Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility

Environmental Achievements

• Reduced worldwide energy usage per kilogram produced by 4.6% from 2005 baseline.
• Reduced worldwide waste generation per kilogram produced by 15.9% from 2005 baseline.
• Reduced total releases in 2007 TRI data by 31.6% from 2005.

Social Achievements

• Maintained a significantly lower employee turnover rate compared to the industry.
• Implemented updated Ethical and Legal Conduct Guidelines, training over 6,000 employees and contractors.
• Awarded $171,600 (2007) and $145,200 (2008) for minority scholarships.

Governance Achievements

• Board of directors comprises nine individuals, eight of whom are independent.
• Implemented Enterprise Risk Management (ERM) process to identify and manage risks.
• Maintained a strong record of compliance with various regulatory bodies.

Climate Goals & Targets

Environmental Challenges

• Waste and emissions reduction needs further improvement; stretch goals needed.
• Need to apply creativity to business processes, not just products.
• Climate change regulation impact on raw material sourcing, supply chain, manufacturing, and distribution.
• Water use sustainability across the product lifecycle.

Mitigation Strategies

• Established tracking systems and metrics for waste and emissions.
• Assessing the impact of climate change regulation on various aspects of the business.
• Implementing life cycle assessments (LCAs) to understand the full environmental impacts of products.
• Exploring additional water conservation measures in operations.

Supply Chain Management

Supplier Audits: Annual review of suppliers regarding environmental, health, and safety issues using a 16-point questionnaire.

Responsible Procurement

• Assessment of suppliers' commitment to responsible and ethical behavior.
• Supplier Corrective Action program for underperforming suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Impact of climate change regulation on raw material sourcing, supply chain, manufacturing, and distribution.

Opportunities

• Growth opportunities in providing additive products that increase fuel efficiency, reduce emissions, and facilitate the use of bio-based fuels.

Reporting Standards

Frameworks Used: Responsible Care Management System® (ACC), ISO 9000, ISO 14000, ISO 17000, OHSAS 18000 (where applicable)

Certifications: ISO 9001, ISO 14001, OHSAS 18001 (at various facilities), OSHA Voluntary Protection Program (VPP) Star certification (at Wickliffe and Deer Park facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Bio-based lubricant additives
• Low VOC emission polymer product formulations
• Recyclable Estane TPU polymers
• Geothermal heat transfer fluids

Awards & Recognition

• President’s Safety Award (27 facilities)
• CEO’s Sustainable HSE Excellence Award (11 facilities)
• Various other awards from industry associations and regulatory bodies.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Economic Responsibility

Environmental Achievements

• Reduced global greenhouse gas emissions by 15.7% from 2005 to 2010 (indexed to sales)
• Reduced global energy usage by 33.2% from 2005 to 2010 (indexed to sales)
• Reduced global waste generation by 35.7% from 2005 to 2010 (indexed to sales)
• Achieved a 5% reduction in worldwide waste generation per production amount by 2012, relative to 2005
• Recycled, treated, or used for energy recovery 54% of waste generated in 2010

Social Achievements

• Achieved record low worldwide recordable injury rates in 2009 and 2010, significantly below the American Chemistry Council (ACC) average.
• Received numerous awards for health and safety performance from various organizations.
• Implemented an enhanced ethics program resulting in a significant increase in ethics contacts and proactive measures.
• Consistently exceeded process safety goals, with fewer incidents than ACC members.
• Increased minority business enterprise purchases to $9,691,000 in 2010
• Increased women business enterprise purchases to $7,569,000 in 2010

Governance Achievements

• Board of directors comprised of eleven individuals, ten of whom are independent in 2010.
• Implemented Enterprise Risk Management (ERM) process to identify and manage risks.
• Maintained a strong commitment to ethical behavior, as evidenced by the Ethical and Legal Conduct Guidelines.

Climate Goals & Targets

Environmental Challenges

• Reduction of waste and emissions.
• Potential impact of climate change regulation on raw material sourcing, supply chain, manufacturing, and product delivery.
• Dependence on petrochemical supply chain for raw materials and fossil fuels for energy and distribution.
• Water use and its sustainability in certain regions.

Mitigation Strategies

• Implementing process improvements and global waste reduction projects.
• Assessing the impact of climate change regulation and developing a comprehensive strategy.
• Focusing on improving operational efficiency and energy conservation.
• Initiating water conservation projects at various facilities.

Supply Chain Management

Supplier Audits: Annual review of suppliers regarding environmental, health, and safety issues.

Responsible Procurement

• Assessment of suppliers' commitment to responsible and ethical behavior.
• Supplier Corrective Action program for underperforming suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Climate change regulation

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: Responsible Care®

Certifications: ISO 9000, ISO 14000, ISO 17000, OHSAS 18000 (at some facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Bio-based lubricant additives
• Low-VOC paint and coatings
• Recyclable CPVC piping systems
• Geothermal heat transfer fluids

Awards & Recognition

• Corporate Responsibility Magazine’s 100 Best Corporate Citizens
• Newsweek Magazine’s 500 Greenest Big Companies in America
• Numerous other awards for safety, sustainability, and financial performance.

Environmental Metrics

ESG Focus Areas

• Deliver Sustainable Solutions
• Empower Responsible Citizenship
• Engaged Teams and Communities

Environmental Achievements

• 21% reduction in combined Scope 1 and 2 GHG emissions compared to 2018 baseline
• 25% reduction in waste-to-landfill compared to 2018 baseline
• 85% reduction in air freight compared to 2022
• 13 sites using 100% zero-carbon electricity

Social Achievements

• 42 sites with zero recordable injuries
• 13,000+ employee volunteer hours
• 180+ scholarships and fellowships funded

Governance Achievements

• 93% EcoVadis silver rating (score 70)
• B Climate score from Carbon Disclosure Project (CDP)

Climate Goals & Targets

Environmental Challenges

• Lower production volume impacting emission reduction figures
• Managing GHG emissions as production volume grows

Mitigation Strategies

• Developing revised reduction targets focused on efficiency improvements
• Implementing a global renewable energy strategy to expand use of renewable energy
• Analyzing current utility usage to drive Scope 1 emissions reductions

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISCC Plus Certification

Third-party Assurance: DNV Business Assurance USA

Sustainable Products & Innovation

• Carbopol® Fusion S-20 Polymer
• Evogen™ Electric Vehicle Fluids
• Solsperse™ Hyperdispersants
• Icematic® Low-GWP Fluids
• ESTANE® ECO TPU
• EcoAssurant® Lubricants
• Apisolex™ Polymer
• TempRite® CPVC
• CompuZol™ Immersion Fluid Solution

Awards & Recognition

• SAE International Award for Outstanding Research in Mobility Fuels and Lubricants
• Clean Future Award
• IRI Excellence Award in Digital and Technological Innovation
• Bronze Functional Ingredient Innovation Award & BSB Innovation Award
• in-cosmetics® Global Innovation Zone Award
• BSB Innovation Awards
• in-cosmetics® Korea Innovation Zone Award
• Allē Award
• Henkel Consumer Brands, Carbopol® Fusion S-20 Product of the Year, Asia
• Evogen™ 4006CPhl Award
• ACC Responsible Care Awards
• AICM Responsible Care Awards
• 2022 Silver Makeup Bar Award