Climate Change Data

Environmental Metrics

ESG Focus Areas

• Protecting People and the Environment
• Creating Value for Customers and Society
• Engaging Our People
• Driving Business Excellence

Environmental Achievements

• Greenhouse gas emissions (GHG) decreased by 1 percent, and GHG intensity decreased by 10 percent.
• Total energy usage intensity decreased by 4 percent.
• Installation of a photovoltaic solar panel system at its North Charleston, South Carolina, facility, offsetting the equivalent of 1.1 million pounds of carbon dioxide annually.
• Reduced energy intensity by 25 percent over a 10-year period (recognized by the U.S. Department of Energy).

Social Achievements

• Launched IngeviCares program to create a new strategic framework for corporate philanthropy.
• Introduced three new policies to enable employees to care for family members (Parental Leave, Caregiver, Bereavement Leave).
• Achieved top quartile performance for Tier 1 Process Safety Incidents versus ACC benchmark companies, completing more than four years without a Tier 1 PSI.

Governance Achievements

• SOX compliant in its first year after the spin from WestRock.
• Implemented a strategic planning review process with one-year operating plan and a five-year strategic financial plan.

Climate Goals & Targets

Environmental Challenges

• Increased Tier 2 process safety incidents in 2016.
• Higher than expected HAP emissions in 2017 due to malfunctioning control devices at the Covington, Virginia, facility.
• Increased water consumption in 2017 due to increased production of water-based lignin products and installation of a new boiler.
• Increased non-hazardous waste in 2017 due to dredging of wastewater ponds and improved accuracy in waste disposal weights.

Mitigation Strategies

• Focus on process safety improvements resulting in an 80 percent decrease in Tier 2 PSIs in 2017.
• Upgrades to control devices at the Covington facility to address higher than expected HAP emissions.
• Water reduction activities at the North Charleston facility.
• Waste minimization and recycling efforts at all Ingevity locations.

Supply Chain Management

Responsible Procurement

• Co-hosted a supplier outreach event with the Carolinas-Virginia Minority Supplier Development Council (CVMSDC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, IATF

Sustainable Products & Innovation

• Altapur Hydro P-240 and Altapur Hydro P-40

Awards & Recognition

• 2017 Corporate Philanthropist of the Year by the South Carolina Lowcountry Chapter of Fundraising Professionals
• Responsible Care Product Safety Award for product safety from the American Chemistry Council in 2018
• American Chemistry Council’s Energy Efficiency Award (previous years)

Environmental Metrics

ESG Focus Areas

• Protecting People and the Environment
• Creating Value for Customers and Society
• Engaging Our People
• Driving Business Excellence

Environmental Achievements

• Reduced total air emissions by 2%, despite a 9% increase in air emissions intensity.
• Reduced total energy consumption by 4%, although energy intensity increased by 7%.
• Reduced combined scope 1 and 2 GHG emissions by 1%, but intensity increased by 10%.
• DeRidder, LA facility decreased hazardous waste disposal by 30% due to a process change.
• Activated carbon plants recycled over 200,000 metric tons (96%) of phosphoric acid.

Social Achievements

• Increased on-time shipments (OTS) to 83% from 75% in the prior year.
• Increased shipments in full (SIF) to 91% from 88% between 2018 and 2019.
• Launched a modern approach to performance management called 'Perform'.
• Implemented a new Alternative Work Arrangement (AWA) policy.
• Donated $1.875 million to nonprofit organizations, up from $1.670 million in 2018.

Governance Achievements

• Increased board’s gender diversity to 37 percent.
• Introduced a new human rights policy.
• Updated supplier principles of conduct to include sustainability expectations.
• Updated anti-bribery policy to encompass the U.K. Bribery Act.
• 100% of Ingevity employees participated in the company’s annual Code of Conduct training program.

Climate Goals & Targets

Environmental Challenges

• Increase in Tier 2 Process Safety Incidents (PSIs) in 2019 due to mechanical integrity and quality assurance issues at a recently acquired manufacturing site.
• Energy use did not directly correlate with production due to market conditions and product grade mixes.
• Pressure in industrial specialties applications in the Performance Chemicals segment.

Mitigation Strategies

• High level of ongoing effort at the site to reverse the increase in Tier 2 PSIs.
• Upgraded process safety management standard.
• Improved monitoring capabilities to address reasons for energy use not correlating with production.
• Leveraging OpEx processes to advance strategic initiatives.

Supply Chain Management

Responsible Procurement

• Updated supplier principles of conduct to include sustainability expectations for our vendors, including supplier diversity, sustainability of resources, environment and conflict minerals compliance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, IATF, RC14001® or ISO 14001

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Sustainable Products & Innovation

• Nuchar
• Evotherm
• Altapur Hydro P-240
• Altatac ECO 100
• AltaPrint
• AltaHance
• Nuchar FuelSorb
• Capa Polyols
• Capa Thermoplastics

Environmental Metrics

ESG Focus Areas

• Climate Change
• Greenhouse Gas Emissions
• Employee Engagement
• Community Investment
• Safety
• Diversity, Equity & Inclusion
• Product Stewardship
• Responsible Sourcing
• Governance

Environmental Achievements

• Reduced overall GHG emissions by 10% in 2020 (despite GHG intensity increasing due to reduced production)
• Reduced water use and effluent flow by approximately 8% in 2020
• Reduced non-hazardous waste by 3% and hazardous waste by 68% since 2017
• 78% of revenue came from sustainable products

Social Achievements

• Invested over $1.5 million in communities in 2020
• Increased women in management roles to 30% in 2020 from 23% in 2019
• Launched employee engagement survey in 2020
• Completed over 17,000 hours of employee training in 2020 (9.6 hours per employee)

Governance Achievements

• Seven of eight board members are independent
• Established a dedicated growth and innovation team
• Implemented Project Mosaic, a two-year digital transformation project

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted demand and production levels, leading to increased GHG intensity
• Supply chain disruptions due to the pandemic

Mitigation Strategies

• Implemented work-from-home and social distancing initiatives
• Restricted non-essential travel
• Offered mental health and wellness programs to employees
• Quickly adapted to changes in customer demand
• Mobilized Corporate Incident Support Team (CIST)

Supply Chain Management

Responsible Procurement

• Supplier Principles of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Certifications: ISO 14001, ISO 9001, IATF

Sustainable Products & Innovation

• Evotherm warm mix asphalt technology
• Nuchar activated carbon
• Capa caprolactone-based products
• WestRez bio-based tackifier adhesive
• Polyfon pine-based dispersant
• AltaHance multifunctional retention technology
• Capa S polyol technology

Environmental Metrics

ESG Focus Areas

• Manufacture Responsibly
• Prioritize People
• Pursue Excellence
• Embrace Innovation

Environmental Achievements

• Reduced overall GHG emissions intensity by 8.7% in 2021 (3.7% decline since 2020)
• Decreased water use by 3.8% and water intensity by 20.53% in 2021
• Reduced total hazardous waste disposal by 9% and intensity by 25% in 2021
• Zhuhai Solar Field came online, expected to generate 1,118 MWh of electric power in the first year

Social Achievements

• Welcomed first chief diversity, equity and inclusion officer
• Launched three Employee Resource Groups (ERGs)
• Achieved an overall industry-wide top-quartile 2021 S&P Global Corporate Sustainability Assessment ranking
• Received the Talent Board’s 2021 North American Candidate Experience Award
• Named the 2021 Diversity Champion by the Charleston Metro Chamber of Commerce
• Invested $1.7 million into communities in 2021

Governance Achievements

• Developed first Energy Policy
• Expanded Global Ethics and Compliance (E&C) program
• Conducted an E&C benchmark survey and developed an action plan to strengthen the program
• Improved cybersecurity capabilities

Climate Goals & Targets

Environmental Challenges

• Raw materials and energy inflation
• Unpredictable demand in the microchip-constrained automotive market
• Supply chain challenges
• Increased manufacturing leading to increased GHG emissions

Mitigation Strategies

• Disciplined global planning, production, and inventory management
• Price increases to offset lower volume
• Investing capital in steam and electrical energy efficiency projects
• Developing alternative sourcing strategies
• Implementing a Continuous Improvement (CI) mindset

Supply Chain Management

Supplier Audits: Sustainability survey covered over 80% of total spend; 99% of suppliers surveyed were in compliance with Supplier Principles of Conduct

Responsible Procurement

• Supplier Principles of Conduct requiring ethical business conduct, compliance with regulations, and respectful treatment of employees and partners

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, UN Global Compact, UN SDGs

Certifications: ISO 14001, Responsible Care Management System, USDA BioPreferred® Program (34 certifications), GreenPla, TÜV Austria - Seedling OK Compost HOME OK Biodegradable MARINE OK Compost INDUSTRIAL

Sustainable Products & Innovation

• WestRez® tackifier adhesive
• Polyfon® dispersant
• Evotherm® warm mix asphalt
• Nuchar® activated carbon
• AltaVeg™ FA 120
• EnvaDry™ P-FL

Awards & Recognition

• S&P Global Corporate Sustainability Assessment top-quartile ranking
• Talent Board’s 2021 North American Candidate Experience Award
• Charleston Metro Chamber of Commerce Diversity Champion Award
• InnoVision Sustainability Award finalist

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Personal, Process and Public Safety
• Employee Development
• Inclusion and Diversity
• Our Communities
• Product Stewardship
• Customer Partnerships
• Financial Performance
• Strategic Execution

Environmental Achievements

• Reduced GHG intensity by ~3.5% compared to 2021
• 8.4% of energy consumed was from renewable sources
• 77.4% of raw materials used were renewable (up from 74.5% in 2021)
• Zero reportable spills in 2022
• Reduced hazardous waste over past several years
• All manufacturing facilities implemented a comprehensive EMS; several plants are ISO:14001, RC14001 or RCMS certified

Social Achievements

• Launched Talent Scout program to engage ERGs in early talent recruitment
• Donated $1.8 million to nonprofits
• 100% of employees participated in annual Code of Conduct training
• Improved employee engagement to 45% (higher than US average of 32%)
• Average of 11.0 hours of training per employee in 2022
• Zero contractor injuries in 2022

Governance Achievements

• Established Sustainability and Safety Committee in July 2022
• 100% of eligible Ingevity salaried employees received performance evaluations
• Implemented sweeping restrictions of USB drive usage and conducted corporate-wide ransomware preparedness exercises

Climate Goals & Targets

Environmental Challenges

• Increased overall GHG emissions in 2022 despite reduced GHG intensity
• Maintaining a strong safety culture and reducing injuries and process safety events
• Unrecognized hazards in the workplace

Mitigation Strategies

• Implemented several projects to improve operational efficiency
• Rolled out Safety Excellence initiative to drive higher employee engagement in proactive safety activities
• Piloted Ergonomics Kaizen and Job Shadowing programs to address unrecognized hazards

Supply Chain Management

Responsible Procurement

• Supplier Principles of Conduct
• 100% of Ingevity employees/buyers trained in Sustainable Procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 9001, IATF 16949, RC14001, RCMS, ISO 45001

Sustainable Products & Innovation

• Evotherm
• Polyfon
• WestRez
• Nuchar
• Capa caprolactone based products

Awards & Recognition

• Newsweek Most Responsible Companies Award for 2023

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Community Impact
• Diversity, Equity, Inclusion, and Belonging
• Ethical Conduct

Environmental Achievements

• Performance Materials and Advanced Polymer Technologies businesses surpassed the goal to reduce GHG intensity from manufacturing operations by 5% compared to 2020 baseline by 2025 (goal retired in 2023 due to segment repositioning).
• Entered into a renewable product purchase agreement to offset a substantial portion of Scope 2 emissions from US manufacturing locations.
• Reduced GHG emissions year over year and increased renewable energy use.
• 92% of 2023 revenue from products supporting UN SDGs.

Social Achievements

• Employees invested 4,200 volunteer hours in 2023.
• Achieved EcoVadis Silver rating in 2023, placing in the top quartile of reporting companies.
• Launched a company-wide Safety Pledge and a Safety Excellence initiative.
• Implemented a Zero Harm Behaviors Program at Warrington, UK facility, achieving Level 4 “Cooperating Culture”.

Governance Achievements

• Established a new Chief Sustainability Officer role.
• Annually reports ESG practices to third-party assessment platforms.
• Maintains a strong commitment to integrity and ethical behavior, reflected in its Code of Conduct and Supplier Principles of Conduct.

Climate Goals & Targets

Environmental Challenges

• Reducing carbon footprint is a continuous improvement journey.
• Repositioning of Performance Chemicals segment influenced the path towards GHG emissions goals.

Mitigation Strategies

• Working with third-party consultants in 2024 to identify climate-related opportunities and build a roadmap towards 2050 carbon neutrality goal.
• Developing a road map to achieve carbon neutrality for manufacturing operations by 2050.
• Implementing various responsible manufacturing initiatives across different plants to reduce energy and water consumption, and waste.

Supply Chain Management

Responsible Procurement

• Supplier Principles of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, CDP

Sustainable Products & Innovation

• Evotherm warm mix asphalt
• Capa polycaprolactone products
• NeuFuel adsorbed natural gas platform

Awards & Recognition

• EcoVadis Silver rating
• Empower Retirement 2023 Plan Sponsor of the Year Award finalist
• Hermes 2023 Platinum Award for excellence in communicating benefits programs
• Louisiana Economic Development’s Lantern Award (DeRidder facility)