Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Health
• Safety
• Sustainable Development

Environmental Achievements

• Improved energy efficiency by 8%
• Reduced hazardous waste generation by 36%
• Decreased water consumption by 16%
• Reduced emissions causing acidification by 11%
• Reduced emissions of photochemical ozone by 57%
• Reduced emissions contributing to global warming by 7%

Social Achievements

• Reduced Lost Time Accident Frequency Rate (LTAFR) by 33%
• Improved employee safety record (multiple industry awards)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fuel additives and treatments

Awards & Recognition

• Multiple industry awards for employee safety

Environmental Metrics

ESG Focus Areas

• Safety
• Health
• Environment
• Business Ethics
• Community Involvement
• Product Stewardship

Environmental Achievements

• Reduced energy used per tonne of product by 7% compared to the previous year and 18% compared to 2005.
• Reduced hazardous waste per tonne of product by 14% compared to 2009 and 37% compared to 2005.
• Reduced Greenhouse Gas equivalent per tonne of product by 6% in 2010 and 26% since 2006.
• Successfully registered all products under REACH phase 2 before the deadline.
• Developed a new approach to measuring the carbon footprint of products and initiated development of a new procedure for assessing the overall environmental impact of site operations.

Social Achievements

• Achieved 100% completion rate in company-wide compliance training.
• Launched a Loss of Containment program.
• Invested in further health and safety training for employees at the High Point site.
• Introduced a new Process Safety Leadership program for senior executives.
• Increased community involvement, including fundraising and donations to local charities.

Governance Achievements

• Appointed a Chief Compliance Officer and a full-time compliance administrator.
• Reviewed and strengthened compliance policies and procedures in response to the UK Bribery Act.
• Concluded investigations related to the UN Oil for Food Program and other matters under the FCPA.

Climate Goals & Targets

Environmental Challenges

• Increased water usage per tonne of product due to changes in product mix and cold weather.
• Maintaining high standards of process safety.
• Ensuring compliance with complex laws and regulations.

Mitigation Strategies

• Reviewing and updating cold weather precautions.
• Implementing Process Safety Performance Indicators (PSPIs) and annual audits.
• Investing in compliance training and strengthening compliance team.

Supply Chain Management

Supplier Audits: 63 suppliers and agents completed training modules; 100% compliance achieved.

Responsible Procurement

• Sustainable procurement practices, such as increasing bulk vessel payload and reusing existing storage tanks.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: Null

Third-party Assurance: SKM Enviros

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ECOCLEAN® fuel additive (reduces fuel filter plugging and injector fouling)
• Iselux® surfactant (80% renewable raw materials, sulfate-free, readily biodegradable)

Awards & Recognition

• Gold Safety Awards from the Chemical Industry Association (Ellesmere Port and Widnes sites)
• Gold Medal Awards from RoSPA (Ellesmere Port and Widnes sites)
• Silver Awards from the North Carolina Department of Labor (Spencer and High Point sites)

Environmental Metrics

ESG Focus Areas

• Occupational safety
• Process safety
• Sustainable development
• Sustainable sourcing (palm oil)
• Climate change
• Community engagement
• Ethical business practices
• Product stewardship
• Employee development
• Environmental impact (GHG emissions, energy, water, waste)

Environmental Achievements

• GHG equivalent per tonne of product fell by 55% since 2006 (after recalculation based on updated Defra guidelines)
• 51% reduction in energy usage per tonne of product since 2006
• 72% reduction in water use per tonne of product since 2005 (5% decrease between 2012 and 2013)
• 40% reduction in hazardous waste per tonne since 2005
• Salisbury site diverted nearly 1.5 tonnes of waste from landfill, saving almost 70% on landfill waste costs
• Improved Finsolv® range to meet new EU regulations on benzyl benzoate content without compromising performance
• Developed Finsolv® TN-G with nearly 50% naturally derived feedstocks

Social Achievements

• Launched internal training schemes, including a leadership development program
• Innospec Sharesave scheme allowed employees to invest in Innospec stocks at a discounted rate
• 44% of employees had been with the company for over 10 years
• Herne plant reached a 10-year milestone without an Innospec Reportable Lost Time Accident (IRLTA)
• Ellesmere Port and Widnes sites received RoSPA awards for occupational health and safety
• Raised almost US$75,000 for the PenFed Foundation Military Heroes® Fund
• Various community initiatives, including charity runs, donations, and open days
• 99% completion rate for employee compliance training

Governance Achievements

• Enhanced Compliance Program in operation since 2008, including Code of Ethics and Anti-Corruption policies
• Company-wide training regime on compliance policies, including new PinPoints™ modules in 2013
• Revised Gifts, Hospitalities, Charitable Contributions and Sponsorship Policy in 2013
• Whistle-blowing hotline available, though no use was recorded in 2013
• Supplier screening using compliance software to ensure compliance with global sanctions and debarred lists
• Due diligence on existing agents and distributors
• Termination of a third party for compliance-related reasons

Climate Goals & Targets

Environmental Challenges

• Sustainable sourcing of palm oil
• Impact of climate change
• Decreasing demand for TEL (tetraethyl lead) due to global phase-out of leaded gasoline
• Maintaining high ethical standards across a global workforce and supply chain
• Ensuring consistent reporting of process safety incidents
• Managing the environmental impact of product mix variations

Mitigation Strategies

• Joined the Roundtable on Sustainable Palm Oil (RSPO)
• Initiated participation in the Carbon Disclosure Project’s climate change program
• Responsibly managing the decrease in TEL sales and providing environmental remediation services
• Enhanced Compliance Program, including training and due diligence
• Formalized definition of Loss of Containment (LOC) events
• Reviewing methods to forecast the impact of product mix on environmental performance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier screening for compliance with global sanctions and debarred lists
• Engagement with suppliers to source RSPO-certified palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISO 14001 (multiple sites), OHSAS 18001 (Widnes, Ellesmere Port, Leuna), ISO 50001 (Leuna)

Third-party Assurance: Jacobs

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Finsolv® TN-LB and Finsolv® TN-G

Awards & Recognition

• Multiple RoSPA awards
• Innospec safety awards (Bronze, Silver)

Environmental Metrics

ESG Focus Areas

• Environmental impact
• Product sustainability
• Health, safety and well-being
• Employees
• Community engagement
• Legal compliance
• Third-party management

Environmental Achievements

• 46% reduction in absolute scope 1 and 2 GHG emissions since 2006
• 53% reduction in water use per metric tonne of product since 2006
• 20% of total energy mix sourced from renewables
• New energy saving initiatives introduced in 2022 will reduce energy consumption by 4,944MWh and group scope 1 and 2 emissions by 677 tonnes going forward
• Achieved a total recycling rate of 96% on demolition waste generated in 2022

Social Achievements

• Over US$695,000 social value contribution in 2022 helping to support 160 organizations globally
• US$1.2 million raised through our Innospec Cares program since its launch in 2016
• 26,000 hours of safety, health and environmental training recorded
• 4th global employee Sharesave scheme launched
• Ellesmere Port site received its sixth Order of Distinction Award from the Royal Society for the Prevention of Accidents (RoSPA) for their excellent safety performance in 2022

Governance Achievements

• A new ESG governance structure established with standalone ESG teams for each business unit
• 96% transparency at mill level in palm supply chain
• New global Cyber Security Management Policy implemented
• 4,840 Legal Compliance training courses delivered to 2,166 employees with a 99.2% completion rate

Climate Goals & Targets

Environmental Challenges

• Increased customer demand for products made at sites with higher energy (gas) usage leading to a rise in scope 1 GHG emissions
• Increased absolute scope 2 GHG emissions due to investment in internal energy reduction projects instead of purchasing Guarantees of Origin (GOs)
• Unprecedented supply chain disruption across the globe
• 27% overall increase in total waste intensity due to increased production of certain products, disposal of aging inventory, and one-off construction projects

Mitigation Strategies

• Investment in tangible decarbonization projects (biomass and solar energy sources)
• Robust Business Continuity Program to plan for disruption
• Global team collaboration to ensure product delivery to customers
• Initiatives to reduce water consumption, improve wastewater discharge, and maximize waste recycling

Supply Chain Management

Supplier Audits: Supplier evaluation processes; Supplier site audits; EcoVadis supplier assessment; 70% of global spending now made through suppliers in scope of EcoVadis initiative; 305 suppliers assessed or in the process of assessment

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis supplier assessment
• RSPO mass balance (MB) supply chain certified
• Conflict Minerals Disclosure

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, GHG Protocol Standard

Certifications: ISO 14001, ISO 9001:2015, RSPO mass balance (MB) supply chain certified

Third-party Assurance: Jacobs

UN Sustainable Development Goals

• Decent Work and Economic Growth
• Responsible Consumption and Production
• Life on Land
• Clean Water and Sanitation
• Climate Action

Innospec contributes to 13 SDGs, with five most closely aligned to its activities

Sustainable Products & Innovation

• LUXURIACT and PUREACT SFB surfactants
• Biofuel F30 additive
• AquaBourneTM water-based friction reducer
• Paper Pocket Cleanser

Awards & Recognition

• EcoVadis Gold Medal
• Laura Marshall Award
• CEO Special Award at the Natura &Co Embrace program
• Henkel Best Innovation Contributor Award
• RoSPA Order of Distinction Award
• Cigna Healthy Workforce Destination 2022 Bronze Level Award
• ClassNK Innovation Endorsement

Environmental Metrics

ESG Focus Areas

• Environmental impact
• Product sustainability
• Health, safety and well-being
• Employees
• Community engagement
• Legal compliance
• Third-party management

Environmental Achievements

• Reduced GHG emissions by 35% since 2014 (scope 1 & 2)
• 12 of 13 manufacturing facilities procured 100% renewable electricity
• 9% less water used per metric tonne of product compared to 2014
• Developed Tanwax C 18 nano, a natural fruit coating extending shelf life by 15+ days

Social Achievements

• 2% decrease in total accidents; IRLTA frequency rate 0.10 (below industry average)
• 26% reduction in Loss of Containment events; 84% reduction in quantity lost
• US$737,041 total social value contribution, including US$540,000+ direct monetary donations and 1,054 volunteer hours
• Launched several new initiatives to support employee well-being, including health checks, vaccinations, and mental health programs
• Established a social partnership with the International Justice Mission (IJM) to address forced labor

Governance Achievements

• 100% completion rate for Employee Annual Compliance Certification
• 90% third-party compliance training completion rate; 100% certification completion rate
• Reviewed and updated compliance policies and procedures
• Board approved changing the Nominating, Corporate Governance Committee to the Nominating, Corporate Governance and Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Slight increase (0.4%) in total absolute scope 1 and 2 GHG emissions in 2023 compared to 2022, due to new combined heat and power plant startup
• Overall increase in waste intensity due to market downturn, product mix changes, and one-off construction waste disposal
• Maintaining compliance with evolving global chemical regulations
• Cybersecurity threats

Mitigation Strategies

• New Energy Centre at Ellesmere Port, UK, designed for future hydrogen use to significantly reduce GHG emissions
• Implementing new methods to reduce water usage, enhance water quality, increase waste recycling, and reduce landfill waste
• Proactive monitoring and evaluation of regulatory developments
• Updated global policies to reflect cyber threats; implemented better mail security policies and defensive access management technologies

Supply Chain Management

Supplier Audits: 286 suppliers assessed (49% of global spend)

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis supplier sustainability evaluation
• Conflict minerals compliance
• RSPO membership and certification

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Changes in emissions legislation

Opportunities

• Development of energy-efficient products and renewable fuel additives

Reporting Standards

Frameworks Used: AA1000 Assurance Standard 2018, GHG Protocol Standard, EU Corporate Sustainability Reporting Directive (CSRD)

Certifications: ISO 14001, ISO 9001:2015, RSPO Supply Chain

Third-party Assurance: Jacobs

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 6
• SDG 15

Innospec's business contributes directly to 13 SDGs, with the five most closely aligned being Decent Work and Economic Growth, Responsible Consumption and Production, Life on Land, Clean Water and Sanitation, and Climate Action.

Sustainable Products & Innovation

• Dynamico® gasoline detergent
• ECOCLEAN® products for mining industry
• Luxuriact® Plus pourable taurate surfactant
• EMPIGEN® BS Ultra Flow betaine surfactant
• Blue Ocean formulations for home care

Awards & Recognition

• EcoVadis Gold Rating
• Unilab’s Total Quality Achievement Award
• Cigna Healthy Workforce Designation TM Award
• RoSPA Gold safety award (Ellesmere Port site)