Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resource and Energy Efficiency
• EHSS and Product Safety
• Supply Chain
• Human Capital Development
• Communities

Environmental Achievements

• Reduced greenhouse gas emissions (specific figures not provided, but progress mentioned)
• Reduced energy consumption (specific figures not provided, but progress mentioned)
• Increased use of recycled water in chemical operations (specific figures not provided)

Social Achievements

• 90% Saudization rate in Saudi Arabia, applying also to senior leadership
• Comprehensive program to evaluate health and safety of products (specific figures not provided)
• Supplier screening process with nearly 100% coverage in 2016

Governance Achievements

• No confirmed incidents of bribery or corruption in 2016
• No legal actions for anti-competitive behavior in 2016
• No significant non-compliance with laws/regulations in 2016 resulting in a financially material impact

Climate Goals & Targets

Environmental Challenges

• Lack of sufficient quantity of recycled material at sufficient quality for use as feedstock
• Inconsistency in global data collection on certain environmental metrics
• Absence of a centralized recording process for environmental grievances from private parties

Mitigation Strategies

• Active programs for post-industrial recycle within facilities and to take back PCR plastic materials
• Compliance with applicable regulations and additional measures beyond regulation on a highest priority basis for air emissions
• Ongoing development of an incident system to track and report incident numbers externally

Supply Chain Management

Supplier Audits: Nearly 100% of new suppliers screened in 2016

Responsible Procurement

• Supplier screening process; Code of Conduct; fair employment practices policy included in procurement contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 "In accordance-core" guidelines

Third-party Assurance: Independent Auditor (name not specified)

Sustainable Products & Innovation

• Small portfolio of PCR containing halogen-free-flame-retardant compounds for electronics industry

Environmental Metrics

ESG Focus Areas

• Resource efficiency
• Climate and energy
• Governance and integrity
• Circular economy
• EHSS (Environment, Health, Safety, and Security)
• Innovation and sustainability solutions

Environmental Achievements

• Reduced greenhouse-gas emission intensity by 1.02% from 2017 and 10.2% from 2010 baseline.
• Reduced water intensity by 2.65% compared to 2017 and 11.16% from 2010 baseline.
• Reduced material loss intensity by 9.82% over 2017 and 41.54% from 2010 baseline.
• 43.3% reduction in flaring emissions compared to 2010.
• Increased CO2 utilization to 4.0 million metric tons.

Social Achievements

• Launched a new, streamlined Operations Management System that integrates EHSS and manufacturing excellence.
• Increased focus on a strategic set of leading indicators and risk factors in all EHSS disciplines.
• Launched a Product Stewardship and Manufacturing Center of Excellence to share best practices.
• Enhanced value chain communications to improve information exchange on potential hazards.
• Expanded the SABIC Leadership Way globally, delivering sessions to over 600 leaders.

Governance Achievements

• Undertook a comprehensive refresh of the 2013 materiality process.
• Added sustainability to the scope and title of the Board of Directors Risk Committee.
• Updated Responsible Care® certification to the RC14001:2015 standard.
• Focused on boosting a culture of integrity through various initiatives.

Climate Goals & Targets

Environmental Challenges

• Global plastic waste
• Circular economy challenges
• Clean energy transition
• Infrastructure needs
• Transportation challenges
• Healthcare demands
• Geographical connectivity issues
• Increased investor expectations around sustainability
• Accelerated pace of change and disruptive technologies
• Supply chain disruptions (e.g., river flooding)
• Softening of the global styrenics market

Mitigation Strategies

• Partnership with Plastic Energy for chemical recycling plant.
• Membership in the Alliance to End Plastic Waste.
• Implementation of a new Operations Management System.
• Investment in renewable energy strategy.
• Development of sustainable materials and products.
• Improved energy and resource efficiency initiatives.
• Enhanced risk discovery and management programs.
• Improved supply chain performance management.
• Revamped approach to assessing logistics service providers.
• Enhanced supplier due diligence process.

Supply Chain Management

Supplier Audits: 19 suppliers audited in 2018

Responsible Procurement

• Supplier Code of Conduct
• Global Supplier Due Diligence Program
• Safety and Quality Assessment for Sustainability (SQAS)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: Responsible Care®, ISO 50001 (at several affiliates)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 17 (Partnerships for the Goals)

SABIC's initiatives contribute to these goals through various programs and investments in sustainable development.

Sustainable Products & Innovation

• Bio-MTBE
• Certified Renewable™ polyethylene and polypropylene products
• THERMOCOMP™ HMD compounds
• ULTEM™ resin

Awards & Recognition

• Top Employer Institute certification (China, India, Japan, Singapore, South Korea)
• Better Health at Work awards (UK)

Environmental Metrics

ESG Focus Areas

• Resource Efficiency
• Climate Change
• Circular Economy
• EHSS/Product Stewardship
• Governance & Integrity
• Human Capital

Environmental Achievements

• Greenhouse gas emissions intensity fell from 1.22 tCO2eq to 1.17 tCO2eq (3.76% reduction from 2018, 13.57% from 2010 baseline)
• Global energy intensity lowered to 16.52 GJ/t from 17.12 GJ/t in 2018 (3.5% decrease from 2018, 9.45% reduction from 2010 baseline)
• Global freshwater intensity decreased from 2.62 m3/t to 2.58 m3/t (12.62% improvement over 2010 baseline)
• Material loss intensity improved 41.9% from the 2010 baseline
• Launched TRUCIRCLE™ initiative showcasing circular economy solutions
• Unveiled new LEXAN™ polycarbonate based on certified renewable feedstock (63% lower carbon footprint than fossil-fuel based polycarbonate)

Social Achievements

• Contributed US$15.6 million to CSR initiatives globally, benefiting over 340,000 individuals
• 2,531 SABIC employees volunteered 10,874 hours for CSR programs
• Launched SABIC Young Leaders Council (SYLC) to empower young leaders
• Refreshed employee value proposition, “Let’s Explore What Matters”
• Integrated Sadaf and Petrokemya manufacturing affiliates

Governance Achievements

• Awarded “Compliance Leader Verification” status by the Ethisphere Institute
• Moved Sustainability department to Technology and Innovation function
• Improved monitoring and efficiency of water and steam at Yanpet affiliate, reducing water use by 371,000 cubic meters and overall water intensity by 15 percent in 2019

Climate Goals & Targets

Environmental Challenges

• Challenges in staying on track for greenhouse-gas, water, and energy intensity reduction targets in Saudi Arabia due to competing priorities for capital spending and operational issues
• EHSS performance did not reach the high bar set in previous years
• Challenges in existing external recycle infrastructure for circular economy initiatives
• Rising costs and project complexity in achieving operational efficiency targets
• Slowdown in global growth, rising economic uncertainty, global market shifts, volatile prices, and geopolitics impacting bottom line

Mitigation Strategies

• Focus on development and execution of sustainability projects to enhance performance and reduce costs
• Getting back to basics in EHSS: learning from minor issues, addressing concerns immediately, and showing visible leadership
• Investing in breakthrough technologies, integrated cogeneration, and digitalization to achieve climate action targets
• Developing and executing circular economy strategies in all global regions
• Streamlining operations and merging affiliates to enhance competitiveness

Supply Chain Management

Supplier Audits: 93% of carriers assessed by SQAS or equivalent

Responsible Procurement

• Supplier Code of Conduct
• SQAS assessments
• Supplier Lifecycle Management (SLM) program
• Operation Clean Sweep® integration into SQAS

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Changing regulations
• Shifting energy markets

Opportunities

• Renewable energy
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: RC14001:2015, ISO 45001 (expected)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

SABIC's initiatives contribute to these goals through renewable energy deployment, circular economy solutions, and greenhouse gas emission reductions.

Sustainable Products & Innovation

• LEXAN™ polycarbonate from renewable feedstock
• TRUCIRCLE™ portfolio of circular materials and technologies
• LNP™ ELCRIN™ iQ resins from recycled rPET

Awards & Recognition

• Compliance Leader Verification from Ethisphere Institute
• Top 1% ranking by EcoVadis
• Public Welfare Practice Contribution Award from Yicai Group (China)
• Communities and Reputation Award (UK)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Environmental, Social, and Governance (ESG) principles

Environmental Achievements

• Greenhouse-gas emission intensity fell from 1.170 tCO2eq to 1.144 tCO2eq (2.2% reduction from 2019 and 15.5% reduction from 2010 baseline).
• Energy intensity lowered to 16.34 GJ per ton from 16.52 GJ per ton in 2019 (1.1% decrease from 2019 and 10.5% from 2010 baseline).
• Water intensity decreased from 2.58 m3/t to 2.53 m3/t (14.2% improvement over 2010 baseline and 1.8% reduction from 2019).

Social Achievements

• Launched HR ONE, a one-stop shop for employee attraction, retention, and development.
• Introduced an employee-assistance program (EAP) in the Middle East and Africa regions to support physical and mental health.
• Provided more than $46.6 million in funding and materials for COVID-19 relief efforts.

Governance Achievements

• Established a new ESG Reporting Steering Committee to embed ESG considerations into business decisions.
• Aligned disclosure with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
• Won the EcoVadis Platinum medal for sustainable business performance.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and supply chains.
• Challenges in establishing Scope 3 emissions targets for the chemical industry.
• Addressing climate risks and building resilience to climate change impacts.

Mitigation Strategies

• Implemented new work protocols and guidelines to ensure safe operations during the pandemic.
• Developed a holistic new climate strategy with regional roadmaps and science-based targets.
• Investing in renewable energy, electrification, low-carbon hydrogen, carbon capture, and material-efficiency projects.

Supply Chain Management

Responsible Procurement

• Safety and Quality Assessment System (SQAS)
• Supplier Code of Conduct
• Supplier Lifecycle Management (SLM) Program

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy sources.

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISCC Plus, SCS Global Services Responsible Sourcing Certification

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 14 (Life Below Water)
• Goal 17 (Partnerships for the Goals)
• Goal 2 (Zero Hunger)

SABIC's initiatives contribute to these goals through various programs and projects.

Sustainable Products & Innovation

• TRUCIRCLE™ portfolio
• LNP™ ELCRIN™ iQ portfolio
• Renewable ethylene
• Bio-based polypropylene polymers

Awards & Recognition

• EcoVadis Platinum medal
• Edison Best New Product Awards finalists

Environmental Metrics

ESG Focus Areas

• Resource efficiency
• Climate change and energy
• Innovation and sustainability solutions
• Circular economy
• Governance and ethics
• EHSS (Environment, Health, Safety, and Security)

Environmental Achievements

• Reduced absolute Scope 1 & 2 GHG emissions by 8% from 2018 baseline.
• Reduced GHG emission intensity by 14.6% since 2010.
• Reduced water intensity by 22.4% since 2010.
• Reduced material loss intensity by 47.6% since 2010.
• Reduced flaring emissions by 55.2% since 2010.
• Increased CO2 utilization to 3.82 million tons in 2022.
• Cartagena plant set to become the world's first large-scale chemical plant to run on 100% renewable power in 2024.

Social Achievements

• Invested US$ 28.9 million in CSR programs in 20 countries, reaching over 160,000 people.
• Received "Top Employer Asia Pacific" award for the 10th consecutive year.
• SABIC Mexico named "Great Place to Work."
• Four SABIC women employees honored with Manufacturing Institute’s 2022 STEP Ahead awards.
• Launched SABIC Pioneers program for retired employees.
• Mt. Vernon Allyship team won Mayor’s Celebration of Diversity Leadership Award.

Governance Achievements

• Retained Ethisphere’s Compliance Leader Verification™ status through 2024.
• Awarded a Gold EcoVadis Medal, scoring in the top 5% of assessed companies.
• Created a dedicated PMO and ESG Reporting Steering Committee to improve ESG processes and reporting.

Climate Goals & Targets

Environmental Challenges

• Increased absolute GHG emissions in 2022 compared to 2021 (2% increase).
• Supply chain disruptions due to geopolitical tensions and the COVID-19 pandemic.
• Managing Chemicals of Concern (CoCs).
• Decreased CDP Climate Score to C from B in 2022.

Mitigation Strategies

• Developing affiliate-specific carbon neutrality roadmaps.
• Investing in renewable energy (aiming for 4 GW installed capacity by 2025 and 12 GW by 2030).
• Implementing carbon capture, utilization, and storage (CCUS) initiatives.
• Electrification of steam-driven equipment.
• Exploring green/blue hydrogen and ammonia production.
• Improving energy efficiency.
• Joined Together for Sustainability (TfS) initiative.
• Implementing Safer Chemistry program to reduce or eliminate CoCs.
• Reporting Scope 2 emissions using both location and market-based accounting.

Supply Chain Management

Supplier Audits: 1,510 new suppliers registered through SLM in 2022; 82 removed for non-compliance.

Responsible Procurement

• SABIC Sustainable Procurement Policy
• Supplier Code of Conduct
• Safety and Quality Assessment System (SQAS)
• Joined TfS initiative.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Growth in low-carbon ammonia market
• Renewable energy incorporation

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD, World Economic Forum Framework, EU Taxonomy, ISCC PLUS

Certifications: ISO 14001, ISO 45001, LEED Gold, ISCC PLUS mass balance

Third-party Assurance: KPMG

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)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

SABIC's initiatives contribute to these SDGs through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• TRUCIRCLE™ portfolio
• BLUEHERO™ portfolio
• LNP™ ELCRIN™ WF0061BiQ resin
• LNP™ ELCRES™ EXL7414 copolymer resin
• LNP™ THERMOCOMP™ DC0041PE-7M1D145W compound

Awards & Recognition

• Gold EcoVadis Medal
• KPMG China Future ESG Award
• Five Edison Awards
• Top Employer Asia Pacific
• Great Place to Work (Mexico)

Environmental Metrics

ESG Focus Areas

• Resource efficiency
• Climate change and energy
• Innovation and sustainability solutions
• Circular economy
• Governance and integrity
• EHSS (Environment, Health, Safety, and Security)

Environmental Achievements

• Reached a crucial milestone on the world’s first electrically-heated steam cracker furnace project with BASF and Linde.
• Made further strides into low-carbon ammonia and urea with new shipments to India, Taiwan, and New Zealand.
• Set target of one million metric tons of annual TRUCIRCLE™ sales by 2030.
• 12.5% reduction of absolute scopes 1 and 2 GHG emissions since 2018

Social Achievements

• Introduced yearly surveys and assessments for stronger employee engagement.
• Opened state-of-the-art European Pipe Innovation Center in the Netherlands.
• Increased hiring of women in Saudi Arabia by about 150% over the last two years.

Governance Achievements

• Received Compliance Leader Verification™ from Ethisphere for the third consecutive time.
• Ranked first for product stewardship among 50 global chemical companies in the 2023 ChemSec ChemScore report.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment marked by sluggish global growth, higher inflation, and reduced margins.
• Global trends creating structural changes in the petrochemical industry, bringing risks.
• Supply chain disruptions due to geopolitical uncertainties and global economic slowdown.
• Rising energy prices and heightened competition for resources.
• Fast-evolving regulations, capital availability, aging plants, or lack of mature renewable technology.

Mitigation Strategies

• Optimization of company portfolio with a focus on core assets.
• Driving commercial and operational performance, maximizing value creation from existing business, strengthening operating model, and gaining greater access to capital and markets.
• Robust capital discipline and focused efforts on managing costs.
• Continuous horizon scanning to monitor upcoming/expected changes related to the petrochemicals industry and market.
• Robust scenario planning to build a product portfolio that can withstand changes in various trends and consumer demand.
• Physical climate risk assessments and adaptation measures to strengthen resilience.
• Carbon Neutrality roadmap identifying five pathways to decarbonization.
• Integrating ESG principles into every function of the business.
• Reworking supply chain strategies by incorporating climate change considerations along with other ESG matters.
• Transforming chartered chemical tanker fleet to eco-designed, fuel-efficient vessels.
• Robust due diligence to ensure SABIC suppliers meet sustainable supply chain and procurement requirements.

Supply Chain Management

Responsible Procurement

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

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Changes in temperature and precipitation patterns

Transition Risks

• Changes in government policies
• Technological advancements
• Consumer preferences

Opportunities

• Development of energy-efficient products
• Growth in low-carbon ammonia market

Reporting Standards

Frameworks Used: GRI, IFRS Foundation's Integrated Reporting Framework, Saudi Listing Rules and CMA Listed Company Guidelines, Greenhouse Gas (GHG) Protocol, Occupational Safety and Health Administration (OSHA), UN Global Compact

Certifications: ISO 9001:2015, ISO 21500:2021, ISCC PLUS, ISO 14001, ISO 45001

Third-party Assurance: Statutory auditor; Limited assurance for certain absolute and intensity operational metrics

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)

Initiatives contribute to these goals through carbon neutrality efforts, circular economy initiatives, sustainable product development, and responsible resource management.

Sustainable Products & Innovation

• TRUCIRCLE™ portfolio
• Bio-based versions of NORYL™ resin grades
• PCR-based NORYL™ resins
• Flame retardant STAMAX™ long-glass fiber polypropylene resin
• Recycled ocean-bound plastic XENOY™ PC/PET compound

Awards & Recognition

• Five 2023 Edison Awards
• 2023 R&D 100 Award
• EcoVadis Gold medal
• Compliance Leader Verification™ from Ethisphere
• ChemSec ChemScore ranking
• Various Top Employer awards
• Best ESG Award at Saudi Capital Markets Forum
• Best Investor Relations Program Award at Saudi Capital Markets Forum
• Two Gulf Petrochemicals and Chemicals Association (GPCA) Responsible Care® Excellence Awards
• Best Responsible Care® Company Award and Environment-Friendly Award from AICM
• Various Responsible Care® awards in Americas
• Zero Accident Campaign Award and Best EHSS Management Award from Thailand
• Leading Company rating for air emission control from Chongqing environmental authority
• Three awards at GPCA supply chain conference
• Golden Apple Award
• Label Industry Global Sustainability Award