Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable growth
• Compliance
• Living our values
• Value chain participation

Environmental Achievements

• Achieved a 2.3% reduction in GHG intensity compared to 2018
• SO2 intensity declined by 3.5% in 2019
• Reduced total waste by 13%
• Reduced hazardous waste by 31%
• Improved energy recovery rate by 2%

Social Achievements

• 91% employee participation in the first Employee Survey
• Upgraded talent management and development program
• Expanded community support programs
• Made PPE donations during the pandemic

Governance Achievements

• Added sustainability to the remit of the Board’s Nominating, Sustainability and Governance Committee
• Increased independence and enhanced diversity of the Board of Directors
• Established stronger controls around sustainability data reporting

Climate Goals & Targets

Environmental Challenges

• Contractor fatality at one site
• Deterioration in recordable and lost time injuries
• Increase in NOx and PM intensities

Mitigation Strategies

• Thorough incident investigation and root cause analysis
• Measures taken to learn from 2019 experiences to strengthen operational safety performance
• Investments in emissions control systems and improved operating systems to minimize environmental footprint

Supply Chain Management

Supplier Audits: Over 90% of suppliers (by value) have agreed to comply with the Code of Conduct or equivalent

Responsible Procurement

• Code of Conduct
• Environmental Health & Safety Guidelines
• Sustainability standards

Climate-Related Risks & Opportunities

Transition Risks

• Cap-and-trade regimes and CO2 tax

Opportunities

• Alternative, eco-friendly technology options in feedstocks, production process, and production of carbon additives

Reporting Standards

Frameworks Used: GRI (in process of adoption)

Certifications: EMAS (Ravenna plant), ISO 45001 (Ravenna plant)

Third-party Assurance: Internal audit with support of external consultancy

Sustainable Products & Innovation

• PRINTEX® Nature (plant-oil based carbon black)
• New surface-modified carbon black for tire application to reduce rolling resistance

Awards & Recognition

• EcoVadis Gold Medal rating

Environmental Metrics

ESG Focus Areas

• Sustainable growth
• Compliance
• Living our values
• Value chain engagement

Environmental Achievements

• Year-over-year improvements in SO2, NOx, and PM emissions intensity rates - 11%, 7%, and 1% reductions, respectively.
• Normalized GHG intensity in 2020 was 5% lower than our 2014 base, achieving over 60% of our target reduction rate of 8%.
• No significant spills or releases in 2020.

Social Achievements

• Enhanced Board of Directors by increasing the representation of women and further diversifying the nationality profile of its members.
• Upgraded talent management and development programs, focusing on specific actions to improve learning and development, and to promote employee development and career growth.
• Days away from work (DAFW) case rate in 2020 declined by 50% to our 2018 levels, and the incident case rate fell by more than 60%.

Governance Achievements

• Established an EHS database to track applicable laws and regulations.
• Implemented a whistleblower program.
• All operating sites are certified to ISO 9001 and ISO 14001 standards

Climate Goals & Targets

Environmental Challenges

• Decarbonization of carbon black production process
• Contributing towards ELT circularity
• Supporting electrification in the mobility and other sectors

Mitigation Strategies

• Exploring various types of renewable oil, including non-edible sources.
• Working with the Research Institute of Sweden to assess the feasibility of producing carbon black using renewable oil derived from pine and spruce stem wood as feedstock.
• Developing processes to use ELT-derived oil in the production of carbon black for tire grades (BlackCycle project).

Supply Chain Management

Supplier Audits: 98% of suppliers (by value) have agreed to comply with our Code of Conduct or with its equivalent.

Responsible Procurement

• Code of Conduct
• Environmental Health & Safety Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of renewable carbon black
• Circular carbon black
• Enabling carbon black for electrification

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Internal audit

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PRINTEX® Nature
• ECORAX Nature
• PRINTEX® Kappa 100 and 400

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Emissions from Productions (incl. GHGs, SOx, NOx)
• Diversity, Equity & Inclusion
• Occupational Health & Safety
• Energy Efficiency
• Employee Recruitment & Retention
• Compliance (Operational & Business CoC)
• Resource Consumption
• Talent Management & Development
• Supplier Management
• Product Stewardship
• Employee Engagement
• Circular Economy (Recycling Carbon Black)
• Local Community Engagement & Charitable Giving
• Sustainable Products and Services (R&D)

Environmental Achievements

• Reduced SO2, NOx, and PM emissions intensity rates.
• Installed NOx and SO2 control technologies reducing emissions by 90%.
• Launched ECORAX® Nature 200, a renewable carbon black made from a second-generation, animal-free, bio-based feedstock.
• Launched the first commercial grades of ECORAX® Circular products, made from tire pyrolysis oils (TPO).

Social Achievements

• Improved EcoVadis score, placing Orion in the 99th percentile.
• Achieved a “B” score from CDP for the first time.
• Provided humanitarian aid to Ukrainian refugees.
• Implemented Orion Site Leader Certification Program.

Governance Achievements

• Refreshed ESG materiality assessment.
• Implemented a Supplier Code of Conduct.
• Increased compliance training coverage.

Climate Goals & Targets

Environmental Challenges

• CO2 price mechanisms leading to increased costs.
• Raw materials becoming scarce or more costly.
• Supply chain disruptions.

Mitigation Strategies

• Improving yields and exploring alternative feedstocks (renewable and recycled).
• Investing in acetylene-based technology.
• Developing a circular product portfolio (BlackCycle project).
• Improving energy management and expanding renewable energy use.

Supply Chain Management

Supplier Audits: 65 suppliers assessed by EcoVadis (10% of relevant spend)

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis assessments
• Sustainable procurement training for buyers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortage

Transition Risks

• CO2 price mechanisms
• Scarcity of raw materials
• EU ETS and CBAM

Opportunities

• Recycling end-of-life tires
• Developing renewable and circular feedstocks
• Growth in conductive additives market

Reporting Standards

Frameworks Used: GRI Standards 2021, UNGC

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 9
• SDG 12
• SDG 13

Not disclosed

Sustainable Products & Innovation

• ECORAX® Nature 200
• ECORAX® Circular products
• Acetylene-based conductive additives

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 4% reduction in absolute emissions in 2023
• Installed high-temperature combustors at US and Polish plants, reducing carbon black oil needed
• Completed air pollution control upgrades at four US sites, resulting in a 37% reduction in NOx and 49% reduction in SO2 emissions
• Added cogeneration at a US site, reducing fossil fuel needs for electricity generation
• Achieved EcoVadis Platinum Medal, placing in the 99th percentile of companies evaluated
• Achieved a CDP "B" score
• Began work on a €12.8 million research program to develop technology using circular feedstocks

Social Achievements

• 80% of employees received 40 hours of training
• Expanded training programs (Emerging Leaders and Leaders of Leaders programs)
• Developed career progression plans for over 75% of knowledge workers
• Invested in a new platform to enhance the mentoring program
• Established a global women’s affinity group, EmpowHER
• 2023 employee engagement survey showed positive trends and improvement in several areas, with 55% of employees in the “Most Effective” category

Governance Achievements

• Linked €300 million senior secured revolving credit facility to sustainability targets, saving approximately $650,000 in interest payments in 2023
• Linked term loans to emissions targets of US plants, resulting in cost savings
• Achieved 100% total employee training on anti-bribery and anti-corruption policies

Climate Goals & Targets

Environmental Challenges

• Transitioning away from fossil fuel-derived raw materials
• Improving the competitiveness of bio-circular and circular carbon black products
• Increasing the availability of alternative circular feedstocks
• Addressing climate change and achieving net-zero emissions by 2050
• Managing risks associated with climate change, including extreme weather events and water stress
• Addressing raw material scarcity and cost increases
• Ensuring compliance with evolving environmental regulations (e.g., EU ETS, CBAM)

Mitigation Strategies

• Shifting to plant-based or bio feedstocks and circular raw materials from recycling
• Investing in research and development of new technologies and processes
• Developing products based on circular and bio-circular feedstocks
• Improving energy efficiency and cogeneration
• Investing in air emission controls and other pollution control systems
• Improving yields to reduce feedstock needs
• Implementing ESG-incentivized financing strategies
• Engaging with employees to minimize business travel and promote sustainable practices
• Participating in industry collaborations (e.g., BlackCycle project)
• Investing in Alpha Carbone for tire pyrolysis oil
• Developing a net-zero process at a new pilot plant in Cologne, Germany

Supply Chain Management

Supplier Audits: 180 suppliers (approx. 25% of relevant spend) assessed by EcoVadis

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis platform for supplier assessment
• Sustainable procurement criteria in purchasing processes

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural resource shortages
• Water stress

Transition Risks

• CO2 price mechanisms
• Stringent regulations (EU ETS, CBAM)
• Raw material scarcity

Opportunities

• Upcycling to conserve resources
• Developing "green" carbon black
• Global demand for electrification

Reporting Standards

Frameworks Used: GRI 2021 Standards, UNGC

Certifications: ISO 14001, ISCC PLUS (5 sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ECORAX® Nature 200 and 205
• ECORAX® Circular 210, 215, and 220
• PRINTEX® kappa 10

Awards & Recognition

• EcoVadis Platinum Medal
• CDP "B" score
• Recircle Award for Best Tyre Recycling Research Project
• Top Work Places award from the Houston Chronicle