Kraton Corporation

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:615466 tCO2e/year (Scope 1 & 2)

Scope 1 Emissions:336064 tCO2e/year

Scope 2 Emissions:279402 tCO2e/year

Renewable Energy Share:11.3%

Total Energy Consumption:10,058 TJ/year

Water Consumption:41,020 Megaliters withdrawn/year; 3,284 Megaliters consumed/year

Waste Generated:17,900 tons non-hazardous solid waste/year; 6422 tons hazardous waste/year

Carbon Intensity:0.49 MTCO2E/Ton

ESG Focus Areas

Climate Action
Environmental Impact & Resource Efficiency
Our People & Communities
Collaborating for Responsible Business Practice
Advancing the Biobased Economy & Enabling Circular Economy

Environmental Achievements

Achieved a 5.8% reduction in GHG Intensity compared to the 2020 baseline year.
Reduced carbon dioxide emissions by almost 50,000 MTCO2 annually at the Belpre, Ohio facility due to a new heat and power system.
Reduced total absolute emissions (Scope 1 and Scope 2) by approximately 7.4% compared to 2021.

Social Achievements

Achieved zero Tier 1 process safety incidents in 2022.
Contributed over $400,000 in 2022 to causes including education, disadvantaged communities, and environmental sustainability.
Planted over 25,000 trees, offsetting over 4,700 tons of CO2.

Governance Achievements

Earned an EcoVadis Platinum rating, placing Kraton in the top 1% of over 90,000 companies evaluated.
Implemented a new raw materials database and supplier portal to improve data collection and hazard profile accuracy.

Climate Goals & Targets

Medium-term Goals:

Reduce waste and water intensity by 10% by 2030 (against a 2020 baseline).

Short-term Goals:

Reduce Scope 1 and 2 GHG emissions intensity by 20% by 2030 (against a 2020 baseline).

Environmental Challenges

Potential physical climate impacts on manufacturing plants and supply chains.
Evolving regulatory and policy environment related to climate change.
Transition to a low-carbon economy.
Water availability concerns globally.

Mitigation Strategies

Mapped physical and transition risks against multiple climate scenarios.
Active participation in industry associations to anticipate and adapt to future changes.
Governance and Risk Management systems to identify, assess, and manage climate-related risks.
Climate-related risk assessment on physical risks to sites, including potential water availability or flooding impacts.
Improved water use efficiency through innovative equipment and technologies.
Pilot testing rainwater for fire hazards.

Supply Chain Management

Supplier Audits: 198 valid supplier assessments in EcoVadis pool; 11 valid TfS audits

Responsible Procurement

Responsible Procurement Program aligned with Together for Sustainability (TfS)
Supplier Code of Conduct
Conflict Minerals Policy
Human Rights Policy
Slavery and Human Trafficking Statement

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events
Flooding
Water availability

Transition Risks

Regulatory changes
Market shifts

Opportunities

Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC

Certifications: ISO 14001, RC14001, ISCC EU, ISCC PLUS, ISO 9001

UN Sustainable Development Goals

SDG 3
SDG 6
SDG 8
SDG 9
SDG 12
SDG 13

Kraton's initiatives contribute to these goals through various environmental, social, and governance programs and practices.

Sustainable Products & Innovation

SYLVASOLV™ oils
SYLVATRAXX™ 2097
Kraton™ polymers for Playmobil® Wiltopia

Awards & Recognition

EcoVadis Platinum rating

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:527257 tCO2e/year

Scope 1 Emissions:350599 tCO2e/year

Scope 2 Emissions:176658 tCO2e/year

Scope 3 Emissions:Not disclosed

Renewable Energy Share:12%

Total Energy Consumption:9832 TJ/year

Water Consumption:67410000 m³/year (withdrawn), 9356000 m³/year (consumed)

Waste Generated:15394 tons/year (non-hazardous solid), 4483 tons/year (hazardous)

Carbon Intensity:0.52 MTCO2E/ton