Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Emissions Reduction
• Circular Economy
• Diversity & Inclusion
• Health & Safety
• Responsible Supply Chain

Environmental Achievements

• Reduced waste to landfill by 58%
• Reduced relative energy consumption by 13%
• Phased out 13 red raw materials, reducing overall use by 1.7%
• Hempaguard X7 hull coating reached 2,000 applications, reducing combined fuel consumption by 7.6 million tonnes and CO2 emissions by 23.5 million tonnes since 2013.
• Initiated a group-wide transition to renewable electricity in production units.

Social Achievements

• Launched a new global onboarding programme.
• Launched a Sales Leadership Initiative.
• Maintained high employee satisfaction and motivation scores (77 out of 100).
• Reduced lost time accidents from 2.68 to 1.61 per 1,000,000 working hours.
• Donated used laptops to schoolchildren in Portugal and the Netherlands.
• Raised over EUR 10,000 for charity through a fitness initiative in South & East Asia.

Governance Achievements

• Improved overall internal control framework by strengthening procedures and policies, increasing cyber security investments, and upgrading the Enterprise Resource Planning system.
• Developed Double Impact strategy.
• Maintained 100% pass rate on employee Code of Conduct eLearning.
• Received 30 whistleblower reports, 13% lower than in 2019.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chain and demand, particularly in Asia Pacific and Americas.
• High supply chain cost level in China.
• Negative impact on Infrastructure segment due to project postponements and cancellations.
• Negative impact on Energy segment due to COVID-19 restrictions and low oil & gas prices.
• Increasing complexity in HSE regulation.

Mitigation Strategies

• Implemented a cash protection plan.
• Exited certain non-core markets.
• Optimised supply chain in Asia Pacific, particularly China.
• Investing in new factories in China and Saudi Arabia.
• Implemented cost-saving initiatives.
• Strengthened processes around evaluation and communication of changes in laws and regulations.
• Monitoring of markets and regions, dual sourcing, and training and awareness campaigns.

Supply Chain Management

Supplier Audits: 26 suppliers evaluated in 2020

Responsible Procurement

• Supplier Policy
• Business Partner Code of Conduct
• Sustainability Screening Questionnaire
• EcoVadis evaluation

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Changes in regulations
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact, Science Based Targets initiative

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Hempaguard X7
• Avantguard
• Hempafire
• Hempasense Track

Awards & Recognition

• Vestas Sustainability Award 2020

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Supplier Sustainability
• Waste Reduction
• Renewable Energy

Environmental Achievements

• Reduced waste to landfill at production sites by 70% compared to 2019 baseline (29% reduction from 2020).
• Increased renewable electricity at production sites to 51% from 24% in 2020.
• Helped Marine customers reduce CO2 emissions by 4.5 million tonnes, a 25% increase from 2020.
• Removed 970 tonnes of hazardous raw materials from product assortment.

Social Achievements

• Launched Inclusive Leadership Training for top 265 leaders.
• Increased percentage of women in management to 23% from 21% in 2020.
• Launched the High Five global leadership training programme with 328 participants.
• Launched YES (Young Enablers of Sustainability) program for employee engagement in sustainability initiatives.

Governance Achievements

• Integrated Farrow & Ball and Wattyl acquisitions.
• 100% of Hempel employees (excluding production, warehouse and store staff) completed Code of Conduct e-learning.
• Strengthened compliance framework in response to increasing complexity in international trade.

Climate Goals & Targets

Environmental Challenges

• Unprecedented raw material price increases (around 40% compared to Q4 2020).
• Supply chain disruptions.
• COVID-19 pandemic impact (more pronounced in the beginning of the year).
• Maintaining margins despite raw material price inflation.

Mitigation Strategies

• Accelerated productivity and cost-saving programmes.
• Increased selling prices.
• Postponed non-business-critical projects.
• Completed a new factory in China to reduce production costs.
• Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 41 key suppliers screened (22% of indirect and direct spend) in 2021; 75% of direct spend screened by EcoVadis.

Responsible Procurement

• Business Partner Code of Conduct
• Hempel Procurement Sustainability Screening Programme
• EcoVadis sustainability ratings

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts)
• Supply chain disruptions due to extreme weather

Transition Risks

• Regulatory changes
• Market shifts towards more sustainable solutions

Opportunities

• Development of energy-efficient products
• Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI, UN Global Compact, Science Based Targets initiative

Certifications: ISO 45001

Third-party Assurance: PricewaterhouseCoopers (limited assurance on ESG data)

Sustainable Products & Innovation

• Hempaguard hull coating
• Hempafire Pro 400
• Avantguard primers
• Hempablade Edge

Environmental Metrics

ESG Focus Areas

• Greenhouse gas (GHG) emissions
• Resource consumption
• Waste disposal
• Hazardous materials
• Social and economic inequality
• Diversity, Equity & Inclusion
• Safety
• Compliance

Environmental Achievements

• Reduced Scope 1 & 2 CO2 emissions by 56% compared to 2019 (68% excluding acquisitions, warehouses and stand-alone R&D facilities).
• Reduced waste sent to landfill at production sites by 45% compared to 2021 (83% compared to 2019 excluding acquisitions).
• 15 production sites achieved zero waste to landfill.
• Reduced the value lost from scrap by 65% compared to 2019.
• Helped marine customers reduce CO2e emissions by 5.6 million tonnes.
• Recycled more than one million paint cans through the Can Back Scheme.

Social Achievements

• Decreased Lost Time Accident (LTA) frequency from 1.72 to 1.19 per 1,000,000 working hours.
• Increased percentage of women in leadership positions to 29%.
• Launched a global Diversity, Equity & Inclusion Council.
• 83% of Hempel colleagues participated in the Hempel Heartbeat employee engagement survey.

Governance Achievements

• 44 new cases registered to the compliance hotline.
• 52 cases closed in 2022.
• 40% of spend is now subject to sustainability screening.
• Implemented GDPR as a standard data protection compliance framework.
• Continued employee training in the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Steeply climbing energy costs.
• High raw material prices and shortages.
• Rising inflation.
• Geopolitical instability.
• Reduced consumer demand.
• Increased competition in the wind market.
• Supply chain disruptions.

Mitigation Strategies

• Increased selling prices.
• Initiated cost-savings and revenue management programmes.
• Reorganised Hempel’s operating model.
• Implemented a globalised supply chain.
• Developed alternative sourcing strategies.
• Invested in electric heating systems and solar panels.
• Hedged interest rates and assessed currency developments.

Supply Chain Management

Supplier Audits: 77 suppliers screened in 2022, 40% of total spend covered by Procurement Sustainability Screening.

Responsible Procurement

• Hempel Business Partner Code of Conduct
• EcoVadis sustainability assessments
• Hempel Procurement Sustainability Screening

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme temperatures
• Extreme weather events

Transition Risks

• Climate action failure
• Changes in market conditions

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, CDP, EcoVadis, UN Global Compact

Certifications: ISO 50001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Hempaguard hull coatings
• Hempafire Pro passive fire protection systems
• Hempablade Edge wind blade edge protection
• Hempafire XTR 100 passive fire protection solution

Awards & Recognition

• Best Industrial Product Design award (Crown Paints pail)

Environmental Metrics

ESG Focus Areas

• Climate
• Biodiversity
• Resource depletion
• Diversity

Environmental Achievements

• Decreased combined Scope 1 & 2 emissions by 51 per cent compared to its 2019 baseline
• Awarded an A in its 2022 Supplier Engagement Rating by the Carbon Disclosure Project (CDP) for engaging its supply chain on climate issues
• Awarded B by CDP for good environmental management in its 2023 environmental disclosure and scoring process (consecutive year)
• High performance hull coatings helped customers in the maritime industry reduce their CO2e emissions by 6.5 million tonnes in 2023 (16% improvement compared to 2022)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• high performance hull coatings

Awards & Recognition

• B by CDP for good environmental management