Climate Change Data

Environmental Metrics

ESG Focus Areas

• Investing in People
• Driving Efficiency for the Planet
• Delivering Advantageous Products
• Commitment to Responsible Practices

Environmental Achievements

• 10% reduction in water usage per unit of production from 2016 to 2018 at Maywood facility
• Investments at Stalybridge, UK facility eliminated material movement between plants, resulting in reduced transport-related emissions
• Nanjing, China facility implementing a technological solution to reduce NOx emissions

Social Achievements

• 95% of employees completed Ethics and Compliance training
• 48% of sites received the President’s Safety Award
• 56% of sites reached one year without a recordable injury
• 22 employees completed the 14-month Leadership Development Program

Governance Achievements

• 100% of sites assessed for risks related to corruption
• 100% of sites in high-risk geographies received additional anti-bribery and corruption training and audits
• Updated Code of Conduct launched

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions
• Reducing water usage
• Increasing use of renewable energy
• Managing risks related to corruption
• Managing chemicals of concern

Mitigation Strategies

• Process optimization and other projects to reduce Scope 1 and 2 greenhouse gas emissions by 10% by 2025
• Conducting water risk analyses and setting site-specific water management goals
• Implementing an enhanced EHSS Management System
• Implementing an enhanced third-party risk screening process
• Developing alternatives with reduced human and/or environmental impact

Supply Chain Management

Supplier Audits: 100% of sites assessed for risks related to corruption

Responsible Procurement

• Third Party Code of Conduct
• Responsible Sourcing Policy for palm material suppliers
• RSPO supply chain certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2016 and 2018, SASB, ACC Responsible Care®, UN Global Compact

Certifications: ISO 9001:2015, RSPO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 6
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 16

Stepan aims to increase its positive impact in these areas through its products and practices.

Sustainable Products & Innovation

• BIO-SOFT® DR-13 and BIO-SOFT® DR-139
• STEPANQUAT® Helia
• STEPAN-MILD® L3

Awards & Recognition

• UK Chemical Industry Award for Responsible Care Process Safety Leadership
• CN Safe Handling Award
• Bureau of Fire Protection Recognition
• U.S. EPA Safer Choice Partner of the Year Awards

Environmental Metrics

ESG Focus Areas

• Responsible Practices
• Advantageous Products
• Investing in People
• Efficiency for the Planet

Environmental Achievements

• 16% reduction in water usage across global manufacturing sites in 2020 over a 2016 baseline
• 6% decrease in location-based emissions and 17% decrease in market-based emissions in 2020 over 2016 baseline
• 100% of electricity purchases at the largest facility covered by renewable energy credits beginning in late 2020 (covering about 35% of total global electricity purchases)
• 75% wastewater reduction at the Manizales plant

Social Achievements

• 13% improvement in global recordable injury rate
• 42% of Stepan sites achieved the President’s Safety Award in 2020
• Launched Success Factors and Reactions platforms for employee development and recognition
• 100% employee completion for Code of Conduct training

Governance Achievements

• 100% employee participation in Ethics and Compliance trainings
• Enhanced Ethics and Compliance program
• Updated Human Rights and Inclusion and Diversity policies

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and employee well-being
• Supply chain disruptions
• Managing risks related to environmental, social, and governance (ESG) issues

Mitigation Strategies

• Implemented company-wide COVID-19 guidelines and safety protocols
• Accelerated launch of remote-work technology
• Updated ERM process to integrate sustainability
• Developed water management plans based on risk assessments
• Implemented STEMS platform for centralized data management

Supply Chain Management

Supplier Audits: 30,000+ third-party organizations screened in 2020

Responsible Procurement

• Third Party Code of Conduct
• Supplier screening tool
• Responsible Sourcing Policy (for palm oil suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2016, 2018, and 2020, SASB Chemicals Standard

Certifications: ISO 9001:2015, ISO 45001

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Stepan products and practices deliver benefits related to responsible consumption of resources; driving action toward climate change mitigation; improved sanitation, health and hygiene; working toward zero hunger; and protection of land and water resources.

Sustainable Products & Innovation

• Rhamnolipid-based biosurfactants
• Biodegradable corrosion inhibitor
• STEPANQUAT® Soleil (hair conditioner)
• STEPANPOL® T -401 and STEPANPOL® T -327 (using recycled polyethylene terephthalate)

Awards & Recognition

• Wall Street Journal's 45th Most Sustainably Managed Company in 2020
• Top 7% among manufacturers of other chemical products by EcoVadis
• Henkel's Sustainability Award 2020 for Laundry and Home Care