Sustainability Report Executive Summary 2020
r E la con cu o ir m C y
eutrali N ty n o b r
a C g & Em in p e o b w - l e
l r
e m
e W n Committed Towards t
A Sustainable Future H
e
a l t h &
S a f e t y
e
t
s
a
W
R
e c
i c t y s c a l i l ucts for n g P d S t o E n d ro o P c i t e
a t y
e
r G
Scan to read INDORAMA VENTURES PUBLIC COMPANY LIMITED Sustainability Report Executive Summary 2020 For More Key Sustainability Achievements 2020 Information
• Indorama Ventures was recognized in SAM’s • Indorama Ventures improved its ESG Sustainability Yearbook 2021 with the Silver rating from BB to BBB in 2020. Class distinction and was listed in the Dow Jones Sustainability Indices (DJSI) - World and Emerging Markets. We were ranked third among 115 of the world’s • Indorama Ventures achieved a B Rating leading sustainable chemical companies. • in the CDP’s Climate Change Assessment in 2020.
• In 2020, Indorama Ventures remained at the Gold Level, recognized as one of the top 2% of companies (98th percentile) rated by EcoVadis in Sustainalytics assessed IVL as a leader in the manufacture of basic chemicals. • ESG the chemicals industry placing the company INDUSTRY TOP RATED 7th out of 202 companies, as per their report in January 2021. for 2nd consecutive year • Indorama Ventures remained a constituent of the FTSE4Good Index Series following the October 2020 index review, achieving the top rank among chemical companies • Indorama Ventures was awarded “Best Regional globally (scoring 4.6 out of 5). Loan” in the manufacturing sector for its US$300 million Blue Loan – the first of its kind • We received a Best ESG score standing at the granted to a plastic resin manufacturer. top of the group with a 100th percentile rank.
Indorama Ventures PCL. 2 Vision - To be a world-class sustainable chemical company making great products for society. Table of Contents Group CEO Message 4 Chief Strategy Officer Message 5 Chief Sustainability Officer Message 6 IVL at a Glance 7 Sustainability Strategy 8 Sustainability Framework 9 Climate Change Strategy 10 Our Sustainability Ambitions Towards Carbon Neutrality 11 Value Creation Model 12 Our Contributions to the UN SDGs 14 Response to the COVID-19 Pandemic 15
Responsible and Effective Governance 16
Corporate Governance 17
Driving Sustainable Growth 18 Circular Economy Thought Leadership 19 Driving Circularity Through Recycling 20 Innovation-Driven Growth 21 Safe and Sustainable Products 22 Creating Strong Customer Relationships 23
Towards Carbon Neutrality 24 Energy Management 25 GHG Management 26 Water Management 27 Waste Management 28 Operational Excellence Awards 29
Empowering Our People and Communities 30 Giving Back to Our Communities 31 Recycling Education 32 Investing in Our People 33 Ensuring a Safe and Conducive Workplace 34
Sustainability Report Executive Summary 2020 3 For full Group CEO Message message
“An even stronger focus on sustainability is necessary as we navigate through the pandemic and its uncertainties.”
In light of COVID-19, sustainability means being resilient and agile in response to adverse events, working in partnership with others, and focusing ever more closely on health, safety and well-being.
Aloke Lohia Group Chief Executive Officer
Indorama Ventures PCL. 4 Vision - To be a world-class sustainable chemical company making great products for society. For full Chief Strategy Officer Message message
“At Indorama Ventures, we believe that sustainability is a source of our competitive advantage contributing to our long-term growth.”
Udey Paul Singh Gill Chief Strategy Officer
Sustainability Report Executive Summary 2020 5 For full Chief Sustainability Officer Message message
“Our business potential and resilience is tied to our environmental responsibility and social empowerment.”
We see sustainability as a transformative journey that demands constant and continuous improvements, and IVL intends on being a thought leader delivering a more sustainable and circular ecosystem in the future.
Yash Lohia Chief Sustainability Officer
Indorama Ventures PCL. 6 Vision - To be a world-class sustainable chemical company making great products for society. For More IVL at a Glance Information
Europe IVL Operations • Austria • Italy • Slovakia • Bulgaria • Lithuania • Spain As of 31 December 2020 North America • Denmark • Luxembourg • The Czech Republic • France • Poland • The Netherlands 123* 6 • Canada • • • Sites Continents • Mexico Germany Portugal Turkey • • • • The United States Ireland Russia The United Kingdom
33 15 3 18 Countries Recycling facilities 7 Asia 3 • China * The Sustainability Report 2020 consists of data from 107 sites. 1 • India Further details are provided under ‘About This Report’ in the full • Indonesia Sustainability Report. 1 South America • Israel • Myanmar • Brazil Oceania Africa • The Philippines • Australia • Thailand • Egypt • Ghana Business Segments • Nigeria
Combined PET Fibers Integrated Oxides and Derivatives
Sustainability Report Executive Summary 2020 7 For More Sustainability Strategy Information
Our Sustainability Strategy focuses on the three core elements necessary to meet our 2025 targets – protecting the environment through responsible operations, empowering our people and transferring value to our stakeholders, and driving economic prosperity ethically and innovatively.
Environment – Responsible Operations • LOW C EING ARB -B ON ELL P Our operations and products are focused on being environmentally- W • RO ND ER RE D A Y SO UC Y LO U T friendly, contributing to the circular economy, minimizing resource T P RC S FE EM E A D R • S E E C , IR ENT • OPER D consumption and reducing emissions to fight climate change, and H GEM A U L T M A TIO C IM L NG N D E A T A A R MENT L I A E OP • RE E O T contributing to the circular economy. E LD EL N C E H • O EV EW O N H D A - P T X E L B E R S A F E K T L F O U A I E • D T P R IC B A P T S E I E N C S E R O I O C • N E R N S U C F T A E I S N N R E • Y O E V C O M R I I U E N N T R R S Social – Empowerment Culture I L S H • O E R C P A C E D E • I P T N • • A
D S A O C M Y R C R U R Our respect for human rights, engagement and investments in A T H B E P I E P E O O R E C F
L
P
S H S
C
N
T N Y A
L
T To be a world-class
S
G
C
H
I U
capacity building, and creating shared value for our stakeholders I
F
H E
T
L
L O &
G sustainable chemical
R
H
I
I
A G
N
S
O R
H company making •
U
T R
G
L T
demonstrates our commitment to achieving long-term success. N great products
P
O
KEY PILLARS E A
A
R
E C H for society
I
M
T
H N
O
U
• • T
H N •
G STRATEGIES O
O CE M • V N Y Governance – Business Potential C ERNA • O S R Y U C N OUTCOMES S PO N TA R E IO I A R T Our business is based on our integrity and ethical principles, N TE PA ZA A G S LI BL O AN A E VER & TR IT OP NANCE, ETHICS IG driving customer experiences through our innovative products ERA D TION N • and moving forward in meeting societal needs for sustainable S • INNOVATIO • R TY growth and leadership. E UI V N EN • IN EX TI UE NO IND N /E VATION/ VITALITY CO BITD ESS A/ USIN PROFIT GROWTH • B
Indorama Ventures PCL. 8 Vision - To be a world-class sustainable chemical company making great products for society. For More Sustainability Framework Information
Vision To be a world-class sustainable chemical company making great products for society
"Always "Honesty in "Collaborative & "Visionary "Adaptive Values evidence-based" everything" Innovative" leadership" mind-set"
Carbon Neutrality Improving Lives Trusted Partner Aspirations to sustain our world and business through sustainable and affordable products to the global community
Thought Leadership Global-Local Circular Approach Early Adopter ESG Best-in-Class Differentiators on sustainability and close proximity to improving circularity bringing innovation investing in a the circular economy stakeholders in IVL’s value chain to our operations sustainable business
Must do Thrusts - Sustainable growth Enabler
Strategic Stakeholder Recycling Efficiency Measurable Education Engagement Building the recycling Efficient use of resources, Understanding what Scaling our education priorities Aligning our actions infrastructure the world delivering sustainability will be covered in our programs while responsibly and in a way needs to deliver a goals and ROCE, and sustainable commitments leveraging our that benefits society circular economy energy transition/waste and how our products extensive global to resources improve society footprint
Recycling 750 kt IVL goals shared and Towards External Educate 1,000,000 (50 bn) PET bottles Metrics adopted by society carbon neutrality validation consumers by 2030 p.a. by 2025
Sustainability Report Executive Summary 2020 9 For More Climate Change Strategy Information Climate change is one of the biggest challenges we face. Climate Strategy 2025 As a business, IVL has a vital role to play. We recognize these risks and are committed to taking action. Our Climate Pillars Strategies Outputs Strategy 2025 focuses on better use of natural resources, Upstream & Downstream Integration • Increase in the use of post-consumer support for the circular economy, climate change resilience recycled materials and efficiencies across processes and operations. Process/Product Climate Innovation • 5% reduction in energy intensity Efficiency by 2025*
Recycled Raw Materials • Reduction in the use of virgin raw materials Renewable and Low Carbon Energy • Renewable electricity consumption: Our Ambitions 10% by 2025 and 25% by 2030 Low Carbon Products • 10% reduction in combined GHG Carbon • Operational eco-efficiency improvements Natural (Scope 1&2) intensity by 2025* reduction • Target setting together with energy Resources consumption and GHG emissions Water and Wastewater Management • 10% reduction in water intensity by 2025* Renewable Increasing the consumption of renewable Shadow Carbon Pricing • Address climate-related risks electricity electricity, both onsite (rooftop and ground mounting) and offsite (virtual Water Risk Analysis • Integrating ESG and carbon pricing power purchase agreements) into business decisions Climate Change TCFD Framework Resilience Scenario Analysis Climate • Internal shadow carbon pricing Waste Management • Reduce, recycle, reuse strategy • Emissions trading scheme (ETS) Sustainable Supply Chain • Reduction in the consumption of • Water stress analysis by WRI natural resources Responsible Consumption • Reduction in PET waste Science- Working on setting up Science-Based Circular Based Targets Targets (SBTs) Economy Engagement with Stakeholders • Recycling education
* Base year 2020
Indorama Ventures PCL. 10 Vision - To be a world-class sustainable chemical company making great products for society. For More Our Sustainability Ambitions Towards Carbon Neutrality Information Focusing on short and medium-term targets We are reducing GHG emissions by utilizing renewable energy, implementing energy efficiency projects and reducing energy consumption in every country where we operate. We also support the Paris Climate Agreement for which many countries have pledged to reduce their GHG emissions through nationally determined contributions (NDCs). We set the following key sustainability ambitions for 2025-2030:
Sustainability Investments Energy* US$1.5 billion investments 5% reduction in energy intensity by 2025 for sustainability objectives
Recycling GHG* 10% reduction in combined GHG 2025 Global Commitment (Scope 1 & 2) intensity by 2025 • Recycling 750,000 tons of post-consumer PET materials as feedstock into our polyester Waste production per year 90% waste diverted from landfill • Recycling 50 billion bottles per year by 2025
Renewable Electricity 10% by 2025 Circular Economy 25% by 2030 • Integrating the circular economy concept into IVL’s operations • Partnering with organizations to intensify our contributions to Water* the circular economy 10% reduction in water intensity by 2025 Contributing to the
* Base year 2020 Sustainability Report Executive Summary 2020 11 Value Creation Model
As we enter the tenth year of sustainability reporting, we INPUT FOCUS OUTPUT OUTCOME IMPACT have adopted the International Financial Capital Integrated Reporting Council Financial Capital Our Vision Revenue = US$10,594 million US$4,515 million in total equity To be a world-class sustainable chemical company (IIRC)’s International Integrated Core EBITDA = US$1,114 million US$3,990 million in current assets making great products for society Reporting
Human Capital Human Capital A highly qualified, experienced and diverse board 91.51% overall retention rate 25,207 total workforce 22% female 429,886 training hours 0.91 cases per 200,000 man-hours in TRIR US$2,070,050 total training cost 0.48 cases per 200,000 man-hours in LTIFR Social and Relationship Capital Social and Relationship Capital 86.16% overall Customer Satisfaction Index (CSI) US$1.09 million CSR contributions 92% overall Customer Retention Rate (CRR) COVID-19 Fund 585 CSR activities Intellectual Capital Intellectual Capital US$19.2 million in R&D spending 35% vitality index in Specialty PET Business 173 R&D employees 23% vitality index in Fibers Business Indorama Ventures PCL. 17 R&D centers 94 Patents 12 Vision - To be a world-class sustainable chemical company making great products for society. For More Value Creation Model (cont’d) Information INPUT FOCUS OUTPUT OUTCOME IMPACT
Financial Capital Financial Capital Our Vision Total production volume Better Growth 13.72 million tons Revenue = US$10,594 million US$4,515 million in total equity To be a world-class sustainable chemical company (excluding inter-company sales) Core EBITDA = US$1,114 million US$3,990 million in current assets making great products for society 15.55 million tons Core Earning Per Share (EPS) = THB 1.01 Our Mission (including inter-company sales) Manufactured Capital Manufactured Capital Flake Production = 155,586 tons 123 sites in 33 countries in 6 continents including We commit to be a responsible industry leader IOD Business rPET production = 41 kt leveraging on the excellence of our people, processes, Contributing to SDGs 15 recycling facilities 10.1 billion PET bottles recycled and technologies to create values for our stakeholders. Production volume = 1.98 million tons Core EBITDA = US$105 million Natural Capital Natural Capital 3% reduction in total energy intensity Better Environment Combined PET Business compared with 2019 reporting scope Raw materials consumption = 15.02 million tons 5.6% reduction in combined GHG (Scope 1&2) intensity Energy consumption = 104.7 million GJ Production volume = 10.17 million tons compared with 2019 reporting scope Water consumption = 82.5 million m3 Core EBITDA = US$794 million 10% reduction in total water intensity Renewable energy = 1.77 million GJ compared with 2019 reporting scope 17% reduction in total hazardous waste intensity Fibers Business compared with 2019 reporting scope Contributing to SDGs Production volume = 1.57 million tons Human Capital Human Capital Core EBITDA = US$195 million A highly qualified, experienced and diverse board 91.51% overall retention rate 25,207 total workforce 22% female Better Life 429,886 training hours 0.91 cases per 200,000 man-hours in TRIR US$2,070,050 total training cost 0.48 cases per 200,000 man-hours in LTIFR Social and Relationship Capital Social and Relationship Capital 86.16% overall Customer Satisfaction Index (CSI) US$1.09 million CSR contributions 92% overall Customer Retention Rate (CRR) COVID-19 Fund 585 CSR activities Contributing to SDGs Intellectual Capital Intellectual Capital US$19.2 million in R&D spending 35% vitality index in Specialty PET Business 173 R&D employees 23% vitality index in Fibers Business 17 R&D centers 94 Patents Sustainability Report Executive Summary 2020 13 For More Our Contributions to the UN SDGs Information
With a strong focus on creating value for the 3Ps - People, Planet and Prosperity, we continue to support and contribute to the UN SDGs.
Recycling and Circular Economy Climate Change and Energy
Bringing customers into the product Being fully aligned with global initiatives that value chain cycle and developing ways develop strong low-carbon strategies. to support the circular economy.
Recycling Industry Recycling Renewable Science-Based GHG Reduction & Commitment Partnerships Education Energy Target (SBTs) Energy Efficiency
Environmental Stewardship Health, Safety and Well-being CSR and Collaborations
Improving resource efficiencies and ensuring Guaranteeing that health and safety are at Making Recycling Education a global that our production is environmentally-friendly. the forefront of our activities. program and collaborating to have further positive impacts on society.
Water Stress Waste Diverted Plastic Bottle Safe Human Rights Process Analysis from Landfill Collection Workplace Protection Safety Knowledge Environment Well-being
Indorama Ventures PCL. 14 Vision - To be a world-class sustainable chemical company making great products for society. For More Response to the COVID-19 Pandemic Information
The COVID-19 pandemic in 2020 had an unprecedented impact around the world and challenged our ability at all levels to ensure the safety and well-being of our stakeholders across our value chain while maintaining business resilience. However, our decade-long effort at embedding sustainability in IVL allowed us to successfully navigate its effects of the pandemic.
Three ambulances donated Masks donated to in Indonesia to support communities around COVID-19 emergency response. the world.
Employee Care Business Continuity Contributions to Society
Contributions through IVL’s COVID-19 Fund (US$1.88 million) Support for 135 organizations in 29 countries
63% 3% 24% Communities 10% Others 30% PPE supply Asia Food, beverages, clothing 23% and essentials Hospitals 27% Medical 45% equipment 30% 31% Sanitizer EMEA Americas 14% Charitable IVL and partner organizations produced and donated organizations 20,000 PPE suits to more than 200 hospitals for use by * Data as of December 2020, % of total contributions. doctors and dentists in Thailand.
Sustainability Report Executive Summary 2020 15 RESPONSIBLE AND EFFECTIVE GOVERNANCE
IVL recorded organic volume growth of 5% and total volume growth of 18% despite the COVID-19 pandemic. This success was driven in part by our effective leadership team and our focus on sustainability.
Production Revenue Core EBITDA +11% 13.72 US$10,594 -7% US$1,114 -3% million tons million million
Core Net Profit Operating Cash Flow after Tax and NCI +6% US$1,388 US$205 -47% million million
Core Earnings per Share - 0.95 TRIS AA- THB 1.01 Rating
Indorama Ventures PCL. 16 Vision - To be a world-class sustainable chemical company making great products for society. For More Corporate Governance Information
RESPONSIBLE AND Corporate Governance encompasses the policies, people, processes and expectations that EFFECTIVE GOVERNANCE IVL and its our subsidiaries adhere to on a daily basis, across the world. Rooted in our Vision, Mission and Values, and overseen by our Board of Directors, our Corporate Governance system 2020 Highlights is the foundation of our daily actions. It holds us accountable and ensures that we do business the right way. In 2020, we improved diversity by appointing an independent female director to the board, in line with 100% Directors on the Nomination, IVL’s gender diversity agenda. independent Compensation and Corporate Directors on the Governance Committee (NCCG 81% of our sites completed training NCCG Committee Committee) are 100% independent. of our new Corporate Governance Manual.
Anti-Corruption Training to IVL received an “Excellent - 5 Star” 86% of our employees. CG score by the Thai Institute No penalties were imposed on IVL of Directors (IOD) for the eighth consecutive year. for material non-compliance with respect to corporate governance regulations.
IVL successfully renewed its certification with Thailand’s IVL was one of the recipients of Private Sector Coalition Against the Asset Class PLC award for Corruption (CAC) in May 2018, The Whistleblower Reporting the 2019 ASEAN CG Scorecard having been first certified in Channel is an independent site (ACGS) announced in 2020. October 2014. offering an easier and secure way to communicate.
Sustainability Report Executive Summary 2020 17 DRIVING SUSTAINABLE GROWTH
Our Ambitions for Better Sustainable Growth
Short-Term Medium-Term Long-Term (2021–2024) (2025) (2050) • Vitality Index • 750,000 tons of total • Towards A Circular Economy 34% for the Specialty PET post- consumer PET as by : business and feedstock into our - developing partnerships 22% for the Fibers business polyester production with external in 2021 per year associations and • Customer Satisfaction • To recycle 50 billion organizations Index (CSI) ≥ 86.0% bottles per year - becoming a circular in 2021 • US$1.5 billion sustainable economy thought leader • Leading rPET player investments for - innovating sustainable in core markets sustainability objectives products serving • 7% revenue from low customers’ needs carbon products - diverting plastic waste from the environment and oceans
Indorama Ventures PCL. 18 Vision - To be a world-class sustainable chemical company making great products for society. For More Circular Economy Thought Leadership Information
As the largest virgin PET producer, we strive to be a leader that promotes concepts of circularity to achieve our 2025 recycling targets with a broader aim of creating a better tomorrow. One of our key drivers in becoming a circular economy thought leader is by engaging in meaningful collaborations with our industry partners to push our capacity for innovations and to drive increased demand for rPET.
DESIGN
SOURC WE E
P
E R
L O
C
D
Y
U
C
C
E
T
R
I
O E
N W Indorama Ventures is a member of the Circular Economy Accelerator: A Recycling P E O E Partnership Initiative. We are increasing our recycling efforts by placing curbside P L E S U M CO N collection carts in multi-family residential complexes to further extended producer responsibility (EPR) initiatives with the US government.
Overall Goals • Bring curbside recycling of films and flexibles to more residents • Increase demand to support end markets • Achieve a 30% recovery rate in line with the EMF’s definition of recyclable
Sustainability Report Executive Summary 2020 19 For More Driving Circularity Information Through Recycling
With a worldwide footprint, we are driving real change in recycling and constantly looking to increase our recycling capacity and efficiency to achieve our goal of becoming a circular economy thought leader.
Our Recycling Strategy 2020 Highlight • Strengthening our global recycling capabilities • Contributing to a circular economy • Ensuring a fully closed loop
Post-Consumer PET bottles recycled Recycled almost 58 billion PET bottles AND (10.1 billion in 2020) 222,288 206,996 Coca-Cola Beverages Philippines, Inc. (CCBPI), Reduced almost the Bottling arm of Coca-Cola in the country, 143,507 1.9 million tons and Indorama Ventures signed a joint-venture 128,890 of carbon footprint in their life cycle Recycling agreement to establish PETValue, the largest 109,446 2011- 2020 state-of-the-art, bottle-to-bottle recycling facility in the Philippines. 3,576 Avoided almost 1.3 million tons PETValue will ensure that used PET plastic bottles of plastic waste to landfill that are 100% recyclable, and therefore not 2011 2012 2015 2017 2019 2020 “single-use,” are given new life and used again Unit: Tons and again within a circular economy. The plant’s projected capacity is 30,000 MT/year of flakes DejaTM Brand - Always striving to close the loop, our range of which will recycle almost two billion plastic bottles DejaTM sustainable rPET/rPET blend flakes, pellets, fibers and with an output of 16,000 MT/year of recycled filaments are made to be remade again. PET resin in the first phase. A second extruder will subsequently be installed to consume the remaining quantities of flakes. Indorama Ventures PCL. 20 Vision - To be a world-class sustainable chemical company making great products for society. For More Innovation-Driven Growth Information
Innovation drives growth and is vital for the long-term sustainability of our business. Being innovative means foreseeing market demands, creating cutting-edge products, 2020 Highlights encouraging creativity in our workforce and investing significantly in research and 2020 Highlight development (R&D). US$19.2 million in R&D Spending It also means ensuring that our processes and solutions meet environmental needs 173 R&D Employees and are in line with our Sustainability Strategy. We adopted six categories: product innovation, process innovation, environmental innovation, open innovation and internal 17 R&D Centers and external collaborations. 94 Patents in 2020 (applied and granted) out of overall 884 patents
Vitality Index* Over 300 Collaborative Projects
Wellman HealthGuard® AMIC
Fibers Business Specialty PET Business To meet consumer demand for viral protection, Wellman International has joined 2020 2021 2020 2021 forces with the HealthGuard Corporation, to Actual Actual 35% develop a range of antiviral, antimicrobial 23% Target Target 22% 34% and anti-bacterial polyester staple fibers. Target 22% Target 34% Our fibers, when treated with HealthGuard® AMIC, mitigate the transmission of the SARS-CoV-2 (COVID-19) virus. * Vitality Index: Revenue generated from the sales of products developed during the last five years.
Sustainability Report Executive Summary 2020 21 For More Safe and Sustainable Products Information
To lower our environmental impact, we design, develop and deliver products that adhere to the most stringent quality and sustainability standards. From the responsible sourcing of raw materials to maintaining efficient systems and investing in the full life cycle impacts of our products, we continue to grow sustainably and with a focus on safety.
Product Regulatory Resources Compliance Lightweighting Design (Renewable energy, Bio-based (FDA, REACH, SIN list, Water) Toxicity & Downgauging Criteria SVHC list)
Transportation Biodegradability Use Phase Impacts Efficiency & Composability End of Life Management
Product Safety Mechanisms Management of Hazardous Product Compliance Risk Characterization (PCRC) Process Chemicals/Substances
The PCRC process includes raw material assessments An improved approach and targets are set Assessment conducted Customer inputs covering manufacturing to phase out at risk chemical substances. on 100% of our collected to obtain hazards and product products for potential downstream compliance (chemical environmental and application registration and food human health impacts. information. safety) with a focus on Products across the portfolios are assessed new formulations in for challenged chemicals or substances. targeted markets.
Indorama Ventures PCL. 22 Vision - To be a world-class sustainable chemical company making great products for society. For More Creating Strong Customer Relationships Information
As stated in our values, the customer is why we exist. We offer our customers world-class products of the highest quality and seek continuous improvements in how we deliver our services. In addition to strengthening relationships on an ongoing and daily basis, we actively seek feedback via tools such as the Customer Satisfaction Index (CSI), Customer Retention Rate (CRR), the Net Promoter Score (NPS), and comprehensively integrate recommendations. We will continue to place the customer at the heart of how we run our business.
IVL Products End uses and IVL CoMa share2 2020 Target : 2020 Actual : IVL overall IVL CoMa share3 IVL Overall CSI > 86% PET, PTA, EG F&B Packaging 48% CSI CRR NPS 86.16% 92% 57
PET, PEO, Surf., HPC & Hygiene1 20% Hygiene Fibers
CSI 86.51% CSI 85.86% Oxyfuels, Surfactants Oil & Gas 1% Business Segments CRR 95% CRR 93% Mobility Fibers, Customer satisfaction PET Fibers Lifestyle Fibers Automotive parts 10% measurement covered CSI 88.35% CSI 84.76% 100% of global operations CRR 93% CRR 85% Lifestyle Fibers Apparel 6% Feedstocks IOD Lifestyle Fibers, Housing & Construction 5% PO, PEO CSI 84.81% CSI 85.67% CSI 87.13% CRR 94% CRR 93% CRR 91% PET, NDC Electrical & Electronics 3% Packaging Wool Recycling
Notes: (1) Home, Personal Care and Hygiene products; hygiene products include baby diapers, adult incontinent, feminine care products, disposable wipes, as well as medical applications (e.g., masks and gowns). (2) CoMa (Contribution Margin) based on IVL 2020A; above end-market represents 94% of IVL’s portfolio. 2021/2022 Target (3) 2020A IVL Overall CSI > 86% Sustainability Report Executive Summary 2020 23 24 Vision - To beaworld-class sustainable chemical Indorama Ventures PCL. TOWARDS CARBON NEUTRALITY company making great products for society. • • • non- compliance environmental of No majorcases emissions target theScope 3GHG Set Targets (SBTs) Science-Based Set Short-Term Our AmbitionsOur for Environment aBetter for thePlanet (2021–2024) • • • • • * Baseyear 2020 landfill 90% waste from diverted intensity* inwater10% reduction intensity* inenergy5% reduction 25% by 2030 10% by 2025and Renewable electricity intensity* GHG (Scope 1and2) incombined10% reduction Medium-Term (2025) • • by : by Towards Carbon Neutrality Towards ACircular Economy optimizingnatural - continuously reducing - resource consumption > procuring renewable > improving operational footprintour carbon Long-Term intensive energy and low carbon eco-efficiency (2050)
72% For More Energy Management Information
TOWARDS CARBON NEUTRALITY Our key strategies to become carbon neutral include actively reducing our reliance on conventional energy, increasing the renewable energy utilization mix in our day-to-day operations, and improving operational eco-efficiencies.
Total Energy Consumption Total Renewable Energy Consumption 2020 Highlights
6.73 5.75 • 3% reduction in total energy intensity 5.50 5.29 compared with 2019 reporting scope 2,754,247 5.58 2,575,967 2,587,557 increase in biogas consumption 104,724,983 15% • 8% 19% 17% 1,767,434 73,452,756 33% 25% 33% 55,070,650 59,984,718 25%
35% 72,190,776 48% 52% 58% 40%
2017 2018 2019 2020 2017 2018 2019 2020
Total consumption (GJ) - 2020 Reporting Scope (107 sites) Total Renewable Biogas (GJ) UAB Orion Global PET, our subsidiary in Lithuania, Total consumption (GJ) - 2019 Reporting Scope (94 sites) Total Renewable Biomass (GJ) installed a solar power plant in place of a fence, Total Renewable Electricity (GJ) Intensity (GJ / ton of production) - 2020 Reporting Scope (107 sites) which performs the dual functions of marking the Intensity (GJ / ton of production) - 2019 Reporting Scope (94 sites) boundary and generating 55.82 MWh of electricity Note: Intensities are calculated based on overall production including inter-company sales. per year bringing total solar energy capacity at 2020 energy has increased as IVL acquired cracker plants, which resulted in higher energy consumption. the site to 390,000 kWh.
2025 Target 2030 Target 2013-2020 Progress 5% reduction in energy intensity* 25% renewable electricity consumption 4% reduction in energy intensity * Base year 2020 10% renewable electricity consumption
Sustainability Report Executive Summary 2020 25 For More GHG Management Information
We are reducing our carbon footprint and driving transformations across our value chain to achieve our goal of a 10% reduction of Scope 1 and 2 GHG emissions by 2025. Direct GHG Emissions Indirect GHG Emissions Total GHG Emissions (Scope 1) (Scope 2) (Scope 1 & 2) 2020 Highlight 0.607 0.452 0.232 0.553 0.522 0.555 5.6% reduction in combined GHG 0.371 0.197 • 0.321 0.325 0.184 0.169 (Scope 1&2) intensity compared 0.524 with 2019 reporting scope 0.355 9,445,053 0.155 7,035,992 7,089,441 5,913,464 4,744,746 5,528,000 2013-2020 Progress 3,688,970 3,211,409 2,316,591 2,344,695 10% reduction in combined GHG 2,224,494 2,409,061 6,777,344 (Scope 1&2) intensity 4,597,960 2,179,384
2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 2025 Target
GHG emissions (tCO e) - 2020 Reporting Scope (107 sites) Intensity (tCO e / ton of production) - 2020 Reporting Scope (107 sites) 2 2 10% reduction in combined GHG GHG emissions (tCO e) - 2019 Reporting Scope (94 sites) Intensity (tCO e / ton of production) - 2019 Reporting Scope (94 sites) 2 2 * Base year 2020 (Scope 1&2) intensity* Note: Intensities are calculated based on overall production including inter-company sales. 2020 emissions has increased as IVL acquired cracker plants, which resulted in higher GHG emissions. In 2020, GHG Scope 3 data collection coverage was 100% for the categories below. GHG (Scope 3) We plan to expand the reporting of all relevant categories to our business by 2023. 100% • Purchased Goods • Upstream Transportation • Downstream Transportation and Services and Distribution and Distribution GHG accounting, verification and assurance in accordance with • Fuel and Energy • Employee Commuting • Waste Generated ISO 14064-1 and ISO 14064-3 - related Activities and Business Travel in Operations
Indorama Ventures PCL. 26 Vision - To be a world-class sustainable chemical company making great products for society. For More Water Management Information
We manage our water responsibly, including water withdrawal and discharge, and seek continuous improvements in water management through the 3Rs. To ensure accountability in water stress areas, we regularly conduct water stress assessments and mitigate negative impacts to the environment and communities surrounding our operations.
Total Water Withdrawal Total Recycled/Reused Water 8.82 2020 Water Stress Assessment 8.07 8.07 (% of IVL’s operations identified in water stress 5.35 5.32 5.31 7.46 areas using the AQUEDUCT Water Risk Tool) 5.10
6.55 28% 4.61 33% 38% 33% 82,504,769
65,222,820 13% 18% 10% 10% 60,285,763 5,292,534 5,786,158 53,552,616 5,255,856 18% 4,699,568 24% 26% 31% 13% 14% 3% 23% 59,586,748 23% 5,761,187 16% 17% 8% Total Americas Europe, Asia Middle East 2017 2018 2019 2020 2017 2018 2019 2020 and Africa
Total water withdrawal (m3) - 2020 Reporting Scope (107 sites) Total volume of recycled/reused water (m3) - 2020 Reporting Scope (107 sites) Extremely High High Medium to High Low to Medium Low Total water withdrawal (m3) - 2019 Reporting Scope (94 sites) Total volume of recycled/reused water (m3) - 2019 Reporting Scope (94 sites) Intensity (m3 / ton of production) - 2020 Reporting Scope (107 sites) Recycled/Reused water (%) - 2020 Reporting Scope (107 sites) Intensity (m3 / ton of production) - 2019 Reporting Scope (94 sites) Recycled/Reused water (%) - 2019 Reporting Scope (94 sites)
Note: Intensities are calculated based on overall production including inter-company sales. 2020 water has increased as IVL acquired cracker plants, which resulted in higher water withdrawal. 2013-2020 Progress 2025 Target 2020 Highlights 7% reduction in total water intensity 10% reduction in water intensity* • 10% reduction in total water intensity compared with 2019 reporting scope * Base year 2020 10% increase in volume of recycled / reused water over 2019 • Sustainability Report Executive Summary 2020 27 For More Waste Management Information
Our ambition to reduce waste from our operations is in line with our pledge to achieve 90% waste diverted from landfill by 2025. We are ensuring that our approach to waste management complies with regulatory requirements, and exceeds them where possible. This means building a detailed inventory of waste and always applying new designs to advance waste reduction, recycling and recovery.
Total Hazardous Waste Total Waste Waste Diverted from Landfill Generated, Disposed, Reused, Recycled and Recovered 0.0075 0.0054 0.0058 317,448 314,826 0.0045 Platinum
0.0048 248,457 Certification
72% 5 plants were certified 170,949 70% 117,157 164,152 with a more than 95% hazardous waste 74,344 57% 62,864 52% 54,001 51,379 diversion rate. Gold
43% 28% 30% Certification 48% 8 plants were certified plants were certified 2017 2018 2019 2020 2017 2018 2019 2020 with a more than 95% 6 non-hazardous waste with a 90-95% Total hazardous waste (tons) - 2020 Reporting Scope (107 sites) Total generated waste (tons) - 2020 Reporting Scope (107 sites) diversion rate. non-hazardous Total hazardous waste (tons) - 2019 Reporting Scope (94 sites) Total generated waste (tons) - 2019 Reporting Scope (94 sites) Total reused, recycled and recovered waste waste diversion rate. Intensity (tons / ton of production) - 2020 Reporting Scope (107 sites) (% of total generated waste) Intensity (tons / ton of production) - 2019 Reporting Scope (94 sites) Total disposed waste (% of total generated waste)
Note: Intensities are calculated based on overall production including inter-company sales.
2020 Highlights 2025 Target 2013-2020 Progress • Total waste intensity = 0.0202 tons / ton of production 90% Waste diverted Total waste diverted from landfill • 17% reduction in total hazardous waste intensity from landfill increased from 48% to 84% compared with 2019 reporting scope
Indorama Ventures PCL. 28 Vision - To be a world-class sustainable chemical company making great products for society. For More Operational Excellence Awards Information
Underway since 2017, this award is based on stellar performance across 10 criteria based on: Financial Performance, Operational Performance, and Sustainability Performance (environment, health and safety). The best Business Units are identified by benchmarking their performance across these criteria and are awarded at the annual Global Management Conference (GMC).
PET Business winner: Fibers Business winner: PET Business winner: AlphaPet Inc., USA PT Indorama Polypet Indonesia (PTIPPI), Indonesia Indorama Polyester Industries PCL. (Rayong), Thailand
Packaging Business winner: Aromatics Business winner: IOD Business winner: BevPak, (Nigeria) Ltd., Nigeria Indorama Ventures Química S.L.U., Spain Indorama Ventures Oxides LLC. USA
Sustainability Report Executive Summary 2020 29 EMPOWERING OUR PEOPLE AND COMMUNITIES
Our Ambitions for Improving Lives
Short-Term Medium-Term Long-Term (2021–2024) (2025) (2050) • EHS operationalized • LTIFR < 0.5 cases per • LTIFR < 0.1 cases per standards and strengthening 200,000 man-hours 200,000 man-hours EHS talent by 2024 • Educating one million • Protecting our people • About 1,000 leadership consumers around and planet, enabling positions involved in the world on recycling further prosperity succession planning by 2030 • Having a positive impact by 2023 on society by delivering • 3,500 leaders involved social, economic and in leadership development environmental value curriculum by 2024
Indorama Ventures PCL. 30 Vision - To be a world-class sustainable chemical company making great products for society. For More Giving Back to Our Communities Information
Our business is having a positive impact on the communities where we operate, and we will continue to achieve sustainable social, environmental and economic value. We are also addressing major challenges facing the global community by adhering to the Sustainable Development Goals (SDGs). Our group-wide strategy on corporate citizenship and philanthropic contributions focus on economic growth, innovation and maintaining a thriving social license to operate.
Social Contributions CSR Activities Results and Outcomes Education Commercial Community A total of 27,906 people were educated on recycling and waste Environment • Initiatives Investments separation. Education 17% 42% 6% Arts and 27% • Education materials downloaded 725 times. Culture • 9 public sector, organizations and government involved. 5% • 511donated shirts made from recycled PET. Total • 4 initiatives on recycling education with top-ranked universities in Thailand. Contribution 585 US$1,090,176 CSR activities Well-being • Over 300 initiatives that support the well-being and health of local communities. Health • 10 initiatives supporting vulnerable groups and groups with 23% disabilities, improving quality of life. Social and Welfare • 13 initiatives supporting sports activities to promote both Charitable mental and physical health in children. Donations 39% • 44 initiatives providing basic needs to local communities 41% during the COVID-19 pandemic. Environment • 28 organizations/partners helped promote PET recycling for the environment. US$250,528 US$73,118 33,607 hours US$696,748 • 9,434 kg. of PET bottles collected globally for recycling. Total in-kind giving Total management Volunteered by Estimated cost • Reduced 16.5 tCO2e from post-consumer bottle recycling. overhead employees during of employees volunteering paid working hours during paid working hours
*The figure on social contribution and activities are excluded the initiatives from the COVID-19 fund and IVL Foundation. Sustainability Report Executive Summary 2020 31 For More Recycling Education Information
Last year, we released and distributed our ‘Let’s find out about Waste Separation Video types of plastics, recycling PET and waste separation’ booklet. Our edutainment and waste separation video was prepared in Spanish, while our new animation on the PET recycling process provides a fun and easy to understand visual option. Recycling PET Video We achieved remarkable progress on recycling education in
2020 despite the pandemic. Let’s Find Out About Types of Plastic, Recycling PET and Waste Separation 2030 Target Educating one million consumers around the world on recycling
2020 27,906 2,806 153 23,562 Recycling Education People Students Teachers Public and Received Trainings Community People 9 60 Public Sector, 34 30 732 Virtual Trainings Teaching Hours Schools Organizations and Classroom Government Trainings 5 24 279 725 96 Public Events Recycling Talks Recycling Downloads of Recycling Downloads of Recycling Articles Education Materials Education VDOs
Bottles Returned to 250 511 6 424,530 Recycling Factories Recycling Bins rPET Shirts Recycling Bottles Collected Donated Donated Factory Visits Globally 6,109 kg. Indorama Ventures PCL. 32 Vision - To be a world-class sustainable chemical company making great products for society. For More Investing in Our People Information
Our people are our most valuable asset and we invest heavily in our workforce. We are focused on creating a strong leadership team with the right capabilities and experiences to drive our ambitions and achievements. Through our career management strategies, learning and development opportunities and access to global resources, we develop our people and reward strong performance.
25,207 82 Employee Attrition 10.71% 9.50% Total Workforce Nationalities 8.95% 8.49% 7.70% 7.15% 7.47% 6.32% 22% 294 Gender Diversity Employees with Disabilities 2017 2018 2019 2020
5% Overall attrition Voluntary attrition 22% Africa <30 Americas 16% 76.20% Years old Average Training Hours Employee 43% (hours/employee) Asia Net Promoter Score 33.06 30-50 30.43 Employees 57% Years old 22.7 2020 Highlights by Continent 82.87% 18.58 Employee Participation • 429,886 training hours
>50 30% 27% Years old • US$2,070,050 Europe 73.90% total training cost Employee engagement (An actively engaged • 91.51% overall retention rate employee) Targets 2017 2018 2019 2020 About 1,000 leadership positions involved in succession planning by 2023 3,500 leaders involved in the leadership development curriculum by 2024 Sustainability Report Executive Summary 2020 33 For More Ensuring a Safe and Conducive Information Workplace Safety and health at work are paramount for our workforce and our operations globally. We are proud to be a responsible operator maintaining our duty of care for the environment and our employees, and we routinely go beyond minimum legislative requirements. Our well-established Occupational Health and Safety (OHS) system ensures that everyone understands their responsibility in providing a safe work environment and maintaining safe and healthy habits on a daily basis within our business.
Total Recordable Injury Rate: TRIR Lost Time Injury Frequency Rate: LTIFR (cases/ 200,000 man-hours) (cases/200,000 man-hours)
1.45 1.29 1.19
0.91 0.84 0.72 0.74
0.48 2020 Highlights
ISO 45001:2018 / OHSAS 18001:2007 certification 2017 2018 2019 2020 2017 2018 2019 2020 • 72% • TRIR improved from 2019 • LTIFR improved from 2019 2025 Target • No fatalities LTIFR < 0.5 cases per 200,000 man-hours • A total of 44 (over 41%) of our sites attained the goal of “Zero-Accidents”in 2020.
Indorama Ventures PCL. 34 Vision - To be a world-class sustainable chemical company making great products for society. Data Reporting, Verification and Report Assurance
This report was prepared in adherence with the Global Reporting Initiative 100% 100% Reporting Certification and GHG Accounting, Verification and (GRI) standards core option and the Assurance in accordance with Assurance in accordance with International Integrated Reporting the GRI Standards,
Contacts and Feedback Sustainability Report 2020
Committed Towards Sustainability Annual A Sustainable Future
lar Eco cu no ir m C y
utra Ne lit n y o b r
a C g & Em in p e o Report 2020 Report 2020 b w - e l
l r m
e
e
W n
e
a l t h
&
S a f e t y
e
t
s
a
W
R c e
i
c t y s c a l l s i P uct for n g d S t o E n d ro o P c i t e
t
a y
e r G For More For More Information Information
Scan to read INDORAMA VENTURES PUBLIC COMPANY LIMITED Sustainability Report
Sustainability Report Executive Summary 2020 35 INDORAMA VENTURES PUBLIC COMPANY LIMITED 75/102 Ocean Tower 2, 37th Floor Soi Sukhumvit 19 (Wattana), Bangkok 10110 Thailand Telephone: +662 661 6661 Fax: +662 661 6664-5 www.indoramaventures.com