Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity
• Innovation (including product stewardship)
• Human Capital
• Corporate Governance

Environmental Achievements

• Reduced combined Scope 1 and 2 GHG emissions by 4.96% over 2015.
• Reduced energy intensity from 5.54 GJ per ton of production in 2015 to 5.25 GJ per ton of production in 2016.
• Increased recycling production from 4,000 tons in 2011 to 398,000 tons in 2016.
• Reduced chemical consumption by 6% in Performance Fibers (China) for some special recipes.
• 100% of products in Asia underwent Life Cycle Assessment (LCA) by 2017 (originally targeted for 2020).

Social Achievements

• Reduced Loss Time Injury Frequency Rate (LTIFR) to 3.03 from 3.67 in 2015.
• Reduced Total Recordable Injury Rate (TRIR) to 1.00 in 2016 from 1.57 in 2015.
• Increased female workforce year-on-year.
• Women comprised 29% of new hires in 2016 (21% in 2015).
• Significant improvement in average employee engagement score to 3.70 in 2016 from 3.64 in 2015.

Governance Achievements

• No material non-compliance with regulations in 2016.
• No fines, penalties, or settlements due to anti-trust or anti-corruption breaches.
• All new employees received mandatory training on company policies and Codes of Conduct.
• Supplier Code of Conduct acknowledged by all raw material and critical non-raw material suppliers.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Supply chain disruptions
• Maintaining environmental compliance across multiple jurisdictions
• Balancing food security with biofuel production
• Improving gender balance in the workforce

Mitigation Strategies

• Established targets in Climate Strategy 2020 Plan.
• Investing in supply chain initiatives to improve operational efficiency and reduce GHG emissions.
• Implementing stringent environmental compliance management system.
• Increasing use of renewable resources (solar, wind, biomass, bio-based raw materials).
• Focusing on hiring women and providing developmental opportunities to support gender equality.

Supply Chain Management

Supplier Audits: 100% of raw material and critical non-raw material suppliers underwent self-assessment questionnaire in 2016; targeting systematic supplier audit by 2020.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Self-Assessment Questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes; increased use of renewable energy.

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 14001, ISO 50001, OHSAS 18001

Third-party Assurance: TUV India Private Limited; TÜV NORD CERT GmbH (for Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth

CSR programs aligned with UN SDGs, focusing on environment, health, and education.

Sustainable Products & Innovation

• Recycled yarn (Ecorama®)
• Bio-PET
• PLA fibers
• Fully recyclable EBM PET resins

Awards & Recognition

• RobecoSAM’s Bronze Class 2017 recognition
• Constituent of FTSE4Good ASEAN 5 Index and FTSE4Good Emerging Index
• Bloomberg ESG disclosure score of 62.40%, ranked #1 among SET50 Index Companies in Thailand
• MSCI ‘B’ ESG Rating
• EcoVadis Gold Recognition
• Transparency International: Top among Thai companies and 20th out of 100 multinational corporations
• Sustainability Reports Award 2016 from the Stock Exchange of Thailand
• ESG100 by the Thaipat Institute
• EuPC Best Polymer Supplier Award

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG intensity by 6% from 2013 to 2020 (Scope 1 and 2 combined)
• Three subsidiaries using 100% renewable electricity
• ISO 14001 and ISO 50001 certifications across all operating sites

Social Achievements

• Recycling education program reaching over 13,000 people by December 2019
• CSR programs focused on education, health, and environment
• Workplace Human Rights Assessment (WHRA) framework implemented

Governance Achievements

• Listing on Dow Jones Sustainability Indices, Bloomberg’s ESG Disclosure Score, Transparency International’s Transparency in Corporate Reporting, MSCI, CDP Scores, RobecoSAM’s Sustainability Award Yearbook 2019, FTSE4Good Index, EcoVadis Business Sustainability Ratings, and Sustainalytics’ ESG Ratings

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impacts and toxicity of raw materials and chemicals
• Managing climate change risks
• Ensuring sustainable sourcing of base materials

Mitigation Strategies

• Stringent monitoring of raw materials and replacement with safer alternatives
• Development of a Climate Strategy Corporate Standard
• Procurement of renewable energy and sustainable raw materials, including bio-based and recycled resources
• Supplier Code of Conduct and Supplier Evaluation Process

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Evaluation Process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: TUV India Private Limited, TUV Nord CERT GmbH

Sustainable Products & Innovation

• tea bags made from biodegradable polylactic acid (PLA) fibers
• Bio-PET from Bio-MEG, made from sugarcane

Awards & Recognition

• RobecoSAM’s Sustainability Yearbook
• Dow Jones Sustainability Indices (DJSI)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Recycling
• Human Rights
• Employee Well-being
• Governance

Environmental Achievements

• Secured US$ 1.3 billion in sustainable financing in 2021.
• Issued a THB 10 billion Sustainability-Linked bond.
• Rayong, Thailand manufacturing site achieved a 99% waste diversion rate and Zero Waste to Landfill certification.
• New solar energy investments in China and Indonesia provided combined emissions savings of over 3,300 tCO2e per year.
• Recycled 317,064 tons of post-consumer PET bale input.
• Recycled 14.3 billion PET bottles.
• Reduced GHG emissions (scope 2) intensity by 3%.

Social Achievements

• Established an ESG Council and Decarbonization Committee.
• 90% of Business Heads and 92% of Site Heads signed the Human Rights Declaration.
• Strengthened gender diversity in the workplace by forming a Diversity, Equity, and Inclusion (DEI) Committee.
• Average 29.92 training hours per employee (61% increase from 2020).
• Expanded recycling education to Poland, Indonesia, and Ghana, educating 53,585 people.

Governance Achievements

• 100% independent directors on the Nomination, Compensation and Corporate Governance (NCCG) Committee.
• Published inaugural TCFD report.
• Launched an online ESG Profile dashboard.
• Renewed certification with the Private Sector Coalition Against Corruption (CAC), Thailand.
• Implemented a global Environment, Health and Safety (EHS) and Sustainability Software Management System.

Climate Goals & Targets

Environmental Challenges

• Potential increases in OPEX due to rising environment-based taxes.
• Predicted rise in CAPEX for green technology investments.
• Supply chain disruptions due to the pandemic and geopolitical factors.
• Increased market competition.
• Shortage of global talent.
• COVID-19 impact on employee development and attrition.
• Increase in carbon pricing.
• Increase in consumer plastics due to the COVID-19 pandemic.
• Lack of recycling awareness.

Mitigation Strategies

• Adopted an internal carbon price.
• Transitioning towards cleaner energy sources and decarbonizing production.
• Sustainable supply chain program prioritizing supplier climate maturity.
• Early adoption of new decarbonization technologies (CCUS, advanced recycling).
• Secured US$ 1.3 billion in sustainable financing.
• Vertical integration of the business.
• Cost-optimization strategies.
• Investments in R&D for product stewardship and new technologies.
• Developing new products and portfolios.
• Investing in robust talent development and reskilling programs.
• Succession planning.
• Empowering communities through strategic contributions.
• Exploring more efficient modes of work.
• Promoting employee hygiene.
• Increasing demand for environmentally friendly products.
• Driving the circular economy agenda.
• Empowering suppliers, manufacturers and retailers to adopt circularity.

Supply Chain Management

Supplier Audits: 100% of raw material and critical non-raw material suppliers assessed for human rights risks.

Responsible Procurement

• Supplier ESG assessments
• GHG Scope 3 accounting and reduction targets
• ESG principles incorporated with suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increase in carbon pricing
• Changes in environmental legislation and regulations

Opportunities

• Development of energy-efficient products
• Securing financial capital for decarbonization efforts.

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISCC Plus

Third-party Assurance: TUV India Private Limited

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15

Initiatives contribute to these goals through renewable energy use, job creation, sustainable production, responsible consumption, climate action, ocean protection, and biodiversity conservation.

Sustainable Products & Innovation

• Deja™ products
• Easy Mask
• Oxyclear® Barrier PET and Polyclear® EBM PET resins
• Breathair®
• ULTRAFILM® 5000
• Deja™ Carbon Neutral Pellet
• iCare™ heavy metal-free PET fiber

Awards & Recognition

• S&P Global Sustainability Yearbook 2022
• Dow Jones Sustainability Indices (DJSI)-World and Emerging Markets
• EcoVadis Platinum Medal
• CDP Climate Change Assessment B Rating
• FTSE4Good Index Series
• Thailand Sustainability Investment (THSI) Award
• Best Sustainability Award at the SET Awards 2021
• Best Sustainability-Linked Transaction & Best ESG-Linked Financing Deal of the Year
• ChemScore Rank #1
• Pirelli Supplier Award
• Yokohama Supplier Excellence Award
• Igniting Networks Award 2021

Environmental Metrics

ESG Focus Areas

• Recycling and the Circular Economy
• Climate Change and Energy
• Environmental Stewardship
• Health Safety and Well-being
• CSR and Collaborations

Environmental Achievements

• Reduced greenhouse gas intensity by 3.84% compared to 2020 baseline
• Recycled 15.4 billion PET bottles (equivalent to 342,961 tons of PET bale input)
• 72% of waste diverted from landfill
• 3.32% renewable electricity consumption

Social Achievements

• Launched Sustainable Supply Chain Collaboration Program
• Upgraded Supplier Code of Conduct to Responsible Sourcing Policy
• Offered on-campus leadership communication training through INSEAD to 3,000 executives over 3 years
• Employee Net Promoter Score of 75.85%

Governance Achievements

• Secured US$ 1.1 billion in sustainable financing in 2022
• Established Indorama Ventures Investments & Holdings (IVIH) to drive advancements in recycling
• Implemented flagship Enterprise Resource Planning software, SAP S/4HANA

Climate Goals & Targets

Environmental Challenges

• Slowdown in global economic growth
• Increased market competition
• Climate change
• Increased frequency and severity of natural disasters
• Energy crisis resulting in a spike in natural gas and energy prices
• Sluggish development in carbon regulations
• Lack of reliable data due to industry immaturity
• Internal unidentified site-specific ESG risks
• External unforeseen industry-specific ESG risks

Mitigation Strategies

• Diversification of both supply and end markets to build business resilience
• Implementation of procurement excellence and leveraging digital solutions
• Developing USP, such as IVL’s DejaTM Carbon Neutral pellets
• Establishment of the climate change adaptation steering team
• Improvements in disaster recovery
• Implement internal carbon pricing (US$ 20/tCO2)
• Launch partnerships for renewable energy procurement
• Implement and conduct IVL’s Supplier ESG Compliance Assessment through EcoVadis
• Implement and leverage digital solutions
• Implement an internal water price to ramp up water reduction projects
• Ensure environmental compliance by developing a heatmap

Supply Chain Management

Supplier Audits: More than 40% of top raw material suppliers engaged in 2022; using EcoVadis platform in 2023

Responsible Procurement

• Responsible Sourcing Policy (including palm oil)
• Human Rights Policy
• GHG Questionnaire
• Sustainable Supply Chain Collaboration Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Energy price volatility

Opportunities

• Development of energy-efficient products
• Expansion of global facilities
• Sustainable investment opportunities

Reporting Standards

Frameworks Used: GRI Standards, IIRC Integrated Reporting, AA1000AS v.3, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, ISO 27001 (Head Office and Medco Plast site)

Third-party Assurance: TÜV NORD CERT GmbH and TÜV India Private Limited

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)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Initiatives align with 13 of the 17 SDGs, totaling 39 targets

Sustainable Products & Innovation

• DejaTM Carbon Neutral Pellet
• Biodegradable hygiene products
• ALKEST LV 1400 green solvent
• OXIMULSION® 9000 APE-free surfactants
• Bio-based materials with flax and PLA

Awards & Recognition

• Highly Commended SET Sustainability Awards
• Low Carbon and Sustainable Business Awards
• AMCHAM Corporate Social Responsibility Excellence Recognition 2022
• Asia Responsible Enterprise Award 2022
• Best Sustainable Product Award (DejaTM)
• Top Sustainability Advocates in Asia
• Best Sustainable Product (DejaTM)
• Highly Commended Circular Transition
• S&P Global Sustainability Yearbook 2022 Member
• International Textile Manufacturing Federation Award

Environmental Metrics

ESG Focus Areas

• Community Relations
• Employee Health & Safety
• Employee Engagement
• Diversity, Equity and Inclusion
• Supply Chain Management
• Business Ethics
• GHG emissions
• Energy Management
• Water & Wastewater Management
• Waste & Hazardous Materials Management
• Product Design & Lifecycle Management

Environmental Achievements

• Reduced energy intensity from 4.6 to 2.96 GJ per tonnes of production between 2020 and 2023 (India)
• Reduced electricity and natural gas consumption, mitigating 400 tonnes of CO2e emissions (India)
• Successfully implemented the renewable ethylene oxide project, decreasing customers’ product carbon footprint by up to 46% (South America)
• Camaçari plant (Brazil) obtained ISCC+ certification
• 90% of waste diverted from landfill (2023)
• 23 GHG reduction projects implemented with an estimated reduction of 58.6 ktons of CO2e

Social Achievements

• Launched Portfolio Sustainability Assessment (PSA) methodology, with 43 products and 82 applications analyzed
• Conducted a thorough mapping exercise to identify communities’ primary social risks and potential vulnerabilities, creating over one hundred initiatives benefiting more than 35 thousand people
• Regional rollout of diversity and inclusion projects to the United States and Mexico
• Maintenance of Salvador City Hall Ethnic Racial Diversity seal and Paulista Diversity seal
• Finalized the design of a new São Paulo office to improve employee well-being

Governance Achievements

• Became members of Together for Sustainability (TfS)
• Third-party review of Portfolio Sustainability Assessment (PSA) methodology by KPMG
• Roll out of the Indovinya Compliance Program in North America and South America
• Expansion of the Ethics and Conduct Channel to all Indovinya units

Climate Goals & Targets

Environmental Challenges

• Downstream volume impacted due to destocking in most end markets, sluggish economic activities, slower China recovery, and import pressure
• Reduction in investments due to decrease in company results
• Challenges in the Agricultural sector in 2023
• Water consumption remained about the same from 2022 to 2023, but water intensity increased due to lower production
• Increase in waste generation in 2022 due to the acquisition of Oxiteno

Mitigation Strategies

• Developing a Community Social Risk Matrix to target social projects and actions
• Implementing various energy optimization initiatives
• Improving the measurement of water consumption
• Implementing projects to reduce waste generation and avoid landfill
• Developing a new project and pipeline management model (Spinnaker Project)

Supply Chain Management

Supplier Audits: Seven out of 18 production units assessed for risks related to corruption (2023); 2024 target for Ecovadis supplier assessments and TfS audits

Responsible Procurement

• Supplier code of conduct
• Clauses on ethics, social responsibility, safety, and environmental protection
• NDPE practices for palm oil suppliers
• Ecovadis assessments and TfS ethical trade audits

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Landslides
• Heat waves
• Cold waves
• Severe storms
• Rising sea levels
• Meteorological droughts
• Forest fires

Transition Risks

• Policy and legal changes
• Technological changes
• Market shifts
• Reputational risks

Opportunities

• Development of energy-efficient products
• Renewable fuel alternatives

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, World Business Council for Sustainable Development

Certifications: ISO 9001, ISO 14001, ISO 45001, Responsible Care, RSPO, ISCC Plus

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Goal 6 (Clean water and sanitation)
• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 15 (Life on land)

Initiatives contribute to these goals through water efficiency, renewable energy use, GHG emission reduction, biodiversity conservation, and sustainable product development

Sustainable Products & Innovation

• Renewable ethylene oxide derivatives
• SURFOM® 9115
• SURFOM® 5015
• SURFOM® 8963
• ULTRAFILM® 5000
• OXIMULSION® REACT
• ALKEST® LV 1400
• OXISENSE® H 1000
• SURFONIC® BIO
• ULTROIL® HFS 135
• ULTRAFLUID® LB P 10
• ULTRACK® VS G10
• ALKEST® TW 80 K
• SURFCANE® AF Series
• ALKONAT® L 400
• ALKOSYNT® S
• OXISMOOTH®

Awards & Recognition

• Kurt Politzer Award 2023 for OXISENSE® H 1000
• Dulux Supplier of the Year Award
• Best Supplier of Oxygenated Solvents (Paint & Pintura Award)
• Top position in Coalescents category (Paint & Pintura Award)
• Top position in Coalescents category (P&P Norte e Nordeste Awards)