Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Greenhouse Gas Emissions
• Air Emissions
• Waste Reduction
• Water Management
• Safety
• Process Safety
• Employee Well-being
• Community Engagement
• Human Rights
• Anti-Corruption
• Supplier Sustainability

Environmental Achievements

• Achieved 43% of the goal to reduce energy intensity since 2005.
• Achieved a 3.0% decrease in GHG intensity since 2014 (41% of long-term goal).
• Reduced NOX emission intensity by 10.4% and SO2 by 14.7% compared to 2012 baseline.
• Met waste reduction goal earlier than expected.
• Overall water volume used decreased 0.9%, but intensity increased by 2.3%. Wastewater discharge decreased by 2.9%, intensity increased by 0.2%.
• Completed dust mitigation project at Klazienaveen, Netherlands facility.
• Reduced environmental non-conformances by 26% since 2014.

Social Achievements

• Achieved world-class safety performance with reduced injury rates.
• Implemented safety initiative in Ravenna, Italy, improving safety program and communication.
• Continued commitment to employee professional development with various training programs.
• Supported employee volunteer activities in various communities.
• Donated approximately $800,000 through the Cabot Corporation Foundation.
• Made approximately $400,000 of in-kind donations at the facility level.

Governance Achievements

• Became a signatory of the United Nations Global Compact (UNGC) in July 2015.
• Implemented anti-corruption training for all employees.
• Introduced a standalone Human Rights Policy in spring 2016.
• Implemented a rigorous testing and certification program to measure PAH concentrations on certain carbon black products and developed low PAH products.

Climate Goals & Targets

Environmental Challenges

• Intense competitive pressures and macroeconomic challenges (decline in oil prices, weakening foreign currencies).
• Increased energy intensity due to changes in market demand and reduced utilization rates.
• Increased hazardous and non-hazardous solid waste generation rates.
• Increased water usage intensity despite overall volume decrease.
• Increased process safety events.
• Higher total recordable incident rate compared to previous years.

Mitigation Strategies

• Workforce reduction and ceasing production at Merak, Indonesia facility.
• Exploring opportunities to improve energy efficiency at all facilities (e.g., Botlek, Netherlands project).
• Identifying alternative uses for off-quality product and exploring options for handling waste from pollution control projects.
• Exploring technical solutions to improve water use balance and monitoring potential risks.
• Exchanging lessons learned from process safety events among facilities.
• Continued focus on safety initiatives and the 'Drive to Zero' program.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on Code of Business Ethics; prohibits forced or child labor.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: ISO 14001

Sustainable Products & Innovation

• Low PAH carbon blacks (Cabot LP series)
• Aerogel for high-performance insulation
• DARCO Hg activated carbon products for mercury control

Awards & Recognition

• 2015 Michelin Supplier Award for Innovation
• 2015 Best Quality Supplier (Kingfa)
• 2015 5A-Class Supplier (Giti Tire)
• 2015 Supplier of the Year (Bridgestone Firestone)
• 2015 Top Rubber Award (Revista Borracha Atual)
• The Best 2015 Carbon Black Supplier (Paint & Pintura)
• 2015 Leaders in Philanthropy Award
• Responsible Care Merit Award (AICM)
• 2015 Best Model of Social Responsibility
• PROPER Blue Recognition
• 2015 Best Customer Safety Award
• 2015 Ecological Design Award
• 2015 Advanced Enterprise of Safety Production
• 2015 Best Practice Award
• 2015 Responsible Care Leader
• 2015 Leader Award

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Environmental Compliance
• Economic Value Generated & Distributed
• Emissions
• Energy
• Product Sustainability
• Employee Retention, Diversity & Development
• Waste & Spills
• Community Engagement
• Suppliers’ Sustainability
• Water

Environmental Achievements

• 26% reduction in environmental non-conformances (ENCs)
• 50% drop in process safety events
• 32% progress toward GHG emissions intensity reduction goal
• 20.2% progress toward SO2 emissions intensity reduction goal
• 23.1% progress toward NOX emissions intensity reduction goal
• 55% reduction in energy consumption of a feedstock storage tank by applying aerogel coating
• Increased rates of waste reuse by 9.5% in absolute terms and 8.2% based on production intensity
• 10% reduction in sulfuric acid use at Haverhill facility
• Redevelopment of former operating site in Altona, Australia for reuse as an office park

Social Achievements

• 17% decrease in total number of recordable safety incidents
• 10% decrease in total recordable incident rate
• Piloted a company-wide employee engagement survey
• Introduced a Human Rights Policy
• Over $1.6 million in charitable donations
• Initiated a pilot training program for mid-level professionals to develop leadership skills

Governance Achievements

• All North American sites recertified according to Responsible Care® RC 14001 SH&E Management System requirements
• Annual training on Code of Business Ethics for all employees
• Additional focused anti-corruption training for employees with certain roles and responsibilities

Climate Goals & Targets

Environmental Challenges

• Increased production in 2016 affected progress on some environmental metrics
• Increased GHG emissions by 2.3% compared to 2015
• Increased SO2 emissions intensity in 2016 by 4.9%
• Increased total waste generation intensity by 1.6% due to a one-time event

Mitigation Strategies

• Investments in operations to increase efficiency and reduce overall impact
• Technical actions focused on efficiency improvements to reduce energy consumption and GHG emissions
• Implementing a project for wastewater capture and reuse at Franklin, Louisiana facility
• Thorough evaluation of incidents to understand root cause and implement measures to avoid similar risks

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• More stringent GHG regulations

Opportunities

• Increased demand for products and services supporting customers’ needs to meet energy and GHG regulations and improve energy efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Third-party Assurance: Cameron-Cole (Limited Level of Assurance)

Sustainable Products & Innovation

• Conductive carbon blacks and treated silicas for wind turbine performance
• LP series of carbon black for compliance with EU PAH limits
• PBX® carbon additives for improved lead-acid battery performance
• ENOVA® aerogel for insulation

Awards & Recognition

• Gold Level Recognition from EcoVadis
• Outstanding Pioneer in Safety Production from TEDA
• Best Carbon Black Supplier from Paint & Pintura
• Top Supplier from Kraiburg
• Core Strategic Supplier from Linglong Tire
• Annual Green Operation Award from Shanghai Corporate Social Responsibility and Innovation Summit
• Clean and Green Advanced Technology Award from Shanghai Resource Comprehensive Utilization Association and Shanghai Economic and Information Technology Commission
• 12 FYP Model Enterprise in Environment Protection from China Petroleum and Chemical Industry
• Outstanding Enterprises for Tax Contributions from Xingtai County Party Committee and government
• Top Ten Credible Production Enterprises from Ninth China Coal Market Seminar
• Harmonious Labor Relation Enterprise Award from TEDA
• Leading Company from Colombia Chapter of Integral Responsibility
• Advanced Enterprise of Safety Production Management from Jiujiang City
• Advanced Technical Enterprise with Foreign Investment in Shanghai from Shanghai Municipal Commission of Commerce
• Advanced Enterprise for Donating to Schools from Xingtai County Party Committee and government
• Best Enterprises with Social Responsibility in Shanghai Minhang District from Shanghai Minhang District government
• Gold Seal from PAM Capuava

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Energy
• Water
• Effluents and Waste
• Emissions
• Environmental Compliance
• Suppliers' Sustainability
• Product Sustainability
• Employment, Diversity, & Training
• Occupational Health and Safety
• Community Engagement

Environmental Achievements

• Made steady progress towards NOx and SO2 emission reduction goals (93% and 26% achieved respectively).
• Continued investments in waste heat recovery to enable progress on energy and greenhouse gas intensity goals (34% and 41% of the way to achieving goals).
• Achieved waste reduction goal.
• Reduced facility’s fixed energy use by nearly 210 megawatt-hours (10% of total electricity use) in Campana, Argentina.
• Reduced natural gas use by 20% at Barry, Wales facility.
• Reduced 500 MT of annual GHG emissions in Belgium through various energy efficiency projects.
• Achieved an 18% reduction in NOx emissions intensity and an 11% decrease in absolute emissions.
• Made progress toward GHG and SO2 goals (41% and 26% achieved respectively).
• Completed NOx control systems at Pampa, Texas and Tianjin, China facilities, achieving nearly 90% NOx removal.
• Improved boiler efficiency in Maua, Brazil, utilizing 100% of byproduct gas and reducing excess air flow.
• Sold excess energy offsetting more than 500,000 MT of CO2e from the environment.
• Supported air quality improvement in Tianjin, China by providing steam generated from waste heat, eliminating 45,000 MT of coal use by a neighbor.

Social Achievements

• Zero voluntary turnover in two Belgian plants due to implemented well-being programs.
• Launched a global employee engagement survey with over 80% participation.
• Implemented a six-month Leadership Fundamentals Development Program for frontline leaders.
• Launched a dedicated D&I steering committee to improve diversity and inclusion.
• Offered various well-being programs for employees in North America and Belgium (chair massages, monthly walks, jogging team, stress reduction workshops).

Governance Achievements

• All employees completed training on the Code of Business Ethics.
• Established a dedicated D&I steering committee.

Climate Goals & Targets

Environmental Challenges

• Increased focus on environmental enforcement in China.
• Significant equipment failure resulting in injuries and OSHA fine.
• Need to further reduce energy intensity to meet 2025 goal.

Mitigation Strategies

• Investments in state-of-the-art emission control technology in China and the US.
• Review and refresh of inspection programs following equipment failure.
• Implementation of Lean Manufacturing practices and energy efficiency projects.

Supply Chain Management

Supplier Audits: Pilot program slated for 2018

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: GRI Standards: Core Option, UN Global Compact

Certifications: American Chemistry Council’s Responsible Care® program

Third-party Assurance: Cameron-Cole (biennial verification for 2015 and 2016 GHG emissions data)

UN Sustainable Development Goals

• Not disclosed

Supporting the Sustainable Development Goals (SDGs) established by the United Nations.

Sustainable Products & Innovation

• PLASBLAK® 628 black masterbatch series for recycled plastic resins.
• Cabot elastomer composite (CEC) products extending tire tread life.
• Polyethylene mulch film for sustainable agricultural practices in Brazil.

Awards & Recognition

• Numerous safety, environmental, community, and supplier awards (see page 40)

Environmental Metrics

ESG Focus Areas

• Environmental Compliance
• Energy
• Emissions
• Waste & Spills
• Water
• Occupational Health & Safety
• Retention, Development & Diversity
• Community Engagement
• Supplier Sustainability

Environmental Achievements

• Reduced nitrogen oxides (NOX) emissions on an intensity basis by 20% from a 2012 baseline ahead of schedule.
• Achieved 50% of 2025 GHG reduction target.
• Reduced environmental non-conformance (ENC) events by 14% compared with 2017 and 27% compared with 2016.
• Reduced waste disposal intensity by 2.1% over 2017 and 2.6% over 2016.
• Increased the amount of waste beneficially used by 17% over 2017 and 25% over 2016.

Social Achievements

• Launched a D&I Committee and hired the first director of D&I.
• Launched the "You Matter" well-being program at USA-based facilities with over 50% participation.
• Completed Wuhai construction project without a recordable incident (nearly 1.6 million work hours).

Governance Achievements

• Broadened the focus of the Board of Directors’ Safety, Health and Environment Committee to include oversight and guidance for the sustainability program.
• Formed an internal Sustainability Advisory Committee.

Climate Goals & Targets

Environmental Challenges

• Slow progress on energy intensity reduction goal.
• One-time sludge removal project in 2017 increased overall waste generated.
• A release at the Franklin, Louisiana facility due to a malfunctioning relief valve.

Mitigation Strategies

• Investing in energy centers and conducting energy audits.
• Removing the quantity of waste generated from the 2017 sludge removal project from year-over-year trending.
• Implementing corrective actions to avoid similar incidents in the future, including upgrading the relief valve and installing additional alarms and interlocks.

Supply Chain Management

Supplier Audits: 91% of prioritized suppliers audited on sustainability criteria (6% of total critical suppliers)

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: GRI Standards: Core Option, UNGC

Certifications: Responsible Care 14001®

Third-party Assurance: ERM CVS (biennial verification for GHG emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fiber-grade carbon black products (support wastewater reductions)
• Carbon nanostructure (CNS) technologies (light-weighting and electrification in automotive industry)

Awards & Recognition

• Corporate Responsibility Magazine’s 100 Best Corporate Citizens
• Numerous regional recognitions

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Retention, Diversity & Development
• Community Engagement
• Environmental Compliance
• Energy
• Emissions
• Waste & Spills
• Water
• Economic Value Generated & Distributed
• Product Sustainability
• Suppliers’ Sustainability

Environmental Achievements

• Reduced total recordable incident rate by 48% compared to 2019.
• Achieved an 81% progress toward 2025 energy intensity goal.
• Achieved a 77% progress toward 2025 GHG emissions intensity goal.
• Reduced ENCs by nearly 30% compared to 2019.
• 76% of manufacturing and technology locations obtained EMS certification.
• Reduced total waste generation by 7% from 2019 levels (excluding deep well injection).

Social Achievements

• Expanded Leadership Fundamentals program to Latin America.
• Embedded LEAD 360-degree feedback development process across all regions.
• Formed Black Employees and Allies United (BEAU) Employee Resource group.
• 91% of sites engaged in volunteering, site-level donations or Foundation giving activities.

Governance Achievements

• Expanded sustainability disclosures aligning with SASB and TCFD recommendations.
• Completed acquisition of Shenzhen Sanshun Nano New Materials Co., Ltd.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted energy performance, production volumes, and supplier audits.
• Reduced production volume and COVID-19 interruptions increased non-raw material energy use per metric ton of production.

Mitigation Strategies

• Launched COVID-19 crisis response team and implemented safety measures.
• Enhanced benefit offerings to support employee well-being.
• Developed strategies to mitigate water withdrawal intensity increase due to COVID-19 impacts.
• Established cross-functional teams to address 2025 goals.

Supply Chain Management

Supplier Audits: Limited in 2020 due to COVID-19 and restructuring.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB framework, UNGC

Certifications: ISO 14001 (at 76% of facilities)

Third-party Assurance: ERM-CVS (biennial verification of Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• UN Sustainable Development Goals (SDGs)

2025 goals are aligned with the UN SDGs.

Sustainable Products & Innovation

• ENERMAX™ CNT products for battery applications
• PLASBLAK® 628 black masterbatch for recycled plastics
• E2C™ engineered elastomer composites

Awards & Recognition

• America’s Most Responsible Companies by Newsweek (2 years in a row)
• Platinum rating from EcoVadis

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DE&I)
• Product Sustainability
• Supply Chain Sustainability
• Community Engagement
• Occupational Health & Safety
• Environmental Compliance
• Energy Efficiency
• Emissions Reduction
• Waste Reduction
• Water Stewardship

Environmental Achievements

• Achieved 91% of 2025 GHG emissions intensity reduction goal (20% reduction from 2005 baseline).
• Achieved a record volume of exported cogeneration power, resulting in an energy ratio of 157%.
• Completed air pollution control project in Franklin, LA, resulting in significant SO2 and NOx emission reductions.
• 11 out of 12 sites in water-scarce regions performed better than the 2025 water reduction target.

Social Achievements

• 99% of people managers completed unconscious bias training.
• Became an inaugural sponsor of the Future of STEM Scholars Initiative (FOSSI), funding scholarships for five students.
• 100% of new product development projects were assessed for sustainability impacts and benefits.
• 87% participation rate in global employee engagement survey, showing increased engagement and inclusion.

Governance Achievements

• Announced ambition to achieve net zero emissions by 2050.
• Conducted a climate scenario analysis aligned with the Task Force on Climate-Related Financial Disclosures (TCFD).
• Established a $1 billion sustainability-linked unsecured revolving credit facility.

Climate Goals & Targets

Environmental Challenges

• Increased absolute emissions of GHGs, SO2, and NOx due to production rebound.
• Increased water consumption due to air pollution control and energy recovery projects.
• Increased waste generation from new air pollution control systems.
• Difficulty attracting diverse talent in the chemical industry.

Mitigation Strategies

• Investing in air emissions controls and energy recovery systems.
• Exploring opportunities for water recycling and beneficial use of gypsum.
• Identifying beneficial use outlets for gypsum byproduct.
• Developing partnerships with diversity network associations and implementing DE&I-focused social media campaigns.

Supply Chain Management

Supplier Audits: 42 out of 182 critical suppliers assessed by end of 2021.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Flooding
• Drought
• Inversions

Transition Risks

• Regulatory change (carbon pricing)
• Technology disruption
• Decreased availability of raw materials
• Product alternatives

Opportunities

• Reduced resource consumption
• Emergence of new technologies
• Increased market share
• Products with low environmental impact

Reporting Standards

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

Certifications: ISO 14001 (at several sites)

Third-party Assurance: ERM CVS (limited assurance on emissions intensity calculations and Scope 1 & 2 GHG emissions)

UN Sustainable Development Goals

• 13 of the 17 UN SDGs

Alignment details in report.

Sustainable Products & Innovation

• Enermax™ 6 carbon nanotube series
• Plasblak® PE8505 black masterbatch product

Environmental Metrics

ESG Focus Areas

• Building a Better Future Together
• Acting Responsibly for the Planet
• Caring for Our People & Communities

Environmental Achievements

• Achieved ISCC PLUS certification at seven global sites.
• Reduced GHG emissions intensity.
• Reduced SO2 emissions intensity by 75% below 2012 levels.
• Reduced NOX emissions intensity by more than 50% below 2019 levels.
• Reduced waste disposal from operations.
• Reduced water withdrawal intensity.

Social Achievements

• Achieved industry-leading safety performance with a TRIR of 0.14.
• Launched inclusive leadership development program.
• 100% of sites participated in community engagement.
• Charitable giving exceeded $2 million.
• Global employee engagement survey showed strong engagement and inclusion.

Governance Achievements

• Received a Platinum Rating from EcoVadis for the third consecutive year.
• Included in Newsweek’s list of “America’s Most Responsible Companies” for the fifth year in a row.
• No substantiated incidents of corruption.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 GHG emissions across the supply chain.
• Maintaining high safety performance while addressing line-of-fire injuries and slips/trips/falls.
• Improving data quality for Scope 3 GHG emissions.

Mitigation Strategies

• Conducted a comprehensive inventory of Scope 3 GHG emissions.
• Developed safety improvement plans focusing on line-of-fire, bodily motion, and hazard recognition.
• Engaging with suppliers to improve data quality and reduce Scope 3 footprint.

Supply Chain Management

Supplier Audits: More than 50% of critical suppliers assessed for sustainability impacts in 2023.

Responsible Procurement

• Supplier Code of Conduct outlining expectations for ethical, environmental, and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Chemicals Industry Sector, TCFD

Certifications: ISCC PLUS, Responsible Care® Management System, ISO 14001

Third-party Assurance: ERM CVS (limited assurance on emissions intensity calculations for SO2 and NOX emissions and Scopes 1 and 2 greenhouse gas emissions)

UN Sustainable Development Goals

• Not disclosed

Sustainability goals align with 13 of the 17 UN SDGs.

Sustainable Products & Innovation

• ENTERA® aerogel for EV batteries
• New multi-wall brown paper bag packaging

Awards & Recognition

• Platinum Rating from EcoVadis
• Newsweek’s “America’s Most Responsible Companies”
• America’s Greatest Workplaces for Diversity 2023