Climate Change Data

Element Solutions Inc

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:36,560 tCO2e/year
Scope 1 Emissions:12,840 tCO2e/year
Scope 2 Emissions:23,720 tCO2e/year
Renewable Energy Share:7%
Total Energy Consumption:505,665 GJ/year
Water Consumption:413,991,365 liters/year
Waste Generated:22,010 tons/year

ESG Focus Areas

  • Sustainable Chemistry
  • Environmental Stewardship
  • Social Impact
  • Governance & Compliance

Environmental Achievements

  • Improved combined Scope 1 and Scope 2 GHG emissions intensity by 1.3% compared to 2020.
  • Increased total renewable energy sourced by 22% since 2021 (reaching 7% of total energy use).

Social Achievements

  • 90% of U.S. employees completed DE&I training; 100% of U.S. managers completed in-depth inclusion training.
  • 84% of U.S.-based roles filled in 2022 had at least one diverse candidate.
  • Three employee resource groups created.
  • Donated ~$800K to charity in 2022.
  • 82% employee response rate in 2022 engagement survey, with higher scores on 97% of questions compared to 2020.

Governance Achievements

  • Published inaugural TCFD Index.
  • Received Gold Medal from EcoVadis (up from Silver in 2021).
  • Included on Newsweek’s list of America’s Most Responsible Companies for the second consecutive year.

Climate Goals & Targets

Long-term Goals:
  • Reach sustainable chemistry sales of $1 billion by 2030.
Medium-term Goals:
  • Reduce combined Scope 1 and Scope 2 GHG emissions intensity by 25% per metric ton of production by 2030.
  • Achieve diverse candidate slates for 90% of U.S.-based roles by 2024.
  • Fund and launch at least three employee resource networks by 2023.
Short-term Goals:
  • Achieve 80% completion rate of DE&I training for all U.S. employees by 2023.
  • Achieve diverse candidate slates for 80% of U.S.-based roles by 2023.

Environmental Challenges

  • Understanding and reducing Scope 3 emissions.
  • Managing climate-related risks (physical and transition).
  • Maintaining a responsible and ethical supply chain.
  • Recruiting a more diverse workforce.
Mitigation Strategies
  • Engaging third-party experts to expand decarbonization approach and execution plan.
  • Implementing initiatives to reduce energy use and GHG emissions (e.g., LED lighting, renewable energy).
  • Implementing robust supply chain risk management policies and systems (including supplier audits and screening).
  • Intentional diversity recruiting, Affirmative Action Program (AAP) in the U.S., and outreach initiatives.

Supply Chain Management

Supplier Audits: ~4,000 suppliers vetted; ~6,000+ business counterparties screened.

Responsible Procurement
  • Supplier Code of Conduct
  • Coupa Risk Assess (CRA) screening

Climate-Related Risks & Opportunities

Physical Risks
  • Disruption of operations and supply chain
  • Damage to facilities
  • Increased costs
Transition Risks
  • Increased energy costs
  • Need for lower-emission products
  • Stringent ESG regulations
Opportunities
  • Growth in clean technology markets
  • Cost savings from energy efficiency
  • New markets for sustainable solutions

Reporting Standards

Frameworks Used: GRI Standards (2021 version), SASB Chemical Sector Disclosures, TCFD Recommendations

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949, ISO/IEC 27001:2013

Sustainable Products & Innovation

  • ShadowZD direct-metallization technology
  • Argomax 2148 sintered silver technology
  • 3S Membrane Systems for ZnNi plating

Awards & Recognition

  • EcoVadis Gold Medal
  • Newsweek’s America’s Most Responsible Companies
  • WEL Breakthrough Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:34,345 tCO2e/year
Scope 1 Emissions:12,127 tCO2e/year
Scope 2 Emissions:22,218 tCO2e/year
Renewable Energy Share:8.45%
Total Energy Consumption:478,935 GJ/year
Water Consumption:380,502,830 Liters/year
Waste Generated:21,565 tons/year
Carbon Intensity:0.163 MT CO2e/MT Production

ESG Focus Areas

  • Sustainable Chemistry
  • Energy Use & Emissions
  • Occupational Health & Safety
  • Diversity, Equity & Inclusion (DE&I)
  • Climate Change
  • Water Management
  • Waste Management

Environmental Achievements

  • Achieved ~$720 million of net sales from sustainable products, representing ~31% of our 2023 total net sales
  • MacDermid Alpha business used approximately 4,618 metric tons of recycled tin in the production of its solder technologies, representing 51.5% of all tin and tin alloys sold by the Company that year.
  • Reclaim facility recycled 2,088 metric tons of in-house and third-party customers' scrap metals

Social Achievements

  • 90% of U.S. employees completed DE&I training
  • 100% of U.S. managers completed a more in-depth DE&I training program
  • 83% of employees participated in career and skill-specific training
  • Internal fill rate of 52%
  • Total employee training hours of 60,897
  • Average training hours per employee of 11.5
  • Launched three company-wide ERGs (Asian Employee Network, Element Career Network, Women’s Resource Group)

Governance Achievements

  • No material cases of non-compliance with environmental laws and regulations in 2023
  • Reacquired the right to market and distribute ViaForm® electrochemical deposition products, resulting in a more efficient supply chain

Climate Goals & Targets

Medium-term Goals:
  • Reach sustainable chemistry sales of $1 billion by 2030
  • Reduce combined Scope 1 and Scope 2 GHG emissions intensity by 25% per metric ton of production by 2030 from a 2020 base of 0.161 MT CO2e/MT of production
Short-term Goals:
  • Increase gender diversity at management-level and above to over 25% globally by 2027

Environmental Challenges

  • Variations in product mix, geographic distribution of energy consumption, and shifts in emissions factors led to a temporary rise in emissions intensity compared to the previous year and the 2020 baseline.
Mitigation Strategies
  • Introduced new initiatives and entered into green contracts anticipated to enhance emissions intensity starting in 2024 and beyond.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Supply Chain Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021 version where applicable), SASB Chemical Sector Disclosures

Certifications: ISO 45001, ISO 9001, IATF 16949, ISO 14001

Awards & Recognition

  • EcoVadis Silver Medal
  • Newsweek’s America’s Most Responsible Companies List