Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic growth
• Environmental stewardship
• Social responsibility

Environmental Achievements

• Lowered energy intensity by 6 percent, with savings of 3 million MMBtu and more than 275,000 tons of CO2 emissions
• 2010 CO2 equivalent emissions totaling 6.71 million metric tons (2.4 percent reduction compared to 2008)
• 2010 VOC emissions were 7,048 tons (a reduction of almost 32 percent compared to 2005)
• 2010 SO2 emissions were 22,068 tons (a reduction of 9 percent compared to 2005)
• 2010 NOx emissions were 10,359 tons (a reduction of almost 20 percent compared to 2005)
• Completed LCAs for 75 products constituting 60 percent of the Company’s top-selling product lines that produce 80 percent of our total revenue

Social Achievements

• Maintained focus on health, safety and well-being of employees
• Continued to track Corporate Injury and Illness Recordable Rates, Days Away from Work Rates, and process safety incidents
• Offered diverse volunteer opportunities to employees
• Maintained Community Advisory Panels (CAPs) at five global sites
• Supported numerous philanthropic and volunteer efforts

Governance Achievements

• Named a Chief Sustainability Officer (CSO) in 2010
• Board of Directors oversees management and maximizes stockholder value
• Committees of the Board include Audit, Nominating and Corporate Governance, Compensation and Management Development, Finance, and Health, Safety, Environmental and Security

Climate Goals & Targets

Environmental Challenges

• Regulatory risks related to carbon emissions
• Uncertainty about future emission standards potentially delaying customer investments

Mitigation Strategies

• Diversified product offerings and broad markets/regions to mitigate exposure to energy and raw material price swings
• Compliance with current GHG emission regulations with minimal financial impact
• Evaluation of proposed legislation and regulations to estimate impact on Eastman
• Engagement with policymakers to minimize adverse impacts of climate change legislation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global “Doing Business with Eastman” Supplier Code of Conduct (distributed every two years)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory constraints on carbon emissions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eastman Tritan™ copolyester
• Compounded cellulose diacetate (made from 100 percent renewable softwood materials)

Awards & Recognition

• Several Responsible Care® Energy Efficiency Awards
• European Responsible Care Commendation Award
• Excellence Award from the Singapore Chemical Industry Council
• Distinguished Service Award from the Texas Chemical Council
• Excellence Award from the Singapore Chemical Industry Council for employee health & safety
• Achievement Award from the Singapore Chemical Industry Council for process safety
• World-Class Performer in Finance by The Hackett Group
• Newsweek’s Top Greenest Companies in America
• Excellence in Caring for Texas Award
• Achievement Award from the Singapore Chemical Industry Council for community awareness
• G.I. Jobs’ Top 100 Military-Friendly Employers
• Economic Excellence and Equality Award from the Tenn. Economic Council on Women
• Computerworld’s Best Places to Work in IT

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Economic

Environmental Achievements

• Achieved zero waste to landfill at Eastman site in Ghent, Belgium
• Improved energy intensity by 1% in 2013 and 8% since 2008
• Energy savings in 2013 equal to $3 million and 145 million pounds of greenhouse gas emissions (equal to emissions from 12,000 cars)
• Announced plans to convert boilers at its manufacturing sites in Kingsport, Tennessee, and Springfield, Massachusetts, from coal to natural gas.

Social Achievements

• Launched “Project Inspire,” investing $1.6 billion and adding 300 jobs over the next seven years
• Recognized by Glassdoor® as the #4 Employee’s Choice Best Place to Work
• Recognized by the Ethisphere® Institute as a 2014 World’s Most Ethical Company®
• Contributed approximately 10,000 hours of company-sponsored volunteer service to a variety of community projects

Governance Achievements

• Eastman’s decisions and actions — at the Board and management level, as well as at the individual employee level — are rooted in our brand beliefs and corporate values.
• Eastman’s Board of Directors has five committees — Audit; Compensation and Management Development; Finance; Health, Safety, Environmental, and Security (HSES); and Nominating and Corporate Governance — to provide compliance oversight with legal and regulatory requirements and oversee the development and management of policies and practices in their respective areas of responsibility.

Climate Goals & Targets

Environmental Challenges

• High energy prices, especially in emerging markets
• Population growth resulting in urbanization challenges
• Increasing need for “cradle-to-grave” life cycle analyses on products
• Water and resource scarcity
• Tightening health and consumer protection regulations and chemical safety

Mitigation Strategies

• Exploration and pursuit of ways to reduce our energy consumption and improve our energy efficiency
• Support of programs and policies that drive conservation of natural resources and raw materials throughout the value chain
• Development of global, integrated advocacy process for emerging sustainability issues awareness
• Ongoing commitment to improving safety of people and products
• Continued expansion of our innovation pipeline, including our sustainably advantaged product pipeline, to meet customers’ needs and address global trends

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability included on supplier performance scorecards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory constraints on carbon emissions

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eastman Tritan™ copolyester
• Eastman 168™ non-phthalate plasticizer
• Eastman Omnia™ high-performance solvent
• Eastman Effusion™ plasticizer
• EnerLogic ® window film
• Heat Mirror® insulating glass
• Saflex® PVB interlayers

Awards & Recognition

• ENERGY STAR® Partner of the Year Sustained Excellence
• Responsible Care® Company of the Year
• World’s Most Ethical Company®

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Sustainable Growth

Environmental Achievements

• Improved energy intensity by approximately 10 percent since 2008
• Named 2015 ENERGY STAR® Partner of the Year — Sustained Excellence winner for the second year in a row
• Received American Chemistry Council (ACC) energy efficiency awards for the 22nd consecutive year for 10 projects
• Energy savings in 2014 equal a reduction of more than 200,000 tons of CO2
• Completed waste audit at largest manufacturing site, resulting in implementation of single-stream recycling
• Achieved LEED® Gold Certification at Eastman’s Shanghai and Singapore offices
• Converted the first of five boilers at our Kingsport, Tenn., site from coal to natural gas combustion

Social Achievements

• Launched innovative products, including Eastman Omnia™ high-performance solvent and Amphora™ 3D polymer
• Became first U.S.-based company to join Together for Sustainability
• Recognized with the Heroes of Chemistry award from the American Chemical Society for Eastman Tritan™ copolyester
• Established Corporate Social Responsibility Team dedicated to embedding Eastman’s societal commitments globally
• Recognized for excellence in safety performance in 2014 from five major rail services
• Named a 2015 World’s Most Ethical Company ® by Ethisphere® Institute
• Eastman and DM Thomas Foundation for Young People partnered to provide marketing support for the Foundation’s popular “Ducks for Change” program

Governance Achievements

• Updated Code of Business Conduct to ensure compliance with the most current regulations and standards
• Launched the Eastman Advantage, an internal guiding document that encapsulates the company’s core values
• Eastman’s Board of Directors and its Committees oversee compliance oversight with legal and regulatory requirements

Climate Goals & Targets

Environmental Challenges

• Intense winter weather and power outages at the company’s two largest manufacturing sites
• Progress toward emission reductions has declined, primarily due to recent acquisitions of additional sites and increased production volumes
• Consumers are looking for value without necessarily being willing to pay a higher price for sustainable solutions
• Innovating sustainable solutions costs and managing costs to fund innovation

Mitigation Strategies

• Implemented a steam injection system and a refrigeration unit to keep the temperature of the bioreactor in the wastewater treatment facility within the ideal range
• Converted the first of five boilers at our Kingsport, Tenn., site from coal to natural gas combustion (with plans to convert more)
• Proactively collaborate downstream with our customers and with their customers to identify needs and opportunities for innovation
• Leveraging stakeholder engagement process to identify the most relevant issues from the list of risks and opportunities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Third Party Code of Conduct
• Supplier Appreciation Days

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory constraints on carbon emissions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines, UNGC

Certifications: LEED® Gold

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eastman Omnia™ high-performance solvent
• Amphora™ 3D polymer
• Eastman VersaBond™ plasticizer
• Eastman Versafix™ plasticizer
• Eastman Spectar™ Stratus copolyester
• Eastman Tritan™ copolyester
• Eastman Skydrol aviation hydraulic fluids
• Eastman 168™ non-phthalate plasticizer
• Tenaz®
• TamiSolve® NxG
• SunTek® window films

Awards & Recognition

• ENERGY STAR® Partner of the Year (four consecutive years)
• ENERGY STAR® Combined Heat and Power (CHP) Award
• American Chemistry Council (ACC) energy efficiency awards
• Heroes of Chemistry award
• Green Supply Chain Award
• Special Recognition for Workplace Recycling award
• Marine Environmental Stewardship Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity
• Society

Environmental Achievements

• Achieved 2020 greenhouse gas intensity goal of 20% reduction two years early
• Reduced absolute greenhouse gas emissions by approximately 10% since 2008
• Commercialized two molecular recycling technologies at scale

Social Achievements

• Eastman Foundation committed more than $1 million in grants toward critical needs of global community
• Setting new inclusion and diversity (I&D) goals, including gender parity by 2030 and leadership in racial equity within sector

Governance Achievements

• Integrated technology and sustainability organizations
• Sustainability goals included in CEO’s annual personal performance commitments

Climate Goals & Targets

Environmental Challenges

• Global plastic waste crisis
• Climate change
• Population growth
• Shortage of materials to feed molecular recycling processes
• Lack of infrastructure to collect, sort, and transport waste plastic

Mitigation Strategies

• Developing molecular recycling technologies to transform waste plastic into raw materials
• Committing to carbon neutrality by 2050, with one-third of the target by 2030
• Working with waste management systems and service providers to build recycling infrastructure
• Collaborating with various stakeholders (e.g., Ellen MacArthur Foundation, U.S. Plastics Pact) to improve recycling systems
• Focusing on process transformation and alternative energy sources to reduce emissions

Supply Chain Management

Supplier Audits: 44% of direct raw material suppliers had current Ecovadis assessments by end of 2019

Responsible Procurement

• Sustainable procurement practices
• Requesting suppliers to complete Ecovadis sustainability assessments
• Coordinating third-party audits of supplier assessments

Climate-Related Risks & Opportunities

Physical Risks

• Increased capital and operational costs associated with transition to renewable sources
• Physical impacts of climate change

Transition Risks

• Carbon pricing increasing operational costs
• More stringent emission limits increasing costs
• Regulatory constraints on carbon emissions impacting new processes and facilities

Opportunities

• Advantaged performance films and interlayers due to energy-efficiency attributes
• Opportunities for tire additives providing increased fuel efficiency
• Development and use of materials enhancing efforts to mitigate or adapt to climate change

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UN Sustainable Development Goals, CDP Climate Change, CDP Water, SASB (partially)

Certifications: ISCC PLUS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eastman Tritan Renew™ copolyester
• Naia™ Renew cellulosic fibers
• Eastman Tetrashield™ protective resin
• Eastman Optifilm™ enhancer 400

Awards & Recognition

• Wall Street Journal World’s Most Sustainably Managed Companies 2020
• Ethisphere’s World’s Most Ethical Companies
• Fast Company World Changing Ideas Award
• Environment + Energy Leader Top Project of the Year Award
• Re|Focus Sustainability Innovation Award
• Sourcing Journal’s Sustaining Voices
• Forbes Best Employer for Diversity
• ENERGY STAR Partner of the Year
• Victory Media Military Friendly® Employer Award
• LUXE PACK in green Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved energy intensity by approximately 13% since 2008
• Converted a powerhouse at Kingsport, Tennessee facility from coal to natural gas combustion in 2018 (providing approximately 50% of the site's steam and electricity)
• Launched carbon renewal technology in 2019, recycling millions of pounds of polyester carpet

Social Achievements

• Continued nationally recognized partnership with Northeast State Community College's Regional Center for Advanced Manufacturing (RCAM), achieving near 100% job placement rates
• Eastman Foundation committed over $1 million to support global response organizations and site communities during the pandemic
• Over 1,400 employees participated in resource groups for diverse communities in 2020

Governance Achievements

• 100% of employees completed online Code of Business Conduct training, including human rights policy
• 63% of direct raw material suppliers (by spend) had current EcoVadis sustainability assessments by the end of 2020
• Established process within Corporate Development to prescreen potential M&A against sustainability criteria

Climate Goals & Targets

Environmental Challenges

• Potential financial impacts from climate change (estimated $5,000,000 to $30,000,000), including increased costs associated with transitioning from fossil fuels
• Potential increased operational costs due to carbon pricing regulations (estimated $8,000,000 to $45,000,000 in the US; €1,000,000 to €9,000,000 in the EU)
• Limited opportunities to purchase materials with recycled content due to vertical integration

Mitigation Strategies

• Developing and using materials that mitigate or adapt to climate change (e.g., window films, interlayers in window glass)
• Investing in energy efficiency projects ($6,000,000 in 2020)
• Utilizing combined heat and power, making electricity production twice as efficient
• Investing in molecular recycling initiatives (anticipated $500,000,000 to $1,000,000,000 in new revenue)
• Engaging policymakers directly and through trade associations to influence climate change legislation

Supply Chain Management

Supplier Audits: 63% of direct raw material suppliers (by spend) had current EcoVadis assessments by end of 2020

Responsible Procurement

• Membership in Together for Sustainability Initiative (TfS)
• Requesting suppliers complete EcoVadis sustainability assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing regulations
• Transition to renewable energy sources

Opportunities

• Development and use of materials that enhance energy efficiency (e.g., window films)
• Molecular recycling technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact Communication on Progress

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LLumar®, V-KOOL®, SunTek® window films
• Saflex® PVB interlayers
• Saflex Solar Connect

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity
• Society

Environmental Achievements

• Reduced absolute Scope 1 and 2 greenhouse gas emissions by 13.8% from 2017 baseline.
• Reduced Kingsport energy use by 2% in 2021, resulting in an estimated emissions reduction of 72,000 tons of CO2-equivalent.
• Recycled 12.7 million pounds of plastic waste in 2021.
• Oulu, Finland site reduced its carbon footprint by 82% since 2019 and no longer uses fossil fuels for electricity generation.

Social Achievements

• Increased gender parity to 37% in 2021.
• Global ERG membership increased by 55% in 2021.
• Launched LEAD program in 2021 for Black talent development.
• Donated approximately $220,000 to Ukraine relief efforts in 2022.

Governance Achievements

• Received review-level assurance from PwC on Scope 1 and Scope 2 GHG emissions for 2021.
• Implemented a Sustainability Center of Excellence (COE) in 2021.
• Updated corporate Sustainability Materiality Assessment in 2022.

Climate Goals & Targets

Environmental Challenges

• Increased number of personal safety incidents and injuries in 2021.
• Slight decrease in racial equity progress in 2021.
• Need for broader industry efforts in recycling and improving feedstocks of plastic waste.

Mitigation Strategies

• Established enhanced executive process safety governance committee.
• Initiated mandatory safety stand-downs across the company.
• Accelerated investment in areas like leadership training, improved procedures, and additional safety projects.
• Root-cause analysis to understand drivers of internal talent movement and turnover.
• Active engagement with policymakers and participation in initiatives to improve recycling.

Supply Chain Management

Supplier Audits: 69% of direct raw material suppliers had current EcoVadis assessments (2021)

Responsible Procurement

• Membership in Together for Sustainability (TfS)
• Requesting suppliers complete EcoVadis sustainability assessments
• Developing standard guideline for consistent product carbon footprints

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing mechanisms
• Changes in legislation and regulation
• Increased costs for raw materials and energy

Opportunities

• Development of energy-efficient products
• Molecular recycling technologies
• Access to new markets through climate-related products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UNGC, SDGs

Certifications: ISCC PLUS, FSC®, PEFC™

Third-party Assurance: PricewaterhouseCoopers LLP (PwC) for Scope 1 and 2 GHG emissions (2021)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Eastman Tritan™ Renew
• Eastman Trēva™ Renew
• Eastman Cristal™ Renew
• Eastman Acetate Renew
• Naia™ Renew
• Aventa™ Renew
• Tetrashield™

Awards & Recognition

• ENERGY STAR Partner of the Year
• Barron’s list of 100 Most Sustainable Companies
• Fast Company’s North American World Changing Ideas honorable mention
• Fortune Magazine Change the World list
• Better Plants Better Project award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity
• Society

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by 16.3% compared to 2017 baseline.
• Recycled 18.1 million pounds (8,000 MT) of plastic waste in 2022 (a 40% increase from 2021).

Social Achievements

• Increased gender parity to 38%.
• Increased representation of underrepresented groups in the workforce to 14%.

Governance Achievements

• Established an executive-led process safety governance committee.
• Improved safety performance significantly in the second half of 2022.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions require further understanding and mitigation strategies.
• Supply chain disruptions (implied).

Mitigation Strategies

• Implementing new software (SiGREEN) to verify carbon footprint data throughout the supply chain.
• Engaging with suppliers through Together for Sustainability (TfS) and EcoVadis assessments.

Supply Chain Management

Supplier Audits: Through EcoVadis and site audits as needed.

Responsible Procurement

• Together for Sustainability (TfS) membership.
• EcoVadis sustainability assessments.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather events

Transition Risks

• Policy and legal changes related to carbon pricing and emissions regulations.

Opportunities

• Resource efficiency from energy efficiency projects.
• Molecular recycling technologies.
• New markets for climate-related products (e.g., window films).

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: Null

Third-party Assurance: AICPA

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)

Eastman's initiatives contribute to these goals through renewable energy use, molecular recycling, sustainable product development, and GHG emissions reduction.

Sustainable Products & Innovation

• Eastman Renew materials
• Aventa™ compostable materials
• Naia™ Renew cellulosic fibers
• Tetrashield™ protective resin systems
• Saflex™ PVB interlayers

Awards & Recognition

• Forbes Net Zero Leaders list (No. 46)
• U.S. Department of Energy Better Practice and Better Project Awards
• ENERGY STAR® Top Project award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Inclusion & Diversity
• Safety

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 greenhouse gas emissions by 21.8% against a 32% goal by 2030 (from 2017 baseline).
• Recycled 21.9 million pounds (9,934 MT) of plastic waste in 2023 (72% increase over 2021).
• 64.3% reduction in SO2 emissions compared to 2017 baseline.
• 26.7% reduction in NOx emissions compared to 2017 baseline.
• 31% reduction in Level 1 environmental incidents compared to the 2022 baseline.

Social Achievements

• Increased representation of minority ethnic groups in the workforce to 15%.
• Gender parity at 38%.

Governance Achievements

• Executive remuneration linked to sustainability performance.

Climate Goals & Targets

Environmental Challenges

• Meeting ambitious GHG emission reduction targets.
• Improving gender parity and racial equity.

Mitigation Strategies

• Investing in renewable energy sources (aiming for 100% renewable electricity in North America and Europe by 2030).
• Implementing molecular recycling technologies.
• Setting aggressive safety targets and continuous improvement initiatives.

Supply Chain Management

Supplier Audits: 802 Eastman suppliers with valid EcoVadis assessments in 2023; 59% of continuing direct spend covered by valid EcoVadis assessments.

Responsible Procurement

• Together for Sustainability membership
• EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, CDP

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Not disclosed

Eastman supports the UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed