Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate
• Sustainable Growth
• Better Life

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 20% (structurally 11%) since 2021 baseline; 73% of sites using 100% renewable electricity; 11% structural reduction of “Focus 5” categories’ Scope 3 GHG emissions; 13% of 2023 sales generated by products enabling circularity; launched new automated tool for measuring product carbon footprint; achieved a reduction of 1Mt of CO2, or 14%, for our Focus 5 categories of Scope 3 emissions since 2021, at constant scope. Of these, 11% are structural reductions.
• Reduced freshwater intake by 11% compared to 2022; reduced non-sustainable industrial waste by 12% compared to 2022; launched Naternal™ bio-based biodegradable polymers for hair and skin care; Saint-Fons site (France) to become first aroma plant in the world powered by renewable energy by 2026; ISCC PLUS mass balance certification for vanillin production and other products.

Social Achievements

• Reportable injury and illness rate decreased to 0.28 (38% improvement from 2021); share of women in middle and senior management reached 28% (4pp improvement from 2021); joined UN Global Compact Living Wage initiative, aiming for 100% of workforce by 2026; launched Better Life at Work program with well-being webinars and workshops; Employee Assistance Program offering mental health support; Syensqo Cares program with 16 weeks parental leave and additional caregiving days; Solidarity Fund donated close to €11 million since 2020; Fabbriche Aperte Lab initiative engaged over 300 community members; Oldbury Residents’ Committee held 160th meeting; Itatiba educational program recognized by city hall; Zhangjiagang HSE ERP team participated in local emergency responses.

Governance Achievements

• Successful launch and “investment grade” rating for Syensqo; 99.53% shareholder approval for spinoff; established a diverse Board of Directors with six women and six independent directors; established Corporate Governance Charter; implemented new section on corporate website highlighting commitment to ethics and compliance; all employees undertake compulsory annual training; established Speak Up service; reached agreement with NJDEP to resolve PFAS-related claims.

Climate Goals & Targets

Environmental Challenges

• Lower volumes in Consumer & Resources segment; softer demand across most end markets; customer destocking; inflationary pressures; macroeconomic and demand environments; geopolitical impacts; evolving cyber threat landscape; increasingly strict regulatory standards; changing customer expectations; impact on recruitment due to negative public perceptions of environmental issues; compliance with chemical product usage standards; managing historical soil contamination; managing PFAS contamination.

Mitigation Strategies

• Higher overall pricing, particularly in Materials segment; cost saving initiatives; risk-based security approach; intelligence-driven security program; cyber security program with enhanced security technology; insurance against cyberattacks; monitoring and management of sites with soil contamination; regulatory monitoring; development of alternatives with reduced environmental impact; phasing out fluorosurfactants; Sustainable Portfolio Management (SPM) tool; Code of Business Integrity; Supplier Code of Business Integrity; training courses; Ethics Hotline; Speak Up program; Product Stewardship Management System (PSMS); Product Safety Management Process (PSMP); annual inventory of Substances of Very High Concern (SVHC); recall procedures; insurance for product liability; HSE Minimum Requirements; HSE Excellence Plan; Star Factory program; ESG risk management approach for supply chain; mass balance portfolio; collaboration with suppliers and customers to reduce Scope 3 emissions; One Planet sustainability roadmap; living wage initiative; DEI initiatives.

Supply Chain Management

Supplier Audits: 92% of core suppliers undergo third-party audits through Together for Sustainability (TfS); ESG risk management approach implemented; supplier screening for human rights risks.

Responsible Procurement

• Supplier Code of Business Integrity; Unilever’s Living Wage Promise; Amazon Business Marketplace for diverse suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes; market shifts

Opportunities

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

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, WBCSD ESG Disclosure Handbook, TCFD, EU Taxonomy

Certifications: ISCC PLUS, TISAX

Third-party Assurance: Ernst & Young Réviseurs d’Entreprises SRL

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 15 (Life On Land)

Initiatives contribute to these goals through various programs and targets.

Sustainable Products & Innovation

• Naternal™ bio-based biodegradable polymers; ECHO portfolio of sustainable specialty polymers; UP range of circular mass balance solutions; Solef® PVDF; Ajedium™ PEEK; CYANEX® 936P; Rhodiasolv® green solvents; Aquivion®; Swyft-Ply™ composites.

Awards & Recognition

• Altair Enlighten Award (runner-up); Panasonic Energy award; Northrop Grumman supplier excellence award; TSMC certificate of appreciation.

Environmental Metrics

ESG Focus Areas

• Human Rights

Social Achievements

• Over 99% of employees completed Code of Business Integrity Training since 2021
• 126 managers participated in Inclusive Leadership Workshop since 2023
• 16-week parental leave since 2021 for all parents at full salary
• Employee Wellbeing Support program includes five free confidential sessions
• 622 employees participated in 'Leading with a well-being mindset' training since 2023
• Over 5000 suppliers screened on Human Rights
• 23 families supported by Solidarity Fund since 2023
• 170 employees completed unconscious bias training since 2023
• Quarterly pulse surveys to understand psychological climate
• 60% of Syensqo Board are women
• 58 students participated in 'Girls leading in Science' program
• Partnership with Ewha University supporting women scientists and scholarships for 63 students
• More than 30% of women at managerial level participated in A-Effect Leadership Development Program
• Established Global Employee Resource Groups

Governance Achievements

• Established a cross-functional task force to address human rights risks
• Reviewed and updated Human Rights Policy, Conflict Minerals Policy, Ethical Recruitment Policy, and Diversity, Equity, Inclusion, and Non-Discrimination Policy
• Implemented comprehensive mitigation initiatives for salient human rights risks
• Launched Business Integrity training for contractors in 2024
• Introduced a new ethical recruitment & employment practices policy
• Enhanced supply chain risk assessment process with specialized human rights questionnaires
• Reviewed and enhanced conflict minerals policy
• Implemented a comprehensive Diversity, Equity, Inclusion, and Non-Discrimination Policy
• Developed a methodology to compare actual salaries to computed “expected salaries” and addressed pay gaps

Climate Goals & Targets

Environmental Challenges

• Risk of child labor in the supply chain
• Risk of forced labor in the supply chain
• Risk of conflict mineral sourcing in the supply chain
• Risk of discrimination in operations and the supply chain
• Risk related to health and safety in operations and the supply chain
• Risk related to fair and equal wages in operations
• Risk related to mental health in operations

Mitigation Strategies

• Updated Human Rights Policy to prohibit child labor
• Collaborates with UN Global Compact and Children’s Rights in Business Principles Commission
• Supplier Code of Business Integrity prohibits child labor
• Implemented specialized human rights questionnaires for high-risk suppliers
• Enhanced supply chain risk assessment process
• Reviewed and enhanced conflict minerals policy
• Requires supplier cooperation with Conflict Minerals Policy
• Implemented company-wide initiatives and tailored programs to promote diversity and mitigate discrimination risks
• Established local DEI activators at each site
• Comprehensive Diversity, Equity, Inclusion, and Non-Discrimination Policy
• Implemented risk-based procedures for health and safety
• Safety Programs and Policies, including Syensqo Life Saving Rules
• Safety culture approach with safety leadership style
• Product Safety Management System
• Annual Health and Safety Days and workshops
• Health screenings, vaccination campaigns, and on-site industrial hygiene monitoring
• HSE Reporting to evaluate performance
• Joined UN Global Compact Forward Faster initiative on living wages
• Pilot assessment in China, US, and UK for living wages
• Goal to ensure 100% of employees paid at least a living wage by 2026
• Syensqo Cares program with paid parental leave and other benefits
• Implemented the ‘Well-Being at Work’ Program
• Flexible working framework and mental health support via Employee Assistance Program
• Workshops for managers on well-being leadership
• Intranet resources and campaigns on health promotion
• Code of Business Integrity training on harassment and reporting

Supply Chain Management

Supplier Audits: Over 5000 suppliers screened, approximately 1750 EcoVadis assessments, plan for 20 TfS audits in 2024

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Business Integrity (SCoBI)
• EcoVadis assessments
• Together for Sustainability (TfS) audits
• Ethixbase adverse media screening
• Human Rights questionnaires for high-risk suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Human Rights, ILO Core Labor Standards