Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Compliance
• Quality and Product Performance
• Operational Impacts

Environmental Achievements

• Reduced NOx emissions by approximately 4,000 tons per year at Hopewell site between 2013 and 2017.
• Reduced phenol levels in process water discharge at Frankford facility by approximately 250,000 lbs.
• Significant reductions in TRI reported on-site releases at Hopewell and Frankford facilities.
• 6% reduction in total energy use since 2013.
• 8% reduction in water consumption since 2013.

Social Achievements

• Recordable occupational injury and illness incidence rate of 0.44 incidents per 100 full-time workers in 2017.
• Company leadership team was nearly 50 percent female in 2017.
• Two of seven board members were female in 2017.
• Hired and onboarded more than 250 people, including 30 new Chemical Operators.

Governance Achievements

• Implemented an Integrity and Compliance program with a Code of Conduct for all employees.
• All employees completed Code of Conduct training and certified compliance.
• Established President’s Awards honoring individuals for outstanding results and behaviors.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact while maintaining production.
• Ensuring safety of employees and the environment.

Mitigation Strategies

• Investing over $100 million to reduce NOx emissions at Hopewell facility via installation of Selective Catalytic Reduction (SCRs).
• Implementing energy saving strategies and monitoring energy consumption.
• Implementing numerous engineered controls to mitigate process safety risks.
• Replacing hazardous materials with non-hazardous alternatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Responsible Care®

Certifications: ISO 9001:2015 (manufacturing sites), RC14001®:2015 (Chesterfield facility and Parsippany HQ)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives supporting local communities, providing employment, improving manufacturing processes, and reducing emissions.

Sustainable Products & Innovation

• Resins for food packaging to reduce food waste
• Sulf-N® ammonium sulfate fertilizer
• EZ-Blox™ anti-skinning agent for alkyd paints

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety Performance
• Environmental Compliance
• Operational Impacts
• Quality and Product Performance
• Carbon Footprint and Emissions

Environmental Achievements

• Reduced criteria pollutant emissions by 61% since 2014
• Reduced hazardous waste by 18% since 2014
• Reduced Hopewell facility nutrient discharges to the Chesapeake Bay by 29% since 2015
• Conversion of steam supply from coal to natural gas boilers resulting in significant reduction in GHG emissions and criteria air pollutants

Social Achievements

• Outperformed industry-wide safety benchmarks in 2019 with a TCIR of 0.86
• Launched CARE program to improve safety
• Received a 2020 Gold Rating for Corporate Social Responsibility from EcoVadis
• Formation of Supporting Women in Manufacturing (SWiM) employee resource group
• 375 employees recognized by their peers in 2019

Governance Achievements

• Established a Sustainability Council to assess ESG practices
• Established a Health, Safety, Environmental and Sustainability (HSE&S) Committee of the Board of Directors
• 100% of employees completed Code of Conduct training
• Implemented electronic-permitting system to improve safety and efficiency

Climate Goals & Targets

Environmental Challenges

• Difficult end-market environment
• Shortages and delivery delays of cumene
• Disruption and shutdown of Philadelphia Energy Solutions (cumene supplier)
• Climate change impacts on operations and supply chain

Mitigation Strategies

• Successful anti-dumping petitions against acetone imports
• Strategic alliance with Oben Group and closure of Pottsville films plant
• Multiple suppliers for raw materials to ensure security of supply
• Investment in new natural gas boilers to reduce reliance on coal and improve efficiency
• Risk assessment and response planning for climate change impacts

Supply Chain Management

Supplier Audits: 100% of suppliers subject to Supplier Code of Business Conduct

Responsible Procurement

• Supplier Code of Business Conduct
• Sustainability requirements introduced to supply chain
• Sustainable procurement roadmap for the next five years

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Disruptions to maritime logistics and inter-plant supply chain

Transition Risks

• Changes in natural resources
• Increased sourcing costs

Reporting Standards

Frameworks Used: GRI Standards Core, SASB, TCFD

Certifications: ISO9001:2015, RC14001:2015

Sustainable Products & Innovation

• EZ-Blox® anti-skinning agent

Awards & Recognition

• EcoVadis Gold Rating
• Union Pacific Railroad Chemical Transportation Safety Pinnacle Award
• CSX Chemical Safety Excellence Award
• BNSF Stewardship Award

Environmental Metrics

ESG Focus Areas

• Safety Performance
• Environmental Compliance
• Operational Impacts
• Quality and Product Performance
• Carbon Footprint and Emissions
• Water Stewardship in Local Communities
• Equitable, Diverse and Inclusive Workplace

Environmental Achievements

• 69% reduction in criteria pollutant emissions since 2015 (completed conversion of steam supply to natural gas)
• 24% reduction in Scope 1 GHG emissions since 2015
• 10% reduction in Scope 2 GHG emissions since 2015
• 22% reduction in total GHG intensity since 2015
• 18% reduction in energy intensity since 2015
• 19% reduction in energy use since 2015
• 7% reduction in water consumption since 2015
• 13% reduction in hazardous waste since 2015
• Recycled roughly 1.4 MT of e-waste in 2020
• 100% of AdvanSix manufacturing locations are RC14001:2015 and ISO9001:2015 certified

Social Achievements

• 40% year-over-year reduction in contractor injuries across sites in 2020
• No OSHA-recordable injuries at Chesterfield and Frankford sites in 2020
• 39% of new hires in 2020 were ethnically diverse (compared to 23% in 2019)
• 21% of new hires in 2020 were women (compared to 17% in 2019)
• Average hourly pay for employees approximately $35.00 per hour
• Launched CARE (Courage to Act, Respond and Engage) program
• Implemented a governance framework consistent with TCFD

Governance Achievements

• Signed commitment to the UN Global Compact
• Established Sustainability Council
• Established HSE&S Committee of the Board of Directors
• 100% of employees completed Code of Business Conduct training
• Joined Together for Sustainability (TfS) and Operation Clean Sweep®
• Received 2021 Platinum Rating for Corporate Social Responsibility from EcoVadis (top 1%)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and supply chain
• Climate change risks (extreme weather, resource scarcity)
• Cybersecurity threats

Mitigation Strategies

• $26 million in proactive cost and productivity initiatives to mitigate pandemic impacts
• Implementation of robust health and safety protocols
• Comprehensive cybersecurity program based on NIST framework
• Risk Management Assessment to evaluate climate-related risks and opportunities
• Development of sustainable procurement roadmap

Supply Chain Management

Supplier Audits: 100% of suppliers subject to Supplier Code of Business Conduct

Responsible Procurement

• Supplier Code of Business Conduct
• Training for internal buyers on sustainability issues

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: GRI Standards Core, SASB, TCFD, UN Global Compact

Certifications: RC14001:2015, ISO9001:2015

Sustainable Products & Innovation

• EZ-Blox® anti-skinning agent
• Aegis® resins with recycled content
• Capran® BOPA films with recycled content

Awards & Recognition

• 2021 Platinum Rating from EcoVadis

Environmental Metrics

ESG Focus Areas

• Safety Performance
• Environmental Compliance
• Operational Impacts
• Quality and Product Performance
• Carbon Footprint and Emissions
• Water Stewardship in Local Communities
• Equitable, Diverse and Inclusive Workforce

Environmental Achievements

• Reduced total GHG emissions compared to 2015 performance. 20% reduction in GHG intensity compared to 2015.
• Reduced total criteria pollutants by 67% since 2015.
• Reduced energy intensity by 19% since 2015.
• Recycled over 200 tons of cardboard at Chesterfield Facility.
• Implemented a recycling initiative at Chesterfield facility reducing waste and supporting reuse of packing materials.
• 97% of hazardous waste generated by operations used on-site as fuel source.

Social Achievements

• Over 40 percent of new hires were diverse.
• Conducted Days of Understanding at largest manufacturing facility to gather employee feedback.
• Continued unconscious bias education at leadership and managerial levels.
• Average hourly employee pay of approximately $36.00 per hour.
• Jordan Oligmueller, manufacturing leader, selected as a 2021 national STEP Ahead Award honoree.

Governance Achievements

• Created the new role of Senior Director of Sustainability.
• Completed a third-party assurance of selected disclosures.
• 100% of employees completed Code of Business Conduct training.
• Investigated 17 submitted incidents, with 4 (24%) substantiated resulting in disciplinary action.
• Platinum Rating for corporate social responsibility by EcoVadis (top 1%).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Inflationary cost environment
• Impacts of climate change (extreme weather, rising sea levels)
• Potential increased sourcing costs due to climate change impacts on raw materials
• Cybersecurity breaches and incidents

Mitigation Strategies

• Developed a sustainable procurement roadmap for the next five years.
• Implemented a comprehensive set of cybersecurity policies and procedures.
• Completed a Water Body Risk Assessment to evaluate impacts from operations and climate change.
• Implemented a Risk Management Assessment to evaluate climate-related risks and opportunities.
• Continuous improvement practices to minimize operational impacts on the environment.

Supply Chain Management

Supplier Audits: 100% of suppliers subject to Supplier Code of Business Conduct; EcoVadis assessments used for critical suppliers

Responsible Procurement

• Supplier Code of Business Conduct
• Training for internal buyers on sustainability issues

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Disruptions to maritime logistics and inter-plant supply chain

Transition Risks

• Regulatory changes
• Market shifts towards carbon-free economy

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards Core, SASB, TCFD, UNGC

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: ERM Certification and Verification Services Inc.

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Aegis® resins with up to 100% PIR content
• High-PIR content Capran® BOPA films

Awards & Recognition

• EcoVadis Platinum Rating
• Newsweek’s Most Responsible Companies
• Investor’s Business Daily’s 100 Best ESG Companies
• CSX Chemical Safety Excellence Award

Environmental Metrics

ESG Focus Areas

• Safety & Security
• Equity, Diversity & Inclusion
• Community Engagement
• Climate
• Regulatory Compliance
• Water
• Product Offerings
• Supply Chain

Environmental Achievements

• Reduced enterprise-wide total GHG emissions compared to 2021
• Reduced total Scope 1 + Scope 2 emissions by 11% since 2018
• Reduced Scope 1 emissions by 12% vs 2018
• Reduced overall water withdrawals by 2.1%
• Achieved approximately 80% reduction in total nitrogen discharged from a specific stormwater outfall

Social Achievements

• Recognized with EcoVadis Platinum Rating (top 1% of companies assessed)
• Recognized by 50/50 Women on Boards as a “3+” company
• Received a “B” rating from CDP for climate change and water security submissions
• Celebrated more than 900 employees for their contributions
• Bucks facility achieved a full year without a recordable injury

Governance Achievements

• Received the 2023 Annual Director of the Year Award for Public Company Board of the Year from the NACD New Jersey Chapter
• Implemented a comprehensive set of cybersecurity policies and procedures based on the NIST Cybersecurity Framework
• 100% of employees completed Code of Business Conduct training

Climate Goals & Targets

Environmental Challenges

• Safety performance did not meet expectations in 2022, with an increase in employee injury rates
• Climate change poses risks to operations, stakeholders, and the environment
• Extreme weather events can disrupt activities and impact supply chains
• Long-term temperature changes may affect natural resources and water availability

Mitigation Strategies

• Developing a roadmap to GHG emissions reductions (with a new goal to be announced)
• Proactively preparing for climate-related risks aligned with TCFD recommendations
• Monitoring Scope 1 and Scope 2 GHG emissions and energy use
• Initiating a life-cycle assessment to understand product environmental footprints
• Working with customers to support their sustainability commitments
• Implementing a rain-for-rent system to capture and treat stormwater runoff
• Developing a permanent stormwater management solution (anticipated by 2026)
• Working with contractor partners to improve safety performance

Supply Chain Management

Supplier Audits: 97 suppliers assessed using EcoVadis assessments in 2022

Responsible Procurement

• Supplier Code of Business Conduct
• EcoVadis assessments through Together for Sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Other impacts of GHG emissions

Transition Risks

• Energy transition

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, Responsible Care®

Third-party Assurance: ERM CVS

Sustainable Products & Innovation

• Aegis® resins and Capran® BOPA films (100% recycled content)

Awards & Recognition

• EcoVadis Platinum Rating
• 50/50 Women on Boards “3+” recognition
• CDP “B” rating
• 2023 Annual Director of the Year Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Community Engagement
• Equity, Diversity & Inclusion
• Supply Chain Impacts
• Safety & Security
• Regulatory Compliance

Environmental Achievements

• Reduced total GHG emissions by 11% vs. 2018
• Reduced Scope 1 emissions by 11% vs. 2018
• 80% reduction in total nitrogen discharges at a trial outfall (Hopewell)
• Third consecutive Platinum rating by EcoVadis

Social Achievements

• Launched SUSTAIN program to expand granular ammonium sulfate production by approximately 200,000 tons per year with no increases in net energy consumption or emissions
• Introduced new nylon offering with 100% post-consumer recycled content
• Achieved 35 percent or more women in senior governance roles
• Safety performance ranking in the top quartile of American Chemistry Council small/medium member companies

Governance Achievements

• 2023 Public Company Board of the Year awarded by the New Jersey Chapter of the National Association of Corporate Directors
• Implemented a formal paid parental leave program

Climate Goals & Targets

Environmental Challenges

• Extreme weather events impacting supply chains and increasing costs
• Increased water withdrawals driven by rising river water temperatures and manufacturing activities

Mitigation Strategies

• Refreshed enterprise-wide Climate Risk Assessment aligned with TCFD
• Completed life-cycle assessment for products at three largest manufacturing facilities
• Developing a multi-year roadmap for improving water footprint and resilience
• Implementing phased emission reduction projects
• Developing a strategy for abating nitrous oxide emissions

Supply Chain Management

Supplier Audits: 95 suppliers assessed using EcoVadis

Responsible Procurement

• Supplier Code of Business Conduct
• Sustainable Procurement Policy
• EcoVadis assessments
• Together for Sustainability (TfS) membership

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISCC PLUS, Responsible Care®

Third-party Assurance: ERM CVS

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• 100% PCR content nylon
• Granular ammonium sulfate (SUSTAIN program)

Awards & Recognition

• EcoVadis Platinum Rating
• 2023 Public Company Board of the Year
• Newsweek’s one of America’s Most Responsible Companies 2024
• Executive Women of New Jersey recognition
• Virginia Manufacturing Cup awards