Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Safety
• Product Stewardship
• Economic Performance

Environmental Achievements

• Reduced Energy Intensity Index by 3.4 percent
• Reduced reportable emission events by 34 percent globally and 68 percent domestically from 2001 to 2011
• Reduced olefins manufacturing energy consumption by 7 percent per high-value-chemical basis since 2008
• Cedar Bayou Plant achieved 2011 Responsible Care® Energy Efficiency Award

Social Achievements

• Invested over $15 million and thousands of employee volunteer hours in community projects since 2000
• Supported Meds & Foods for Kids (MFK) in Haiti, contributing to improved child nutrition

Governance Achievements

• Implemented Operational Excellence System for global framework managing health, safety, and responsible community operations
• Participates in the American Chemistry Council’s Responsible Care® program

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions due to new facilities and increased production
• Maintaining water efficiency while expanding facilities worldwide

Mitigation Strategies

• Energy Efficiency and Conservation Program to optimize energy consumption
• Emission reduction technologies
• Partnerships with adjacent sites to manage and recycle water

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• OCS requirements added into procurement guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• K-Resin® SBC, Soltrol® Isoparaffin Solvents, Eco-Solv® Dry Cleaning Fluid, Xtel® PPS, Marlex® Polyethylene, Ryton® PPS, MarFlex® Polyethylene, Synfluid® Polyalphaolefins, Performance Pipe’s HDPE pipe systems

Awards & Recognition

• 2011 Responsible Care® Energy Efficiency Award (Cedar Bayou Plant)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Product Sustainability and Circularity
• Social Responsibility

Environmental Achievements

• Achieved its second-best combined employee and contractor Recordable Incidence Rates (RIR) in company history.
• Reduced GHG emissions intensity to 0.48 tonnes of CO2e per tonne of product produced.
• Reduced hazardous waste by 18%.

Social Achievements

• Developed and deployed action plans to enhance diversity, equity and inclusion.
• Launched "Here & Heard," a seven-part series to encourage employee conversations about racism and social injustice.
• Welcomed new Employee Resource Groups (ERGs) supporting women, LGBTQ+ employees, and Black employees.

Governance Achievements

• Established its first Vice President role devoted to sustainability and assembled an Executive Steering Team (EST).
• Created a DE&I Blueprint to increase awareness and mobilize culture initiatives.
• Introduced a companywide plastic management standard across global operations and value chain.

Climate Goals & Targets

Environmental Challenges

• Impacts to U.S. Gulf Coast assets caused by the North American Winter Storm in early 2021.
• Global market volatility.
• Challenges posed by plastic waste in the environment.

Mitigation Strategies

• Implemented significant steps to reduce potential weather-related risks.
• Incorporated considerations that drive a lower carbon, circular future into business projections and outlook.
• Investing in companies with specialized expertise in recycling and supporting efforts to end plastic waste.

Supply Chain Management

Responsible Procurement

• Supplier Principles of Conduct (SPOC)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, extreme temperatures, storms, droughts

Transition Risks

• Policy changes, market volatility, technology advancements

Opportunities

• Development of energy-efficient products, renewable energy sources, carbon capture solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISCC PLUS

Third-party Assurance: KERAMIDA (Limited Assurance)

Sustainable Products & Innovation

• Marlex® Anew™ Circular Polyethylene

Awards & Recognition

• Leadership in Sustainability Award from Plastics Industry Association
• American Chemistry Council safety and energy performance awards
• Texas Chemical Council safety awards
• AFPM safety awards
• VPPPA safety awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Product Sustainability and Circularity
• Social Responsibility

Environmental Achievements

• Achieved zero Tier 1 process safety events in 2022.
• Announced a target to reduce the carbon intensity of operated assets by 15% by 2030 against a 2020 baseline.
• First commercial sales of Marlex® Anew™ Circular Polyethylene.
• Expanded its network of ISCC PLUS certified facilities.

Social Achievements

• CPChem’s European operations received EcoVadis Gold rating.
• Companywide EcoVadis score increased from 47% to 57%.
• 100% of CPChem employees completed ethics-related trainings.
• Launched YourCause platform for matching gifts and volunteerism.
• Increased time-off for parental leave and added an adoption reimbursement program.

Governance Achievements

• Established a robust governance and risk management approach.
• Implemented a companywide safety stand down to address safety incidents.
• Created a DE&I Blueprint to mobilize existing culture initiatives.

Climate Goals & Targets

Environmental Challenges

• Instability in the global economy.
• Enhanced regulatory environment.
• Disruptions throughout the supply chain.
• Uptick in safety incidents.

Mitigation Strategies

• Continued pursuit of Operational Excellence.
• Companywide safety stand down.
• Investing in technology and digital tools.
• Advanced Diversity, Equity & Inclusion (DE&I) and Culture Evolution strategies.
• Marginal Abatement Cost Curve (MACC) assessments.
• Sourcing more renewable energy.

Supply Chain Management

Supplier Audits: ESG assessments for all prime suppliers (67% response rate)

Responsible Procurement

• Supplier Principles of Conduct (SPOC)
• Environmental, labor, human rights and ethics clauses in contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme heat
• Hurricanes
• Water scarcity

Transition Risks

• Policy and government actions
• Technology changes
• Market responses
• Reputational considerations

Opportunities

• Development of energy-efficient products
• Procurement of renewable energy
• Exploring electrification of cracking furnaces and hydrogen firing opportunities
• Examining carbon capture solutions

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISCC PLUS

Third-party Assurance: KERAMIDA (Limited Assurance)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 14
• SDG 17

The report provides examples of how CPChem's initiatives contribute to these goals.

Sustainable Products & Innovation

• Marlex® Anew™ Circular Polyethylene

Awards & Recognition

• American Fuel & Petrochemical Manufacturers Elite Gold and Silver Safety Awards
• American Chemistry Council Responsible Care® Safety Awards
• Texas Chemical Council Safety Awards
• EcoVadis Gold medal (European operations)
• Forbes America’s Best Employers for Diversity and Women
• Newsweek America’s Greatest Workplaces for Diversity

Environmental Metrics

ESG Focus Areas

• Climate Change
• Product Sustainability and Circularity
• Social Responsibility

Environmental Achievements

• Reduced energy intensity by 3% compared to the previous year
• Zero plastic resin loss from global manufacturing facilities
• Completed MACC assessments at five facilities, identifying over 350 potential carbon reduction opportunities
• Two additional CPChem facilities received ISCC PLUS certification

Social Achievements

• Achieved a top 10% ranking in the industry for Total Recordable Incidence Rate (0.08)
• Increased spend supporting diverse suppliers by double compared to 2022
• 100% employee participation in the Sustainability + Me Development Series
• Increased parental leave to six weeks

Governance Achievements

• 100% employee completion of Ethics training
• No significant risks identified in 100% of CPChem wholly owned or operated facilities assessed in 2022

Climate Goals & Targets

Environmental Challenges

• Increased absolute GHG emissions due to increased production and new assets
• Limited availability of circular polymers due to infrastructure constraints and regulatory ambiguity
• Managing water stress risk at facilities in high-water stress areas

Mitigation Strategies

• Implementing MACC assessments to identify emission reduction opportunities
• Investing in renewable energy solutions and improving energy efficiencies
• Exploring opportunities to source greater amounts of renewable energy, improve energy efficiencies, reduce flaring emissions and introduce a myriad of additional cost-effective and sustainably conscious solutions
• Utilizing Water Body Risk Assessments (WBRA) to identify and mitigate water-related risks
• Implementing systems that reuse and recycle freshwater and incorporate desalinated water

Supply Chain Management

Supplier Audits: 280+ suppliers received ESG training

Responsible Procurement

• Supplier Principles of Conduct (SPOC)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, extreme heat, hurricanes, water scarcity

Transition Risks

• Regulatory changes, market shifts, reputational risks

Opportunities

• Development of energy-efficient products and processes; renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISCC PLUS

Third-party Assurance: KERAMIDA (Limited Assurance)

UN Sustainable Development Goals

• 2, 3, 4, 6, 7, 8, 9, 12, 13, 14, 17

Alignment explained in Supporting the UN SDGs section

Sustainable Products & Innovation

• Marlex® Anew™ Circular Polyethylene

Awards & Recognition

• American Fuel and Petrochemical Manufacturers’ Safety Achievement Awards, American Chemistry Council Responsible Care® Awards, Texas Chemistry Council Safety Awards, Singapore Chemical Industry Council Responsible Care Awards, Forbes Best Employers for Diversity, Forbes Best Employer for Women, Forbes World’s Best Employers, Newsweek America’s Greatest Workplaces for Parents and Families, SPE Fellow of Society Award