Climate Change Data

Environmental Metrics

ESG Focus Areas

• Suppliers
• Employees
• Operations
• Customers
• Local communities

Environmental Achievements

• Published its third annual corporate responsibility report, verified by a third party and prepared in accordance with the GRI framework.
• Recognized for the first time in the CDP Nordic Climate Disclosure Leadership Index in 2013 with a score of 96 out of 100.
• Registered 29 substances under EU Chemical regulation (REACH).

Social Achievements

• Implemented a new business model in the Municipal & Industrial segment, resulting in a reduction of approximately 50 employees.
• Established a multifunction Business Service Center in Gdansk, Poland.
• Closed its production facility in Vaasa, Finland.

Governance Achievements

• Updated corporate responsibility focus areas and targets based on sharpened strategy and stakeholder feedback.
• Complied with the Finnish Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Changes in customer demand (towards more sustainable products and water treatment technologies with lower chemical consumption).
• Changes in laws and regulations (e.g., REACH, EU sulphur directive).
• Competition (new players and competitor consolidations).
• Price and availability of raw materials and commodities (e.g., high oil and electricity prices).
• Uncertainties in the global economic development.

Mitigation Strategies

• Systematically monitors market development and leading indicators.
• Increased focus on sustainability and improved coordination between Business Development, R&D, and Sales.
• Geographic and customer-industry diversity.
• Continuous monitoring of competition, active customer relationship management, and product development.
• Centralized Supply Chain Management (SCM), forward-looking forecasting, purchase agreements, strategic energy investments, and hedging.

Supply Chain Management

Responsible Procurement

• Code of Conduct Supplier contracts with signed CoC-SDA as attachement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative)

Third-party Assurance: third party

Sustainable Products & Innovation

• Fennobind binder products
• FennoBond product family
• Tagged scale inhibitor products

Environmental Metrics

ESG Focus Areas

• Sustainable products and solutions
• Responsible operations and supply chain
• People and integrity

Environmental Achievements

• Kemira Carbon Index decreased to 85 (2016: 86), a slight decrease despite a 7% production increase.
• Energy savings of 16,296 MWh (2016: 11,068 MWh) achieved through energy efficiency projects.
• Total water withdrawal decreased by approximately 4% from 2016 and by approximately 38% since 2013.

Social Achievements

• Innovation sales target of 10% of total revenue was reached.
• 542 leadership development activities were realized (target = 300).
• Revised Code of Conduct approved and launched globally.

Governance Achievements

• New NPD process governance model implemented to improve innovation time to market.
• Global ethics & compliance risk assessment conducted, no significant corruption risks identified.
• Code of Conduct reviewed, updated, and approved by the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Safety performance did not improve in 2017 due to weaknesses in risk management and implementation of critical safety standards.
• Rising or volatile energy and raw material prices impacting profitability.
• Dependency on single sources for some key raw materials.

Mitigation Strategies

• Focus on providing better support to sites to implement safe working practices; safety performance included in bonus scorecards.
• Improving overall process efficiency through BOOST program; strategic sourcing; backward integration for critical raw materials; securing energy supply through strategic investments and hedging.
• Active technology scouting; collaborative product development; R&D project management; effective product launches through targeted marketing and sales training.

Supply Chain Management

Supplier Audits: 4 SMETA audits in 2017; target of 25 audits during 2016-2020.

Responsible Procurement

• Code of Conduct for Suppliers, Distributors and Agents (CoC-SDA)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Deloitte Oy

Sustainable Products & Innovation

• New products replacing old bestsellers; products enabling customer water, energy, and raw material efficiency.

Awards & Recognition

• CDP Climate Change Leadership A- level (2 consecutive years)
• EcoVadis Gold Recognition Level for sustainability management (3 consecutive years)

Environmental Metrics

ESG Focus Areas

• Sustainable products and solutions
• Responsible operations and supply chain
• People and integrity

Environmental Achievements

• Kemira Carbon Index decreased to 83 (2012=100), exceeding the target of 80 by 2020.
• Share of revenue from products used for use-phase resource efficiency reached 51%, exceeding the target of 50%.

Social Achievements

• Employee engagement index reached 71%, exceeding the external industry norm.
• Integrity index was 87%, 10 percentage points above the external norm.
• Improved workplace safety performance (TRIF 3.5; 2017 TRIF 3.9).

Governance Achievements

• EcoVadis awarded Gold Recognition Level for CSR performance for the fourth consecutive year.
• CDP awarded a B score, placing Kemira in the top quartile of chemicals sector companies.

Climate Goals & Targets

Environmental Challenges

• Disruptive technologies, slow product portfolio renewal, regulatory constraints, raw material supply disruptions, energy-intensive operations, multiple ethics and compliance risks, failure to develop safety management practices, and competition.

Mitigation Strategies

• Focus on innovation for resource efficiency, globally integrated management system, responsible sourcing strategies, development of safety management practices, global Ethics & Compliance program, talent management, and continuous improvement of products and services.

Supply Chain Management

Supplier Audits: 3 Ethical audits (one follow-up and 2 new audits) and 25 quality audits conducted in 2018.

Responsible Procurement

• Code of Conduct for Suppliers, Distributors and Agents (CoC-SDA)
• Supplier sustainability assessments and audits

Climate-Related Risks & Opportunities

Physical Risks

• Exceptional weather conditions

Transition Risks

• Changes in raw material and utility prices, increased awareness of climate change and sustainable products

Opportunities

• Products enabling customers’ resource efficiency, products addressing transition towards low-carbon and enabling circular economy

Reporting Standards

Frameworks Used: GRI Standards (2016): core option, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007, ISO 50001:2001

Third-party Assurance: Deloitte Oy

Sustainable Products & Innovation

• Products improving customers’ resource efficiency

Awards & Recognition

• EcoVadis Gold Recognition Level
• CDP B score

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Water
• Circularity
• Climate

Environmental Achievements

• Scope 1 and Scope 2 emissions declined by 3%, in line with Kemira's climate target.
• Share of renewable energy increased to 31% of total purchased energy.
• Total hazardous waste declined by 41%.
• Freshwater use intensity in 2021 improved by approximately 10% from the baseline year 2019.
• Disposed production waste intensity was 4.3, approximately 10% less than the baseline level of 4.6.

Social Achievements

• Launched an advanced learning program to ensure competencies of critical health and safety standards and practices for manufacturing operations.
• Initiated a global project to review, upgrade and harmonize contractor qualification & work execution processes, resulting in five consecutive months without contractor incidents in H2.
• Co-created Leadership Principles with a diverse team of employees.
• Completed a review of Kemira values.
• Continued the future competencies program of global commercial and manufacturing teams.

Governance Achievements

• Implemented a new sustainability governance model.
• Developed EU Taxonomy reporting structure.
• Initiated an internal biodiversity assessment.
• Performed a materiality study with stakeholders.
• Updated Human Rights Assessment.

Climate Goals & Targets

Environmental Challenges

• Unprecedented raw material price inflation.
• Logistics and supply chain issues.
• Contractor incidents in H1.
• Reaching the 2021 TRIF goal of 1.9.
• Improving capabilities in climate mitigation related issues, especially relating to scope 3 emissions.

Mitigation Strategies

• Higher sales prices and sales volumes compensated for higher variable costs.
• Global project to review, upgrade and harmonize contractor qualification & work execution processes.
• Continuous driving of behavioral and safety awareness in all operations.
• Implementation of 41 projects across Kemira’s operations, saving a total of 28,228 MWh of energy.
• Improving Scope 3 emissions estimates and reducing these emissions through increasing value chain engagement and updating and expanding the scope of product life-cycle assessments.

Supply Chain Management

Supplier Audits: 348 suppliers assessed through EcoVadis, 1 CSR audit, 14 quality audits

Responsible Procurement

• Code of Conduct for Business Partners (CoC-BP)
• Supplier sustainability assessments and audits
• Sourcing sustainable raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns (hurricanes, floods)

Transition Risks

• Higher energy prices
• Transition to sustainable, fossil-free energy sources

Opportunities

• Increased demand for water treatment technologies with lower chemical consumption
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018 (selected EMEA sites), ISCC PLUS

Third-party Assurance: Ernst & Young Oy

UN Sustainable Development Goals

• SDG 6
• SDG 8
• SDG 12
• SDG 13

Kemira's sustainability work focuses on Clean Water and Sanitation (SDG6), Decent Work and Economic Growth (SDG8), Responsible consumption and production (SDG12), and Climate action (SDG13).

Sustainable Products & Innovation

• Biodegradable coating materials based on PHA

Awards & Recognition

• EcoVadis Platinum level rating

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Water
• Circularity
• Climate

Environmental Achievements

• Freshwater use intensity reduced by 8% from 2021 and 17% from the baseline year 2019.
• Total hazardous waste generation decreased from 2021 mostly due to less production at one hazardous waste intensive site and reclassification of hazardous waste as wastewater at one site.
• Increased nuclear energy-based electricity supply (zero carbon emissions) in Finland and the United States.
• Helsingborg, Sweden site renewed its electricity sourcing contract including Guarantees of Origin from wind power, reducing Scope 2 emissions by approximately 13,000 tons of CO2e/a.
• Mojave (California) site finalized an agreement to install an on-site photovoltaic solar system, providing 100% of the site’s electricity needs.

Social Achievements

• Employee engagement score was 79 (global manufacturing benchmark 76).
• Launched two employee networks: KemPride LGBTQIA+ and Women’s resource network.
• Completed a gender pay gap analysis.
• Implemented a hybrid work model.

Governance Achievements

• Strengthened sustainability governance through a dedicated steering team and four dedicated sustainability programs.
• Committed to the Science Based Targets initiative (SBTi).
• Set a new ambitious climate target to cut emissions from operations by 50% by 2030 from a 2018 baseline.
• In 2023, key priorities reflected in incentive programmes include Kemira CO2 emission reduction from Scope 1 & 2 and Revenue Growth of Biobased products.

Climate Goals & Targets

Environmental Challenges

• Unprecedented inflationary pressures.
• Raw material shortages and logistical challenges.
• War in Ukraine.
• Covid lockdowns and removal of restrictions in China.
• Energy and energy availability and price inflation in EMEA.
• High energy prices or disruptions in energy availability could reduce or temporarily stop production at Kemira's customers and/or suppliers.

Mitigation Strategies

• Mitigated the impacts of unprecedented inflationary pressures.
• Improved customer satisfaction despite challenges.
• Diversification of supply to reduce dependencies.
• Kept all Chinese manufacturing sites running.
• Prepared for various scenarios should energy availability be disrupted in Europe.
• Launched a new Growth Accelerator unit to accelerate commercialization of new biomaterials.

Supply Chain Management

Supplier Audits: 396 suppliers assessed through EcoVadis, 11 quality audits conducted for direct material suppliers.

Responsible Procurement

• Code of Conduct for Business Partners
• Supplier sustainability assessments and audits
• Sustainable raw materials sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting transportation, sourcing, and site operations

Transition Risks

• Increases in carbon pricing

Opportunities

• Development of energy-efficient products
• Emerging markets in renewable materials and stringent water quality regulations

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UNGC, Responsible Care®

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018 (selected EMEA sites), ISCC PLUS

Third-party Assurance: Ernst & Young Oy

UN Sustainable Development Goals

• SDG 6
• SDG 8
• SDG 12
• SDG 13

Kemira's initiatives contribute to these goals through sustainable chemical solutions for water-intensive industries, responsible business practices, and climate action.

Sustainable Products & Innovation

• Biobased barrier coatings
• ISCC PLUS certified polyacrylamide polymers

Awards & Recognition

• EcoVadis Platinum rating
• Silver award for Kemira ViviMag® at the International Water Association's 2022 World Water Congress

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Circularity
• Safety
• People

Environmental Achievements

• Scope 1 and 2 emissions decreased approximately 33% since the 2018 base year.
• Improved water management (CDP Water Security score B).
• Reduced disposed production waste intensity to 4.4 metric tons per thousand metric tons of production (target 3.9 by 2030).

Social Achievements

• Inclusion index reached top 25% of cross-industry benchmark (target top 10% by 2025).
• No incidents of discrimination reported.
• Completed gender pay equity analysis and took actions to close any identified gender-related pay differences.

Governance Achievements

• Improved MSCI rating to AAA.
• EcoVadis Platinum rating for the third year in a row (score 80/100).
• Sustainability targets incorporated into long- and short-term incentive plans.

Climate Goals & Targets

Environmental Challenges

• Energy availability and cost increase, especially in North America and China.
• Stricter regulations on emissions in China.
• Extreme weather events impacting sites and supply chains.
• Availability and price of renewable materials.

Mitigation Strategies

• Evaluating biogas and emission-free fuels (e.g., hydrogen) for energy-intensive sites.
• Implementing energy efficiency programs.
• Supplier engagement program to improve Scope 3 emissions data.
• Internal carbon pricing (100 EUR per metric ton CO2e).

Supply Chain Management

Supplier Audits: 477 suppliers assessed through EcoVadis; 1 CSR audit; 22 quality audits

Responsible Procurement

• Code of Conduct for Business Partners
• Supplier sustainability assessments and audits
• Sourcing sustainable raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Precipitation patterns
• Increase in global temperature

Transition Risks

• Energy availability
• Legislation
• Larger adoption of carbon pricing

Opportunities

• Development of low emission products
• Access to new markets
• Resource efficiency
• Use of lower emission sources of energy

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018 (selected sites)

Third-party Assurance: Ernst & Young Oy

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

The chosen SDGs best reflect our most material topics.

Sustainable Products & Innovation

• Renewable products based on starches, tall oil, and fatty acid derivatives
• ISCC PLUS-certified polyacrylamide (PAM) polymers

Awards & Recognition

• Impact Allyship Award 2023 (Workplace Pride)