.

Governance Achievements

• Established a Sustainable Procurement Policy.
• Required biannual Code of Conduct training for all employees.
• Implemented quarterly cybersecurity awareness training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical constraints, natural disasters, economic conditions, and supplier interruptions.
• Extreme weather events and natural disasters impacting operations.
• Evolving fiscal and legislative responses to climate change.
• Potential changes in carbon regulation and increasing customer demand for low-carbon solutions.

Mitigation Strategies

• Continuously research alternative formulations and feedstocks to ensure optionality in sourcing.
• Robust HSE management systems, insurance coverage, and capital spending on resilient assets.
• Closely monitor developing policy environment and implement compliance measures.
• Invest in proven and emerging technologies for lower emissions and decarbonizing energy supplies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events and natural disasters
• Changes in precipitation patterns

Transition Risks

• Changes in carbon regulation
• Reputational risks
• Increased customer demand for low-carbon solutions
• Emerging technologies

Opportunities

• Development of energy-efficient products
• Access to new markets in sustainable solutions
• Increased demand for sustainable materials

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISCC PLUS, REDcert2, GreenCircle Certified

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 6
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 14

Westlake's operations and products contribute to these SDGs through various initiatives.

Sustainable Products & Innovation

• Lower Carbon GreenVin™ PVC
• GreenVin bio-attributed PVC
• Pivotal® polyethylene
• Azures™ epoxy resins
• Foundry® Siding

Awards & Recognition

• 2023 Westlake Epoxy Europe Ecovadis Platinum BADGE
• Westlake Global Compounds Ecovadis Silver BADGE
• Westlake Vinnolit Ecovadis Platinum BADGE
• Westlake Vinnolit Polymers for Europe Alliance award for Decarbonization
• 2023 America's Greatest Workplaces for Diversity
• 2023 Robert C. McNair Civic Leadership Award (Chao family)
• 2023 Green Builder magazine Sustainable Product of the Year (Unified Steel®)