Innovative and Sustainable Products

2020 ANNUAL AND SUSTAINABLE PERFORMANCE REPORT A leader in Specialty Materials. A leader in Specialty Materials. A leader in Specialty Materials. A leader in

the

We survived 2020 and faced the economic A specialty materials pioneer, we have a unique /2/ crisis brought on by COVID-19 by drawing on /22/ market offering, combining high-performance our strengths: a plentiful portfolio of materials materials with resins for coatings and adhesives suitable for diverse markets, a growth strategy in response to major societal challenges. Our focused on our best-performing activities and products provide concrete solutions to fast- our ability to meet our customers’ needs with growing applications of the future, such as increasingly innovative and sustainable products. electric batteries, mass 3D printing, sustainable Above all, we were able to count on the construction and energy-efficient transport. mobilization of our teams all over the world, A major focus of our growth strategy is the and their spirit of solidarity. circular economy, and we are working on three of its drivers: the use of renewable and recycled We now know that we are a resilient materials; the optimization of resources in our company and will emerge stronger from plants; and the development of solutions oriented this crisis. towards sustainable or recyclable applications. We are also continuing to lead a dynamic innovation policy alongside a number of partners in technological fields, which is the only way to ensure we are perfectly aligned with market expectations. With our innovative materials, we are in a position to offer key improvements for a more efficient and sustainable world. growing our talents Internally, our staff are our greatest asset, and we have a number of programs designed to build their loyalty, cultivate their abilities and /50/ attract talented new candidates all over the world. We strive to promote diversity, a good gender-balance and training for our youngest employees. Externally, we are engaged in many philanthropic initiatives: civic action in education, the integration of troubled young people, and humanitarian projects. Our view of progress is based on people and on our values. Simplicity, Shareholder solidarity, responsibility and information performance, in everything we do. Meet the members of the Executive Committee and Board of Directors and find our financial and non-financial results for 2020. /70/ Arkema - Innovative for / 1 /In 2020 and 2021 the world experienced an unprecedented health and economic crisis. We have managed this situation by reviewing our working methods, reducing our costs, re- examining our processes, and adapting our offering. As a specialties supplier of essential materials in many industries, for we have adapted our portfolio in response to the urgent needs caused by the pandemic. Above all, we continue to anticipate the needs of our customers, who are always looking for better and more sustainable products, and to implement our portfolio management strategy. We are a resilient company and we will emerge stronger from this crisis./

2 / Arkema - Innovative for Arkema - Innovative for / 3 nurturing resilience >>> 5 Arkema - Innovative for /

A CLEAR COURSE OF ACTION a on worked we pandemic, the to response In crisis the managing time: over targets of progression and 2021; in rebound the for ready being 2020; in 2024 for vision our implement to continuing actively Materials. Specialty in name leading a becoming of of expenditure capital maintained we why is That environment, challenging the despite million, €600 Japan Malaysia, in launches industrial major with China. and RESILIENCE and adaptability demonstrated Group The down earningswere Full-year responsiveness. margin EBITDA with 4%, just by fell volumes but which Materials, Specialty 15%. at robust remaining heart the at are and of sales Group of 82% represent efforts, development our suffered EBITDA in drop a also We focus. strategic our confirming 12%, just of with flow, cash of level high a generate to managed in achieved record the to comparable million, €651 very a in year the ended therefore solid We 2019. to needed leeway the us giving position, financial plans. growth ambitious Group’s the pursue We are a resilient company and we and company a resilient are We ACKNOWLEDGEMENTS staff the and at strengths company’s a reveal Crises these worthto their proved responding in really Arkema Group’s the illustrated also has period This events. difficulties Despite values. core four our of one solidarity, everyone crisis, full the the to to role relating their played situation. the to adapted and to employees enable to quick were we example, For to able were we restrictions, Despite home. from work serve to and production effectively. continue clients our but pandemic, the with cope merely not did Group The up stepping areas, of number a in progress real made industrial major two launching programs, innovation its operational and business new out rolling projects, strategy. long-term its pursuing and initiatives excellence 2020 A SINGULAR YEAR tsunami, a like spread pandemic COVID-19 The economic global unprecedented an by followed every impacted This collapse. country which in exception. without operate, we lives turningour other, no like year a was 2020 effort of amount huge a took It down. from upside staff, our efforts these and Arkema vain. in not were many than storm better the weather to able was position, enviable an in now is and companies other 2021 in rebound the from benefit to placed well beyond. and Resilient earningscommitment, a high recognized social and operations, and investment. ongoing innovation involvement, level of employee is Chairman and Chief Executive Officer, Thierry Le Hénaff, the Group’s ahead for Arkema. Sights are set on the 2024 confident about what lies sales pure-play Specialty Materials company with target of becoming a ambitious plan that remains on track despite in excess of €10 billion—an crisis. the health and economic SIGHTS SET ON 2024 ON SET SIGHTS

Thierry

/ Le Hénaff in 2021. from the rebound placed to benefit position, well in an enviable is currently The Group We are a resilient company and we will emerge stronger from this crisis. this from stronger emerge will we and company resilient a are We will emerge stronger from this crisis. We are a resilient company and we will emerge stronger from this crisis.

In terms of safety, Arkema’s main commitment as a responsible industrial company was reflected last year by “2020 was a singular year a record low accident frequency rate of 1.0 accidents per million hours worked. Our demanding commitments and progress in CSR have been recognized by the and I would first like to leading non-financial ratings agencies. I am particularly proud of our recent inclusion in the DJSI World index thank all our employees in sixth place in the Chemicals category out of 114 companies. around the world who CONFIDENCE mobilized and adapted to Since the low of April 2020, we have capitalized on resilience nurturing a strong recovery in China and our presence in the the situation. Thanks to our construction, decorative paints and batteries segments. At the end of the year, major industrial sectors such as automotive also began to see an upturn in North diverse markets, the Group America, Europe and Asia. This allowed us to return to significant volume growth of 5% in the fourth quarter. demonstrated its resilience On the strength of our high-quality innovation projects and of our increased—despite the health crisis—sales and marketing and R&D budgets, we are confident and we are still on course for / Thierry about 2021, and enjoyed a very solid start to the year, following on from the progress already made in the fourth quarter of 2020. 2024 with the development Le Hénaff / In Specialty Materials, we are aiming to return this year to EBITDA close to pre-COVID levels at constant of our Specialty Materials exchange rates, or an increase of 10% supported by brisk sales growth. We feel that the arrival of vaccines and stimulus plans will support a strong recovery and activities, which put us in that we are in a favorable position to benefit from this We began construction of two major new projects >>> dynamic. presenting an attractive environmental profile and A UNIQUE a unique position to address This confidence in 2021 is reflected by our ambitious proven high rates of return: a 100% bio-sourced POSITIONING shareholder return policy. The Board of Directors polymer production plant in Singapore and the THAT SERVES decided to return to the 2019 level with a proposed the major challenges facing hydrofluoric acid facility at the Nutrien site in the U.S. dividend of €2.50 per share. A €300 million share We also stepped up our rate of innovation, with MAJOR PLANETARY buyback program will be launched for the first time promising opportunities in batteries and hydrogen the planet. 1 CHALLENGES after the sale of PMMA has been finalized. tanks, lightweight materials, 3D printing, low VOC Now more than ever, our aim as an industrial firm is to paints, filtration membranes, recyclable composites use our expertise and innovation in materials science So we are confident about the and high-performance adhesives for industry and to support the transition towards a world that is more construction. TALENT SERVING economical, more responsible, and more demanding. future. And I know I can count We finalized the sale of the functional polyolefins That is why we provide breakthrough solutions for THE COMMON GOOD business to Korean group SK and at the end of the our clients and help them offer innovative solutions Since our IPO in 2006, the Group has continued year signed the proposal to sell PMMA to U.S. to end consumers, in response to demand for lighter to evolve, resulting in exceptional value creation on the fantastic support of company Trinseo, which will take on our Altuglas materials, the management of natural resources for stakeholders. We owe this success above all to International employees. We made a number and new energies. the talent and commitment of the men and women of targeted acquisitions in adhesives, including LIP, Arkema’s strategy is coupled with the aim of creating who work for the company. our employees, truly talented Fixatti and Ideal Work, and acquired stakes in lasting value for all stakeholders, as embodied Our vision is for a truly diverse group with a wealth start-ups with promising technologies. We aim by our corporate social responsibility (CSR) policy. of backgrounds, nationalities and skills, rallying all staff people serving the common to become a leading name in sustainable materials Within this framework, the Group has set itself the to the Arkema project. Diversity is an asset that we have and technologies and to exceed sales of €10 billion ambitious target of increasing the proportion of sales decided to strengthen further within the Group, aiming in 2024. making a significant contribution to the United Nations’ to have women account for 30% of senior management good.” Sustainable Development Goals to 65% in 2030, by 2030 and non-French nationals to make up compared to 50% currently. It has also defined a 50% of the workforce. Climate plan in line with the Paris Agreement, with Together we will continue to write the Group’s amazing the aim of cutting its greenhouse gas emissions story. Individual talent only has meaning when it serves 1. Volatile Organic Compounds by 38% between 2015 and 2030. the common good.

6 / Arkema - Innovative for Arkema - Innovative for / 7 We are a resilient company and we will emerge stronger from this crisis. We are a resilient company and we /Profile/ A global presence balanced across 3 regions

Revenue of Present in 55 countries nurturing resilience nurturing € billion 7.9 production sites worldwide 147 North Asia & rest America Europe of the world employees World’s 33% 36 % 31% of sales of sales of sales no.1 to no.3 4,000 employees 11,300 employees 5,300 employees 20,600 in 90% of our businesses 42 production sites 64 production sites 41 production sites

A portfolio built on 4 major business segments Innovation, a core focus of our business purpose

32% Unique expertise in specialty Of which Advanced ~ 3% 1,600 203 78% materials materials, which represent of revenue researchers patents filed in 2020 relate to sustainable development

24.5% Coating solutions 82% of our business € billion (89% including the annual 5 R&D platforms dedicated to sustainable development 7.9 contribution of divestments/ acquisitions announced 25.5% in 2020) Adhesives

Natural New Electronic Lightweight Home efficiency 18% resource energies solutions materials and insulation Intermediates management and design

8 / Arkema - Innovative for Arkema - Innovative for / 9 will emerge stronger from this crisis. We are a resilient company and we will emerge stronger from this crisis. /Zooming in and out of 2020/

It is difficult COVID-19 STRIKES: to sum up such STANDING a strange year. 1TOGETHER In the context of the global January Donation pandemic, of hydrogen r nurturing peroxide in China during which In China, Arkema everyone worked donated 26 metric tons

of hydrogen peroxide, esilience so tirelessly used as a disinfectant, to the health authorities March to support one in Hube province. another, we maintained our Arkema’s global business activities mobilization around the world and continued In response to the pandemic and lockdowns, Arkema to pursue our organized its 147 sites to ensure strict adherence to rules imposed by the authorities in order to protect its employees projects and and maintain operations. The Group took all possible action refocus our to continue to supply its clients with products, many of which businesses, R&D are essential in a range of fields, thereby helping to sustain collaborations the economy in countries in which it operates. and CSR commitments. March We look back Molecular sieves March for respiratory devices at some of Urgent manufacture of hand sanitizer The Honfleur plant in France stepped the highlights. in France up production of molecular sieves, which Arkema decided to adapt one of the production lines are essential components of respiratory at its Rhône Alpes research center CRRA, just outside devices, in response to a significant Lyon, to produce 20 metric tons of hand sanitizer every rise in demand. Teams worked around week and urgently distribute it free of charge to French the clock to ensure a constant supply of hospitals. Our Jarrie plant near Grenoble supplied the molecular sieves for medical equipment requisite hydrogen peroxide. manufacturers.

10 / Arkema - Innovative for Arkema - Innovative for / 11 We are a resilient company and we will emerge stronger from this crisis. We are a resilient company and we

April MANAGING THE June Nutrien Ltd., one of the PORTFOLIO AND world’s leading agrochemicals Donation of PARTNERSHIPS, Innovative manufacturers, agreed to supply Arkema with hydrofluoric acid, 2OPENING NEW transparent acrylic U.S. the key raw material in certain PLANTS – BUSY polymers and fluorochemicals, glass sheets TIMES! partnership for its Calvert City site (Ky.). January This project allows for secure and competitive access to hydrofluoric Bostik acquires LIP LIP Bygningsartikler AS (LIP) is the acid, which will be produced Danish leader in tile adhesives, using a natural element in r nurturing sealing systems and floor preparation solutions. Like the acquisition of phosphate that Nutrien uses to Prochimir in October 2019, this manufacture its products instead transaction reflects Arkema’s strategy to continue to expand its Bostik of fluorspar ore, the traditional esilience Adhesives business through targeted choice. This agreement is acquisitions. supported by a $150 million investment in a hydrofluoric acid unit, which will produce 40,000 metric tons per year at Nutrien’s Aurora site (N.C.).

Around the world, plants operated June by our Altuglas International subsidiary Disposal of our functional were running at full capacity owing polyolefins business to high demand for transparent acrylic This sale to SK Global Chemical July was part of Arkema’s strategy glass sheets, used to protect customers to refocus its Specialty Materials Bostik acquires Fixatti and staff in the essential stores that businesses. With revenue of Fixatti specializes in value-added remained open. Some of our sites €250 million, this business produced high-performance thermobonding ethylene copolymers and terpolymers adhesive powders for niche applications donated funds for urgent medical for food packaging, cables, in construction, technical finishes, electronics and coatings. batteries, cars, and textile printing. equipment, such as our Matamoros site This internationally renowned company in Mexico, which donated to the city’s has two sites in Europe and one in China. Fixatti employs 180 people main hospital (to manufacture protective and generates revenue of €55 million. shields for patient intubation).

12 / Arkema - Innovative for Arkema - Innovative for / 13 will emerge stronger from this crisis. We are a resilient company and we will emerge stronger from this crisis.

July September INNOVATIONS AND AWARDS February Bostik acquires Prefab houses Ideal Work CREATE A BUZZ made from Arkema Bostik expanded Elium® its range for floors 3 composites invests in with the acquisition Arkema; the of Ideal Work, Nexoon startup, an Italian company 5M—a company Continuous that specializes in value-added decorative specialized floor technologies, with revenue of in composite €10 million, in line with Arkema’s strategy materials; and Composites of targeted growth in groundbreaking the P2P Institute adhesive technologies, which round of Technology out Bostik’s existing range for the construction

Research in r nurturing industry. Metz—a leading industrial center in composite September pultrusion A new technologies; all esilience teamed up on an industrial innovative factory- adhesives made modular plant construction system in Japan using Elium® resin. Bostik-Nitta, These highly a joint venture 80% owned by the Group, January robust structures opened a new world-class industrial can be installed, adhesives plant in Nara, Japan. This new capacity is helping Bostik to serve its ® dismantled and Japanese customers in the ever-expanding markets for diapers, personal care, Rilsan packaging, labeling, transportation, and electronics. Arkema bolstered its partnership forever! with Continuous Composites, creator of Continuous Fiber 3D Printing (CF3D®) technology. The French president paid tribute to products “made in France” with an exhibition of The Group invested in the US startup re-erected in to accelerate the development of 120 iconic objects or products made using 24 hours, and 3D composites, a groundbreaking French expertise. Selected from 1,750 are designed ® to meet needs innovation for strong, lightweight submissions, our Rilsan material made the for individual December final cut. This was an opportunity for people and collective structures in the aeronautics, housing, both automotive, and energy sectors, Arkema disposes of its Altuglas to rediscover a 100% bio-based material social and International subsidiary at the leading edge of performance, used in premium. among others. Through its subsidiary Arkema announced the divestment Sartomer, Arkema is developing a of its PMMA, or acrylic glass, business 3D printing and other applications. Since it was to Trinseo for an enterprise value invented 70 years ago, in powder and granulated specific range of photocurable resins of €1,137 million. This transaction for use with CF3D® technology. represents a further step in the Group’s form, its high-strength properties have earned transformation program and ambition it a place in dozens of different applications, to become a pure specialty materials player by 2024. from textiles to protective coverings for steel pipes, engine piping and eyewear frames.

14 / Arkema - Innovative for Arkema - Innovative for / 15 We are a resilient company and we will emerge stronger from this crisis. We are a resilient company and we

September technology from Mizuno, with the Bio-based Pebax® famous Wave Plate polymer a key embedded in the component in foam. The undulating plate is made using Mizuno’s Wave our Pebax® Renew® Rider shoe bio-based polymer The famous Japanese derived from castor running shoes and beans and also offers clothing brand exceptional energy launched the Wave return! Rider 24, the latest model in its iconic line. This running May shoe features the September new Enerzy midsole resilience nurturing Our thermoplastic composites make an impression Arkema was a double winner at the Arkema 4, a floating lab, 2020 JEC Awards. In partnership with the Soudure Institute, Hexcel, Latecoere, and Stelia Aerospace, the Group clinched takes to the water an award in the aeronautics category with an innovative high-performance The new Multi 50 is the result of a close, intense collaboration welding technology for thermoplastic composite parts that do away with the between Arkema and the Lalou Multi Composite shipyard, which need for rivets. The second prize, voted have been partners for eight years. With recyclable resins, new for by 25,000 participants, was for the adhesives, clean energies and more, there are many innovative Destiny project, a joint effort by Arkema September and Stratiforme Industries to develop Prize-winning biobased surfactants materials and solutions to complement the bold architectural choices. a train cabin in thermoplastic composite Arkema won the Environment and Natural The entire deckhouse/ be installed without generation lithium without emitting a based on Elium® resin. This reasonably Resources Prize at the Sustainable Industry cockpit was made from thermoforming and was batteries use our single gram of CO . priced cabin can be recycled at the end Awards hosted by French magazine Usine 2 a composite based developed by Altuglas Kynar® technology, of its lifetime, unlike thermoset composites Nouvelle for its new range of Sensio™ on recycled Elium® International, Arkema’s which increases energy As with the floats and which are the standard material used in surfactants. These products, derived from castor resin. The cockpit, subsidiary. This acrylic storage capacity by the outriggers, the the rail industry and are difficult to recycle. oil, are aimed at the detergents market. Its combination of cleaning power and foaming which is 80 cm lower glass is five times more 50% with no increase structure and bulkheads profile leads to more effective products. than on the other Multi shock-resistant than in weight compared to were assembled by Thanks to its plant origins and biodegradable 50s, offers protected traditional PMMA and the Arkema 1 trimaran. structural bonding using adhesive that offers an properties, Sensio™ surfactants offer a unique maneuvering. For better considerably more Combined with a Bostik’s methacrylate alternative to drawing sustainable alternative to traditional products. visibility in all sailing lightweight. With larger surface area products. These high- pins and sticky tape. conditions, the cockpit a scratch-resistant, of photovoltaic strength glues have an Blu Tack® has become and deckhouse are water-repellent coating, panels installed on elongation capacity a mainstay of Bostik’s fitted with glazing in it offers remarkable the front outrigger arm, that is six times greater ® ® stationery range, with Altuglas ShieldUp optical qualities. the system delivers than epoxy adhesives. Flex PMMA, the first Developed by the a fully autonomous more than 250 million flexible sheet in the young French company energy supply to July packs sold worldwide world, which can Powertech, the latest- on-board equipment ® since its launch in Bostik’s Blu Tack 1970. The product is adhesive: still the leader in the UK, fresh at 50! October South Africa and Asia Created in a British Our Elium® resin wins the Pierre Potier prize laboratory during Pacific. In Australia, ® At a ceremony attended by Agnès Pannier-Runacher, attempts to develop a a pack of Blu Tack French Secretary of State for Economy and Finance, Arkema new sealant, Blu Tack® is sold every five was awarded the 2020 Pierre Potier prize for its Elium® liquid is a reusable seconds. thermoplastic resin, a disruptive innovation on the composites market that is used to make 100% recyclable wind turbine blades.

16 / Arkema - Innovative for Arkema - Innovative for / 17 will emerge stronger from this crisis. We are a resilient company and we will emerge stronger from this crisis.

REAL EVIDENCE February September November Arkema commits Placement OF OUR SOCIAL to reducing its of our first AND ENVIRON- greenhouse gas emissions green bond Arkema mobilizes to 4 MENTAL RE- Arkema is taking action with an ambitious climate Arkema successfully plan aligned with the Paris Agreement, which aims placed its first green to keep global warming well below 2°C compared bond fully dedicated get clean drinking water SPONSIBILITY! to pre-industrial levels. Our new environmental goal to the financing of is to reduce our absolute greenhouse gas emissions its new world-scale by 38% by 2030 compared to 2015. plant in Singapore into schools in China to manufacture 100% bio-based Rilsan® Water treatment March The founding members of the Pragati polyamide 11, for a total amount has always been

project—Arkema, BASF, Jayant of €300 million, one of Arkema’s core resilience nurturing Agro-Organics, and the organization giving investors Success the opportunity to areas of focus, as Solidaridad—celebrated the success contribute to the development of one of Arkema’s key of Pragati, of phase one and the official launch sustainable solutions R&D platforms. Through of phase two, which will last until July in specialty materials, and confirming the ArrMaz, its specialty surfactant subsidiary, the world’s 2022. This program was implemented Group’s leadership Arkema announced that it had joined the in the state of Gujarat in India, which in sustainability and innovation. One Foundation’s Clean Water 2020 project, first represents around 70% of the world’s a charitable initiative which aims to improve castor beans. Arkema is one of the the drinking water of schools in rural areas sustainable largest users of castor oil, for production ® of Yunnan Province. To support the gradual of its Rilsan polyamide 11. Phase implementation of this project, Arkema donated castor bean 1 involved the annual production of $58,000 to One Foundation. 13,000 metric tons of castor beans by cultivation 3,000 audited and certified growers. November October Approximately 5,200 hectares now Arkema, program meet the criteria of the sustainable castor a positive Arkema joins the farming code. Water consumption example of CSR Thanks to its has fallen by 25% and returns have ambitious policy and Dow Jones Sustainability improved by 50% compared to 2016. strong commitments, Arkema climbed to By the end of the second phase, 11th place, clinching World Index 7,000 growers will have been certified. top spot in the chemicals sector, in the Wall Street Arkema joined DJSI World in sixth place in Journal’s ranking of the 100 most the Chemicals category among 114 companies September sustainably managed assessed. This prestigious index includes the Arkema supports the wind power sector with recycling companies, in recognition of the top-performing companies in terms of CSR based A partner in the ZEBRA (Zero wastE Blade ReseArch) project led Group’s ability to by French research center IRT Jules Verne, which involves leading on the ratings of the Standard & Poor’s SAM create value over manufacturers and technical centers in an ambitious project to design the long term. non-financial questionnaire. The Group also and manufacture the first fully recyclable wind turbine blade, Arkema reinforced its position as a key player in the thermoplastic composite joined DJSI Europe as the second best company market with its Elium® resin. This material is a prime example of the circular economy approach that the Group initiated for both its operations in its sector. and its products.

18 / Arkema - Innovative for Arkema - Innovative for / 19 We are a resilient company and we will emerge stronger from this crisis. We are a resilient company and we

/Acquisitions/ Bostik in figures Growth in Bostik’s sales €1.97 billion €1.53 billion Bostik pursues 57 production units around the world 2014 2020 its strategy Present in 50 countries An expanding market of targeted 25.5% of Arkema’s sales

€55 billion resilience nurturing development worldwide sales for adhesives and sealants 6,000 employees 4 % annual growth

LIP and Ideal Works, which both joined recyclability and reduced weight due to the replacement of our Consumer & Construction business activity mechanical fixings. With 180 employees and three production in 2020, are good examples of this. sites in Europe and China, Fixatti is in a strong position in the With the acquisition in 2020 of Fixatti, LIP and Ideal Works, F. A-M. – Absolutely. LIP is a great brand. It is number one in field of thermobonding adhesive powders. Its acquisition follows our subsidiary Bostik, ranked third in the world for glues Denmark in tile adhesives, and in floor sealants and preparation, that of Prochimir in 2019, with its adhesive film technologies. with very high-quality products and a good reputation among Both operations allowed us to increase our critical mass in and adhesives, gained essential new assets and expanded professionals. It will allow us to break into the Danish market specialty hotmelts, access new markets, and offer a wider range its solutions portfolio and regional coverage. Interview while leveraging our channels to boost its exports, particularly to of industrial solutions. with Fernando Accioly-Menezes, Bostik Strategy Director. Sweden where we have a high profile. As for the Italian company Ideal Works, which also operates in flooring, it rounds out our In December, Bostik invested $11 million to offering with its decorative concrete technology and its established create the CMC joint venture with Taiwanese high-end position in Italy, which we will now focus on deploying company Cartell. Can you tell us more? Since Arkema acquired Bostik in 2015, This is particularly true for our businesses in Consumer & internationally. the latter has pursued a sustained strategy Construction (adhesives and mastics for construction, DIY) F. A-M. – This was more of a prospective investment, after of growth through acquisitions. What is and Durable Goods (bonding solutions for industry, transport, In July, you finalized the acquisition the acquisition of the Spanish startup Afinitica in 2018, with the overall vision guiding this approach? aeronautics, domestic appliances, etc.), which have been the of the Belgian company Fixatti. How does which Cartell was already doing business. It was designed to Fernando Accioly-Menezes – Arkema enjoys a robust focus of most of our recent acquisitions. We adapt our strategy this transaction fit into the strategy for implement an innovative production process for the manufacture financial position with margins that support its aim to achieve to the scale of each business activity by seeking out companies your Durable Goods business? of cyanoacrylate monomers used in the formulation of fast- external growth in specialty materials. Bostik is helping to that offer good complementarity in terms of their offering or F. A-M. – It adds another string to our bow in the field cure, high-performance and odorless adhesives for various spearhead this development. Some of the markets in which we regional coverage, and if possible, both, allowing opportunities of specialty hotmelts, which have been booming. These applications in the engineering adhesives sector such as operate are still very fragmented, with a lot of small and for us to supply a wider range of solutions. thermobonding solutions offer many benefits. They are solvent- consumer electronics and microassembly. This is also a growth medium-sized players, some of which are extremely successful. free, some types can be bio-based, and they offer improved market with high demands in terms of industrial performance.

A steady stream of acquisitions over five years

2016 2017 2018 2019 2020

DEN BRAVEN CMP XL BRANDS AFINITICA NITTA-GELATIN INC. PROCHIMIR LIP IDEAL WORK FIXATTI CMC A leader in high- Floor preparation solutions Floor covering adhesives Instant adhesives known Non-woven bonding products High-performance Tile adhesives, High added-value High-performance Investment with Cartell performance sealants (United States) (United States) as cyanoacrylates for the for hygiene applications and thermobonding adhesive waterproofing systems decorative flooring thermobonding powders in joint venture for insulation and electronics and medical in the packaging and labeling films for automotive, and floor preparation technologies for the for the construction, CMC to produce construction (Netherlands) equipment market (Spain) industrial markets (Japan) construction, textile, and solutions (Denmark) construction market (Italy) technical coating, battery, high-performance $ million in sales $ million in sales 15 58 medical markets (France) automotive and textile cyanoacrylate printing sectors (Belgium) adhesives (Taiwan) €350 million in sales €3 million in sales $30 million in sales €30 million in sales €10 million in sales €30 million in sales €55 million in sales $11 million investment 1. DIY : do it yourself

20 / Arkema - Innovative for Arkema - Innovative for / 21 /We are a pioneer in specialty materials. We are the only company to offer three complementary ranges: Advanced Materials and value-added solutions, Adhesives, and Coating Resins. As an essential player in specialty chemicals, Arkema leverages its talent and expertise to create innovative materials and solutions that help us use our resources more efficiently and support the green recovery. We are at the forefront of developments in the highest- performing, most innovative, smartest materials. Our inventions allow us to contribute to sustainable for development. We are innovating to meet current needs and anticipate future trends. Without the advanced materials we develop, there would be no electric batteries or hydrogen cars, no recyclable wind turbines or lighter, more efficient vehicles. We the are also working hard to improve the recyclability of our materials and of the applications that use them. Our materials offer essential improvements to help us move towards a more efficient and sustainable world./

22 / Arkema - Innovative for Arkema - Innovative for / 23 Our materials offer essential improvements to help us move towards a more efficient and sustainable world. Our

/A unique We are a pioneer in specialty materials and the only Group to offer three complementary product segments: Advanced Materials, Adhesives, and Coating Resins. Our product portfolio is at the leading edge of innovation thanks to our wide range of expertise in combination of Mobility Lighter materials, sustainability, batteries materials science. It helps fulfill the key demands associated with the major trends in materials and a constantly evolving world. expertise on Urbanization Insulation, energy efficiency, modular construction the market/

Environment Trends Solar, wind, photovoltaic, hydrogen, water treatment, Global demand renewable resources • Growing population for innovative and Adhesive and urbanization sustainable materials • Energy efficiency Today, this trend is accelerating, driven Solutions of buildings by new needs in: • Lighter materials • Mobility (weight, robustness, batteries) Industry 4.0 (replacing mechanical • Urbanization (insulation, energy 3D printing, miniaturization, smart materials fixings) efficiency, modular construction) • Environment (solar, wind, hydrogen, No.3 OF THE MARKET water treatment, renewable resources) • Industry 4.0 (3D printing, miniaturization, smart materials) Our challenges • Consumption (customization, Consumption Customization, performance, performance, sustainability) sustainability To meet our clients’ needs for high- • Lighter transportation designing the future tech, lightweight, bio-based, recyclable materials, Arkema keeps evolving and Advanced • Renewable energies expanding its portfolio of activities to • Access to clean water enhance its assets and expertise. This Materials • Bio-based materials ongoing process of change supports and recycling the vision we have always nurtured: to • 3D printing make Arkema a pure leader in specialty materials, focused on innovation and No.1or 2 sustainable solutions. DEPENDING ON THE RANGE

Structural materials

• Environmentally friendly Coating coating solutions Powerful expertise • High-performance in materials science Nanoscience Solutions coatings (resistance Arkema has built a unique solutions to extreme weather, offering with a diverse and extensive rapid drying) range of materials that it has either UV-curing technologies Adhesive technology developed or acquired over the past No.2 or 3 fifteen years. We are experts in: Surface protection DEPENDING ON THE RANGE • Bonding materials • Substituting materials for alternatives Rheology modifiers that are lighter, more effective and/or bio-based Surface science • Protecting materials and applying coatings to them Piezoelectric materials All these skills are based on extensive Additive technologies Composite materials

expertise in materials science, Our offering which combines our knowledge of Together, they form the Specialty polymerization, formulation and Three growth Materials platform, which forms application. This range of expertise forms platforms with the basis for Arkema’s long-term the core of Arkema’s business and enables Bio-based materials corporate vision. us to offer bespoke solutions and unique powerful synergies The combination of these three innovations for the most demanding Our expertise We have structured our expertise in platforms is unique in the chemicals clients in numerous sectors such as three coherent and complementary industry. It allows us to generate electronics, decorative and industrial segments based on materials science: significant internal synergies in paints, construction, and automotive Recyclable materials • Adhesives innovation, commercial opportunities, manufacturing. • Advanced materials and operational efficiency. It also • Coating solutions gives us an exceptional ability We have world-leading positions to serve our clients in a variety in all three segments. of attractive growth markets.

24 / Arkema - Innovative for Arkema - Innovative for / 25 designing the future 27

-equivalent, s 2

1233zd ® ™ optimizes primers ® ® additives, TM Bostik’s Axios Bostik’s Ethacryl polymer technology makes ™ Arkema - Innovative for / Bostik’s insulating smoothing coating, a Bostik’s range of Panel Tack Bostik’s Sartomer’s photocure resins provide Sartomer’s Tri-linking it easy to lay solid timber floors and wall finishes. The membrane formed by these adhesives prevents the wood from moisture it from splitting, protects and dampens noise to improve soundproofing. 10. 11. which improve the dispersion of cement particles, reduce the amount of water required to prepare a cubic meter of concrete by 30% to 40%. They are also used in the manufacture of plasterboard, for the same reason. and sealants allows any kind of exterior panel use(cladding, insulation) to be installed without the of mechanical fixings. This solution eliminates the thermal bridges created by the fixings and improves building insulation. 7. 8. 9. breakthrough innovation launched in 2020, contains hollow glass beads with remarkable insulating properties.It thermal barrier between creates a the wall and the coating, thereby eliminating the cold wall effect and reducing energy losses by up to 15%. wooden floors and surfaces with long-lasting from scratches and abrasion, coupledprotection with a highly efficient industrial UV application process. Once hardened, they do not emit volatile organic compounds. Our very high durability powder resins provide the basic Produced with HFO (hydrofluoroolefin) chemistry, our Forane chemistry, Produced with HFO (hydrofluoroolefin) 6. components of paints and protective lacquers, maximizing the life spancomponents of paints and protective lacquers, maximizing of metal surfaces exposed to moisture, including exterior pillars, a recognized assetroofs and concrete reinforcement rods. They are in sustainable construction. (hydrofluorocarbons). which is 1,000 times less than the previous generation of water-based HFC than the previous generation of water-based which is 1,000 times less 5. foam panels with high insulation to make foam panels with high expansion agent is used has a global warming it of just 1 CO potential performance. Moreover, In very limits cool roofing, a reflective white roof paint, greatly hot conditions, the efficiency alternative it an effective ecological and durability of white roofs, making to air-conditioning. warming inside the building. A coating of UV- and moisture-repellent Kynar Aquatec warming inside the building. A coating of UV- 4. %% Contribution of the building and construction market to Arkema’s revenues 18 18

/ molecular sieves ® 4856 grade. Derived ®

range of decorative paint resins is made from ® Sustainable construction The Synaqua free from toxic Bostik solutions for indoor applications are free from Warm edge technology, the new global standard for high edge technology, Warm

/ Arkema - Innovative for

products, exceeding regulatory requirements. Water-based sealing foamproducts, exceeding regulatory Water-based requirements. (0% isocyanate, 0% polyurethane), tin-free silicone seals and adhesives for bio-based flooring that contain zero solvents and volatile organic compounds. mixed with a polymer matrix. By reducing the thermal bridges created by window frames, this solution offers far better energy performance than conventional double glazing and is a benchmark for energy efficient buildings.

a high proportion of bio-based materials—between 42% and 74%, and up to 96% for the new Synaqua 3. In response to the climate crisis and population growth, the construction sector faces unprecedented challenges.In response to the climate crisis and population growth, the construction sector faces unprecedented Building energy performance, resource efficiency and environmentally friendly materials and processes will be vital issues for the coming decades. working to offerArkema has made these themes a central focus of its innovation policy and is already professionals comfortable.and individuals solutions for healthier buildings that are more insulated, sustainable and

2. 1. from non-food plant biomass, these formulations also have very low emissions of volatile organic compounds while providing the best finish in terms of look and feel. thermal insulation double glazing, uses Siliporite Better building insulation, widescale 3D printing, improved Li-ion batteries and lighterBetter building insulation, widescale transport. Our expertisein high-performance materials addresses the development of these four key markets for Arkema. and sustainability challenges make a difference These materials /

CHALLENGES TO SUSTAINABILITY SUSTAINABILITY TO

OUR RESPONSEOUR

materials offer essential improvements to help us move towards a more efficient and sustainable world. sustainable and efficient more a towards move us help to improvements essential offer materials designing the future 29 RNew andRNew ® polyamide 11. In dentalIn 11. polyamide ® Arkema - Innovative for / polyamide 11 using 3D printing3D using 11 polyamide ® UV resins. Another medical application isapplication medical Another resins. UV ® PEKK, an exceptionally high-performing polymer, PEKK, an exceptionally high-performing polymer, ® PEKK AND 3D PRINTING, A WINNING COMBINATION new orthoticnew Rilsan in products is mainly used in aeronautics for the most demandingis mainly used in aeronautics for the most thermal and mechanical, rare combines It applications. perfectly it making use, of ease with resistance chemical In this PAEK. suited to 3D printing, unlike its competitor, in valuable is manufacturing additive segment, specific small production runs of parts with complex shapes (air the optimize to ability its for cages) bearing distributors, used. material raw of quantity in mass production: also in 2020, the HP group produced group HP the 2020, in also production: mass in swabs made from Rilsan technology for Covid-19 testing. Covid-19 for technology Kepstan prosthetics, the specialist Dentca obtained authorizationobtained Dentca specialist the prosthetics, partscustom produce to 2020 in FDA the from in N3xtDimension 3D printing is particularlyis printing 3D fieldmedical the in beneficial orthotics,as such devices produce to andprosthetics, patients.of measurements individual the match to implants partnerkey a is Arkema per(20% sector growth this in specialtymedical-grade its supplies it which to year) manufacturingadditive XFeet the example, For materials. platformorthopedicproduces Pebax in soles PHOTOCURE RESINS: SARTOMER SPREADS ITS WINGS CUSTOM MEDICALCUSTOM DEVICES In 2020, Sartomer acquired Colorado Photopolymer Photopolymer Sartomer Colorado 2020, In acquired Solutions, which has contributed to its technical formulations specialty of expertise development the in for 3D printing in mass production. The company has partnerships investment and formed development also with Continuous Composites and Adaptive3D, two technologies start-ups disruptive bringing breakthrough to 3D printing. photocurable solutions ® powder to ensure excellent impact ® ® ADAPTIVE, by Fizik, is an extra-wide, Mighty Buildings is revolutionizing the Chanel’s Volume Revolution Volume Chanel’s HexR custom-printed cycling helmets Neubau eyewear frames, made

construction industry by creating beautiful and sustainable homes using 3D printing and robotics automation, leveraging N3xtDimension and Volume Stretch mascaras, with Stretch and Volume brush printedan originally designed in Rilsan head, based on a scan of the user’s made from a honeycomb structure in Rilsan to order to reduce lead times and simplify stock management comfortablefit saddle that adapts to the cyclist. It is produced by the start-up Carbon and based on a honeycomb structure in N3xtDimension resin.

and supply chain model. absorption Rapid growth of industrial growth Rapid applications technologies of 30%, 3D printing growth With annual industry throughout worldwide.are expanding rapidly is used not only in prototyping, but increasinglyAdditive manufacturing in this growth. materials are a driving force in mass production. Arkema’s to some major success stories: In 2020 they contributed UV curing of liquid resins Fused filament fabrication 3D printing Laser sintering of a powder bed

® / / PEKK—

® solutions; ® polyamide ® 3D printing PVDF, Kepstan PVDF, ®

/ Arkema - Innovative for

In sectors such as aeronautics, health, cosmetics, and sports, as aeronautics, health, cosmetics, In sectors such 3D printing is now leverage applications that fully a wide range of mass-produced being used in customization, freedom of design and of additive manufacturing: the unique features savings on raw materials use. Arkema, which adopted speed of implementation, and from the outset, is developing a unique range of this future-focused technology materials and solutions to support its customers and partnersall innovative fields, in 30% year-on-year. within a market expanding offer high-performance solutions for diverse needs in 3D plastic printing including heat resistance, mechanical resistance, hardness, flexibility, The Group also competitiveness, and durability. offers an internationally recognized range of specialty resins and photoinitiators for UV curing, N3xtDimension with Sartomer’s 12, Kynar Arkema entered the world of 3D printing in 1988 with the first rapid prototyping applications, and was quick to detect the full industrial potential of additive manufacturing. a The Group has made this market one of the key drivers of its innovation policy and developed considerable R&D effort centers of excellence: King of Prussia (Pennsylvania, at its three dedicated (France) for selective laser sintering , and Exton United States) for filament extrusion, Serquigny engineers have connected printing machine (Pennsylvania, United States) for photocuring. The Group’s manufacturers with the needs of end users to develop new material grades — and the manufacturing and supply chain processes that go with them — to support an increasingly diverse range of applications. A proactive R&D strategy A proactive Arkema’s range of complementary Arkema’s specialty polymers—Bio-based Rilsan Leading the way in all technologies polyamide 11, Orgasol enabling fast printing speeds, high accuracy, enabling fast printing speeds, high accuracy, transparency and ability to make highly complex hollow structures. These unrivaled materials enable Arkema to fulfill the very specific needs of its customers with each of the three major additive manufacturing processes: selective laser sintering (SLS), UV curing (SLA, DLP etc.), and fused filament fabrication (FFF), also called fused deposition modeling. 28

of solutions portfolio unrivaled An / Our materials offer essential improvements to help us move towards a more efficient and sustainable world. Our world. sustainable and efficient a more towards move us to help improvements essential offer materials Our designing the future 31 polyamide 12 can ® adhesive and adhesive and ® Arkema - Innovative for / , owing to its electricalpolyamide 11 ® Various Bostik Various Rilsan

A NEW CUTTING-EDGEA NEW INNOVATIVE FOR LABORATORY AND BATTERIES MATERIALS OF THE FUTURE For battery assembly... Z are used insulating agent solutions are used for the encapsulation of electronic components, preventing thermal bridging, and battery assembly and waterproofing. polyamide 11, combining very good temperature insulation and shaping properties, can be used as a protective coating for bus bars. These rigid connectors, are used instead which link modules to each other, of flexible cables to make the battery compact. more This bio-sourced application is growing at a rapid rate. Z For electrical insulation... ® Rilsan Arkema has a growing number of R&D and industrialArkema has a growing battery the of members partnerships various with start-ups, research, gigafactories, (academic ecosystem formulations its refining constantly is and manufacturers), Materials offer Specialty to its of order in grades new Looking application. each of needs the meet best to emerging on working also is further Group the ahead, Li-ion conventional to alternative an as technologies cutting- new a launched it 2020 in end, this To batteries. laboratory edge dedicated France, Pierre-Bénite, in procedures, innovative and materials new developing to creation The batteries. Li-ion solid-state for primarily laboratory new this of the with funded jointly was European Union.

stability, mechanical resistance and excellent waterproofing for mechanical resistance and excellent waterproofing stability, the tubes that carrythe connections, is now widely used for making cooling liquid to the protection pack. Rilsamid For thermal management... Z also be used for this application. piezoelectric polymers ® specialty adhesives polyamide 11, applied in a thin ® ® Bostik Rilsan Piezotech

layer on the lining that separates the cells, provideslayer on the lining that separates electrical insulation. are used to attach cells to each other are used to attach cells and to the battery pack casing. are used as “actuators” for sensors monitoringare used as “actuators” the level of battery charge. Z Inside the modules… Inside Z Z

PEKK, thanks to its light weight ® , thermoplastic resin, ® Elium Kepstan

used as a high-performance composite matrix, is the preferred choice of a growing number of manufacturers for the battery pack as an alternative to steel, in comparison to which it presents a considerable weight advantage (see p. 32). and outstanding resistance, offers a high-end battery pack protection solution. Z Z For the protection pack… Driving / /

PVDF, which represents PVDF, ®

Lithium-ion batteryLithium-ion

ultra-pure ® PVDF, ®

/ Arkema - Innovative for Graphistrength Foranext Kynar

/ with Arkema with ransition the t By 2050, half the world’s vehicles will be powered by electricity. All the leading All will be powered by electricity. vehicles the world’s By 2050, half carmakers of new to 3% at present, 10% the revolution. Compared have joined aspect including hybrids). A key be electric in 2027 (33% vehicles should is improving Li-ion batteryof this transition performance autonomy, (charging time, R&D fields in the world. Governmentweight), now one of the biggest stimulus plans in 2020 have further in the increased its prospects. A recognized name battery this area with a unique Arkema has made a major contribution in ecosystem, solutions, from the cell interior to assembly combination of high value-added and battery management. which enjoys high electromagnetic stability, performs which enjoys high electromagnetic stability, an essential role in the formulation of electrodes by helping active particles to bind to current collectors. Thanks to its resistance to high voltages and electrolyte solvents, it is also used as a protective and adhesive agent for the separator film, improving lifespan. These two applications are seeing the cell’s strong growth. In 2020, Li-ion batteries became the biggest market for Kynar far more stable at high voltage than current solutions, will help to reduce the battery’s charging time and increase its autonomy. electrolyte salts, electrolyte Z Z 30 Z At the heart of each cell... just a very small proportion of the materials that make up a battery role pack but plays a crucial overall performance in reducing and in the system’s its carbon footprint. carbon nanotubes, added to the cathode in small quantities, help the flow of electrons to the anode and reduce battery charge time.

/ High-Performance Polymers/ Bio-based Rilsan® Lighter materials for Polyamide 11: reduced weight, from the body to the engine block transportation Bio-based Rilsan® polyamide 11, derived from ricin oil, gives automotive equipment manufacturers an unparalleled INDUSTRIAL ADHESIVES: solution to the vital challenge of reducing vehicle weight AN ALTERNATIVE

and lowering energy consumption and CO2 emissions. Highly TO METALLIC ATTACHMENTS Shaving a few kilograms off a vehicle’s weight saves electricity or fuel, which means resistant and lighter than steel, aluminum and rubber, Rilsan® polyamide 11 responds to the demand for lighter-weight materials Attachments are another factor in reducing vehicle a smaller carbon footprint. As CO2 emissions standards become increasingly stringent, in transportation. In particular, manufacturers use it to make weight. For an increasing number of applications, finding ways to reduce weight is crucial in the race to green mobility currently playing engine hoses, fuel lines and pneumatic braking systems for trucks. glues and high-performance adhesives are Arkema has leveraged its expertise in polyamide 11 to develop replacing screws, rivets and other mechanical out in the automotive and aeronautics industries. Backed by its unique expertise in specific solutions for different high value-added applications. ® solutions, fulfilling the same functions but with high-performance polymers, Arkema has made lighter materials a key strategic focus of For example, Rilsan Matrix composite tapes filled with carbon or glass fibers are designed to replace or combine with metal in less weight. Bostik’s industrial adhesives business its innovation. From the airframes of commercial airliners to batteries for electric vehicles, structural parts using new and innovative processes. And Rilsan® offers a market-leading lineup here, for example composites made from the Group’s materials can be used in a wide variety of applications HT polyphthalamide, with its exceptional temperature resistance with structural adhesive solutions for bonding (135°C in continuous use), is a popular alternative to metal in fluid plastic and metallic parts together. Because of and can easily replace metal parts without compromising performance, safety or durability. transport applications close to the engine, such as cooling circuits. their different nature, these two materials are very difficult to assemble with rivets or welding. Bostik is now the world leader in hot-melt adhesives, which use powder or adhesive film to assemble flexible materials like fabric or foam. These solutions use up to 90% less product than traditional adhesives. designing the future ® Kepstan® PEKK: The wings of the future Elium composites: There is a clear trend in the aeronautics industry to replace metal parts with lightweight AND thermoplastic composites. Polyetherketoneketone (PEKK), a lightweight material that offers recyclable for battery extraordinary rigidity, mechanical and thermal resistance (up to 260°C in continuous use), is supporting this transition. Arkema is the world’s leading supplier of PEKK, which packs ® ® it sells under the Kepstan brand. Composite tapes combining Kepstan PEKK and In electric vehicles, much of the focus on weight high-performance carbon fibers are 40% lighter than aluminum. They allow more efficient reduction is on the battery, which accounts for a production of structural aircraft parts such as longitudinal struts and circular frames. substantial portion of vehicle mass (often a quarter In addition, they are increasingly used as an alternative to thermoset composites for to a third in pure electrics). In this fast-growing market, aircraft skin owing to their shorter and more efficient production cycle. What’s more, Elium® liquid resin offers an attractive alternative ® Kepstan PEKK is particularly well suited for 3D printing (see pp. 28-29), used by aircraft to metal for battery protection packs. Elium® fiberglass manufacturers to make parts with very complex shapes. composites are 10-15% lighter than steel. They are Trimming 100 kilograms off the also better suited than thermoset composites to the weight of a car saves 0.40 liters automotive industry’s fastest manufacturing processes, thanks to the thermoplastic resin’s short cure time. of fuel and 10 grams of Plus, Elium® composites have the major advantage carbon per 100 kilometers. Arkema of being recyclable – a key differentiating criterion is the for today’s manufacturers.

world’s leading supplier of PEKK, with two production sites in Europe and the United States.

Reducing an airplane’s weight by 1,000 kilograms saves 6,000 tons of jet fuel, or ® Elium resin is the Rilsan® polyamide 20,000 tons of carbon, only is the world’s only over the plane’s 30- to 40-year lifespan.

liquid thermoplastic resin 100% in the market that can be used to make recyclable bio-based composites. polyamide.

32 / Arkema - Innovative for Arkema - Innovative for / 33 materials offer essential improvements to help us move towards a more efficient and sustainable world.

Oil & Gas, Oxygen concentrators petrochemicals Sieves to support breathing Essential The Nitroxy® range of sieves is changing the lives SHOWCASING at every stage of hundreds of thousands of patients worldwide. Arkema’s molecular sieves are used Designed to retain nitrogen molecules, they filter the in many processes in refineries air to 93% oxygen concentration. They are the key and petrochemical plants. Loaded component of oxygen concentrators, used by people in adsorption columns, they are with chronic respiratory conditions such as obstructive OUR FLAGSHIP used to dry and separate oil and pulmonary disease. These medical devices are petrochemical cuts, purify refining products and, importantly, dry natural commonly used in the US and China (in Europe, these 1 gas, which must contain less than 0.1 ppm of water to be transported patients tend to use oxygen bottles). There are fixed in liquid form. These sieves, which are regenerated after each operation models for home and hospital use, but portable models (adsorbed molecules – water, sulfur molecules – are desorbed from are becoming increasingly common (see opposite). PRODUCTS the sieves so that they can restart the adsorption cycle), now have a life This market has grown steadily over the past few We shine a spotlight on five of our materials ranges that will drive our growth span of four to five years. Arkema is the world’s number two leader in this strategic sector. The Group consults with the major industrial sectors years, particularly in the context of the 2020 Covid-19 over the next few years. and continuously adapts its offering to meet the needs of each type pandemic, which has unfortunately led to an increase of application. In 2017, the Honfleur site received a major investment in chronic respiratory failure. As the industry leader, (€57 million) to double its industrial capacity and produce sieves used serving 70% of the global for the separation of xylene isomers in the petrochemicals sector. market, Arkema is mobilizing its industrial 1. ppm: parts per million capacity to meet this Focus 1 demand. Arkema has leading ® positions in its /Siliporite molecular sieves/ designing the future molecular sieve World-renowned markets Oil & Gas expertise No. 2 WORLDWIDE Construction, packaging Where can you find “static” sieves? Discreet but effective “static” molecular sieves are used in a wide variety of applications in the form of beads or powder. In pharmaceutical packaging, “Static” sieves they protect drugs from moisture, and are found in aspirin tube caps, for Polyurethane resins example. In the formulation of polyurethane resins, which comprise between 2% and 5% of molecular sieve powder, they Molecular sieves work by allowing small molecules help to prevent the formation of air bubbles, to pass through while retaining large ones, depending and are used in floor coverings (gymnasiums, 33% ® on the size of the mesh. When viewed at a GLOBAL MARKET SHARE athletic tracks, car parks, etc.) and automotive Nitroxy Revolution: parts (steering wheel, dashboard, etc.). a life-changing innovation microscopic level, these porous materials, made from Warm edge Static sieves are also present in the form of beads The development of lighter, more compact oxygen (double glazing powder) or powder in double-glazed windows, where a mixture of synthetic zeolite and clay, form an evenly concentrators, which have been a major technical spaced three-dimensional mesh. they adsorb residual moisture and prevent fogging during temperature challenge for manufacturers, is vital for people who They perform essential adsorption, drying and No. 1 changes. In this field, warm edge need them every day. Recently, a new generation separation functions in a wide variety of fields. With IN EUROPE WITH 75% OF THE MARKET technology offering high thermal of truly portable, battery-powered machines weighing insulation (see p. 26), a rapidly around 3 kg has emerged, restoring these patients’ a long history of expertise in this area, Arkema is growing market, incorporates mobility and independence, and greatly improving now one of the world’s leading specialists, under the a special “powder” sieve their quality of life. brand name Siliporite®. Its ongoing innovation policy Oxygen solution: 12,000 metric tons of static sieves were produced These “reduced model” concentrators use a special and production capacity at the Honfleur (France) in 2020. Arkema occupies very strong positions in all grade of molecular sieve developed by Arkema under concentrators these applications, including approximately 33% of the the name Nitroxy® Revolution, of which nearly 100 world market for polyurethane resin sieves and 75% of and Inowrocław (Poland) sites enable it to offer metric tons were produced at the Honfleur site in 2020. high-performance solutions for all application markets. No. 2 the European warm edge market. WORLDWIDE WITH 70% OF THE MARKET

34 / Arkema - Innovative for Arkema - Innovative for / 35 Our materials offer essential improvements to help us move towards a more efficient and sustainable world. Our

Focus 2

Numerous applications With over 3,000 listed products, our resins and additives are used in the /Resins and coating additives/ formulation of paints, inks and coatings intended for a wide range of applications, A unique product range meeting extremely varied and exacting functional and regulatory specifications. Key figures From decorative paints to industrial coatings for metal, wood, plastic and concrete, Arkema’s range of coating products is as vast as there are surfaces to coat, whether to improve shine, protect them from damage or provide specific functions. With its Coating €1.9 billion Solutions made from acrylic, the main resin used for paints, inks and coatings thanks to sales in 2020 its high performance qualities, Arkema is one of the global market leaders in materials Interior decoration Inkjet printing Building and roadways for paint and coating manufacturers. We are continually evolving to help them meet new production sites standards in sustainability, application performance, innovation, energy savings and 35 industrial efficiency. 9 application laboratories and technical expertise centers Rolling stock and equipment External panel Protective marine for railways protection surfacing 2.6% R&D spend Protection of metallic (percentage of sales) infrastructures designing the future and engineering Protection works Proven know-how % average organic Industrial wood of electronic 3 devices coatings (flooring, in the four main technologies helping growth in 2020-2024 to significantly reduce VOCs1 furniture) (smartphones) Arkema is one of the few companies to have invested simultaneously in all four Functional Protective current coating technologies, for which it has world-renowned solutions: surfaces varnishes (adhesives, and inks ® Waterborne resins, with flagship products such as the Synaqua range, Specialty Additives: Interior textiles, for cosmetics with a high level of bio-based materials, for lacquer or interior paint small quantities, and exterior flooring, and food applications; the Encor® range for lasting protection of concrete roofs high added value automobile leather, etc.) packaging and internal and external walls; and Kynar Aquatec® emulsion for cool roofing surfaces, applications (see p. 26). Added to formulations in small quantities, including optics additives allow manufacturers to adjust the High-solid resins (up to 90%), which if diluted on application improve behavior and properties of their paints and TM energy efficiency during transportation and offer better industrial efficiency coatings . Under the trademarks Coapur , TM TM TM TM while also meeting regulatory requirements (bio-based content and Coadis , Ecodis , Rheotech , Viscoatex , TM ® ® New capacity Helping our markets formulations without classified compounds). Intended for various industrial coating Thixo , CrayVallac and Orgasol , Arkema find sustainable solutions ® ® ® presents cutting-edge expertise in this area, in 2020 applications, this offering is based on the Synolac , Synocure , Gelkyd and “The breadth of our offering of resins and additives, coupled with Unithane® ranges. offering a strong fit with its resins: rheology Driven by average global growth additives, which act on the flow and leveling of of around 3.5% in the coating our expertise in all current technologies, allows us to help our clients, resins, along with dispersants for pigments and Photocurable resins (100% solid), in which Arkema has long-standing and markets, especially in photocurable who formulate paints, inks and coatings, to find solutions that are more recognized expertise thanks to its subsidiary Sartomer, joint world market mineral fillers, texturing, matting, anti-abrasion, leveling, sanding agents etc., able to meet resins, high durability powder resins sustainable and environmentally friendly. In addition to eliminating leader. These resins harden instantly under the effect of UV light and have and waterborne resins, the Group a solvent-free formulation. They offer tailor-made high-level performance for metal, increasing performance requirements and a wide volatile organic compounds, in which we go beyond regulatory is keeping pace with the rise paper, industrial wood (furniture, flooring) coating applications in the building, range of specifications. Furthermore, thanks to requirements, we play a driving role in the major fundamental trends in in demand by means of regular automotive, electronics, cosmetics and packaging industries. the acquisition of Lambson in 2019, Sartomer our markets: the higher solidity of resins, lower curing temperatures and has strengthened its position as a key player investment. In 2020 alone, new speed of implementation, which all help to improve energy efficiency. Powder resins (100% solid), such as ranges of bio-based Rilsan® in UV technology, also offering a wide range capacity was launched at the acrylic polyamide 11 solutions for internal coating of water pipes and carrying of photo-initiators and the associated expertise. monomers plant in Clear Lake (U.S.), We are also at the cutting edge in developing formulations with a low industrial fluids (thermoplastic resins); or Reafree® polyester resins with These additives turn light into energy for the polyester powder plant in Navi level of fossil input thanks to the use of bio-based raw materials and hardening UV resins formulated by our customers. a low curing temperature (thermosettable resins) for various architectural and industrial Mumbai (India), the photocurable a focus on the origin of the carbon used, both at our plants and at our metal and wood coating applications. resins plant in Nansha (China) suppliers.” and the rheology additives plant in Chester (U.S.). Jean-Christophe Leveugle, Global Director, Strategic Marketing, Coating Resins 1. Volatile Organic Compounds

36 / Arkema - Innovative for Arkema - Innovative for / 37 materials offer essential improvements to help us move towards a more efficient and sustainable world.

Focus 3 “Sales of Kynar® PVDF /Kynar® PVDF/ have seen very steady growth, Growth on all from 6 to 7% per year. After the rapid growth in fronts for an exceptional Li-ion batteries, all application Cool roofing An environmentally markets are contributing to material friendly and innovative this positive trend, which was alternative to not affected by the health Extreme durability, extreme resistance to chemicals, UV and fire, ease of implementation… air-conditioning Since its discovery in 1948, the exceptional properties of PVDF fluoropolymer have Cool roofs – white roofs designed to reflect crisis in 2020.” ® solar radiation and keep the interior cool – been used to enhance various applications. Marketed under the Kynar name since the are fueling growing momentum in the climate David Silagy, Europe General Manager early 1960s and produced in Calvert City, Kentucky, it is now one of the leading growth change era. Based on Kynar® 500 PVDF & Global Fluoropolymers Product Manager technology, from which it gains its UV and drivers for Arkema, the market’s world leader. soil resistance properties, Kynar Aquatec® Thanks to an ambitious industrial strategy supported by a major innovation drive, the Group is applied in a water-based paint as a has made Kynar® products a powerful performance factor in key areas of the sustainable transparent protective overcoat for white paint. This optimizes the longevity of white roofs economy. – up to 25 years – as well as their energy An investment efficiency. strategy focused

on sustainable designing the future Architectural coating innovation The secret of eternal youth Arkema is the world leader in PVDF For more than 50 years, Kynar® 500 resin has protected and has production facilities on the the metal structures of countless buildings around the And that’s not all three continents where the market world – including the Louvre Pyramid and Central Court Semiconductors, for Kynar® products is growing, with at Wimbledon – from damage caused by weather solar panels, plants in Pierre-Bénite (France), Calvert and pollution. This was the original major market City (U.S.) and Changshu (China). ® for Kynar products, which continue to be essential polyethylene “The Group has been rolling out in the architecture sector, achieving ongoing and more an ambitious growth policy for ten and – importantly – sustainable growth. ® Kynar products are a years, supported by a consistent R&D material of choice for effort for all key PVDF markets and a high-stakes applications willingness to support our customers such as in semiconductor wherever they are,” says David Silagy, manufacturing, which ® requires the ability to move Kynar Europe General Manager a liquid without affecting & Global Fluoropolymers Product its purity, or in the chemical Manager. Ultrafiltration and food industries when As a result, Arkema’s industrial transporting aggressive fluids. capacity is growing. “We are for water treatment ® ® Kynar products are also conducting a very proactive investment Kynar products used as a protective film for program. Over the past ten years, combat thirst the back of solar panels this has resulted in an increase in Mechanical ultrafiltration systems are and as an additive for the our capacity every 18 months on increasingly being used in water treatment production of polyethylene, average. The latest one took place plants and in portable drinking water kits. for which it improves at the end of 2020 with the start-up These technologies incorporate PVDF filter implementation and membranes, for which Arkema supplies recyclability. of a new line in Changshu, which specific high-performance hydrophilic Kynar® Li-ion batteries has increased our capacity to serve grades. Other types of membranes, also Central to the development the electric battery market by 25%. made with Kynar® products, are used in In early 2021, we announced a of green mobility ® the pharmaceutical industry for the filtration The rise of electric vehicles is a major driver of the global further increase in capacity for Kynar of active ingredients, an application that R&D race to improve the performance of Li-ion batteries. fluoropolymers at Changshu, which ® saw strong growth in 2020. Kynar PVDF performs essential functions as a binder is expected to start up before the end in electrodes and as a separator film (see also p. 30). This rapidly expanding field, which also includes batteries of 2022.” for smartphones, computers, drones and electric bikes, is now one of the most important markets for Kynar® solutions.

38 / Arkema - Innovative for Arkema - Innovative for / 39 Our materials offer essential improvements to help us move towards a more efficient and sustainable world. Our

Focus 4 Industrial adhesives: Bostik’s role in / Sustainable glues and adhesives/ Investing in clean a new world order technologies in growth for packaging sectors “Growing environmental concerns are reshuffling the cards in Solutions and the market for packaging adhesives. The shift towards sustainable “Our Durable goods business, which accounts for over 40% of Bostik’s sales, covers thousands of applications in solutions—bio-based, compostable, recyclable etc.—is a fantastic transportation, building and assembly of manufactured products, development opportunity for our Advanced Packaging business, ideas from from smartphones to car bumpers. We have a dynamic growth which historically controls 4-5% of the market. We offer serious strategy supported by investment in 17 key technologies advantages in addressing this challenge thanks to our very and vertical integration with other activities within Arkema, broad range of technologies and our recognized sustainable a world market such as leveraging industrial synergies for certain materials, development innovation policy. We were the first to offer a and integrating our sales and marketing approach to certain polyurethane lamination adhesive that was certified compatible markets. This approach allows us to record solid growth in the with the recycling of polyethylene (one of the most widely used most buoyant areas, such as vehicle batteries, in which we plastic materials for food packaging); our Kizen® technology leader use seven or eight different technologies, building sealing and reduces the quantity of materials used for carton sealing by up Number three in the global glues and adhesives market, waterproofing (doors, roofs, double glazing, etc.) and even to 20%; and we are developing a specific range of hot melt consumer electronics.” adhesives for compostable packaging. Bostik’s vision is resolutely centered on innovation and Guillaume Desurmont, Senior Vice President, These developments are reflected by significant improvement in sustainable solutions, serving a large number of markets Global Durable Goods, Bostik our financial performance and robust volume growth in these with ever increasing demands in relation to performance highly promising segments.” Richard Lelièvre, Senior Vice President Advanced and environmental impact, in construction, packaging, Packaging, Bostik various industrial and even hygiene products. Arkema’s designing the future major subsidiary, backed by the Group’s investment capacity, enjoys a solid position and robust growth in each of its fields. Advanced packaging Food packaging, labeling, stickers, cardboard boxes... In the vast industrial packaging market, there is a huge need for adhesive and fixing solutions, often with very Consumer & Construction specific requirements, and evolving rapidly in line with new Through its well-known B2C brands, as well as environmental standards. The sustainability and recyclability brands for construction professionals (materials of packaging materials, use of bio-sourced and renewable manufacturers, installers, etc.), Bostik’s portfolio adhesives, and compostable packaging are now central contains hundreds of glues, caulks, sealants to what is expected by manufacturers and their customers. and technical materials serving more sustainable Bostik enjoys a strong position in these specialty markets, construction all over the world (see p. 20). generating 4-5% of worldwide sales, and its innovation-led Its ambitious strategy is based on making growth strategy will put it at the heart of this environmental buildings more energy efficient and getting shift in the packaging sector. rid of toxic compounds, and going beyond regulatory requirements, and this strategy was further reinforced in 2020 with two major acquisitions (see p. 21).

Durable goods Structural adhesive in the automotive industry, railways, Non-woven fabrics/hygiene sailing and aviation; building sealing and waterproofing; Diapers and other sanitary protection products are making steady assembly of electronics and batteries... Bostik has developed progress in weight reduction, comfort and sustainability, with a a very broad range of technologies and materials for growing use of natural materials, among other factors. Bostik is a all areas of industry needing fixing or adhesive solutions leading partner for this vast, constantly expanding market, which offering a high level of added value and a long life span. is expected to grow by 20% over the next five years. Its hot melt The Group has an ambitious adhesive solutions offer the key assembly functions that determine growth and acquisitions strategy finished product solidity, consumer comfort and safety, and production (see p. 20) for buoyant markets, machinery performance. Working with manufacturers all over the focusing on clean technologies world, Bostik is continually improving its offering by optimizing such as specialty hot melt adhesive quantities, helping its clients optimize the amount of substrate adhesives, in which it is now used and adapting its formulations to the surface chemistry of new the world market leader. bio-based materials (bamboo and cotton fibers, plastics made from cornstarch etc.).

40 / Arkema - Innovative for Arkema - Innovative for / 41 materials offer essential improvements to help us move towards a more efficient and sustainable world.

Pebax® Rnew® elastomer: Focus 5 Bio-based performance for athletes Polyamide 11 is also used to make the Pebax® Rnew® elastomer. Obtained by combining rigid polyamide 11 ® “blocks” and flexible polyether blocks, Pebax® Rnew® From sourcing to /Rilsan polyamide 11/ A 100% elastomer is racking up successes in the world of sport. It is recognized by all major manufacturers for its recycling, a material lightweight qualities (20% lighter than other elastomers), impact-resistance, durability and energy return. of choice for the renewable success story This unique material has proved its worth in the soles circular economy of many football and running shoes. For example, Life cycle analysis has found that Kenyan Brigid Kosgei, the world record-holder in the the manufacture of polyamide mixed-sex marathon category, was wearing it when 11 emits a total of 35% to 40% she won the 2020 London Marathon. The excellent less CO than its petroleum-based cold-resistance of Pebax® Rnew® elastomer also 2 equivalent. As fossil resources run out, the use of bio-based – and thus renewable – materials makes it a material of choice for ski boots (Scarpa). At the other end of its life, Rilsan® is becoming more important than ever for sustainability, both in industry and for the Some Pebax® Rnew® grades are used to make bio-based water-resistant breathable membranes products offer genuine recycling general public. In this respect, Arkema already has a considerable head start with for high-performance clothing such as ski jackets opportunities, which the Group its polyamide 11, and is the only manufacturer to have produced it for seventy years, (Picture). is working to implement with which it does at its original site at Serquigny (France) using the seeds of the castor its clients under the Virtucycle plant, a tropical shrub. program (see p. 46) before the end of 2022. Rilsan® polyamide 11 is 100% bio-based and offers a very high level of performance. Its lightness, strength, temperature-resistance and ease of implementation are equivalent to or better than those of petroleum-based long-chain polyamides. This unique combination of qualities has ensured its growing success in many industrial applications, from cars to water pipes and even sporting equipment. No. 1 designing the future ARKEMA IS THE WORLD’S LEADING CASTOR PROCESSOR

Automotive, oil & gas, water systems... The incredible range of Rilsan® applications Recently, it has been developed to protect the inside of hydrogen fuel tanks, owing Production Rilsan® Polyamide 11, available in different grades, offers a high-performance, bio-based ® Rilsan products can be to its exceptional resistance to pressurized solution for a wide range of industrial applications. This 100% renewable polyamide goes capacities extruded into filament environments of up to 700 bars and to extreme from strength to strength! to make textiles used in temperature fluctuations. sports articles such as NOSC-branded yoga up 50% Used for coating drinking water pipes, it is an clothing and the new ® by the end of 2021! alternative to stainless 100%-recyclable Cyclon Specific Rilsan grades are increasingly Arkema operates along the entire steel, which has a much shoe from On Running used in electric vehicle batteries for cooling production chain, from the amino 11 greater impact in terms (see p. 46). circuit coatings and electrical conduit ducts. of CO emissions. monomer, made from castor oil, to 2 polyamide 11, at its sites in Marseille, Serquigny (France), Birdsboro (US), Changshu and Zhangjiagang (China). In response to strong growth in Asia, In the automotive industry, our overall capacity will increase the exceptional resistance by 50% in early 2022 thanks to our to high temperatures of Rilsan® HT polyamide new-generation factory at the Jurong In the oil industry, it (135°C in continuous use) Island site in Singapore. This is a protects underwater major achievement, involving an is making it increasingly A transparent version, The excellent application pipelines – up to 2,500 exceptional investment by the Group popular with automotive Rilsan® Clear, has also been properties of Rilsan® polyamide meters in length, connected suppliers as an alternative marketed for several years to in powder form also make of €500 million over five years, to offshore platforms – to metal and rubber in fluid manufacture spectacle frames, it a material of choice for the largest in our history. from corrosion. transport applications in smartphone covers and various 3D printing processes the engine environment. household appliances. (see p. 28).

42 / Arkema - Innovative for Arkema - Innovative for / 43 Our materials offer essential improvements to help us move towards a more efficient and sustainable world. Our

/Sourcing, processes, products/ WATER, ENERGY, WASTE The three elements PROCESSES: DOING MORE 2 WITH LESS AT OUR SITES of the circular economy For a manufacturer, the first step towards the circular economy happens at the factory level, through the selection and optimization of processes. Arkema has been rolling out two major transformation programs at its 147 sites for several Faced with resource scarcity and the need to reduce our environmental footprint, years. “ArkEnergy” aims to reduce the Group’s net energy consumption the current model of the so-called “linear” economy – extract, produce, use, by 20% between 2012 and 2030, and the “Optim’O” program has dispose – has reached its limits. Arkema plays a central role in materials processing set a target of a 60% reduction in pollutant emissions between 2012 and 2030. The Group is taking action on different fronts, making and has made transition to the circular economy a major focus of its sustainable technical improvements, working on operational rigor, involving growth strategy. To drive this decisive development, the Group is taking all employees, replacing or adjusting certain processes, and implementing recovery loops and industrial integration. action on three fronts. Namely, the choice of raw materials, seeking to promote Arkema is also fully investing in a third rich seam renewable and recycled materials; the optimized management of resources of efficiency—the reduction and recovery of its waste during manufacturing at its sites, to become even more efficient and streamlined; and by-products (see p 47). and its range of solutions, with a strong focus on sustainable and recyclable applications. designing the future

PRIORITIZING RENEWABLE AND RECYCLED RAW MATERIALS LIFECYCLE ANALYSIS: IDENTIFYING PRODUCT OUR SOLUTIONS: 1 IMPACTS There is now strong market demand for solutions SUSTAINABILITY based on renewable raw materials, and this is To guide its industrial policy toward increasingly a criterion of choice for consumers. the most sustainable solutions, AND RECYCLABILITY Arkema is a pioneer in this field. Its 100% Arkema is engaged in a systematic ® process of lifecycle analysis 3 bio-based Rilsan polyamide 11 has been an Occupying a central position in the value chain, Arkema is leading uninterrupted success for more than seventy (LCA). This scientific methodology the way for its partners and clients, designing materials and years for a wide variety of applications (see consists of quantifying, for a given solutions that contribute to the emergence of a circular economy, p 42). It is produced from castor oil, of which product, all the environmental reducing the amount of material used, extending the lifetime of Arkema is the world’s largest buyer. Castor seeds impacts related to its production clients’ finished products, and improving the separability of materials are grown by hundreds of small producers in (raw materials, energy, emissions). and components, as well as their recyclability and degradability. Gujarat, India on marginal land not competitive Arkema provides this data at the These approaches feed into the Group’s entire innovation policy and for food crops, using techniques to minimize request of its clients to enable are reflected in one of Arkema’s five strategic innovation platforms, water consumption. In addition to the Rilsan® ranges, them to calculate, throughout the which is dedicated to natural resource management. Many of the which account for 40% of the Group’s sales of products value chain, the environmental Group’s solutions already contribute to this: Kercoat® and Opticoat® made from renewable resources, Arkema’s bio-based impact of the products they bring to technologies triple the lifetime of returnable glass bottles, our Kynar® Aquatec offering includes SensioTM specialty surfactants, market. Within the Group, a team coating provides hardwearing protection for reflective roofs while reducing the Synolac® and Synaqua® resins for alkyd-based of specialists are working on this air-conditioning requirements by up to 30%, and Cecabase RT® additives increase decorative paints, Vikoflex® epoxy plasticizers, and methodology, collecting data from the amount of recycled aggregate in road asphalt by up to 15%. The issue of Bostik® hot-melt adhesives, to cite just a few examples. both our business units and our products’ end of life – and recyclability – now arises at the eco-design stage, which The Group now provides suppliers with an assessment suppliers. The project is growing relates to the entire value chain, particularly suppliers, customers and other partners. of the proportion of renewable and recycled materials rapidly, with the aim of covering Arkema, which has created a disruptive new product with its 100% recyclable Elium® in the products it purchases. 50% of the Group’s sales by 2023, and ultimately the entire portfolio. thermoplastic resin, is now investing in the development of recycling processes and industrial pathways for its high-performance polymers (see p 46).

>>> 44 / Arkema - Innovative for Arkema - Innovative for / 45 materials offer essential improvements to help us move towards a more efficient and sustainable world.

Focus

“We’re working on a case-by-case basis, identifying sources of recoverable materials – starting with scraps and production waste at our clients’ factories,” Taking a closer look says Noël Zylberfarb, Sustainable Offer Manager at Arkema. Different recovery models are being structured: “Closed” loops, where mechanically recycled polymers (grinding and purification) are re-introduced directly at our products through into production, and “open” loops in which Arkema sells on the market grades of polymers containing the prism of eco-design a proportion of recycled material. Eco-design gains momentum At the same time, we are paying closer attention to the design of finished products, which must incorporate and recycling circularity from the outset. “In order to promote recycling, one of the core elements of the circular Bringing industrial waste As a global specialist in high-performance materials, Arkema leverages its innovation economy, there is now a clear move towards single- into the loop expertise to create, in partnership with its clients, the industrial sectors that will enable material products where possible or, failing that, provision for separating the various components. Downstream of its production processes, these materials to be recovered in end-of-life applications and recycled. And it is essential that the materials used, which include Arkema is always looking for ways additives, coatings and adhesives, present no barrier to re-use waste materials and by-products to recycling or separation, but also that they contribute in other value chains. With its Elium® liquid resin, the result of a long-term to it fully through their properties. investment in R&D, Arkema has achieved a breakthrough In particular, selecting materials free from hazardous “In 2020, 35% of the Group’s waste was already being in its progress towards the circular economy. This substances is becoming increasingly important in terms recycled,” explains Jean Morch, Vice President, Safety and thermoplastic material combines lightness, mechanical Cyclon Environment. “Nearly 140,000 metric tons are reused as of recycling,” says Noël. designing the future helps the circular economy strength and durability, opening up new prospects This shift toward the principles of eco-design calls for an energy source during incineration, or as a raw material take a big step forward for recycling large composite parts. At the end of their a real change of culture, which the Group is working in another product.” life, they can be crushed and depolymerized at low Lightweight, stylish and designed for speed, the to bring to its partners, and of course to its own teams. Waste is inherent in chemicals manufacturing, and the cost, and the material can be reused as it retains Cyclon shoe, launched by Swiss manufacturer The already-famous Cyclon racing shoe (see opposite) waste generated by the Group – 400,000 metric tons last ® the same properties. This property makes Elium resin an On Running in 2020, is also the first in the is an excellent example of eco-design and virtuous year – is a major source of value in enabling progress increasingly popular alternative for major manufacturers world to be 100% recyclable. In fact, you partnerships, from the choice of raw materials toward the circular economy. As a result, the proportion of in advanced fields such as wind power and aeronautics don’t buy them – instead, you rent a pair from to product end-of-life, supported by an innovative recovered waste will increase further in the coming years. who are working with Arkema to industrialize recycling the manufacturer, who takes them back once business model. “We take a proactive approach to leveraging new sources processes. they’re worn out! Eco-designed in partnership of recovery and recycling wherever possible, and this will with Arkema, the Cyclon shoe is made entirely involve developing new partnerships,” he adds. In particular, Future industries of Rilsan® polyamide 11, from the tongue and there is scope for progress in the processing of certain types In addition to this flagship innovation, the Group adhesive down to the sole. The entire shoe can of waste into products that can be used in other sectors. is taking a proactive approach with its clients and be melted down and reused to make new pairs. partners to create recycling channels for its advanced Recovery sectors materials, such as PVDF and high-performance For example, for several years, the sodium-containing water polyamides, which are the subject of the Virtucycle® from the purification of a monomer manufactured at the program, launched in 2019 with Agiplast, a global Arkema plant in Mont has been used by industrial paper mills specialist in polymer regeneration. for the manufacture of craft paper and cardboard. In Lacq, the desulfogypsum produced during the treatment of sulfur residues is now used to manufacture plasterboard. In 2020, 14,500 metric tons of this product were reused and kept out of landfill. Similarly, the palladium in used secondary filters in the Jarrie (France) oxygenated water production lines is now recycled and used to manufacture one of the catalysts used by the site. “Since 2019, our circularity efforts have been coordinated on Arkema’s sites and with Arkema’s partners by a multidisciplinary working group of people from business lines, procurement, R&D and processes,” says Jean. Arkema has developed a thermoplastic resin that means In the circular economy, (almost) nothing gets lost, (almost) it is now possible to make fully recyclable wind turbine blades. everything is reused… as long as you put the effort in!

46 / Arkema - Innovative for Arkema - Innovative for / 47 Our materials offer essential improvements to help us move towards a more efficient and sustainable world. Our

/Open innovation/

Working in networks Start-up Connect, Stefânia Cassiano-Gaspar to foster responsible to promote faster, Rilsan® polyamide 11 is finding innovation Start-up Connect is a new global new markets in the textile industry program, launched in late 2020, better growth thanks to a web of expert partnerships which invites start-ups specializing in advanced materials to approach Our R&D team hopes to win over the textile industry to our Rilsan® line of Arkema about the possibility Arkema is designing the materials of the future by creating specialty polyamides, derived from of special research partnerships a unique process based on castor in which they can capitalize targeted, collaborative projects involving multiple partners oil. It’s a wonderful example of on the Group’s assistance and from an array of technology sectors. In the view of incremental innovation spurred technological experience. By Denis Bortzmeyer, head of R&D partnerships, that’s the only by technological and industrial providing technical or financial partnerships. support for these innovations, way to stay fully aligned with the market’s needs. Start-up Connect serves as a Originally embraced by the undergarment strategic component of Arkema’s industry when it was invented more than growth inside a responsible 70 years ago, Rilsan® polyamide 11 is looking to innovation ecosystem. These start-ups broaden its horizons. “We want to diversify within can profit from Arkema’s global We hear a lot of talk about open innovation. the traditional textile market and capitalize on the reach, its exceptional knowledge

How does it work at Arkema? value added by our bio-based polyamide. In addition, of markets and applications, and designing the future Denis Bortzmeyer – Open innovation has always been we want to show that, thanks to its impressive attributes, its ability to develop a safe and part of the Arkema mindset. Our R&D is rooted in openness and this product has a role to play in many other areas of the competitive chemicals business. They collaboration. Public-private platforms for collaborative research garment industry, just as it does already in a wide range also gain access to the scientific and are real catalysts where we can pool our resources, share the of markets, from athletics to automobiles, luxury goods and most advanced equipment and pool a wide range of expertise technical resources at the Group’s in complementary fields. We feel it’s important to go out in more,” says Stefânia Cassiano-Gaspar, research engineer at 15 R&D centers in France, the United search of “intellectual capital,” and the growing number of high- Cerdato. The market offers significant sales opportunities, and States and Asia. This ecosystem is level scientific initiatives that Arkema is forging with university Arkema is making major industrial investments in Asia to step up designed to encourage the pooling researchers and major laboratories is really a reflection of its polyamide 11 production (see page 42). of expertise while promoting that. Downstream, there’s no substitute for collaborative projects There’s a formidable technical challenge to be met in innovation and regional economic with companies from large industrial sectors. Our major research incorporating a host of different processes. “We’re identifying development. projects — whether they involve composite materials, hydrogen, the right partners that we can learn from and with. electronics, batteries or a host of other technologies — are all Technically, it’s an extremely demanding market. You conducted alongside application partners, institutes, start-ups, have to master every stage of the manufacturing SMEs or large corporations, all recognized for their expertise in leading manufacturers and tech centers (CANOE, Engie, LM process, from extrusion and texturizing to their fields. In our view, bringing different ecosystems together is Wind Power, Owens Corning and Suez). We’re also forming weaving and dyeing, to make sure we give the the best way to address each market’s needs and bring projects collaborations of that kind in Asia and the United States, where to fruition, and hence to the market, more quickly. we have a very active R&D operation. right advice to our developers and customers. For the extrusion phase, for example, we were In concrete terms, how do you go about setting How do you build sustainable development able to work on a pilot unit at the European Center for Innovative up a technical partnership? and ecodesign into your collaborative projects? Textiles (CETI) in Tourcoing, France. That kind of partnership is ideal D. B. – There are several examples I could give. In France, in D. B. – For the past several years, the need for sustainable for giving us a better understanding of the transformation process early 2020, Arkema joined forces with a start-up, Nexoon, and development has been a guiding principle of our innovation 203 and getting the most out of our polyamide 11, both from a the M2P Technological Research Institute (IRT-M2P) in Metz to strategy. Companies like ours have some of the best records manufacturing perspective and in terms of the quality of the thread, That’s the number develop a new modular construction concept using components of commitment in social and environmental responsibility. Take such as its recyclability and carbon footprint. Customers today are ® Zebra, for example: that project dovetails perfectly with Arkema’s in composite materials. Arkema is providing its Elium resin, especially focused on those concerns.” of patents filed which is the world’s only liquid thermoplastic resin that can policy of creating a circular economy for both its operations

be used to make recyclable composites, while Nexoon is and its products. Recycling — and ecodesign more broadly, by Arkema in 2020. encompassing a product’s entire life cycle – need to be our Those patents allow us to protect our contributing its expertise in the construction of modular buildings. This interview was also prepared with watchwords when we’re developing new materials. Currently, know-how and expand our presence The IRT-M2P boasts incredible expertise and equipment for Christian Collette, Arkema’s R&D Vice President, more than 70% of our patents are connected in some way with in the major disciplines targeted by developing profiles using the pultrusion process. That same who died suddenly of a heart attack on sustainable development. Where our R&D efforts converge is our five research platforms — all resin is key to another collaboration as well, aimed this time April 24. At the helm of the R&D division their focus on responsible innovation that furthers Arkema’s aim at manufacturing the first fully recyclable wind turbine blade. for fifteen years, he played a vital role of which bear on major challenges of providing solutions that contribute to the U.N.’s Sustainable Arkema is tackling that challenge as part of the Zebra consortium in Arkema’s innovation and growth policy, facing today’s world: New Energies, Development Goals (SDGs). (Zero wastE Blade ReseArch), a top-level project led by the IRT- thanks to his vision and understanding Natural Resource Management, Jules Verne research center near Nantes; the consortium includes of the world. But his impressive human qualities Electronics Solutions, Lightweight made him an exceptional person as well. Materials and Design, and Home We pay tribute to his memory. Efficiency and Insulation.

48 / Arkema - Innovative for Arkema - Innovative for / 49 /We want to involve all our internal and external stakeholders in our corporate project and we embody our values – simplicity, solidarity, responsibility, and performance – in everything we do. Internally, our employees are our strongest asset, and we strive to apply our values and many programs to retain them, foster their development, and attract new talent around the world. We take concrete action to promote diversity, gender equality, career opportunities, and quality of life both in the workplace and for those working from home. Externally, we are engaged in many philanthropic initiatives to support communities in relation to education, the integration of disadvantaged young people, and humanitarian projects. for Our expertise in materials science is based on a vision growing of progress that we want our to promote as widely as talents possible./

50 / Arkema - Innovative for Arkema - Innovative for / 51 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

“Do you feel you deserve to move forward in your career? Don’t hold Mélanie Jourdain, Vice President yourself back just because you’re a woman.” These words make Group Talent you think. For Mélanie Jourdain, this is not just personal advice. The Vice President Group Talent has made this one of the core principles of Arkema’s development. The École Polytechnique graduate joined Arkema in 2005, just before the spin-off, because “I wanted to /Gender diversity in the workplace/ experience an emerging group and watch it take shape.” She has held a variety of roles over the last fifteen years, from development engineer to General Manager Fluorochemicals Europe, as well as positions in purchasing and strategic Valuing the women planning working with the Executive Committee. Throughout this time, she has always felt encouraged in her career in the organization. “The Group helped me realize that these positions were within my reach. More and more women are of Arkema accessing management and executive roles in all our business lines. This is a global target and all our entities are Arkema continues to expand its policy to support the recruitment and promotion of women on board.” There are many examples of successful at all levels and in all regions of its operations, ensuring that its female employees enjoy career paths in a company that is careful to ensure the same career development opportunities as their male counterparts. It is committed to women have equal access to employment and the same career development opportunities as men. attracting and promoting female talent in an industry that is traditionally male-dominated. These core principles and those concerning equal pay form part of its non-discrimination charter.

HELPING WOMEN TO GROW The figures speak for themselves. Today, 25.3% of the Group’s employees are women, rising to 34% among middle managers, providing a large talent pool for increasing the percentage of women in senior management roles to 30% by 2030. “We Alan Tan, need to step up the pace as this is a societal issue and Chief Human Resources Officer, expectations are high,” says Mélanie Jourdain, aware of Arkema Greater the challenge that lies ahead. “With 20,600 people in the Group, China we can’t make it happen in two years. And we aren’t looking to achieve numbers for the sake of the numbers alone. We want to get women on board because workplace diversity and the success of our female employees clearly help to drive the Group’s performance.” Researchers, engineers, technicians and operational staff, in support functions or highly operational roles, women are everywhere and are doing every bit as much for the company as their male colleagues.

Sandra Auffray, growing our talents Arkema Vice President Talent Management A KEY ROLE IN IMPROVING PERFORMANCE for the United States Reducing inequality also means combating stereotypes and creating the conditions for a discrimination-free environment. Arkema pays very close attention to this, particularly in the United States. “We In Asia too, female talent is being encouraged. “Arkema China has a have launched the Respecting the workplace campaign to raise good number of women in management roles and many in executive people’s understanding of rules of good conduct, such as not saying positions. The proportion is higher than at the Colombes head office ‘Hi guys’ when addressing a group that includes women. Little things or in the United States,” explains Alan Tan, Chief Human Resources like this that are not meant badly can nevertheless give offense,” Officer for Arkema Greater China. She stresses the importance of stresses Sandra Auffray, Arkema’s Vice President Human Resources adopting inclusive practices at the recruitment stage. “We highlight the gender balance during campus visits. When presenting our 23% for the United States. “We’ve also extended the principle of safety The percentage of women shares, used at the beginning of meetings to remind people of basic strategy, we remind people that this is one of our key goals for the safety practices, and we now also have diversity shares. Everyone, next five years. Some jobs attract mostly men. Our aim is to do all in senior management male or female, is welcome to share their experience.” Women’s we can to get more young women to apply to them. We have many networking has been around in the United States for a long time and success stories in this area.” and executive positions. has been adopted by the Group. Arkema’s US branch has launched Our aim is to increase this “Women@Arkema,” a close network of women who meet up for mutual support and to further their careers. “The feedback is excellent. percentage to It’s become a valuable in-house tool,” explains Jennifer Trolley, Senior HR Manager at Sartomer Americas. “We also actively support women interested in our mixed Leadership Development program, which helps them assert their management potential. Increasing numbers are taking part in this program that can set up tomorrow’s female leaders,” she observes. “Hiring women at the highest level sends out a strong signal,” confirms Sandra Auffray, citing the recent 30% appointment of Samantha Hollingsworth Davis as CIO Americas. by 2030. >>> 52 / Arkema - Innovative for Arkema - Innovative for / 53 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

ALL OVER THE WORLD, WOMEN ARE TELLING THEIR STORIES Lin Qi, Process Engineer, Kynar® Changshu plant, Arkema China “The fact that Arkema is committed to developing workplace diversity at all levels Michelle Walasavage, of the company is absolutely essential for me. Process Development A lot of research has been published about Manager, King of Prussia, prejudice against women at work. Fortunately, Arkema United States Arkema has adopted an organizational strategy that combats these difficulties by creating a comfortable working environment “Women have many options that helps women gain confidence. The for an enriching career at Arkema. During my women I have worked with at Arkema are 23-year career, I think that I’ve had access to strong, passionate, intelligent and inspiring. the same development and promotion opportunities image a venir I am proud to work for an organization that as my male colleagues. As a mother to young “I recently joined the Group as a young invests in female talent and gives them the children, I’ve also enjoyed a good work-life graduate engineer. Arkema is a diversified company with plenty means to progress and flourish in their careers.” balance. Of course, there are still obstacles to be of career development opportunities. I’ve already been able to take overcome, so Arkema’s commitment to increasing on various roles within the company right from the start. Gender the proportion of women in management roles balance and diverse backgrounds in general create added value. really counts. Women need female role models They make teamwork more effective on a day-to-day basis. they can identify with in a sector that is traditionally I feel that as women, we need to show a lot of determination dominated by men. It’s important to work on and pragmatism. But whether you’re a woman or not, I think that creating more inclusive environments for women everyone needs to be able to find their place within the organization and other minority groups. I would advise any on the basis of their skills and their ability to contribute to the woman to take charge of her own career and take company’s overall success. At Arkema, I really feel we have every opportunity to demonstrate her leadership the same opportunities as my male colleagues.” Jina Wu, Business Director, skills, talk to her manager about her interests and Tape and Label Asia-Pacific, Bostik aspirations, and build her networks. There are a lot of amazing people at Arkema who can help you “Arkema is highly achieve your goals, but they can’t help you if they representative of big don’t know what matters to you and where you groups wanting to take on more and want to go.” more women to turn them into senior managers in their organizations. I’ve always had an ambition to move into positions of responsibility. I like new

Shasta Bondarev, growing our talents Maintenance & challenges. Arkema has completely Reliability Engineer, allowed me to take on major roles. I Arkema United States joined the Group as Human Resources manager for Bostik in China. I was then appointed director of the Arkema plant in Guangzhou, before taking on the Sophie Chhun, General Assembly Director (Durable position of Commercial Manager for the Goods BU), Bostik Asia Pacific, Asia-Pacific region. Arkema in China “Gender balance is a subject that Bostik Singapore offers highly structured talent development programs. I have been on leadership is close to my heart, even though I’ve development training programs. This is never experienced any discrimination or been held back a really effective way of retaining talent because I was a woman, even in roles in production, “Pushing someone along a particular and leveraging stable and more effective where men are in the majority. I don’t like talking career path just because she’s a woman doesn’t serve organizations.” about male jobs because I don’t think that there are her or the company. I think Arkema has a more appropriate male and female jobs. Even before this became approach, which is to support women by recognizing their skills so structured and visible, I think that Arkema has and personalities, while also factoring in their specific constraints. always wanted to focus on people, regardless In my case, for example, I’ve taken parental leave, and I was lucky of gender.” to have plenty of support. HR and my line managers were proactive in finding me a job at the right time that matched my profile and my career development aspirations. Supporting women by de- Marianne Barbier, dramatizing this period of absence from work, which is not always Head of Product Quality and Control, easy to manage for the company or for women’s own careers, Arkema Asia is one of the best ways of helping them.”

>>> 54 / Arkema - Innovative for Arkema - Innovative for / 55 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

WOMEN’S MENTORING: PAVING THE WAY /Cultural diversity In Homer’s Odyssey, Mentor is the wise and benevolent counselor in the workplace/ to Telemachus. Within Arkema’s women’s mentoring program, a mentor is a manager who wants to use his or her experience to help talented women reveal their potential and succeed within the company. Our female employees take part in this innovative approach Caroline Bastien, Talent without to professional and personal development on a voluntary basis. A General Manager and sponsor mentorship lasts for one year, but pairs are encouraged to stay in of the women’s touch and ensure that the mentees maintain their contacts and grow mentoring program their professional network. Since 2018, more than 70 mentoring borders pairs have been put together and the scheme has been a resoun- ding success. In terms of numbers, during the first three sessions, the Arkema was originally a French group but transformation rate (progression in job level or change of position “Our mentoring program within two years) was 86%. The mentees report that this approach relies on volunteer managers who want to use now has a strong international presence. has allowed them to consider career paths they had not thought of their experience to help talented women reveal or which seemed out of reach. They also say that they have come their potential and progress within the company.” It attaches huge importance to respecting out of the interaction with better overall knowledge of Arkema and diversity within its teams. The company how it works. “What we have also noticed,” comments Caroline Bastien, General Manager and sponsor of the program, “is how intends to facilitate exchanges between much both mentors and mentees appreciate the informality, with no countries, develop cultural diversity and HR, no management, involved in this dedicated time. This creates a sense of freedom that is needed when addressing subjects like allow local talent to grow in management work-life balance, for example. The relationship also provides mutual and leadership roles. enrichment, as this direct and candid exchange gives mentors new insights that can prompt them to rethink their practices.”

41% growing our talents This is the percentage Mégane Dimey, HSE Engineer, of non-French nationals Feuchy plant in France, mentee working in senior “I had the welcome surprise management roles at of being invited to take part in the mentoring program. At the age of 26, I was wondering about the Arkema worldwide. various career development opportunities at Arkema. I find it very useful and reassuring to be able to speak freely and in complete confidentiality to a mentor with a great deal of experience. This has allowed me to reach higher and Our aim is to achieve block out time to think about my career plans. Without it, at least I would have remained immersed in my day-to-day role at the plant. It’s also the chance to build up a network of mentees in different jobs from mine. When I told a male colleague that I was on a mentoring plan, he asked me how he could apply. I replied that the program was just for women. The program shows that Arkema very clearly values the role of women within the Group. Arkema is 50% really serious about inclusion.” by 2030 by means of diversified recruitment and internal promotion. 56 / Arkema - Innovative for Arkema - Innovative for / 57 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

IN THE UNITED STATES, INTERNATIONAL A FRENCH WOMAN IN ASIA SINGAPORE: Paul Wen, Senior QEHS CULTURE IS ESSENTIAL Quality, Environment, For Sandra Auffray, Arkema Vice President Human Resources PRESENCE BASED Health and Safety for the United States, this is clear: “The international aspect Manager, Singapore and diversity form an integral part of our culture. This is ON LOCAL STRENGTHS particularly true in certain business lines such as R&D, where talented people from all backgrounds work side by side.” A world-class Arkema plant dedicated to 100% bio-based Rilsan® polyamide 11 production, is soon With a solid grounding in the practices of the US branch, Marianne Barbier, mentoring – which involves a mentor (senior manager) and Head of Product to be opened on the Jurong Island platform in a mentee, with the former encouraging the latter to develop Quality and Control, Singapore. This major project – the biggest investment Arkema Asia outside a conventional management relationship – “allows in Arkema’s history – is accompanied by a large-scale people with potential to grow while also acquiring a more on-site recruitment program. Matthieu Zône, Human international culture.” Other programs exist such as the Resources Director Asia-Pacific (excluding China), Leadership Development Program, which encourages staff tells us about this facility, which draws on talent to solve problems and push themselves to implement their and the local ecosystem. solutions. “One of the program’s winning teams,” continues “I am Senior Sandra, “is launching an online platform to promote diversity QEHS Quality, and inclusion, coordinating several groups to document the Environment, diversity of employees at all our sites. Three years ago, we also Health and Safety Manager launched a program to promote an international approach in “I started out at Arkema working in a for the future plant. It wasn’t a given. I had to go through four order to reduce certain cultural disparities. It consists of getting plant, first in production, then in health “First, we put together the local recruitment interviews. But I really wanted to be part of the one of our business units or departments to work together with adventure of this new Arkema plant! It’s an exciting project. The and safety, environment, quality and logistics, before management team, which is closely involved in the its counterparts in other countries on a specific issue or project. Group has a rapidly expanding portfolio in the Asian market joining the Group’s head office in Colombes in the polyamides supply recruitment and onboarding of around 150 employees at the future site. This provides an excellent platform for dialogue, which is often and a focus on corporate social responsibility excellence. For chain. I’ve been based in China for ten years as product quality manager Most will be Singaporean citizens or permanent residents, and around the source of great discoveries.” me, of course, it’s important to hire people locally, as Singapore’s for Asia and the High Performance Polymers business unit. This broad one third of the future plant’s management team will be women. So we multicultural labor force is skilled both academically and experience has allowed me to build bridges between various roles, from want to make sure that the final pick reflects Arkema’s diversity policy. professionally. The training program has been customized and production to client relations. I’ve always been well supported by Arkema. We talk extensively about the Group’s values during interviews to see structured according to my needs, with in-depth consideration CHINA ENTHUSIASTICALLY ADOPTS I’ve had career development coaching, a women’s mentoring program whether applicants are receptive or not. We are also preparing for the of my future role. The fact that the site will produce bio-based INTERNATIONAL MENTORING and help with transfers. I needed that reassurance before moving to future. For local managers, we aim to select applicants we believe have the potential to move into positions that will initially be held by expats. materials is particularly motivating for me, both as an HSEQ Arkema’s Chinese branch has discovered international China as an expat. I had to wait for the planets to be properly aligned Newcomers will join a highly structured training program based on professional and as a citizen of our planet.” mentoring with a great deal of interest. “Our mentees are and find the right job in the right place at the right time. I wanted to our procedures and our culture, with a focus on safety. Recruitment is ultra-motivated. The experience of mentees at head office or in tackle other ways of working, test my limits and break down barriers in carefully timed to allow us to roll out this training program. The project the United States encourages them to look ahead to their future order to continue to grow. This is both a breath of fresh air and a way of phase involves around twenty mostly French expats, who are in charge career. It’s also a good way of breaking down cultural barriers questioning things that gets you out of the slightly narrow framework of a of passing on our industrial know-how. and preconceptions,” notes Alan Tan. The Chief Human purely French career path, even though I’d already had the opportunity Resources Officer for Arkema Greater China adds, “It should to work with other cultures in a position in Europe. What I am most proud Training employees and commissioning the plant will also involve other also be stressed that we have a lot of French and American of today is having put together a solid team that is able to listen, is highly colleagues of ours, chiefly from the Marseille plant, who will be in charge “Being there when the plant is expats in technical and management positions. They are well professional and recognized by the entire business unit. I’ve recruited of producing the amino 11 monomer. Some will come from Singapore, four talented young people, three of whom are young Chinese women. built is a unique opportunity. integrated into the organization, to the extent that some speak while others will receive employees from Singapore on site for field growing our talents Chinese better than the Chinese themselves!” Together, we are pleased to play a part in the recognition of the quality training. Arkema’s aim is to foster and grow talent everywhere the Group The new plant is very attractive. It’s a greenfield site, and and performance of Arkema’s products in Asia.” operates. In Asia, we have the critical mass to offer career prospects for then there’s the Group’s global profile, and everything all these talented people. This is a central factor making the company related to Arkema’s image, values and products. All this is attractive and one of the keys to our performance. There’s something really exciting. I’ve been a permanent resident of Singapore for 25 years, and I’ve always worked in chemicals. My Stefânia Cassiano rather wonderful about all the positive energy released by a project like this and the enthusiasm of those who join us on the adventure.” contribution is knowledge of the local job market during Gaspar, Research the recruitment phase. To begin with, I try to attract and materials design department engineer, A BRAZILIAN IN FRANCE the best applicants in a highly competitive Cerdato, France environment and onboard them in the given “There are lots of different lives in time to ensure a smooth launch. When I’m a career. I came to France in 2007 Mathieu Zône, inducting the teams, I have to align them with Human Resources local regulations and the company’s policies. as part of a joint degree between Director Asia- As an HR professional, I’m proud to work for my university in Brazil and the École Nationale Supérieure Pacific (excluding an organization with a staff turnover rate of China) de Chimie in Montpellier. I was very interested in materials, and went less than 5%, which illustrates the extent as far as completing a PhD thesis in France at the Institut Français du to which the Group is able to engage Pétrole Énergies Nouvelles in Lyon, in the field of ceramic membranes its employees.” for heterogeneous catalysts. I then turned to specialty polymers and joined Arkema, which is recognized as one of the world’s leading names in this field. In seven years at Cerdato, I’ve never had two years the same. There’s always a new story to write. I love that multidisciplinary aspect just as I love being able to talk to my colleagues all over the world. This wealth of subjects, jobs and cultures is fantastic. Florence Lie Siew Ming, I don’t rule out going back to Brazil, as Arkema has industrial Human Resources Manager, Singapore and commercial activities there.” >>> 58 / Arkema - Innovative for ArkemaArkema - INNOVATIVE - Innovative for for / 59 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

INTERNATIONAL MENTORING: AT THE CROSSROADS IDENTIFYING AND SUPPORTING OF TALENT The Research & Development Center (CRDC) EMPLOYEES WITH POTENTIAL... Denis Bortzmeyer, is based in Changshu, China, and is Arkema’s former Manager of CRDC, WHEREVER THEY ARE biggest industrial platform in the world. Its French Head of partnerships An international mentoring scheme reinforces the visibility manager, Denis Bortzmeyer, handed over to in the research and and diversity of young talent at Arkema all over the world. With operations in Weiqing Liu, who is Chinese, in 2020. They tell development department This is a valuable tool to help them make the most of their their stories below. potential and prepare the leaders of the future.

“Weiqing joined CRDC in 2012 “Talent has no age, gender or origin.” 55 countries, after completing his doctoral thesis But how do we make our men and women with potential, from all countries Arkema generates 36% in France. He was there from the outset, holding in which the Group operates, more visible and help them to grow in order management roles at CRDC and in business units. He was the to foster diversity within management and executive roles? This is one of the of its revenue in Europe obvious choice. Our HR officers helped to draw up a succession core focuses of Arkema’s HR policy. “We want to create a breeding ground (including 10% in France), plan, setting up a training and coaching program to give him for young talent in all areas and in all our business lines…people who aspire the right tools. In terms of managing the handover, there can to rise through the Group, including outside their country of origin,” confirms 32% in North America, only be one boss, so once responsibility for safety and people Mengdi Yuan, Group Talent Acquisition, Diversity & Inclusion Manager. and a similar amount in management has been transferred, the successor is in charge. International mentoring allows talented people outside France selected But he can only do that by taking on the entire role. In general, by the HR departments in different countries (China, Japan, South Korea, Asia and the rest of the I think it is vital that Arkema has this kind of promotion policy. Singapore, India, New Zealand, United States, Mexico, Brazil, Argentina, world. These figures attest We can’t have a glass ceiling that reserves management roles Germany, United Kingdom, Russia and the Netherlands) to be supported by for the French. We need to use talent from all our sites…men and mentors who are senior managers or heads of business units and corporate to the Group’s ability women who have become part of Arkema’s culture, developed functional departments. Eleven mentoring pairs were put together in 2020, to develop well beyond their network within the company and demonstrated their loyalty. and nineteen in 2021. “They’re all volunteers about halfway through Once these criteria are met, it’s very important to show them that their careers, with a successful track record to date. We have mentees in its origins, spurred by the way is open for them.” countries where Arkema doesn’t necessarily have a very strong presence, the collective energy many of whom have questions about their career development prospects. In these countries, mentors, often with extensive international experience, of its 20,600 employees. can provide visibility and help them to expand their network.”

David Silagy, Weiqing Liu, growing our talents Mengdi Yuan, Kynar® General Manager, mentor Manager of CRDC Group Talent Acquisition, Diversity & Inclusion Manager “The international “I’m very proud that people mentoring program have put their trust in me is a unique and to be able to follow in Denis’s footsteps, opportunity to be able to because I see him as a consummate professional. talk openly and honestly about your My promotion had a very positive impact on my own experience, and to get to know colleagues, 95% of whom are Chinese. It’s a clear a talented young person in another sign that Arkema recognizes individual commitment country whom you otherwise might not and performance. This is particularly important within have met. It allows you to contribute the local context, which has been characterized by to someone’s development and a high turnover rate. Of course, I feel pressure taking help them reveal their potential. on this new role, particularly about being responsible The program helps us to diversify for the safety, development and well-being of the workforce by improving the around sixty employees. The fact that I’m Chinese gender balance and attracting is an undeniable advantage in terms of people people from different countries management and closer ties with local partners, and cultures. We have a businesses and universities. Having a Chinese person very clear ambition and in charge of R&D – which few of our peers do – need to ensure we have also shows that Arkema is serious about investing the means to achieve it. and expanding in China in the long term. This is Change is not a given; a very persuasive argument for many of our business it needs to be brought partners.” about and this program helps make that happen.”

60 / Arkema - Innovative for Arkema - Innovative for / 61 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

/Attracting talent/ Attracting talent and sharing our values

Even though they are still a significant factor in determining a company’s attractiveness, the level of pay and material benefits are no longer enough to attract applicants and retain staff. Career prospects, the quality of the working environment, work-life balance, values, action on ecological challenges, diversity and inclusion are all part of the winning combination. Arkema offers all these to enhance its human capital and capture young talent.

“83% would recommend Arkema to a friend.” This is from an index, published on the Glassdoor online job and recruitment platform where Raphaële Grivel, current and former employees rate their company. Good news for Head of HR in France Raphaële Grivel: “In a tense job market where the employer brand is becoming increasingly important, these unfiltered recommendations represent a very well-regarded indicator for judging our attractiveness. Having a good score is a real advantage for future applicants,” observes the Head of HR for France. It is a sign that a company’s reputation is not just based on their corporate messages but also and above all on what employees, new graduates and students growing our talents think of it. “We listen to the opinions of the younger generations who have grown up with social media, and that helps us to work on our weaknesses and build on our strengths.”

AN INNOVATIVE, STRONG PERFORMANCE AND ATTRACTIVE INTERNATIONAL GROUP When asked about Arkema’s attractiveness, Alan Tan, Head of HR in China, confirms that the company “enjoys an excellent image “CONTRIBUTE TO THE MAJOR CHALLENGES among young graduates thanks to our strengths, namely sustainable THAT WE ALL NEED TO ADDRESS TOGETHER.” development, technological leadership and the attention paid to “With over 200 business lines, Arkema can offer you a wide- our employees.” The same can be seen in North America, where ranging career path according to your personal qualities and Sandra Auffray, Vice President Human Resources, mentions other aspirations, in line with the organization’s needs. We are also attractions such as “a rich product portfolio, good financial stability recognized for our areas of expertise and our efforts in promoting and an ambitious CSR policy.” Working for a socially responsible the best candidates for the development of new materials, more company has become one of the top criteria for applicants, who effective procedures and more sustainable solutions,” stresses are increasingly mindful of a company’s culture and values. Other Mélanie Jourdain, Vice President Group Talent. “We tell potential criteria such as the quality of the working environment, work-life applicants: join us so that you can contribute to these major balance, respecting diversity and inclusive principles confirm this challenges that we all need to address together. We need the major paradigm shift. best to make these changes happen. There are great opportunities for the young graduates who join us. It’s our job to help them set off on this adventure.”

>>> 62 / Arkema - Innovative for Arkema - Innovative for / 63 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

Arkema makes a name for itself in the HR rankings In 2020, Arkema excelled in a number of HR rankings compiled by magazines and international institutes. These rankings attest to the company’s attractiveness and also reflect how well perceived the company is by its employees, trainees and students. It is also a recognition of the Group’s efforts in human resources management. - In 2020, Forbes ranked Arkema 259th among the “World’s Best Employers” and 14th out of the 46 French companies. - Arkema was included in the Financial Times’ Diversity Leaders, recognizing the performance of 850 international companies in diversity, balance and professional inclusion, and scored 7.08 out of 10. - In France, Arkema has a recommendation rate of 83.3% Mélanie Jourdain, in the Happy Trainees rankings of the best-performing Vice President Group Talent companies by ChooseMyCompany for onboarding, Introductory seminars: “Our Group has many support and management of interns and trainees talented engineers and on work-study programs and VIE international internships. “There are great rituals for exchange - Also in France, Arkema is one of the top 20 best- and discovery chemists, but we also perceived employers in the Oil and Chemicals sector, opportunities for according to Capital magazine. In France, webinars held remotely because of need finance, business the young graduates the health crisis have enabled dozens of young trainees and interns to go further and more quickly and marketing specialists. who join us and in learning about Arkema. “Whether they’ve chosen to become a production operator, prepare It’s important to show young amazing challenges for an engineering degree or move into the support graduates that all types functions, they get to meet at these events. Allowing

to take on. It’s our these young people to mingle reflects our values,” of people have a role growing our talents emphasizes Alexana Terrade, head of recruitment job to help them set and university relations. These beginners also need to play at Arkema.” confidence to imagine their futures at Arkema. “If off on this adventure.” they meet expectations, we definitely want to keep them once they graduate. They are an incubator for future talent.” These sessions also provide an opportunity to meet Arkema ambassadors -- employee volunteers who discuss their career Jérémy Assayag, paths and jobs. That includes people like Jérémy Head of Strategic Analysis Assayag, 32, responsible for strategic analysis and for Thiochemicals development projects in the thiochemicals sector. business and ambassador “Our Group has many talented engineers and for our trainees chemists, but we also need finance, business and marketing specialists. It’s important to show young graduates that all types of people have a role to play at Arkema. I’ve had a lot of feedback from students on LinkedIn saying that they’re really interested in my assignments. It’s fantastic to share this and, maybe, help them find their dream job.”

>>> 64 / Arkema - Innovative for Arkema - Innovative for / 65 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

WHAT OUR TRAINEES SUCCESSFUL HANDOVER... HAVE TO SAY ON LAND AND AT SEA “I alternate between studying at university and working at the company. It’s the perfect way into the workplace. I can get in at the deep end, really explore the subject matter and meet the people involved in chemicals today. I’ve been lucky enough to be in touch with dozens of Arkema employees all over the world. It’s incredibly rewarding. For me, a successful transfer mostly means feeling useful and seeing that you’re not just there to do the work that no one else wants to do. At Arkema, I was offered real assignments A lot of water has gone under the bridge with real goals. They let me get on with it by myself. They also gave since Quentin Vlamynck, the new Arkema 4 me room to approach other people, and that’s important in tapping skipper and the youngest in the Multi50 your potential. Here, they expect junior members of staff to come up class, enjoyed his first family sailing outings with ideas. Even if an idea is not taken up, it encourages you to step on the lake of Biscarrosse. Still passionate forward. Arkema is keen to listen to younger generations to find out about sailing regattas, he was studying at the what they think about methods and management. This is also how you Plastics and Composite Materials faculty at the can stand out yourself, provide added value and seize the opportunity Lycée Polyvalent de la Mer in Gujan-Mestras to go further with the company.” in September 2011 when he met skipper Romane Cuq, and entrepreneur Lalou Roucayrol, who was CSR project attending a conference. They hit it off. Quentin manager trainee started a work-study program at the Lalou Multi boatyard. Ten years later, they still “I’m on a work-study contract at make a great team and there’s no doubt that Arkema as part of my International Quentin is getting ready to take the helm one day. A wonderful example of mutual Business diploma at the Sorbonne University in Paris. trust and the handing down of knowledge. I didn’t qualify in chemistry, so I didn’t know much about the sector Omar Neggaz, before realizing that Arkema’s materials are part of our everyday lives. research Its innovations are closely linked to sustainable development. This technician is particularly motivating when you’re 24, like me, and I also really trainee “When I joined the Lalou Multi identify with Arkema’s international dimension. team, I had everything to learn. I have dual German and Spanish nationality. I like feeling connected “I started out as an aircraft That was what interested Lalou, being able to to the world. I find that mindset at Sartomer, where I’m in charge structure fitter-assembler at train me and pass on his view of the work and of export clients. My onboarding went really well. Demands were Airbus Nantes, in France. I then sailing. When I arrived, the Arkema 1 trimaran high but people were very supportive. I didn’t expect to be given decided to go back to university and take a Master’s was being built. Next came the Arkema 3, the first responsibility for a client portfolio so quickly but I like being challenged degree in Chemistry at the Sorbonne. At the age of 33, 6.50m prototype made from Elium® recyclable growing our talents and not just doing jobs to order. I’m currently on a Professional Master’s degree course thermoplastic resin, and Arkema 4, the new I have direct contact with dozens of clients in Switzerland and and also working at Arkema’s R&D center in Verneuil- trimaran bursting with innovation. Being a member Lalou Roucayrol, skipper and entrepreneur Germany. I help sales staff. I track orders. I work on my own, en-Halatte. I’m part of the Additives team, where I’ve of the construction team was completely part of which shows the trust the company and its employees have in me, got good managers and my work consists of carrying the job. Having that permanent contact with the and really helps me to learn and move forward.” out experiments and tests to clarify gray areas and boatyard is both enriching and humbling. Sailing gain a better understanding of our products and their is the cherry on the cake. At each stage, there are manufacture. My team is really proactive and helpful, different responsibilities. Lalou has always been and my managers are real leaders. The HR department available. He passes on everything he knows, and suggested that I take part in an onboarding webinar, doesn’t keep anything back. He taught me how to which gave me a better grasp of the various bridges be a skipper. With Arkema 4, the pressure went up between different areas and units. For example, you see a notch, but he gave me the confidence I needed. people working in production with options for moving We share the helm and everything that happens on board. Lalou is sharing more and more of the Samira Monn, into business roles. I’ve been assigned to a project that export clients gives me the opportunity to specialize in powders decisions and that’s really gratifying. I’m lucky manager trainee as well as several analytical methods and processes. to be trained by someone with a huge amount of I’m also lucky to still be in touch with one of the experience. He knows the sea and has been sailing speakers on the onboarding program, Rabi Inoubli, on multihulls for more than thirty years. At the age R&D engineer at the Lyon research center, and that of 28, I still have a lot to learn about these boats, contact is a source of valuable advice for doing which are the most sophisticated there are. Lalou my job and finding my future career path.” is coming with me on all my trips this year, so that Quentin Vlamynck, new skipper of Arkema 4 I can be completely ready for the next “Transat Jacques Vabre” race in November. There’s no set path to get there. You need to be patient and humble, focused on what you’re doing in the here and now, never give in and, bit by bit, you move forward, you grow.”

66 / Arkema - Innovative for Arkema - Innovative for / 67 Our expertise in materials science is based on a vision of progress that we want to promote as widely as possible.

L dans /Committed to la ville Equal sustainability and opportunities for girls communities with the Arkema is a partner of Sport dans la Ville, a French charity that support of our employees/ runs an “L in the City” India Arkema invests in training program specifically for women aimed at girls and young women. The program works The following are examples of actions Arkema is taking Arkema-ArrMaz A three-year training program was launched by the NGO Vibha India with more than 1,000 girls from priority neighborhoods around the world to accelerate the inclusion of women, supplies schools with with the support of our peroxide plant in India, to enable 200 young to offer pathways through sports, cultural experiences, visits provide access to education and culture for all, and pave clean drinking water women in rural areas to gain financial independence. The grant to companies, and training workshops in order to give them the same chance of success as boys. Action is taken locally the way to more sustainable development, proving that Arkema and its subsidiary ArrMaz, one provided for the opening of a sewing training center and supply of the world leaders in specialty of equipment near Cuddalore in the southern state of Tamil Nadu. by our various sites. we are serious about putting environmental and societal surfactants, have donated €50,000 to issues at the heart of our philanthropy policy. the Chinese NGO One Foundation to provide water filtration units to ten schools Arkema sponsors in priority areas of Yunnan Province. In the Théâtre des Malaysia addition to supplying the water purifiers, the project aims to raise awareness Champs-Élysées Encouraging people to of hygiene and health issues and has In France, Arkema is a reached four thousand students. Water United States Improving the lives Friend of the Théâtre recycle their “e-waste” des Champs-Élysées in As part of a partnership with Terengganu treatment and access to drinking water of the underprivileged are one of our five R&D platforms. Paris. Arkema specifically Polytechnic School, the regional Nearly 400 employees at Arkema’s eleven sites in the United States supports the theater’s programming for young people, which WWF, CIMP Bank, and the Malaysian have now responded to the appeal from United Way, an American gives disadvantaged children aged six to twelve access to music government, Arkema’s team at its Kerteh NGO taking action against poverty. Our employees have raised more and opera. The program is part of Arkema’s strategy to support plant chose to raise awareness among the than €270,000 to support various educational, vocational, healthcare, education and integration. In 2020, it allowed 12,000 children local population of provisions to recycle and financial assistance programs for underprivileged people. to experience the magic of opera. their end-of-life televisions, computers and household appliances or donate them for reuse, in line with the Group’s objectives to reduce waste and promote recycling. LISTENING TO LOCAL COMMUNITIES Through its Common Ground® program, our Group leads hundreds of initiatives around the world every year to foster dialogue with local 642The number of Common Ground® communities, institutions, schools and charities. We want to be involved in programs carried out worldwide in 2020. the communities where we operate through educational and philanthropic projects. In 2020, nearly a third of these initiatives concerned education and jobs, while 25% related to health and safety. In 2020, we partnered with 205 charities and NGOs,

in addition to 168 institutions and 139 schools and universities. growing our talents

Bostik and Ontex Donation of feminine hygiene Arkema’s international products in Zambia education fund Maydred Siamuzwe is an accountant at our subsidiary Bostik in the UK, which This fund is designed to support projects manufactures adhesives used in feminine hygiene products. When Maydred proposed by employees who volunteer learned that girls in Zambia were missing school because of lack of access to in education programs. Through these sanitary pads, she decided to collect these items for students in her hometown efforts, Arkema wants to foster employee in Zambia. This charitable initiative was soon picked up by Bostik’s non-woven engagement across all countries. Since hygiene department and its partner client Ontex, the international leader in the fund was created four years ago, personal hygiene products. Thanks to their joint efforts, one million packs of it has selected and financially supported sanitary pads have been distributed in this southern African country. 48 charitable educational projects in CGénial Promoting science 15 countries. careers among young people In France, Arkema is a partner of the CGénial Foundation for the promotion of science to high school students. The Group supports dialog with the academic sector by taking Arkema D1 takes action on breast cancer part in the various flagship programs run by the foundation, In October, players from the twelve clubs in France’s elite women’s football involving school visits by our engineers and tours of our division had extra reason to celebrate their goals. At a rate of €100 per factories for teachers. In 2020, despite the pandemic, goal, Arkema raised €10,000 for France’s “Ruban Rose” organization, more than 400 high school students enjoyed presentations which supports breast cancer research. by our volunteers in classrooms and virtual meetings.

68 / Arkema - Innovative for Arkema - Innovative for / 69 / Free cash flow Net debt including hybrid bonds Resilient financial results (in € million) (in € million) Arkema generated free cash flow of €651 million in 2020, nearly matching the excellent performance in 2019 (€667 million). 2,331 and strong non-financial 1,910

667 651 Net debt fell to €1.9 billion, performance 565 499 including hybrid bonds (€700 million), equivalent to 1.6 times EBITDA for the year.

Arkema has high ambitions for both its financial results and its social 2017 2018 2019 2020 2019 2020 and environmental performance. We have set bold targets in both these areas for 2024, 2025 and 2030. The Group’s operations and results A dividend returning have held out well during the exceptional public health and economic crises, to pre-Covid levels in 2020 2.5 2.51 2.3 2.2 while its CSR performance has continued to improve across the board. (in € per share) 2.05 1.8 1.85 1.85 1.9 1.3 1 0.6 0.6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1. Dividend recommended at the Annual Shareholders’ Meeting on May 20, 2021.

EBIDTA (in € million) ROBUST The dividend is a key component of the Group’s policy for shareholder returns. At Capital Markets Day on April 2, 2020, the Group restated And EBITDA margin (in %) its intention to gradually increase the dividend, with a target payout of 40% in 2024. The Board of Directors has decided to propose a dividend FINANCIAL EBITDA margin remained strong at 15%, backed of €2.50 per share at the Annual Shareholders’ Meeting on May 20, 2021. In addition, the Group will be implementing a share buyback by resilience in Specialty Materials. program totaling €300 million once the divestment of its PMMA business has been finalized. These provisions include returning to shareholders RESULTS the portion of the dividend (€0.50 per share) that was suspended in 2020 as a result of the pandemic. Arkema’s regional and technological 1,391 1,474 1,457 profile, coupled with the diversity 1,182 of its markets, helped it to turn in a robust financial performance for 2020 despite the global pandemic, to manage 16.7% 16.7% 16.7% 15% 17% CONSISTENT IMPROVEMENT its operations responsively as events unfolded, and to start a tangible recovery IN NON-FINANCIAL INDICATORS in sales and results in the fourth quarter. 2017 2018 2019 2020 2024 Target Through the use of precise indicators and targets, Arkema has set itself a course of continuous improvement in CSR, embodied in three commitments: SHAREHOLDER INFORMATION - offer innovation-driven, sustainable solutions; /2024 TARGET/ - manage industrial activities responsibly; / EBITDA margin of 17% - and cultivate an open dialogue with internal and external stakeholders. Revenue Its ambition is to provide its customers with sustainable, innovative solutions that help to fulfill the Sustainable Development Goals (SDGs) defined by the United Nations. (in € million) Adjusted net income Revenue fell 9.8% from the previous year, (in € million) or 8.1% at constant exchange rates, 1 - SUSTAINABLE PRODUCTS 65% And adjusted net income per share with the decline in volumes limited to 4.3%. 46% 50% (in euros) Share of revenue that has made a significant contribution 43% between €10 to the U.N.’s Sustainable Development Goals1 Adjusted net income stood at €391 million, and €11 billion 8.326 8.816 8.738 or €5.11 per share. In 2020, 50% of Arkema’s sales were connected with ImpACT+ 7.884 solutions, and the Group has set a strategic goal of raising that figure 2018 2019 2020 2030 Target 725 to 65% by 2030, as further proof of its commitment to offering 592 625 sustainable products. /2030 TARGET/65% IMPACT+ SALES €9.51 391 €7.82 €8.20 1. The share of sales making a significant contribution to the SDGs (ImpACT+) is based on an evaluation of 72% of the Group’s sales to third parties in 2020 2017 2018 2019 2020 2024 Target €5.11 and 44% in 2018 and 2019. 10% /2024 TARGET/revenue between 9% 9% Share of revenue generated from renewable feedstock €10 and €11 billion 2017 2018 2019 2020

2018 2019 2020 >>> 70 / Arkema - Innovative for Arkema - Innovative for / 71 2 - A RESPONSIBLE MANUFACTURER 3 - OPEN DIALOGUE Water (Chemical oxygen demand [COD] EFPI) Employee development Safety: Two targets Climate and environment: The improvement in COD during 2020 is the result and diversity for 2025 Four environmental of progress at wastewater treatment facilities, notably at objectives for 2020 our Carling, Saint-Auban and Pierre-Bénite sites in France. Proportion of women among senior 1.00 management and executives 0.59 Total recordable injury 0.50 0.45 0.40 In 2020 the share of women in senior management and executive rate (TRIR) per million positions across the Group was unchanged at 23%, following Climate a 2% increase in 2019 from the previous year. 2030 Target hours worked (Greenhouse gas emissions) 2012 2018 2019 2020 30% The TRIR for 2020 (including accidents among Group personnel In 2020, Arkema reduced its greenhouse gas (GHG) emissions /2030 TARGET/reduce our COD EFPI 21% 23% 23% as well as workers from contracted firms) came to 1, a very clear by 23% compared to 2015. The Group made especially by 60% from 2012 levels improvement and the lowest rate Arkema has ever recorded. Arkema’s notable progress in 2020, with emissions declining by 11% from TRIR performance ranks among the best in the chemicals industry. 2019 levels; two thirds of that reduction was achieved through voluntary actions laid out in the Group’s Climate Plan. 2018 2019 2020 2030 Target 1.4 1.3 2030 TARGET proportion of women among 1.0 / / Air senior management and executives: 30% <1.0 1.00 0.90 0.87 (Volatile organic compounds [VOC] EFPI) 0.77 0.62 VOC emissions improved in 2020 thanks to improved treatment methods at several plants, particularly the Marseille, 2018 2019 2020 2025 Target Genay and Mont sites in France. Proportion of non-French nationals among senior /2025 TARGET/achieve a TRIR <1.0 2015 2018 2019 2020 2030 Target 1.00 management and executives 0.62 0.60 0.58 0.35 /2030 TARGET/reduce our GHG emissions Consistent with Arkema’s regional growth strategy, by 38% from 2015 levels increasing the share of non-French nationals in 2012 2018 2019 2020 2030 Target its management ranks has become a major aim. This means a reduction in absolute emissions of more than

1.7 million tons of CO2 equivalent to less than 3 million tons /2030 TARGET/reduce our VOC emissions 50% Process Safety 40% 41% by 2030, whatever the increase in production volumes. EFPI by 65% from 2012 levels 39% Events Rate (PSER)

Lhe PSER is the number of process safety events per million hours 2018 2019 2020 2030 Target worked. The “energy,” “water” and “air” objectives shown below A commitment to progress that is In 2020 the PSER was 4, virtually unchanged from the three previous and opposite are defined on the basis of Environmental hailed by rating agencies /2030 TARGET/proportion of non-French years. A plan is currently being developed to define both technical Footprint Performance Indicators (EFPIs), which reflect changes nationals among senior management and human actions for reducing the PSER. in the Group’s business scope and production at its plants. and executives: 50%

4.4 3.7 4.0 <3.0 Joined the DJSI World “A” rating since 2017 Civic engagement and DJSI Europe indices; Energy bronze award, ® (Net energy purchases EFPI) The Sustainability Yearbook 2021 Number of Common Ground

2018 2019 2020 2025 Target The improvement in this indicator in 2020 reflects a positive events and initiatives worldwide performance during unfavorable conditions, given the decline in /2025 TARGET/achieve a PSER <3.0 production volumes as a result of COVID-19. 1,064 990 642 “A-” rating on climate change Listed on the Europe 120 1.00 0.91 0.90 0.88 0.80 and “B” rating on water and Eurozone 120 indices security in 2020 since 2015; added to 2018 2019 2020 the CAC 40 ESC index Common Ground® designates a range of community actions taken 2012 2018 2019 2020 2030 Target by our sites to promote open dialogue with their local stakeholders.

® /2030 TARGET/reduce our net energy There were 642 Common Ground initiatives worldwide in 2020, purchases EFPI by 20% from 2012 levels Arkema has scored among “C+” rating; Arkema ranks a decline from previous years attributable to the COVID-19 pandemic. the top 1% for companies in the top decile worldwide Nonetheless, the percentage of industrial sites that carried out in its sector since 2014; a Common Ground® initiative held steady at 78% — a testament Sustainability Performance: to community engagement at our sites. Advanced

72 / Arkema - Innovative for Arkema - Innovative for / 73 /Governance/ The oversight body Decision-making body TO STRENGTHEN ITS EXPERTISE, 12 The Executive Committee manages the operational activities of Arkema Chaired by Thierry Le Hénaff, our Board of Directors is composed of THE BOARD OF DIRECTORS HAS In fiscal year 2020, alongside Thierry Le Hénaff. Each member oversees one or more thirteen other members—seven independents, one representative of the TWO PERMANENT SPECIALIZED the Board of Directors met 1 business segments or several support functions. In 2020, three new shareholder FSP (Fonds Stratégique de Participations), one employee COMMITTEES twelve times (compared shareholder representative and two employee representatives. Seven to eight in 2019). members from inside Arkema joined the committee, including one The Audit & Accounts Committee, woman and an American national. out of fourteen members are women. composed of Marie-Ange Debon (Chair), Isabelle Boccon-Gibod (Permanent Our top decision-making and acquisitions. It also supervises Representative of Fonds Stratégique de body, the Executive Committee, the implementation of the Group’s Participations), Hélène Moreau-Leroy and 95% meets twice a month to examine strategy, monitors the business and Ian Hudson. This committee ensures the strategic issues and growth and financial performance of our different quality of internal control and the reliability The attendance rate was 95% (unchanged from 2019). development plans, including activities, and attentively tracks safety of information provided to shareholders capital expenditure, new capacity and environmental performance. and financial markets. The Nominations, In 2021, in order to Compensation & Corporate assess the contribution Governance Committee, Thierry Le Hénaff Yannick Assouad Isabelle Boccon-Gibod of Arkema’s innovations Chairman & Chief Executive Vice President permanent representative composed of Thierry Morin (Chair), Executive Officer of Thalès, in charge of the French equity fund Alexandre de Juniac and Victoire and strategy to of Arkema of Thalès Avionics FSP (Fonds Stratégique de Margerie. This committee makes environmental issues Five operational Executive and Senior Vice Presidents de Participations) implement the Executive Committee’s decisions within recommendations concerning membership and sustainable growth, the various business lines of the Board of Directors, compensation the Board of Directors policy for the Chairman and CEO, decided to set up, with and corporate governance best practices. effect from the Annual Shareholders’ Meeting on May 20, 2021, a new THREE NEW DIRECTORS IN 2021 committee for Innovation and Sustainable Growth. At their meeting on February 24, 2021, Arkema’s Board of Directors proposed that Its members will be Alexandre de Juniac Victoire de Margerie Laurent Mignon at the next Annual Shareholders’ Meeting Victoire de Margerie Thierry Le Hénaff Marc Schuller Vincent Legros Director General and CEO, Chairwoman Chairman of the on May 20, 2021, Thierry Morin, Marc Chairman & Chief Executive Chief Operating Officer, Executive Vice President, International Air Transport of Rondol Industrie Management Board, (Chair), Ian Hudson, Officer of Arkema Advanced Materials, Bostik Association (IATA) BPCE group Pandraud and Yannick Assouad, whose Isabelle Boccon-Gibod, Coating Solutions terms of office are due to expire, be Jean-Marc Bertrand and and Intermediates replaced, for a period of four years, by: These three members report to Marc Schuller Bpifrance Investissement.2 Thierry Pilenko, Management Advisor, former Executive Chairman of TechnipFMC 1. Subject to the approval by the General Bpifrance Investissement, representative Shareholders Meeting of May 20, 2021 of the fifth to seventh resolutions, the membership of the Audit of the Lac1 fund, whose permanent and Accounts Committee and the Nominations, representative is Sébastien Moynot Compensation and Corporate Governance Committee will be amended as presented in paragraphs 3.3.4.1 and 3.3.4.2 of the Document d’enregistrement Ilse Henne, member of the Executive universel 2020, respectively. Marie-Ange Debon Ian Hudson Hélène Moreau-Leroy Committee and Chief Transformation 2. Subject to its appointment as a director at the Richard Jenkins Erwoan Pezron Marie-Pierre Chevallier Annual Shareholders’ Meeting of May 20, 2021. Chairwoman of the Chairman of the Board Chairwoman and Chief Officer of the thyssenkrupp Materials For more details, refer to paragraph 7.2.2 Senior Vice President, Senior Vice President, Senior Vice President, Management Board, Keolis of Directors of Carbios Executive Officer of Hutchinson Services segment of the Document d’enregistrement universel 2020. Coating Solutions High-Performance Polymers Performance Additives

Representatives of Arkema employees Four functional Executive Vice Presidents supervise the support activities of all business lines

Thierry Morin, Marc Pandraud Nathalie Muracciole Susan Rimmer Jean-Marc Bertrand Bernard Boyer Luc Benoit-Cattin Marie-José Donsion Thierry Parmentier Chairman of TM France Vice Chairman of Investment Director representing Director representing Director representing Executive Vice Executive Vice President, Chief Financial Officer Executive Vice President, Banking for Europe, employees employees employee shareholders President, Strategy Industry & CSR Human Resources & the Middle East and Africa, Corporate Communications JP Morgan

74 / Arkema - Innovative for Arkema - Innovative for / 75 www.arkema.com

facebook.com/ArkemaGroup @Arkema_group linkedin.com/company/arkema

youtube.com/user/ArkemaTV instagram.com/arkema_group/

External Communications Division Arkema - a French société anonyme, registered in the Nanterre (France) Trade and Companies Register under the number 319 632 790 Headquarters 420 rue d'Estienne d'Orves 92700 Colombes - France Tel.: 33 (0)1 49 00 80 80 Fax.: 33 (0)1 49 00 83 76 Dircom 4733E/05.2021/20

Pubished by Arkema’s External Communications Division. Consulting, design, editorial support & production: Photo credits – Arkema, Bostik, Bruno Mazodier, Alexis Chezière, Vincent Colin, Getty Images, Agence Capa. As part of Arkema’s sustainable development process, this report is printed on PEFC-certified™ paper sourced from pulp from responsibly managed forests. The printer has been awarded the Imprim’vert® label for compliance with the French printing industry’s environmental standards.

The digital version of this document is conform to Web content accessibility standards, WCAG 2.1, and is certified ISO 14289-1. Its design enables people with motor disabilities to browse through this PDF using keyboard commands. Accessible for people with visual impairments, it has been tagged in full, so that it can be transcribed vocally by screen readers using any computer support.

Accessible PDF powered by

76 / Arkema - Innovative for