Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• 96% of 2020 revenues were derived from advanced sustainable materials.
• Reduced GHG emissions (tCO2e) per $m Net Revenue to 13.51

Social Achievements

• Expanded and realigned executive team to fulfil increasing order volumes and create more demand for current products.
• Implemented cost-saving measures to conserve cash resources during the Covid-19 pandemic.

Governance Achievements

• Adopted the Quoted Companies Alliance’s (QCA) Corporate Governance Code for small and mid-size quoted companies.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Covid-19 pandemic (shipping delays, higher shipping costs, higher raw material costs, and availability of raw materials).
• Uncertainty whether the success of Itaconix products will be in sufficient quantities for the Group to generate an overall profit.

Mitigation Strategies

• Implemented cost-saving measures from March 2020 to August 2020.
• Received a US Paycheck Protection Program loan in May and completed a fundraise in July 2020.
• Actively communicate with all major suppliers and customers about upcoming demand and reliability of the supply chain.
• Hold significant stock of long lead raw materials from Asia.
• Partnering with market leaders for worldwide promotion of leading products.
• Continued development of end-user formulas to provide customers with packaged solutions.
• Continuous review of market needs for Itaconix products.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Streamlined Energy & Carbon Reporting (SECR)

Sustainable Products & Innovation

• Itaconix® DSP 2K™
• Itaconix® TSI™
• Itaconix® CHT™
• VELASOFT™
• ZINADOR™
• VELAFRESH™
• Amaze™ SP
• BIO*Asterix™

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Sustainability

Environmental Achievements

• 95% of 2021 revenues derived from advanced sustainable materials
• Reduced water consumption in production by more than half compared to the prior year.
• Reduced direct and indirect GHG emissions in 2021 compared to 2020 (although intensity ratio increased due to lower production).

Social Achievements

• Expanded commercial base with more uses in more brands, sold in more retail outlets.
• Added major new customers and retained existing customers.
• Awarded the London Stock Exchange’s Green Economy Mark in May 2021.

Governance Achievements

• Adopted the Quoted Companies Alliance’s (QCA) Corporate Governance Code.
• Established three Board committees: Audit Committee, Remuneration Committee, and Nominations Committee.
• Maintained a flat organization with ready employee access to management and the Board.

Climate Goals & Targets

Environmental Challenges

• Revenues were lower in 2021 than 2020 due to order cycles from the stocking and rebalancing of customer inventories in response to the Covid-19 pandemic.
• Higher raw material costs due to inflation, increased shipping costs, and energy restrictions.
• Supply chain disruptions due to the Covid-19 pandemic, including extended transport times for raw materials and outgoing shipments, and supply disruptions for other needed detergent ingredients.

Mitigation Strategies

• Implemented price increases to offset higher raw material costs.
• Prepared major customers for price increases and longer lead times.
• Developed alternative sourcing strategies and adjusted pricing of products to mitigate supply chain disruptions.
• Maintained production capabilities and customer deliveries while implementing recommended CDC guidance to protect employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Streamlined Energy & Carbon Reporting (SECR)

Sustainable Products & Innovation

• Itaconix® DSP 2K™ polymer
• Itaconix® TSI™ 322 polymer
• Itaconix® TSI™ 122 polymer
• Itaconix® ONZ 075 product
• ZINADOR™ polymers
• VELAFRESH™ polymers
• VELAFRESH® SAP80 polymer
• VELASOFT® BR 300
• BIO*Asterix™ line of functional additives

Awards & Recognition

• London Stock Exchange’s Green Economy Mark

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• 93% of 2022 revenues were derived from advanced sustainable materials (2021: 95%).
• Reduced water consumption in production by approximately 70% in early 2022 compared to the prior year.

Social Achievements

• Continued to make substantial progress in cleaning, announcing a new distribution agreement with Brenntag North America.
• Renewed supply agreement for sustainable odour control with Croda.

Governance Achievements

• Several changes to corporate structure in 2022, including the appointment of new Non-Executive and Executive Directors.
• Adopted the Quoted Companies Alliance’s (QCA) Corporate Governance Code for small and mid-size quoted companies.

Climate Goals & Targets

Environmental Challenges

• Lingering pandemic challenges affecting commercial activities (limited ocean freight availability, increased raw material costs, shipping delays).
• Increased raw material costs and logistics costs.
• High costs of ocean freight.
• Lower gross profit margins on Formulation Solutions (roughly 8%).
• Slower reorder volumes in hygiene and beauty segments.

Mitigation Strategies

• Partnered with market leaders for worldwide promotion of products.
• Continued development of end-user formulas.
• Continuous review of market needs.
• Pricing increases to offset raw material and logistics cost increases.
• Improved supply chain reliability by increasing US warehoused raw materials and communicating projected order volumes.
• Successful fundraise of $12.7m in February 2023 to accelerate new product development, improve processes, and build up inventory in Europe.

Supply Chain Management

Responsible Procurement

• Working with suppliers to improve supply chain reliability and cost.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Streamlined Energy & Carbon Reporting (SECR)

Sustainable Products & Innovation

• Itaconix® DSP 2K™, Itaconix® TSI™ 322, Itaconix® TSI™ 122, Itaconix® ONZ 100, Itaconix® ONZ 400, Itaconix® ONZ 075, ZINADOR™ (Croda), VELAFRESH™ ZP20/30, VELAFRESH™ SAP80, Amaze™ SP (Nouryon), VELASOFT™ NE 100, VELASOFT™ BR 300

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental protection
• Plant-based polymers

Environmental Achievements

• Increased use of plant-based polymers in consumer products, reducing reliance on fossil-fuel based alternatives.
• Improved production utilization leading to higher gross profits and reduced environmental impact per unit of production.

Social Achievements

• Appointment of new Non-Executive Directors with expertise in sustainability and corporate governance.
• Continued development of a corporate culture based on ethical values and behaviors.
• Expansion of management team to support operations.

Climate Goals & Targets

Environmental Challenges

• Loss at current revenue levels, requiring growth in gross profits and management of operating expenses to achieve profitability.
• Lower 2024 revenue expectations due to unsatisfactory commercial terms with a North American customer.
• Customer concentration and retention.
• Competition and technological change.
• Manufacturing risk with a single production facility.
• Global supply chain disruptions and raw material cost volatility.
• Inflation and foreign currency risk.
• Retention of key staff.

Mitigation Strategies

• Successful fundraise of $12.7m in early 2023 to support growth and working capital.
• Focus on growing revenue volumes in North America and Europe, improving gross profit margins, and controlling costs.
• Diversification of customer base.
• Continuous work on the performance and cost advantages of Itaconix polymers and monitoring of technologies and patents.
• Holding additional finished goods and raw material inventories.
• Active monitoring of raw material costs and working with vendors to manage costs; passing cost increases onto customers.
• Maintaining bank balances in major functional currencies.
• Expansion of management team and service contracts with key personnel; equity incentive plan for key US personnel.

Supply Chain Management

Responsible Procurement

• Working with suppliers to improve reliability by increasing US warehoused raw materials and communicating projected order volumes.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK adopted International Accounting Standards (IFRS)

Third-party Assurance: BDO LLP

Sustainable Products & Innovation

• Plant-based polymers for cleaning, beauty, and hygiene products.