Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Use and GHG Emissions
• Environmental and Regulatory Compliance
• Solid Waste/Hazardous Waste
• Water Use/Wastewater Management
• Ethical Business Practices
• Labor and Human Rights
• Occupational Health and Safety
• Process and Product Innovation
• Process Safety/Emergency Response
• Procurement
• Raw Materials

Environmental Achievements

• 13.5% absolute reduction in energy consumption from 2018
• 11% absolute reduction in water consumption from 2018
• 13% absolute reduction in GHG emissions from 2018
• Itatiba, Brazil site achieved 100% carbon neutral energy in 2018

Social Achievements

• 58,000 hours of employee training tracked
• $216K of donations
• 6,684 volunteer hours
• Safety outreach events

Governance Achievements

• Updated Code of Conduct for Suppliers and Other Third Parties in 2019
• 26 concerns raised and investigated through the Ethics Line

Climate Goals & Targets

Environmental Challenges

• Water use in high-water stress areas
• GHG emissions from energy consumption
• Managing a global supply chain with potential environmental impacts

Mitigation Strategies

• Implementing process changes to reduce water consumption (Leverkusen, Germany)
• Developing energy reduction and GHG reduction targets
• Developing a renewable energy goal
• Implementing a supplier questionnaire for new suppliers to disclose their water use and risks
• Green Procurement initiatives (e.g., drum supplier in Germany reducing embodied energy)

Supply Chain Management

Responsible Procurement

• Green Procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 50001, OHSA’s Voluntary Protection Programs (VPP), American Chemistry Council’s Responsible Care® program, OHSAS 18001, ISO 45001, Halal and Kosher

Sustainable Products & Innovation

• NXT silanes (reduced rolling resistance in tires)
• Silwet super spreading adjuvants (reduced water use in agriculture)
• CoatOSil DRI waterborne silicone resin (low VOC)
• e-free silane (reduced ethanol emissions)

Awards & Recognition

• Samrat 2020 (Top Supplier Award) from Marico Limited
• Corporate Social Responsibility Recognition from the Woodbridge Group
• 5-Star Rating for EHS Systems and First Place in Chemicals & Fertilizer Industries Sector from Confederation of Indian Industries

Environmental Metrics

ESG Focus Areas

• People
• Products
• Planet

Environmental Achievements

• Reduced total water intake by 10% compared to 2019.
• Two sites (Lostock, UK and Itatiba, Brazil) using 100% renewable electricity.
• 45% of electricity at Waterford, NY, USA site sourced from low/no-carbon hydroelectric power.
• 17% reduction in waste materials from a strategic improvement program at Waterford, NY, Sistersville, WV, and Leverkusen, Germany sites.
• Chennai, India site reduced hazardous and non-hazardous waste by over 5000 kgs by changing solvent procurement methods.

Social Achievements

• Launched a Global Diversity Council (GDC) to improve diversity, inclusion, and belonging.
• Rayong, Thailand site donated nearly 5,000 N95 masks.
• Chennai, India site engaged in World Environment Day activities.
• Termoli, Italy site saved 592 metric tons through rail shipping.
• Global Packaging Council reduced GHG emissions by more than 30,000 tons of CO2e and plastics waste by 800,000 pounds per year.

Governance Achievements

• Incorporated sustainability performance into the 2021 annual incentive plan (10%).
• Achieved a Silver Sustainability Rating from EcoVadis for 2020 and 2021.
• Achieved a B rating for the 2020 CDP Climate Change and 2020 CDP Water Security Disclosure.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Reducing GHG emissions from supply chain partners (Scope 3).

Mitigation Strategies

• Developed alternative sourcing strategies and maintained operations to supply pandemic-critical materials.
• Committed to developing a strategy to estimate and track Scope 3 emissions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: TruCost (AA1000AS v3 (2020) Type 2 moderate-level assurance for energy usage and GHG emission data)

UN Sustainable Development Goals

• Goal 2
• Goal 7
• Goal 9
• Goal 12
• Goal 13

The report mentions alignment with these goals through various initiatives.

Sustainable Products & Innovation

• Silwet™ super-spreading adjuvants
• NXT™ silanes
• Niax™ polyurethane foams
• SilCool™ thermal management products
• SilFORT™ hardcoat products
• Niax™ additives (60%+ bio-based content)
• GE Enduris™ roof coating
• GE Elemax™ coatings
• GE Ultraglaze™ sealants

Awards & Recognition

• The Best Safety Management Award (Rayong, Thailand)
• 5-Star Climate Rating (CDP Supply Chain Submission by KAO Corporation)
• Two EHS Awards (Chennai, India)
• External Business Partner Excellence Award (Proctor & Gamble)
• Advanced Safety Production Company (Nantong, China)

Environmental Metrics

ESG Focus Areas

• Our People (Empowering Our People and Enhancing DIB)
• Our Products (Ensuring that more than 75% of all new products have a Sustainability impact)
• Our Planet (Growing our company while reducing our impacts through reduced water consumption, waste and fossil fuel energy consumption)

Environmental Achievements

• Reduced greenhouse gas emissions by 24% from 2019 baseline
• Reduced total waste by 31% from 2019 baseline
• Obtained 22% of electricity from renewable sources
• 40% of waste recycled for beneficial use

Social Achievements

• Increased gender-diverse employees by 1%
• 2,300+ volunteer hours in the U.S.
• 65,400 tracked hours of employee training
• Launched six regional diversity councils in addition to corporate Global Diversity Council

Governance Achievements

• Earned a Gold Sustainability Rating from EcoVadis for 2022
• Safety and sustainability comprises 10% of Momentive’s 2022 annual incentive plan for employees worldwide

Climate Goals & Targets

Environmental Challenges

• Pressure to reduce carbon emissions and transition to renewable energy sources
• Ensuring supply chain transparency and ethical sourcing
• The increasing prominence of the circular economy

Mitigation Strategies

• Investing in energy-efficient technologies and equipment
• Adopting renewable energy sources
• Implementing comprehensive recycling and waste management programs
• Partnering with key suppliers to quantify the carbon footprint of their products and ask them to reduce their carbon footprint

Supply Chain Management

Supplier Audits: 100% of new supply contracts with Supplier Code of Conduct

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy sources

Reporting Standards

Frameworks Used: GRI, EcoVadis, CDP (formerly Carbon Disclosure Project), UN Global Compact, Science Based Targets initiative

Certifications: ISO 45001 (16% of manufacturing sites)

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 7: Affordable and clean energy
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

See pages 20-21

Sustainable Products & Innovation

• Silwet™ Adjuvants
• InvisiSil™ Optical Bonding solution
• NEVSil™ Specialty Elastomers
• NXT™ Silanes
• Niax™ EF Catalysts
• HARMONIE™ line
• TufelTM 150 LT
• Enduris™ Roof Coating
• Structural Silicone Glazing and Insulating Glass Sealants

Awards & Recognition

• Thailand Best Safety Management Level 2022 (Rayong site)
• Silver Award for excellence in EHS practices from CII (Chennai site)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions from 250,000 metric tons in 2019 to 183,000 metric tons in 2023
• Reduced Scope 2 GHG emissions from 170,000 metric tons in 2019 to 97,000 metric tons in 2023
• Increased renewable electricity percentage from 17% in 2019 to 35% in 2023
• Reduced SOx emissions from 2,126 pounds in 2019 to 925 pounds in 2023
• Reduced NOx emissions from 270,000 pounds in 2019 to 171,846 pounds in 2023
• Reduced water withdrawn from 32,000 thousand m3 in 2019 to 26,500 thousand m3 in 2023
• Increased ISO 14001 certified sites from 50% in 2019 to 60% in 2023

Social Achievements

• Increased women in workforce from 18% in 2019 to 19.9% in 2023
• Increased women in management from 16.7% in 2019 to 19.8% in 2023
• Reduced occupational injury and illness rate from 0.67 in 2019 to 0.21 in 2023
• Reduced number of significant occupational safety incidents from 1 in 2019 to 0 in 2023
• Reduced number of fire, process safety or environmental incidents from 16 in 2019 to 12 in 2023
• Momentive Construction Sealants team in Mexico coordinated a charity project for the Pan De Vida Orphanage

Governance Achievements

• Became a UN Global Compact Signatory
• Sustainability disclosures independently verified/assured

Climate Goals & Targets

Supply Chain Management

Supplier Audits: 89% (2023)

Responsible Procurement

• Supplier Code of Conduct
• Together for Sustainability (TfS) initiative

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, UNGC, Science Based Targets initiative (SBTi)

Certifications: ISO 14001, ISO 45001/OHSAS 18001 (16% of manufacturing sites)

Third-party Assurance: Bureau Veritas