Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Health and Safety
• Social Performance
• Governance

Environmental Achievements

• Achieved Gold Status on the Ecovadis platform (up from Silver in 2018)
• ISO 50001 certification in Europe and ISO 14001 certification in the USA
• Overshot 2019 goals for Global EHS leading indicators program (EHS moments, leadership walkthroughs, EHS trainings)
• Reduced total number and severity of EHS incidents in 2019
• No serious or major environmental or fire and explosion incidents in 2019
• Invested €7,549,143 in environmental protection in 2019
• Achieved energy efficiency gains of 2.46% by the end of 2019 (exceeding interim goal)

Social Achievements

• Implemented a Pandemic Prevention global policy
• Introduced a state-of-the-art Customer Relationship Management (CRM) tool
• Conducted a global employee survey addressing company culture and integration
• Implemented a five-shift system at Oberhausen, improving work-life balance
• Launched the S.O.U.L. initiative in Bay City to strengthen EHS team performance
• Donated €28,110 to facilities in and around Oberhausen, Marl, and Monheim
• Supported US initiatives with a total of $46,541

Governance Achievements

• Implemented an Integrated Management System (IMS)
• Established a dedicated risk management function
• Developed an e-learning system for the Code of Conduct
• Rolled out a Supplier Code of Conduct
• No violations of the Code of Conduct reported in 2019
• Improved the internal audit procedure by including opinion-based evidence

Climate Goals & Targets

Environmental Challenges

• Slowing export markets (Turkey and China) and global economic downturn
• Increased uncertainty in the European Union (Italy and Brexit)
• Trade tensions between the USA and China
• Regional raw material cost disadvantage
• Difficulties in passing through cost increases to customers due to lack of demand and price erosion in Oxo Intermediates
• Demographic changes and an aging workforce

Mitigation Strategies

• Initiated optimization steps to mitigate negative impacts from weakening market conditions and increasing labor costs
• Implemented a five-shift system to improve work-life balance and attract younger workers
• Developed a 5-year staffing plan and tools for efficient knowledge transfer
• Established a new employer branding function
• Implemented a new leadership model (PICAP)

Supply Chain Management

Supplier Audits: Over 95% of suppliers (based on volume and spending) hold ISO certifications; all raw material suppliers to European production sites screened in 2019.

Responsible Procurement

• Supplier Code of Conduct covering human rights aspects

Climate-Related Risks & Opportunities

Transition Risks

• Increasing demand for green materials
• Need for energy-efficient supply chains
• Emission pricing

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001 (Nanjing in 2020)

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

OXEA's core business activities contribute to these SDGs through investments in training and education, adherence to a Code of Conduct, safe and efficient processes, and efforts to reduce energy consumption and greenhouse gas emissions.

Sustainable Products & Innovation

• Oxlube L9-TMP (included in the Lubricant Substance Classification list)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Health and Safety
• Community Investment
• Economic Contribution
• In-Country Value (ICV)
• Diversity and Inclusion
• Governance
• Cybersecurity
• Digital Transformation

Environmental Achievements

• Entered into partnerships to develop four renewable energy facilities to produce green hydrogen (30 GW total capacity)
• Implemented energy efficiency initiatives resulting in net savings of USD 7 million annually
• Recycled 2,838 m3 of HPWBM (high-performance water-based muds)
• Recycled around 20,000 tonnes of hazardous waste from downstream facilities
• Approved and prioritized OQ’s decarbonization policy by the Board

Social Achievements

• 65% of newly hired employees were under 30 years of age
• Invested more than USD 10.5 million in initiatives to develop local communities
• Donated USD 5.2 million in emergency support to communities affected by Cyclone Shaheen
• Over 8800 hours of HSSE training delivered for OQ employees
• Launched an innovative set of programs designed to strengthen OQ’s culture on supporting working women

Governance Achievements

• Established a governance structure for OQ, with policies approved by the Board
• Rolled out a number of policies and programs and conducted training courses to make employees Compliance Ambassadors
• Rolled out an Anti-bribery and Corruption Prevention policy manual
• Established a standardized approach to risk management

Climate Goals & Targets

Environmental Challenges

• Challenges of the pandemic continued to test the business environment
• Cybersecurity threats targeting information technology and operational technology
• COVID-19 pandemic introduced new challenges in managing cybersecurity risks

Mitigation Strategies

• Strong financial and operational performance focusing on quality services and high HSSE standards
• Significant investments to ensure employees return to a safe working environment
• Growth in OQ’s cybersecurity maturity by utilizing Fourth Industrial Revolution technologies
• Implementation of the OQ25 program to reshape organizational structure and work culture
• Proactive measures to reduce risk and safeguard the wellbeing of employees and stakeholders during the COVID-19 pandemic

Supply Chain Management

Supplier Audits: HSE criteria included in tendering process; additional social and environmental criteria being developed

Responsible Procurement

• Timely processing of requirements, maintaining competitiveness in outsourcing, complying with code of conduct
• HSE risk assessment and preliminary HSE plan required from tenderers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of green hydrogen projects

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Internal assurance process; third-party assurance considered for future reports

UN Sustainable Development Goals

• Not disclosed

OQ25 program contributes to Oman Vision 2040 and the United Nations’ Sustainable Development Goals.

Sustainable Products & Innovation

• Green hydrogen
• Green ammonia

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Supply Chain Sustainability
• Diversity and Inclusion
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions at Bay City site by 10% in 2022 compared to the average of previous years through flare optimization.
• Switched to electricity from renewable sources at various locations, aiming for 100% renewable electricity globally by 2030.
• Increased recycling of hazardous waste due to process adjustments.

Social Achievements

• All European sites met the requirements of ISO 45001 and were certified.
• 100% return rate after parental leave in 2022.
• Signed the Diversity Charter in 2022 and developed a roadmap for diversity, equality, and inclusion.

Governance Achievements

• No violations of the Code of Conduct reported in 2022.
• Implemented a new whistleblowing system compliant with ISO 27001 and EU regulations.
• Over 95% of suppliers (based on volumes and spending) hold ISO certifications.

Climate Goals & Targets

Environmental Challenges

• High energy prices and raw material costs due to the war in Ukraine.
• Disruption of global supply chains.
• Extreme weather events (low water level of the Rhine river).

Mitigation Strategies

• Flare optimization project to reduce CO2 emissions and improve energy efficiency.
• Switching to renewable energy sources.
• Continuous investigation of potential savings and alternative raw materials.

Supply Chain Management

Supplier Audits: Over 95% of suppliers hold ISO certifications; all raw materials suppliers to European and US production sites are screened regarding CSR/sustainability performance.

Responsible Procurement

• Supplier Code of Conduct covering human rights aspects; sustainable sourcing based on environmental, social, and economic criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products; green hydrogen technologies.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ISCC Plus (German sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

OQ Chemicals invests in employee training and education; adheres to a Code of Conduct; operates safe and efficient processes; has a reduce program to achieve climate neutrality.

Sustainable Products & Innovation

• Neopentyl Glycol Diheptanoate (silicone-free formulation for cosmetics).

Awards & Recognition

• EcoVadis Gold status; Chemical Transportation Safety Pinnacle Award (Union Pacific Railroad); Elite Silver Safety Award (AFPM); Caring for Texas Award (TCC); Dr. Sam Mannan Award (TCC); Top Employer 2022 (German locations).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Human Rights
• Procurement
• Eco-Efficiency

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 18% by the end of 2023 compared to the 2017 baseline.
• Sourced over 65% of electricity from renewable sources by the end of 2023.

Social Achievements

• Launched I-Safety campaign with 60 workshops and 500 participants to reinforce work safety awareness.
• Offered permanent positions to all apprentices after successful completion of their programs, with 78% accepting.

Governance Achievements

• Conducted a climate scenario analysis of physical risks to identify and assess potential impacts of climate change.
• Conducted a risk assessment of major raw materials and service providers according to the LkSG.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the global economic situation.
• Structural changes requiring reallocation of resources for some planned projects.

Mitigation Strategies

• Implemented a restructuring process to strengthen the company for the long term.
• Postponed some charitable projects to reallocate resources.

Supply Chain Management

Supplier Audits: Over 95% of suppliers (based on volume and spending) hold ISO certifications.

Responsible Procurement

• Third Party Code of Conduct covering human rights aspects.
• Supplier evaluation tool for rating suppliers based on quality, safety, and environmental aspects.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 9001, ISO 45001 (European and Asian sites), ISCC Plus (German sites and Amsterdam)

Awards & Recognition

• Caring for Texas Facility award (Bay City)
• Dr. Sam Mannan Award for Zero Process Safety Incidents (Bay City and Bishop)
• Zero Incident Award (Bay City)
• Outstanding Participation by a Member Company from Process Industry Practice (Bay City)
• Transportation Safety Pinnacle Award (Bay City)
• Product Stewardship Award (Bay City)