Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Sustainable Innovation
• Culture of Equity, Diversity and Inclusion
• Socially Responsible Community Partner

Environmental Achievements

• 0.89% reduction in energy intensity compared to 2020
• 4.9% reduction in overall electricity intensity compared to 2020
• 12.81% reduction in Scope 1 and 2 GHG emissions compared to 2020
• 3.39% reduction in NOx emissions compared to 2020
• 8.77% reduction in VOC emissions compared to 2020
• 3.2% reduction in waste intensity compared to 2020

Social Achievements

• Expanded global parental leave policy to include paternity and adoptive leave
• 9% overall voluntary resignation rate
• 27,125 total training hours completed by full-time employees (average 70 hours per employee)
• Donated hundreds of gallons of hand sanitizer to first responders and healthcare workers during the COVID-19 pandemic

Governance Achievements

• No confirmed incidents of discrimination or corruption
• No significant fines or non-monetary sanctions for non-compliance

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to increased production rates
• Slight increase in water intensity due to higher production rates

Mitigation Strategies

• Focusing on increasing the purchase of renewable energy
• Approved installation of a solar cell network at Ibbenbüren (online late 2023)
• Implementing projects to minimize waste (e.g., methanol recovery system, product rework)
• Managing chemwash stripper bottoms in the site wastewater treatment plant (Sterlington)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis third-party assessment platform

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001:2015 (100% of manufacturing operations), ISO 50001 (Ibbenbüren facility), EcoVadis Gold Rating

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas (GHG) emissions
• Waste reduction
• Water conservation
• Energy efficiency
• Safety
• Diversity and Inclusion
• Community engagement
• Sustainable innovation
• Product Stewardship
• Supply Chain Sustainability

Environmental Achievements

• 15.1% reduction in GHG Scope 1&2 intensity (MT C02eq/MT production) versus 2020 baseline
• 8.9% reduction in energy intensity (kWH/MT production) versus 2020 baseline
• -8.4% reduction in waste intensity (MT/MT production) versus 2020 baseline
• -6.9% reduction in water intensity (MegaLiter/MT production) versus 2020 baseline
• Installation of a new solar electricity plant at Ibbenbüren facility expected to generate roughly 5 GWh/year of renewable energy (completed in Summer 2023)

Social Achievements

• Launched a new line of natural botanical extracts produced in-house using sustainably sourced plant materials
• Acquired Expression Systems, LLC, expanding capabilities in cell culture media and related products
• Global parental leave policy including paternity and adoptive leave for all full-time employees

Governance Achievements

• Implemented a companywide action plan for achieving a 10-percent reduction in emissions, waste, water and energy usage by 2030
• Achieved EcoVadis Gold Recognition Level in sustainability performance for the third consecutive year and fifth year overall

Climate Goals & Targets

Environmental Challenges

• Lingering impact of the COVID-19 pandemic
• Violent conflict in Ukraine
• Unprecedented inflation
• Energy security crisis
• Intensified disruptions across the global supply chain
• Resource availability and significant price fluctuations in raw materials

Mitigation Strategies

• Leveraged investments in dual manufacturing
• Enhanced logistics and procurement strategies to maintain uninterrupted product quality and availability while minimizing environmental impact

Supply Chain Management

Responsible Procurement

• Advancion Supplier Code of Conduct (covering environmental, health and safety, labor relations, human rights, and ethical business practices)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, SASB, UN SDGs

Certifications: ISO 9001 (US and Germany facilities), ISO 50001 (Ibbenbüren facility), cGMP compliant manufacturing for select products

Sustainable Products & Innovation

• Natural botanical extracts
• Products with positive impact on health, reduce waste, or have a positive environmental impact (53% of total revenue)

Awards & Recognition

• EcoVadis Gold Recognition Level (2023)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Sustainable Innovation
• Culture of Equity, Diversity and Inclusion
• Socially Responsible Community Partner

Environmental Achievements

• Reduced waste intensity by 7.65%
• Reduced energy consumption by approximately 10%
• Reduced total quantity of natural gas needed at Sterlington site by approximately 11%
• Reduced NOx emissions by 9.4%
• Increased waste diverted to beneficial reuse and energy recovery by 151%

Social Achievements

• Zero injuries at major manufacturing facilities in Louisiana and Germany, corporate headquarters, and regional Customer Application Centers
• 100% of eligible full-time employees participated in annual accountability development and/or performance review process
• Global parental leave policy implemented
• 22,338 hours of training completed in 2023

Governance Achievements

• Senior executive and Board-level oversight of Advancion’s Sustainability Blueprint
• Third-party assessment of progress against sustainability initiatives and programs
• Zero confirmed incidents of discrimination, corruption, breaches of customer privacy, or use of corporate funds for political contributions
• Achieved EcoVadis Gold Recognition Level in sustainability performance for the fourth consecutive year

Climate Goals & Targets

Environmental Challenges

• Climate change
• Resource scarcity
• Social inequality
• Supply chain disruptions

Mitigation Strategies

• Setting more ambitious and relevant targets
• Deepening engagement with stakeholders
• Significant investments in dual-source manufacturing capabilities
• Advancion Supplier Code of Conduct
• EcoVadis third-party assessment platform

Supply Chain Management

Supplier Audits: 500+ suppliers; EcoVadis third-party assessment platform; Advancion Supplier Code of Conduct

Responsible Procurement

• Advancion Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, UN SDGs

Certifications: ISO 14001, ISO 18001, ISO 9001, ISO 50001 (Ibbenbüren)

Sustainable Products & Innovation

• New 50-percent bio-based multifunctional amino alcohol for beauty and personal care applications
• CORRGUARD™ SA-100, a multifunctional alkanolamide emulsifier manufactured using 55% renewable raw materials

Awards & Recognition

• EcoVadis Gold Recognition Level (2024)