2020 SUSTAINABILITY REPORT CONTENTS About This Report This Report Describes Our 2019 Performance and Approach for Our Operations Worldwide
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2020 SUSTAINABILITY REPORT CONTENTS About this report This report describes our 2019 performance and approach for our operations worldwide. A second report covering our 2020 sustainability performance will be published in the second half of 2021. This report is aligned with the Global Reporting Initiative (GRI) framework (Core option) and was prepared with the support of Quantis, a global sustainability consulting group. It focuses on the issues most material to our company and our stakeholders. The data collected provides information for 2019 across all INEOS businesses worldwide. The 2021 report will cover our 2020 data highlight and our roadmaps towards staying ahead of the curve and net zero 2050. Any questions and/or feedback regarding this report should be directed to [email protected]. INEOS | 2020 SUSTAINABILITY REPORT 2 1.0 GENERAL OVERVIEW INEOS | 2020 SUSTAINABILITY REPORT 3 1.1 TACKLING GLOBAL CHALLENGES "INEOS commits to achieving net zero emissions by 2050" Following the Paris Climate As part of this effort, we are also • lighter energy-saving materials Agreement of 2015, most nation investing in new products and for transport and mobility, states have set the goal of achieving technologies to drive the industry • affordable clothing and apparel, a net zero emission economy by to a circular economy in which • construction and transmission 2050, and are adopting regulations materials are re-used to the maximum of water and gases, and legislation to support this. extent, and no products, once used, • electrical insulation, enter the natural environment. In response, INEOS businesses have We have outlined many of the • household and electrical goods. put in place roadmaps to lead the actions already being taken in the Our products are essential because, transition to a net zero economy in accompanying website pages. based on performance, affordability, and our industry by no later than 2050, environmental footprint, they are the best whilst remaining profitable, and The products we make are essential available materials for the applications staying ahead of evolving regulations for a myriad of applications upon concerned. In some cases, especially and legislation. Based on these which society relies. That is why in the medical sphere, they are the only roadmaps, we are setting ambitious governments worldwide regard available materials. INEOS is part of the but achievable targets for 2030 which the industry as a critical sector, solution to the challenges world faces, are in line with our 2050 commitment. as we have seen during the and we look forward to achieving a net We expect to publish these shortly. recent pandemic. The range of zero economy whilst continuing to deliver applications includes the following: products which are essential to society. Actions and improvements are already • health and medical devices, in hand. We will reduce like-for-like • clean water, emissions by 10% by no later than 2025, and we are investing over three • food conservation and preservation, billion euros over the next five years • renewable energy technologies, to reduce our footprint further. Sir Jim Ratcliffe INEOS | 2020 SUSTAINABILITY REPORT 4 1.2 VIEWS FROM OUR CEOs Since the dawn of time, We are committed to staying Most people used to look The hydrogen economy will play chemistry has played a key role ahead of EU climate and energy at recycled materials as an a crucial role in helping our in society. Our products enhance targets in the drive towards net zero inferior and cheaper alternative planet achieve climate and resource almost every aspect of modern greenhouse gas emissions. Across to virgin material, but now they’re neutrality. INEOS is aiming to life. Our industry is the cradle of Europe and worldwide, our sites are seeing them as an integral part of contribute not only by decarbonising industrialisation, prosperity and preparing roadmaps to tackle the the solution. Plastics are a valuable energy for its existing operations, but innovation, valuing the triple bottom grand challenges we face today, as the resource. They should not end up also by providing hydrogen that will line: people, planet, profit - and adding chemical industry transitions towards in a landfill or in the ocean. help other businesses and sectors do passion! INEOS aims to be the bridge climate and resource neutrality. the same. INEOS is uniquely placed that enables society to keep running KEVIN MCQUADE to play a leading role in developing today, while creating innovations HANS CASIER Chairman these new opportunities, driven by needed for the future. CEO INEOS Styrolution emerging demand for affordable, INEOS Phenol & INEOS Nitriles low carbon energy sources, combined TOM CROTTY with our existing capabilities in Director Corporate Affairs operating large-scale electrolysis. INEOS Group GEIR TUFT CEO INOVYN INEOS | 2020 SUSTAINABILITY REPORT 5 1.3 OUR COMMITMENT TO SUSTAINABILITY For INEOS, sustainability is fundamental to how we do business. It is a key driver of innovation in meeting the challenges associated with evolving societal needs. Our approach to sustainability encompasses 6 key areas around which our report is organised. Our sustainability strategy is to develop and safely manufacture the products needed to address the evolving challenges of climate change, public health, resource scarcity, urbanisation and waste in a way which drives us all towards a net zero emission economy by 2050. We will do so whilst reducing the impact of our operations. INEOS businesses have put in place the plans and actions needed to ensure that they transition to a net zero economy by no later than 2050, whilst remaining profitable, and staying ahead of evolving regulations and legislation. INEOS | 2020 SUSTAINABILITY REPORT 6 Grangemouth Köln 1.4 Lavéra INEOS AT A GLANCEChocolate Bayou INEOS is a global manufacturer of Global reach petrochemicals, speciality chemicals and oil products. Comprising 36 Manufacturing sites (93) individual businesses, we operate JV sites (85) Grangemouth 194 facilities in 29 countries. In Oil & Gas sites (16) recent years our scope of operations has diversified with the launch of INEOS Automotive and INEOS Hygienics, the acquisition of iconic British brand Belstaff and an ever- Köln expanding sports portfolio. We offer a blend of opportunism, belief that we can add value, pursuit of our core values and passion for adventure. INEOS’ headquarters are located in London, UK. Lavéra Chocolate Bayou Manufacturing sites (93) JV sites (85) Oil & Gas sites (16) Turnover Employees Production Sites Countries $61bn 26,000 54m tonnes 194 29 INEOS | 2020 SUSTAINABILITY REPORT 7 1.5 OUR STRUCTURE INEOS is led by its founder and INEOS chairman Sir Jim Ratcliffe and co- Partners owners Andy Currie and John Reece. INEOS PETROINEOS We operate a federal structure based AG JV on clear reporting lines and direct INEOS accountability. Each INEOS business INEOS INEOS O&P INEOS INEOS Group INEOS Football Belstaff Industries Europe South ETB Holdings SA Enterprises has its own executive board (CEO, CFO, Holdings operations, business, purchasing and HR directors) which is responsible INEOS INEOS INEOS INEOS O&P INEOS INEOS INEOS INEOS INEOS INEOS INEOS INEOS Oil & Gas Energy Trading Quattro Europe UK Automotive Sports Europe AG Composites Solvents Hygienics Intermediates Pigments for all functions. These include business management, operations, INEOS INEOS O&G INEOS O&P INEOS O&P INEOS C2 INEOS C3 INEOS Polymers INEOS Polyolefin Scandinavia INOVYN Europe North USA Derivatives Derivatives Engineering & Compounds procurement, IT, HR, communications, Tech Support Catalysts banking, legal and tax. INEOS business INEOS O&G INEOS INEOS UK Styrolution INEOS Trading WL INEOS INEOS Joliet executive boards are fully accountable & Shipping Plastics Oxide Phenol for the management of their business INEOS O&G INEOS INEOS FPS Acetyls INEOS INEOS Calabrian and strategy in its entirety. INEOS Oligomers Nitriles shareholders chair the executive INEOS INEOS Aromatics Sulphur committee meetings for each top company joint venture holding company INEOS business consumer businesses and sports Chemicals business regularly throughout the year, providing crucial oversight of in organisations of comparable the operation of each business. size. The federated structure and minimal hierarchy encourages an The INEOS central office function is agile organisation in which internal extremely lean, with around 40 people communications and decision- compared with typically hundreds making happen quickly. INEOS | 2020 SUSTAINABILITY REPORT 8 1.5 Our structure | continued Strategies such as safety, health and Each business determines its own business opportunities and innovation. the half-yearly meetings bringing environment (SHE) and IT security sustainability strategy. Group-wide, The network covers greenhouse gas together all business CEOs. Every are governed at a group level and this is coordinated through the climate (GHG) emissions, heat and power, year, the CEO of each INEOS business implemented by each business. Safety, and energy network (CEN). The CEN sustainability, innovation, policy, ensures the compliance of each of health and environmental performance works with all INEOS businesses on advocacy and more. their manufacturing sites with INEOS’ are our highest priorities and are climate and energy matters. CEN ‘issue highest operational and financial reported upon at the beginning of teams’ work at the policy and advocacy Updates from the CEN and SHE standards.