Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Education
• Culture
• Sport
• Employee safety
• Sustainable development
• Circular economy
• Digitalization
• Green chemistry
• Renewable energy
• Hydrogen production
• CO2 capture and reprocessing

Environmental Achievements

• Reduced water consumption by 14% in 2019 and another 10% in 2020. Maintained groundwater quality within permitted limits.
• Recycled over 1,000 tons of hydrochloric acid in 2021.
• Captured and reprocessed over 50,000 tons of CO2 annually.
• Recovered 341.52 tons of waste with a 96.4% recovery rate.
• Recovered 1421.63 tons of spent hydrochloric acid and 4670.27 tons of trimming crusts, producing ferric chloride for water treatment.
• Organized the "NEW Trees for a Better Life" planting event in Borzești.

Social Achievements

• Launched internal programs to promote vaccination, skills development, leadership, and digitalization trainings.
• Organized internal activations and events to increase group cohesion.
• Supported the largest blues festival in Romania in Brezoi.
• Offered scholarships and supported swimming with the Romanian Water Polo Federation.
• Organized a Family Day event and a cleanup event with Beth Hart, collecting waste.
• Provided food packages to families and elderly people in need.
• Established the Chimcomplex Academy – an authorized center for training, improvement, and development of competencies.
• Offered a suite of accredited training courses in various specializations.
• Supported dual education programs with local educational institutions.
• Provided scholarships to high school and university students.

Governance Achievements

• Implemented ISO 9001:2015, ISO 14001:2015, ISO 17025:2015, ISO 45001:2018, and ISO 50001:2019 standards.
• Established procedures for detecting legal risks and complying with international, European, and national standards.
• Implemented an Internal Code of Conduct to prevent corruption and conflicts of interest.
• Maintained communication with environmental performance stakeholders.
• CEO elected president of APDCR (Association of Chemical Manufacturers and Distributors in Romania).

Climate Goals & Targets

Environmental Challenges

• Economic and geopolitical uncertainty in the second half of 2021.
• Shortage of supply in the polyol-polyethylene and propylene market due to weather conditions and production disruptions.
• Need for cleaner, more affordable, and sustainable energy resources.
• Managing risks related to capital, credit, liquidity, market, interest rates, economic conditions, government regulations, and taxation.
• Protecting employee health during the COVID-19 pandemic.

Mitigation Strategies

• Showed determination and reaction to maintain positive momentum and achieve goals.
• Maximized the use of production capacities and seamless operation of the logistics chain.
• Investing in high-efficiency cogeneration, photovoltaic parks, and hydrogen production.
• Implementing complex solutions to reduce CO2 emissions and improve energy efficiency.
• Acquiring assets of CET Govora for strategic investment in energy.
• Implementing preventive actions and specific procedures to limit the spread of COVID-19.
• Implementing work-from-home options and differentiated schedules to avoid crowding.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Using recycled raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Volatile energy prices, declining resources.

Opportunities

• Development of energy-efficient products, renewable energy investments, green chemistry.

Reporting Standards

Frameworks Used: Responsible Care

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 17025:2015, ISO 45001:2018, ISO 50001:2019

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green products using renewable energy and recycled raw materials, plasticizer plant based on chemical recycling of PET waste.

Awards & Recognition

• "Excellence Award for building the most powerful chemical industrial group in Romania"

Environmental Metrics

ESG Focus Areas

• Climate Change and Energy Transition
• Responsible Operations
• Employees and community involvement
• Innovation and digitalization
• Governance, compliance and risk management

Environmental Achievements

• Reduced CO2 emissions by 18,800 tons/year through modernization of brine electrolysis installations.
• Inaugurated a new special polyols production plant with 30% higher energy efficiency.
• Recycled over 1,000 tons of hydrochloric acid.
• Recovered 8.6% of total waste generated.

Social Achievements

• Increased average gross monthly income for employees by 24.3% (as of June 2022).
• Organized 10 meetings between Executive Board members and employees.
• Concluded Collective Labor Agreement for 2022-2024.
• Provided 24,128 hours of external training and 157,020 hours of internal training.

Governance Achievements

• Debuting on the Regulated Market of the Bucharest Stock Exchange on January 17, 2022.
• Appointed a new executive team.
• Developed and approved Remuneration Policy for directors, executive directors and members of the Audit Committee.
• No non-compliances identified during 10 site visits by regulatory authorities.

Climate Goals & Targets

Environmental Challenges

• Increased utility purchase prices impacting profitability.
• Energy crisis and climate change.
• War in Ukraine causing socio-economic challenges and supply chain disruptions.
• Competition from cheaper Asian products.
• Shortage of skilled labor.

Mitigation Strategies

• Reduced economic losses by counteracting negative market trends.
• Focused on maximizing production of polyols/polyethers with low energy consumption.
• Acquired Sistemplast SA to consolidate service portfolio.
• Implemented cost savings through operational synergies.
• Developed investment projects to secure raw material sources.
• Diversified suppliers to reduce risks.
• Adjusted prices and optimized operations to cope with increased costs.
• Increased portfolio of international clients.

Supply Chain Management

Supplier Audits: > 10 by 2025

Responsible Procurement

• ESG criteria during supplier prequalification.
• Annual expenses with local suppliers at least 85% of total procurement expenses.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Temperature changes

Transition Risks

• Stricter regulations on greenhouse gas emissions
• Changes in demand for chemicals
• Risks to the supply chain
• Increased insurance costs
• Sea level rise
• Macroeconomic environment

Opportunities

• Development of energy-efficient products
• Renewable energy sources
• Circular economy
• Green polyols production
• Green hydrogen production

Reporting Standards

Frameworks Used: GRI

Certifications: Responsible Care, ISO 14001, SR EN ISO/IEC 17025

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through energy efficiency improvements, investments in renewable energy and green technologies, waste reduction and recycling, and CO2 emission reduction.

Sustainable Products & Innovation

• Green polyols
• Vegetable bio-polyols from castor oil
• Flame-retardant polyols

Awards & Recognition

• Capital Romania award in the category “The best performing player in the chemical industry” at the Elite Companies Gala 2022.
• Position 1 in the Industry category and position 6 in the “Top 25 most valuable Romanian entrepreneurial companies” according to ZF Top 100.

Environmental Metrics

ESG Focus Areas

• Climate change and energy transition
• Resource efficiency and circular economy
• Environmental protection and biodiversity
• Social and community responsibility
• Transparency and governance

Environmental Achievements

• Reduced CO2 emissions by approximately 18,800 tons/year through modernization of brine electrolysis plants.
• Completed 49 MW Cogeneration and 8 MW Trigeneration plants on the Rm. Vâlcea platform.
• Recovered 1,054.64 tons of used hydrochloric acid and 3,584.74 tons of mill scales through recycling.
• Achieved 90.8% recovery of recoverable waste.

Social Achievements

• Launched Employee Shareholding Plan (ESOP) in 2021, granting 100 free shares to all employees in 2023.
• Provided 17,149,552 lei in total benefits to employees in 2023.
• Supported various community initiatives with a total sponsorship budget of 2,717,251.98 lei.

Governance Achievements

• Maintained highest standards of corporate governance, compliance and ethics.
• Implemented a Code of Ethical Conduct, Code of Professional Ethics and Business Conduct, and Internal Policy on Public Interest Whistleblowers.
• No incidents related to corruption, conflicts of interest, fraud, or anti-competitive practices in 2023.

Climate Goals & Targets

Environmental Challenges

• 38% decrease in turnover compared to 2022 due to low demand in the European market and lower selling prices.
• Supply chain risks due to climate events.
• Increased insurance costs due to climate risks.
• Extreme temperatures affecting production and transportation.
• Rising sea levels affecting chemical transport.

Mitigation Strategies

• Correlated production with sales possibilities and operated at reduced capacity in 2023.
• Supply chain risk assessment and working with suppliers to reduce climate risks.
• Investing in warehouses for safe storage of raw materials and finished products.
• Diversifying suppliers and focusing on CEE markets.
• Reducing exports via sea and finding alternative sales markets.

Supply Chain Management

Supplier Audits: 6 sustainability assessments in 2023, aiming for 10 by 2025 and 50% coverage by 2030.

Responsible Procurement

• Sustainable Procurement Charter
• Sustainability questionnaires and evaluations
• Internal and external audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Extreme weather events
• Sea level rise

Transition Risks

• Stricter regulations on greenhouse gas emissions
• Changes in demand for chemicals
• Increased insurance costs

Opportunities

• Development of energy-efficient products
• Development of low- and zero-carbon products
• Chemical recycling of waste

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Chimcomplex contributes indirectly to all 17 UN SDGs.

Sustainable Products & Innovation

• 100% vegetable bio polyols
• Green polyols
• Epoxy resins from vegetable glycerin

Awards & Recognition

• Business Champions Awards Gala
• Energy Efficiency Program of the Year Award
• Diploma of Excellence from Romchimica
• University Merit diploma with Gold Medal "Nicolae D. Xenopol"