Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial resilience
• People fulfilment and diversity
• Product stewardship
• Responsible operations
• Business integrity

Environmental Achievements

• Published its first Sustainability Report, providing data on energy consumption, water use, and emissions for 2018.
• Launched the "IMCD Sustainable Solutions" program to promote environmentally friendly products.
• Implemented operational and organizational measures to reduce greenhouse gas emissions and carbon footprint.
• Improved and harmonized systems for monitoring energy and water use in offices worldwide.
• Implemented a waste disposal policy to promote recycling and proper waste handling.
• Achieved EcoVadis Silver recognition for sustainability practices, with some entities achieving Gold level.

Social Achievements

• Maintained a well-balanced employee base with slightly more females than males.
• Implemented a new learning management system ("IMCD Digital Campus") offering over 4,000 online training courses.
• Integrated new businesses quickly, helping newly acquired employees feel part of IMCD.
• Maintained low attrition rate for sales employees (10.9%).
• Focused on diversity in its Supervisory Board, Management Board, and Executive Committee.

Governance Achievements

• Implemented a new compliance system for faster, more automated compliance.
• Established a centralized service center (GRQC) for regulatory/quality, product, and supplier information.
• Updated global trade sanction policy and guidelines on restrictive measures and export control.
• Implemented an internal alert procedure for reporting irregularities.
• Implemented a 24-hour emergency service line for incident reporting.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic market conditions, particularly in the industrial market segment in parts of EMEA and Americas.
• Volatile customer demand in certain industrial market segments.
• Increasing regulation requiring chemical distributors to obtain a certain minimum scale to comply with requirements.
• Growing concern for health and safety impacts of biocides in water-based paints.
• Need to find suitable replacements for cobalt octoate-based polymerisation catalysts due to stricter regulations.

Mitigation Strategies

• Further expanded supplier relationships and product portfolios.
• Grew customer base.
• Successfully integrated acquired businesses.
• Developed a new application of Wollastonite to reduce biocide levels in water-based paints (up to 75% reduction).
• Offered customers an alternative polymerisation catalyst with a non-hazardous profile, containing cobalt "bound" in a polymeric structure.

Supply Chain Management

Responsible Procurement

• Green Tender method for selecting logistic partners

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions to transportation infrastructures due to extreme weather events

UN Sustainable Development Goals

• At least four of the UN Sustainable Development Goals

IMCD's sustainability priorities support at least four of the UN SDGs, in line with the Chemical Sector SDG Roadmap.

Sustainable Products & Innovation

• New application of Wollastonite in water-based paints
• Alternative polymerisation catalyst with non-hazardous profile

Awards & Recognition

• EcoVadis Silver recognition
• Some entities achieved EcoVadis Gold level recognition

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity
• Digitalisation

Environmental Achievements

• Substantial work done to improve the process for (sustainability) data collection, enabling a broader scope of group companies and operations in its reporting.
• Clear goal set to achieve a 15% reduction in GHG emissions per million Euro operating EBITDA by 2024, versus the base year 2019.

Social Achievements

• Formalized a group-wide diversity plan aiming to strengthen female talent development and leadership representation within IMCD.

Governance Achievements

• Amended Remuneration Policy for the Management Board to align with new requirements of the Dutch Civil Code following the implementation of the Revised Shareholders’ Rights Directive.
• Adopted a separate Remuneration Policy for the Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Unprecedented global change due to the COVID-19 pandemic, presenting challenges to health systems, leading to widespread lockdowns, closures, and job losses.
• Unprecedented economic downturn, volatile and unpredictable market circumstances, and supply and demand of products and raw materials.

Mitigation Strategies

• Quickly adapted remote working practices and found new ways to engage with customers and suppliers virtually.
• Remained open for business, continued operations efficiently, secured an undisrupted supply chain, and ensured timely delivery of products.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable Solutions
• Supply Chain Decarbonisation
• Talent Attraction and Retention

Environmental Achievements

• Reduced GHG emissions intensity per million-euro operating EBITDA by 13% compared to 2020 (872 tCO2eq/mln in 2021 vs 1,007 tCO2eq/mln in 2020)
• Reduced water consumption by 42% compared to 2020
• Reduced total waste by 12% compared to 2020

Social Achievements

• Launched the first IMCD Global Women in Leadership Development Programme
• Increased the number of women in senior country & region teams by 41% compared to 2020 (39% in 2021)
• Implemented ESG Standards for IMCD Business Partners, with 88% adoption rate from third-party logistics providers

Governance Achievements

• Achieved EcoVadis Gold rating
• Included in the AEX ESG Index
• Implemented ESG Standards for IMCD Business Partners

Climate Goals & Targets

Environmental Challenges

• Increase in carbon footprint due to operational growth (organic and acquisitions)
• Data quality and coverage gaps in GHG emissions calculations
• Need to further engage with third-party logistics providers to reduce Scope 3 emissions

Mitigation Strategies

• Improving data analytics and re-evaluating GHG emissions calculation methodologies
• Engaging with third-party logistics providers to compare emissions estimations and receive more accurate data
• Implementing a Supply Chain Decarbonisation Programme focusing on transport and order management optimization and engaging with third-party logistics providers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG Standards for IMCD Business Partners

Climate-Related Risks & Opportunities

Physical Risks

• Disruptions to transport infrastructure due to extreme weather events

Transition Risks

• Shortages of feedstock due to agricultural losses

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Deloitte Accountants B.V.

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Initiatives contribute to these goals through various projects and programs

Sustainable Products & Innovation

• Bio-based paint formulation (Coatings & Construction)
• High-performing bio-hydraulic fluid (Lubricants & Energy)
• Biotech Beauty formulations (Beauty & Personal Care)

Awards & Recognition

• EcoVadis Gold rating
• Inclusion in the AEX ESG Index

Environmental Metrics

ESG Focus Areas

• People and Culture
• Environment
• Product Stewardship
• Ethics and Compliance

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions and reduced demand

Mitigation Strategies

• Progressing strongly on omnichannel digital solutions, geographic expansion and M&A

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Environmental Challenges

• Inflation-driven organic own cost growth

Mitigation Strategies

• Gross margin improvement initiatives

Supply Chain Management

Climate-Related Risks & Opportunities