Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Safety
• Community Investment
• Ethical Behavior and Compliance
• Employee Development
• Diversity and Inclusion

Environmental Achievements

• Reduced greenhouse gas emissions by 9%
• Increased renewable electricity by 47% in five countries
• Maintained 2.3% water use reduction since 2017
• Quadrupled recycling in California to 12,000 tons per year
• Reduced sulfur oxide (SOx) emissions by 13%

Social Achievements

• Increased women in management to 19%
• Delivered 522,000+ training hours
• Improved safety rate by 31% (employee and contractor TRIR)
• Community investment of $2.89 million

Governance Achievements

• Created a Critical Risk Committee
• Completed the first TCFD-aligned climate risk assessment
• Established a new Chief Compliance Officer role

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic climate
• Unpredictable markets
• Headwinds in many main verticals
• Impact of illegal imports of refrigerant gases in Europe
• Challenging market conditions in the PVC chain

Mitigation Strategies

• Disciplined capital allocation policy
• Focus on operational excellence
• Focus on markets, products, services, and solutions that deliver higher profitability
• Cost control
• Working capital management

Supply Chain Management

Supplier Audits: From 2020, plan to include water performance as part of EcoVadis-based screening of suppliers.

Responsible Procurement

• Expectation that business partners and suppliers operate to the highest ethical standards; Code of Ethics applies to supply base; communication of expectations to new suppliers; from 2020, supplier evaluation through EcoVadis platform.

Climate-Related Risks & Opportunities

Physical Risks

• Cyclones
• Floods
• Wildfires
• Extreme temperatures
• Water stress

Transition Risks

• Pressure from markets to use low-carbon materials
• Carbon pricing regulations
• Increased cost of resources (electricity and water)

Opportunities

• Development of energy-efficient products and services (low-emission propellants, stormwater management solutions, efficient construction systems)

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB 2018 Standard for Chemicals, TCFD framework

Certifications: ISO 14001 (70 plants)

Third-party Assurance: Independent third-party assurance

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Orbia's products and services contribute to these goals through solutions for water management, renewable energy, sustainable infrastructure, sustainable cities, resource efficiency, and climate change mitigation.

Sustainable Products & Innovation

• Zephex® 152a (low-carbon footprint medical propellant)
• Streamline X ReGen (agriculture dripline containing recycled content)
• Tegra street gully (made from 100% recycled plastic)
• Garaflex (thermoplastic elastomer for electric vehicle charging station hoses)
• PlasticRoad (bicycle path made of 70% post-consumer recycled plastic)
• Q-Bic Plus Tree Bunker

Awards & Recognition

• UK 2019 Chemical Industry Association’s Special Responsible Care Award for Process Safety Leadership (Koura UK)
• Nominee for the 2020 Belgian VLARIO Innovation Award (Wavin StormHarvester system)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste
• Safety
• Diversity & Inclusion
• Community Engagement
• Governance
• Supply Chain

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 3% vs. 2020
• Increased renewable energy use by 28% vs. 2020 (6% of total electricity consumption)
• Reduced total process waste directed to disposal by 20% vs. 2020
• Reduced SOx emissions by 13% vs. 2018
• Improved water performance on an absolute and per-ton basis
• 39% of plants sent zero waste to landfill (Orbia's definition of 90% diversion)
• Delivered first orders of bio-based PVC

Social Achievements

• 19% reduction in total recordable incidents vs. 2020
• Increased percentage of women in management roles from 19% in 2020 to 22% in 2021
• Women accounted for 33% of leadership hires
• WASH projects provided access to water to over 30,000 people in Latin America
• More than 3,000 employees participated in ImpactMark 2.0 campaign
• Hired 30 refugees in Brazil, Colombia, and Mexico

Governance Achievements

• Established a new long-term equity incentive plan linking management compensation to Orbia share value and ESG metrics
• Appointed two new independent Board members
• Revised the charter and governance framework to make leaders’ ESG responsibilities more explicit
• Improved ESG scores with MSCI and Sustainalytics
• Issued inaugural Sustainability-Linked Bond

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Economic uncertainty
• Climate events and supply chain disruptions
• Raw material, transportation, labor, and supply chain disruptions
• Material cost increases

Mitigation Strategies

• Rigorous safety protocols
• Teleworking
• Health risk management policies
• Investment in capacity and increased connectivity with customers
• Diversified and integrated portfolio
• Revamped risk management systems
• Succession planning process for senior leaders

Supply Chain Management

Supplier Audits: 80% of total spend across Wavin, Dura-Line, and Koura UK covered by EcoVadis assessment program in 2021

Responsible Procurement

• Supplier code of conduct or Orbia’s Code of Ethics required for over 76% of spend
• EcoVadis platform for supplier environmental assessment, monitoring, and improvement

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather and resulting disruptions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Investment in climate tech startups

Reporting Standards

Frameworks Used: GRI Standards, SASB 2018 Chemicals Standard, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 45001, OHSAS 18001

Third-party Assurance: Third-party assurance for a selection of sustainability data (details in ESG Databook)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 9 (Industry, Innovation and Infrastructure)

Orbia's products and solutions support multiple industries essential for daily life and provide avenues for direct and indirect contributions to the UN SDGs.

Sustainable Products & Innovation

• Bio-based PVC
• Streamline X ReGen™ dripline
• AquaCell stormwater management solution
• Klea® 456A refrigerant
• Zephex® 152a inhaler propellant
• DOTP plasticizer from recycled PET

Awards & Recognition

• Koura won the award for Best Supplier for People and Planet at the Chiesi Vendor Day
• Orbia obtained an A- score in CDP’s annual Supplier Engagement Rating

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implementing a third-party audited, robust Environmental Management System (EMS) at all sites
• Committing to set Science Based Targets to achieve net zero emissions (scope 1 & 2) by 2050

Social Achievements

• Creating inclusive, healthy and safe environments for employees, contractors, and communities
• Prioritizing local hiring at our facilities

Governance Achievements

• Orbia’s Board of Directors oversees and provides guidance on Orbia’s Sustainability strategy through its Corporate Governance, Responsibility and Compensation Committee

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Expanding the coverage of all our policies and guidelines to contractors, suppliers, and other business partners.
• Developing programs to continuously assess and improve our suppliers’ social and environmental performance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, CEO Water Mandate

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Plastics
• Biodiversity

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 28% vs. baseline.
• Reduced Scope 3 emissions by 20% vs. baseline.
• Increased renewable energy use by 52% compared to 2022, reducing around 67,500 tons of GHG emissions.
• 46% of Orbia plants utilized renewable energy sources in 2023.
• Reduced around 9,593 tons of CO2 through energy-efficient processes.
• Completed construction of a wastewater treatment system at El Salto site in Mexico, eliminating groundwater usage.

Social Achievements

• Empowered 600 women with water management skills through the Women with Punch initiative.
• Safe Water for Soup Kitchens program in Cerro Colorado (Peru) benefiting more than 1,550 persons daily.

Governance Achievements

• Introduced an ESG modifier for senior management compensation in 2021, later replaced with a weighted metric in 2023 to tie compensation to ESG goals.
• Published the first Orbia-level Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events.
• Decreased water supply due to droughts.
• Potential consequences of laws and public awareness demanding product circularity and improved end-of-life management.
• Difficulty in allocating emissions to different customers due to diversity of product lines and customer base.
• Limited availability of cost-effective alternatives for decarbonizing Scope 1 emissions.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Investing in water efficiency technology.
• Developing a circular economy plan and adapting products to circularity requirements.
• Improving systems to allocate GHG emissions to customers.
• Monitoring novel decarbonization technologies and implementing renewable energy solutions.

Supply Chain Management

Supplier Audits: 26-50% of Tier 1 suppliers assessed using Ecovadis

Responsible Procurement

• Orbia-level Supplier Code of Conduct
• Minimum performance score of 35-45 on Ecovadis assessment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Drought
• Floods
• Landslides

Transition Risks

• Changes to regulation of existing products and services
• Raw materials price volatility
• Shift in consumer demand for low-carbon products

Opportunities

• Expansion into new markets for drip irrigation systems
• Increased demand for low GWP refrigerants and propellants
• Increased demand for recycled plastics
• Development of energy-efficient products
• Production of LiPF6 battery salt and PVDF binder in North America

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 13

Orbia's products and solutions contribute to multiple SDGs, including clean water and sanitation, affordable and clean energy, and climate action.

Sustainable Products & Innovation

• Low GWP refrigerants and propellants
• Recycled plastics
• Energy-efficient products
• Drip irrigation systems
• Indoor Climate Solutions

Awards & Recognition

• Klea 456A shortlisted as a finalist in the RAC Cooling Awards 2023