Enable a Sustainable Future Sustainability Report 2018 We are OXEA – a globally active chemical company. Never losing touch with tradition, we are constantly moving forward. Our core competency is the production and sale of oxo chemicals. OXEA’s portfolio includes over 70 products supplied to customers. These products are used for the production of ­coatings, lubricants, cosmetics, printing inks, and much more.

We treat our employees, business partners, and customers with respect. Safety, trust, communication, and a strong family culture are our basis for value creation. Sustainability Report 2018 CONTENTS

OXEA 04 CEO Foreword 05 Company Profile 06 Locations 07 Our History 08 OXEA’s Value Chain 05 09 Applications Company Profile 10 Product Overview 11 Strategy – Vision and Goals 12 Board of Directors 13 OXEA’s Leadership Team

Propanol 2 unit – a success story 14 Game Changer

Reporting Section 22 Introduction 14 23 Sustainability at OXEA Game Changer 24 Sustainable Governance 30 Economic Performance 32 Environment, Health, and Safety (EHS) 43 Social Performance

52 GRI Index 55 Imprint 22 Reporting Section

03 Sustainability Report 2018 CEO FOREWORD

Dear Reader, OXEA For OXEA, 2018 has been another successful and eventful year. 04 CEO Foreword We have accomplished various projects and initiatives that you will 05 Company Profile “At OXEA, we see read about in this report. Although this is already the third edition 06 Locations 07 Our History of our Sustainability Report, it is something very special as we have sustainability not as a program, 08 OXEA’s Value Chain given it a new structure: 09 Applications but as a commitment.” 10 Product Overview The report is built around a main story focusing on a game changer – 11 Strategy – Vision and Goals not only for OXEA, but also for the printing industry: the successful 12 Board of Directors launch of our new production unit for propanol at our Bay City site. 13 OXEA’s Leadership Team Pro­ panol as part of Propyls means a real step ahead for packaging print- ers to massively lower the consumption of solvents and thus reduce Propanol 2 unit – the burden on the planet. We want to give you some insight into this a success story project, its success factors, and what made it so special: our employ- Reporting Section ees. I invite you to read all about it on page 14.

GRI Index For further information on our business-relevant economic, ecological, Imprint and social facets, please refer to the Reporting Section starting on page 22. Our most important goal is to strive for zero environmental, health, and safety (EHS) incidents, and therefore I would also like to highlight the introduction of leading indicators to further strengthen our EHS culture.

It was an exciting year, and we hope to give you a meaningful view of Dr. Oliver Borgmeier, Chief Operating Officer since OXEA’s endeavors. At OXEA, we strive for continuous improvement January 2019, Executive Vice President Global Operations based on our core values of safety, trust, respect, and communication, and we hope to give you an insight into how we embody and develop sustainability topics further at OXEA.

Happy reading,

Oliver Borgmeier 04 Sustainability Report 2018 COMPANY PROFILE

OXEA is one of the leading producers of oxo OXEA chemicals, with a global production capacity of over 1.3 million tons per annum and sales 04 CEO Foreword of about €1.2 billion worldwide. We sell over Annual 05 Company Profile 70 products into a wide range of end markets 06 Locations revenue of 07 Our History and for various applications. 08 OXEA’s Value Chain million tons 09 Applications Ensuring its global presence, OXEA main- 10 Product Overview tains six production sites: three in Europe 1.3 billion euros 11 Strategy – Vision and Goals (Oberhausen, Marl, and Amsterdam), two in of production capacity 12 Board of Directors 1.2 the United States (Bay City and Bishop), and 13 OXEA’s Leadership Team one in China (Nanjing), as well as several decentralized sales offices and subsidiaries Propanol 2 unit – (see graphics on next page). a success story Headquartered in

Reporting Section OXEA was formed on March 1, 2007, through a merger of the oxo business units of Celanese GRI Index Monheim, and European Oxo. The company name refe­ rs Imprint to the oxo process, which was discovered Germany over 80 years ago at the Ruhrchemie site in ­Germany and still plays a decisive role in OXEA’s daily business. 6production In 2013, OXEA was acquired by Oman Oil sites Company S.A.O.C. (OOC), a commercial company wholly owned by the Government of Oman.

Today, OXEA employs more than 1,400 people worldwide. 1,400 70products employees shipped to all continents globally

05 Sustainability Report 2018 LOCATIONS

OXEA

04 CEO Foreword 05 Company Profile 06 Locations 07 Our History 08 OXEA’s Value Chain Amsterdam 09 Applications

10 Product Overview Marl Nanjing 11 Strategy – Vision and Goals Dallas 12 Board of Directors Oberhausen Monheim Bay City Shanghai 13 OXEA’s Leadership Team Luxembourg

Propanol 2 unit – a success story Tokyo Reporting Section Bishop GRI Index Mexico City Singapore Imprint

Production sites

Administrative offices

Production Sites

Bishop Bay City Amsterdam Oberhausen Marl Nanjing approx. 35 employees approx. 180 employees approx. 25 employees approx. 900 employees approx. 70 employees approx. 50 employees 06 Sustainability Report 2018 OUR HISTORY

OXEA is a young company (started in March 2007), the roots of which date back to 1918 and which OXEA was part of a number of renowned predecessor companies. A diagram of our history is shown below.

04 CEO Foreword 05 Company Profile 2007 06 Locations 07 Our History 08 OXEA’s Value Chain 09 Applications 10 Product Overview 11 Strategy – Vision and Goals 12 Board of Directors 13 OXEA’s Leadership Team US Oxo Intermediates EU 2003 and Derivatives Oxo Derivatives EU Oxo Intermediates (Bay City / Bishop) (Oberhausen) EOXO (JV) Propanol 2 unit – a success story

Reporting Section

GRI Index 1999 Demerger of Celanese Imprint

1987 1982 1998 Acquired by Hoechst Acquired by Hoechst Acquired by Degussa

Celanese Bishop 1945 Bay City 1964

1918 1928 1938 Celanese Ruhrchemie Chemische Werke Hüls

07 Sustainability Report 2018 OXEA’S VALUE CHAIN

OXEA produces and sells more than 70 OXEA’s highly integrated production platform as precursors for other Oxo Intermediates and OXEA ­products worldwide. Our products can be found is based on the oxo process invented in Oxo Derivatives such as carboxylic acids, poly- in a wide variety of everyday applications and 1938 by Otto Roelen at our site in Oberhausen. ols, amines, and specialty esters (see graphic 04 CEO Foreword market segments, such as raw materials for The oxo process, otherwise known as the below). 05 Company Profile coatings and ingredients for personal care for- hydroformylation process, transforms olefins, 06 Locations 07 Our History mulations, but also as a component of safety which are unsaturated hydrocarbons such Due to the chemical nature of the molecules, 08 OXEA’s Value Chain glasses in the automotive industry, in lubricant as propylene and ethylene, to aldehydes by application areas are widely spread. The 09 Applications formulations for cooling systems, and for the adding syngas. following graphic presents our core competen- 10 Product Overview manufacture of printing inks. cies along the oxo chemicals value chain and 11 Strategy – Vision and Goals These aldehydes are either sold externally or also shows applications and market segments 12 Board of Directors are used internally (i.e., captive requirements) in which OXEA’s products are used. 13 OXEA’s Leadership Team

Propanol 2 unit – a success story Reporting Section Oxo Process GRI Index

Imprint

Raw materials Oxo Intermediates Oxo Derivatives

Ethylene Aldehydes Polyols Propylene Hydroformylation Alcohols Further chemical Butene Esters processing Higher olefines Natural gas Higher aldehydes and Etc. specialty derivatives

Syngas Carboxylic acids

Specialty esters

Amines 08 Sustainability Report 2018 APPLICATIONS

This overview shows applications and OXEA market segments in which OXEA’s products are contained. 04 CEO Foreword 05 Company Profile 06 Locations 07 Our History 08 OXEA’s Value Chain 09 Applications Oxo Intermediates Oxo Derivatives 10 Product Overview 11 Strategy – Vision and Goals 12 Board of Directors Applications: 13 OXEA’s Leadership Team Agrochemicals, Applications: rubber chemicals, Lacquers, polymer additives, Higher Applications: Aldehydes polymer additives, Chemical intermediates, Amines pharmaceuticals, Propanol 2 unit – aldehydes a success story flotation chemicals, flavors & fragrances surfactants, flavors and fragrances dye intermediates, Reporting Section specialty chemicals, corrosion inhibitors GRI Index

Imprint Applications: Applications: Surface oatings, High-solids coatings, Applications: lacquers & paints, powder coatings, Plasticizers, polymer additives, Specialty Alcohols Polyols cosmetics, lubricants, lubricants, solvents, esters lubricants, coalescing agents disinfectants, polymer additives printing inks

Applications: Applications: Chemical intermediates, Lubricants, Applications: cosmetics, siccatives, Plasticizers, Carboxylic Higher Esters paints & coatings, flavors & fragrances, lubricants, printing inks, acids polymer stabilizers, alcohols flavors & fragrances, pharmaceuticals, feed additives, surfactants solvents corrosion inhibitors

09 Sustainability Report 2018 PRODUCT OVERVIEW

The product range of OXEA comprises more OXEA than 70 chemicals, which are subsequently processed by the industry. This diagram 04 CEO Foreword ­provides an overview of our general product 05 Company Profile portfolio (excluding customer-tailored products). 06 Locations 07 Our History 08 OXEA’s Value Chain 09 Applications 10 Product Overview 11 Strategy – Vision and Goals Oxo Intermediates Oxo Derivatives 12 Board of Directors 13 OXEA’s Leadership Team

Aldehydes / Carboxylic Higher Higher Specialty Polyols Amines Propanol 2 unit – Alcohols / Esters acids aldehydes alcohols esters a success story

Reporting Section

GRI Index Propionaldehyde Propionic acid (AF) 1,3 Butylene Glycol Propylamines n-Undecanal 2-Methylbutanol OXSOFT 3G8 n-Butyraldehyde n-Butyric acid (AF) TCD Alcohol DM Butylamines n-Nonanal 3-Methylbutanol OXSOFT TOTM LE Imprint Isobutyraldehyde Isobutyric acid Nepopentyl Glycol 2-Ethylhexylamines 2-Ethylhexanal n-Heptanol OXSOFT TOTM ST LE n-Butanol Valeric acid (HP) (NPG) n-Octylamine C13 / C15 Aldehyde n-Nonanol OXSOFT GPO Isobutanol 2-Methylbutyric acid Trimethylolpropane 3-Methylbutylamine Isovaleraldehyde 3,5,5-Trimethylhexa­ OXFILM 351 n-Propanol 3-Methylbutyric acid (TMP) Dimethylbutylamine Isononanal isonol (Isononanol) OXLUBE L9-TMP n-Propyl acetate Heptanoic acid (HP) Valeraldehyde TCD Alcohol M n-Butyl acetate 2-Ethylhexanoic acid Propionaldehyde Isobutyl acetate Pelargonic acid 2-Ethylhexanol (HP + HALAL) Isononanoic acid Isopentanoic acid

10 Sustainability Report 2018 STRATEGY – VISION AND GOALS

OXEA’s vision is connected with a clear goal: OXEA is committed to maintaining its leading Our “star products” and focus areas (among OXEA we aim to sustainably grow our business by be- position in Oxo Intermediates in the core busi- others) comprise: ing the global partner of choice for high-quality ness markets in Europe and North America, 04 CEO Foreword oxo chemicals and services – and beyond. as well as capitalizing on other global growth Propyls in the packaging and printing industry 05 Company Profile market opportunities. Through continuous Carboxylic acids as building blocks in lubri- 06 Locations 07 Our History With our long history in the field of oxo prod- optimization of key technologies, leveraging of cants and the animal feed industry 08 OXEA’s Value Chain ucts, we not only build on our strong technical regional raw material cost advantages in the TCD Alcohol DM as a versatile copolymer in 09 Applications expertise and process knowledge, but we are USA, and investment in new capacity for our various industries 10 Product Overview also committed to serving specialty applica- Propyls business, we maintain our focus on 1,3 Butylene Glycol in personal care formu- 11 Strategy – Vision and Goals tions in sustainably growing markets. balancing the needs of the markets and the lations 12 Board of Directors expectations of our customers today and in 13 OXEA’s Leadership Team As a company, we are increasing our application the future. All our projects are geared toward our vision and market segment focus to even better and goals and comprise the different aspects Propanol 2 unit – understand and fulfill the needs of our custom- In addition to providing a key base-load for relevant for OXEA’s sustainable success. a success story ers – today and in the future. We are evolving Oxo Intermediates products, OXEA aims to fur- Reporting Section from a supplier of oxo chemicals into a special- ther develop the value chain of the Oxo Deriv­ Starting with the understanding of our cus- ized solution provider for our partners. atives business in order to serve more stable tomers’ needs and their translation into OXEA GRI Index and high-value-added markets. We pursue solutions, they range from capacity increases Imprint The two pillars for our long-term success are a this goal through organic growth and selective and additions to our product portfolio to tech- solid base business, mainly formed by our Oxo acquisitions, leveraging our core engineering, nical developments and cooperations with our Intermediates products, and the growth of our manufacturing, and marketing competencies. customers. Oxo Derivatives business.

A clear strategic direction and innovation form central building blocks for OXEA’s success, Cristobal Ascencio, Executive Vice President 11 Strategy & Innovation. Sustainability Report 2018 BOARD OF DIRECTORS

Strong Industrial Know- OXEA How Thanks to New Board 04 CEO Foreword Members 05 Company Profile The Board of Directors, as the supreme op- 06 Locations 07 Our History erational decision-making authority of OXEA, 08 OXEA’s Value Chain appoints a CEO who is responsible for the 09 Applications day-to-day management of the business, in 10 Product Overview line with the strategy and long-term objectives 11 Strategy – Vision and Goals approved by the board. 12 Board of Directors 13 OXEA’s Leadership Team In 2018, five new members joined the board, with the aim to establish a stronger strategic Propanol 2 unit – focus and to profit from the comprehensive a success story knowledge of the sector that the new members Reporting Section bring with them. In addition to technical know­ledge, diversity is also important for the GRI Index composition. This has been achieved by Imprint the different countries of origin, genders, and experience levels. The Board of Directors will continue to challenge OXEA and thus From left to right: Musab Al Mahruqi, Hilal Al Kharusi, Martin Lundin, Jennifer Midura, Luis Fernandez, Monika Engel-Bader, develop it further. Patrick Quarles, Nazar Al Lawati, Dr. Salim Al Huthaili (CEO OXEA)

12 Sustainability Report 2018 OXEA’S LEADERSHIP TEAM

OXEA

04 CEO Foreword 05 Company Profile 06 Locations 07 Our History 08 OXEA’s Value Chain 09 Applications 10 Product Overview 11 Strategy – Vision and Goals 12 Board of Directors 13 OXEA’s Leadership Team

Propanol 2 unit – a success story

Reporting Section

GRI Index Dr. Salim Al Huthaili Markus Hoschke Stefan Schmidt Hans-Peter Imkamp Chief Executive Officer Executive Vice President Chief Financial Officer Executive Executive Vice President Legal, Imprint Global Sales & Marketing Vice President Finance & IT Insurance, Communications, Trademarks

Cristobal Ascencio Dr. Oliver Borgmeier Dr. Bernhard Herzog Jan Hille Executive Vice President Executive Vice President Executive Vice President Executive Vice President Strategy & Innovation Global Operations Human Resources Global Supply Chain 13 Sustainability Report 2018

OXEA

Propanol 2 unit – a success story

14 Game Changer

Reporting Section

GRI Index

Imprint

Game Changer With its new Propanol 2 production unit in Bay City, Texas, USA, OXEA is opening up new business opportunities and supporting its customers who want to do business in a more environmentally friendly way. To achieve this, OXEA has been producing additional amounts of n-propanol and n-propyl acetate for so-called Propyls since July 2018. These are used in packaging printers to massively lower the consumption of solvents and thus reduce any burden on the planet. To convince the highest possible number of printers to switch over to Propyls, OXEA has successfully performed field tests 14 and is providing intensive consultation in all parts of the world. Sustainability Report 2018

Chip bags, diaper packaging bags, coffee pods, … for every conceivable product, print- ers all over the globe turn thousands of miles of roll stock into millions of colorful packages every day. At the same time, they create vast OXEA quantities of ozone, which is emitted into the air and harmful to our climate. This is because a Propanol 2 unit – With Propanol 2, OXEA can a success story large portion of these gigantic production vol- umes use printer inks that contain conventional produce around 100,000 metric 14 Game Changer solvents such as ethanol and ethyl acetate. tons of additional n-propanol Like all solvents, these evaporate and emit vol- Reporting Section atile organic compounds (VOCs) that, in light every year. GRI Index of the ever-tighter regulations worldwide for printers, are becoming more of a problem than Imprint ever before. So, eliminating their use is on the agenda. But how can this be achieved?

100,000 metric tons of opportunities The answer to this question can be found in the USA: in Bay City, Texas, to be precise. After years of construction, the OXEA Propanol 2 unit went into service in the middle of 2018 and is one of the world’s most modern production facilities. The new unit is one of the largest investments in the history of OXEA and plays a leading role in the company’s growth and sustainability­ strategy. The reason: with Propanol­ 2, OXEA can produce around 100,000 metric tons of additional n-propanol every year, a large portion of which is pro- cessed further to create n-propyl acetate. OXEA’s facility at the Bay City site in Texas. This substance and mixture both fall under the term Propyls. Propyls can replace ethanol and ethyl acetate in the printing industry one to one. At the same time, they are clearly a more economical and sustainable alternative. By switching from conventional solvents to Propyls, packaging printers can instantly reduce their consumption of solvents and printing ink by up to 30%. 15 Sustainability Report 2018

Comprehensive risk analysis and the took the results and transferred them to a risk the basic standards required by the authori- most modern environmental technology matrix,” adds Tim Allen, Operations Manager ties. These precautions include separate fire Propanol 2 enables OXEA to provide new in Bay City. “This meant that we could quickly protection zones with infrared monitoring opportunities for marketing environmentally identify inacceptable risk potential and safely and sprinkler systems, an automatic foaming ­friendly products, with the potential to boost eliminate these risks by taking the right steps.” system with underground collection basin, OXEA demand. The unit also shows how sustainable a system for reusing extinguishing water, and engineering can lower resource consumption To avoid volatile emissions, for instance, the numerous geographic air monitors. Propanol 2 unit – a success story and minimize any potential risks. project team chose to install sealless pumps. This makes Propanol 2 a completely closed 14 Game Changer “At the very start of our planning, we broke system, without any emissions within the fa- down the facilities into 50 systems on paper cil­ities. Moreover, in addition to frequent Reporting Section and analyzed every single one,” explains employee training on hazardous substances

GRI Index Senthil Kumar, Environmental Health & Safety and emergency situations, numerous technical Manager North America at OXEA. “We then safety precautions are taken that go beyond Imprint “Due to the newest technology and the plant ­design, operation is clean and almost without any noise.”

Senthil Kumar, Environmental Health & Safety Manager North America, OXEA.

The Propanol 2 unit has been designed and built with the latest state-of-the-art technologies. This is reflected in our daily operation, as the plant runs very quietly and has less potential for any emissions from equipment failures. 16 Sustainability Report 2018

Propanol 2 is also setting standards when it comes to environmental technology. To save natural gas, liquefied and gaseous by-products are completely burned off, and up to 100% of Comparison of the drying behavior of printing ink on film OXEA the energy created is used to produce steam. Sustainable life cycle management is in place Propanol 2 unit – a success story for all other waste, achieving a high reuse quota of more than 90%. The consumption 14 Game Changer of nickel catalyst for hydrogenation has also Ethyls Propyls been reduced by more than 25% thanks to Reporting Section an improved recovery process. This makes the Liquid entire production process environmentally GRI Index ink efficient and free of by-products. To minimize Imprint the need for waste­water processing, OXEA collects rain and possibly contaminated water in on-site basins; after an analysis of any contamination, rainwater that has been con- firmed as clean can be discharged, eliminating unnecessary wastewater processing. This is Dry ink in addition to the fact that OXEA’s Propanol 2 unit was built where a previously closed plant was located in order to avoid building on new earth. The concrete from the foundations of the old plant was recycled, and the still existing, When Ethyls are used (left side), the pigments are distributed heteroge- old pipe rack was reused. neously on the printed film, while when Propyls are used, the pigments form a more homogeneous layer (right side of figure). The chosen shape Senthil Kumar is especially glad that no of the pigments serves as a better representation and does not describe significant environmental, health, and safety the actual shape of a pigment. incidents occurred during the entire project implemen­tation phase, although Propanol 2 Solvent started ope­rations four months earlier than planned. “This is a significant achievement for Film Propanol 2 from an environmental, health, and Pigments safety standpoint, and I am very proud of this. Due to the newest technologies implemented and the design of the unit, plant operations are very clean and virtually without any noise.”

17 Sustainability Report 2018

Marcus Heuwes came from Germany to Bay City in 1997 as an expatriate and has been a project manager at OXEA since 2011. As Project OXEA Director for Propanol 2, Propanol 2 unit – “The biggest challenge was the engineer was mainly a success story responsible for planning thinking of all the details the production facilities 14 Game Changer and leading the construc- tion phase, from initial while keeping an overview planning to the start-up of Reporting Section operations. GRI Index on everything.” Imprint

Mr. Heuwes, what were the biggest How did you manage this? How important is this new production unit challenges when it came to planning to Bay City? and building Propanol 2? MH By having an open mind and being transparent. Communication is key to success, MH Propanol 2 has made a significant Markus Heuwes There are many things which is why we brought all stakeholders contribution to securing the Bay City site in the that are simply daily routine, because OXEA into the planning from the very beginning – long run and has made it even more attractive. relies on a structured process with clearly from the team for occupational safety to the On an emotional level, because this has been defined procedures and safety requirements management team and, especially, the staff the first investment for a new production unit for each project phase. But despite this, it’s who will be operating the unit in the long run as in Bay City for decades; and on an economic not like we erect new production facilities every internal customers for the project within OXEA. level, because propanol is one of our top prod- day. The biggest challenge was thinking of This enabled us to consider all their require- ucts, with growing demand. What’s more, we all the details while keeping an overview on ments in the planning stage, to learn from what were able to create new jobs in Bay City. This everything. A project of this massive size we have achieved so far, and to create sug- is also good for the site, and a good sign for only functions when everyone knows what it’s gestions for improvement for the next steps. the local community. about, can contribute their know-how, and is This requires being open-minded and treating motivated from the start to the very end. others with respect; values that are strongly anchored in OXEA’s corporate culture. At the same time, one has to know their own limits as a relatively small site and, if necessary, get support from outside. Recognizing this and implementing it was one of the most important 18 factors for our success. Sustainability Report 2018

Huge potential for demand OXEA is the world’s largest producer of propa- nol. The second unit in Bay City will increase production volumes by a further 75%. To ensure that demand increases in order to fully utilize “We are currently working on OXEA this massive capacity, OXEA previously ana- lyzed sustainability-relevant market trends in convincing packaging printers to Propanol 2 unit – a success story package printing and generated a needs pro- switch to OXEA’s system.” file. “We are seeing rising demand worldwide 14 Game Changer for Propyls, with a growth rate of 5 to 6% every Lucia Paniagua, Global Lead & Business Development for Propyls year,” says Lucia Paniagua, Global Lead & Busi- Reporting Section ness Development for Propyls.­ However, there

GRI Index are enormous regional differences in this number. Imprint For instance, Propyls are readily available in North America, Russia, and many areas of Lat- in America. As a result, packaging producers there, who rely on solvent-based flexographic and gravure printing methods, have already been using Propyls for many years across the board. The sales potential for Propyls directly correlates to branch growth, explains Lucia Paniagua. This is in strong contrast to Europe, Southeast Asia, India, and countries such as Turkey, China, and Brazil. Here, the use of conventional ethanol / ethyl acetate and other solvents has been the standard, because % Propyls had virtually not been available there growth rate up to some years ago. “There is huge potential 6 every year for demand for our product in these regions, regardless of branch growth,” according to Lucia Paniagua. “We are currently working Propyls worldwide The global demand for Propyls on convincing packaging printers to switch to grows 5 to 6% every year. OXEA’s system.”

19 Sustainability Report 2018

“The slower evaporation process of Propyls lowers the VOC concentration in OXEA printing operations and emissions to air.” Propanol 2 unit – Naoko Roth, Global Commercial a success story Business Director, Oxo Intermediates, OXEA

14 Game Changer

Reporting Section

GRI Index

Imprint – 20% – 30% – 22.4% less ink less solvents less foam production

Studies show: Propyls are more This is thanks to the special properties of Pro- process. The result is fewer machine halts and economical and sustainable pyls. They evaporate slower than conventional fewer scraps. At the same time, productivity To persuade printers to switch to Propyls using solvents and therefore have a much smaller increases, because the printers can print at a convincing arguments, OXEA commissioned environmental footprint. “The slower evapora- higher machine speed while ensuring the worldwide industry tests and scientific studies. tion process with Propyls lowers the VOC con- same high quality. They show that printers using Propyls save centration in printing operations and results in 30% in solvents on average and 20% in print- fewer emissions to air,” explains Naoko Roth. Naoko Roth is optimistic that many potential ing ink, without compromis­ing quality.­ “At Moreover, lower amounts of solvent need to be customers will be convinced by these argu- the same time, the printing machines did not recycled, which lowers energy consumption. ments. “We are seeing rapid growth mainly in need to be changed in any way,” says Naoko South America, India, Europe, and China.” Roth, Global Commercial Business Director, The ecological benefits, however, are not ar- And Naoko Roth has clear objectives. “In the Oxo Intermediates. “Printing companies can gument enough. “Many printing companies are next four years, we want to completely utilize therefore simply replace ethanol and ethyl only willing to switch if they do not have to pay the production capacity of Propanol 2: in other acetate with Propyls to achieve these savings. more,” says Naoko Roth. As the studies show, words, an additional 25,000 metric tons a Additional investments are not necessary.” Propyls can also score points in this respect. year.” That’s because they stabilize the printing

20 Sustainability Report 2018 “Every switchover is a success. Not just for us.”

OXEA Jens Klabunde, Business Development Manager, OXEA

Propanol 2 unit – a success story

14 Game Changer Mr. Klabunde, OXEA is not the only Like in India. Mainly toluene continues to be company that produces propyls. used there, but this is now going to be legally Reporting Section What is special about your product? banned because it’s considered to cause

GRI Index cancer. In the near future, a massive switch to Jens Klabunde We’ve performed numer- other solvent systems will be taking place here Imprint ous industry studies over the past five years, and in other countries due to ever-stricter laws. meaning massive amounts of development work. This means we know exactly how printing companies can successfully switch over to Is replacing a solvent with another Propyls. And we share this know-how with an act of sustainability? potential customers. In other words: we don’t simply deliver our products to the door, we JK Solvents are absolutely necessary serve as an advisor and coach inside the for flexographic and gravure printing. But if Dr. Jens Klabunde companies and give tailored support to enable printers have to replace solvents, they should has been with OXEA for the printers to switch over without a hitch. choose the system with the best footprint. eight years. The bio-­ Our products come with customized technical 30% savings is a high number. It means up technician and chemist is service, which other producers don’t offer. to 600 metric tons of substances in a single not only responsible for finding new applications large company that no longer end up in the for OXEA’s product port- environment and in the airways of the printing folio, he is also a frequent How do potential customers react company’s staff. Every switchover is guest in printing compa- to your product offering? a success. Not just for us. nies around the world. As a coach, Jens Klabunde

helps printers to switch to

JK In very different ways. Some are Propyls by performing skeptical, because they don’t see a reason to tests on-site and providing change. ­Others are really interested, because tailored support. they want to be environmentally friendly and to stand out from the competition by offering ecological production. In many parts of Asia, in contrast, the environment is secondary. But that is also slowly changing.

21 Sustainability is not only a buzzword at OXEA; we embody it in many different facets and it accompanies us in our everyday working life.

Since the publication of our first Sustain- ability Report in 2016, we have been bundling and streamlining our activities further to take the next steps to fulfill the expectations of our stakeholders. Sustainability Report 2018 SUSTAINABILITY AT OXEA

OXEA Sustainability and corporate social responsibility (CSR) play an important role in all OXEA processes and our everyday work life, and are reflected in many different ways. Propanol 2 unit – a success story At OXEA, we set ourselves targets that go beyond regulatory requirements, fitting the Reporting Section size and nature of our company. We see and embrace sustainability as a holistic concept 23 Sustainability at OXEA and aim to constantly sharpen our profile further to meet our stakeholders’ expectations. 24 Sustainable Governance 30 Economic Performance To help evaluate our sustainability and CSR performance, OXEA is registered on the 32 Environment, Health, Ecovadis platform and currently holds Silver Status. and Safety (EHS) 43 Social Performance We are also a listed member of Responsible Care and support the Sustainable ­Development Goals of the United Nations. We aim to conduct an updated materiality GRI Index analysis (please compare Sustainability Report 2016) with reference to the Imprint Sustainable Development Goals of the UN (SDGs) for 2019.

Our company goals for 2018 cover economic, environmental, and social aspects relevant to our business – for more details please refer to the different reporting sections.

23 Sustainability Report 2018 SUSTAINABLE GOVERNANCE

Governance Structure // CEO OXEA Management Structures Dr. Salim Al Huthaili Propanol 2 unit – a success story The Leadership Team consists of seven Reporting Section members heading the different organizations. 23 Sustainability at OXEA They form the most senior management level 24 Sustainable Governance within OXEA and report to the CEO. The CEO 30 Economic Performance coordinates the activities of the Leadership 32 Environment, Health, Team and is the main point of contact with the Marketing & Sales Global Operations Markus Hoschke Dr. Oliver Borgmeier and Safety (EHS) Board of Directors. 43 Social Performance

Leadership Team meetings are held on a GRI Index frequent basis, led by the CEO, and various Strategy & Innovation Finance & IT Cristobal Ascencio Stefan Schmidt Imprint reporting tools across all organizations ensure a constant flow of information and allow global monitoring of all OXEA-related activities. All levels of authority can be found in OXEA’s Supply Chain Human Resources Jan Hille Dr. Bernhard Herzog Manual of Authorities. In mid-2017, the CEO appointed a new Leader­ship Team, including both organizational and personnel changes, empowering and preparing­ the organization Legal, Insurances, Trademarks & Communications for the achievement of strategic targets in 2018 Hans-Peter Imkamp and beyond.

24 Sustainability Report 2018 SUSTAINABLE GOVERNANCE

Derivatives Marketing, Intermediates Market- Management review meetings are carried In 2018, a new component was added, the OXEA ing, and the Sales organization were combined out at least once per year to determine the ­so-called “leading indicators”, which are set to bundle competencies and build upon syn- effectiveness and performance of the IMS. to prevent incidents. >> For more information Propanol 2 unit – a success story ergies – all geared toward optimal customer ­Decisions and measures at these meetings about the leading indicators, please refer to the orientation. relate to the strategic orientation of the orga­ EHS leading indicators 2018 section. Reporting Section nization, the stipulation of (new) goals, pro­ 23 Sustainability at OXEA Furthermore, the Business Performance & cess improvements, etc. Compliance management and 24 Sustainable Governance Strategy group was transformed into Strategy Code of Conduct 30 Economic Performance & Innovation, condensing the focus on strategic Company Scorecard (CSC) Adherence to legal requirements and internal 32 En vironment, Health, projects and technical innovation. With this, As one instrument to measure the success of guidelines (e.g., the Code of Conduct) is and Safety (EHS) the R&D group (formerly part of Global Ope­r- OXEA, the company has introduced the mandatory for all OXEA employees. OXEA has 43 Social Performance ations) was also moved into the Strategy & Company Scorecard (CSC). The CSC displays a Compliance Council in which all functions Innovation group. the EHS (environment, health, and safety), are represented, e.g., Marketing & Sales, GRI Index financial, operative, and strategic goals over a Customer Relations, Supply Chain, Global Op- Imprint Sustainability Management (formerly part of specified time period (e.g., the fiscal year), erations, etc., and the Legal Department acts Business Performance & Strategy) was inte- and is updated on a monthly basis to determine in a consulting role. This group holds regular grated into the Product Stewardship, Quality the status quo versus the set targets. In the meetings in order to assess legal risks, coor- Management, and Analytics organization goal-finding process, different options for the dinate preventive measures, discuss potential (PSQ) as part of the Global Operations organi- coming fiscal year are discussed with the compliance cases, and continuously improve zation. The PSQ organization functions as OXEA board at the end of the year and decid- processes. an interface with all organizations, ensuring ed upon (including the weighting of goals). that quality standards are met. The advantag- The CSC also provides guidance for the set- All OXEA organizations are subject to regular es of this function and deep understanding ting of individual performance targets. audits according to the IMS and processes of processes were built upon to approach defined in risk management>> see the Risk man- sustainability as a holistic concept and roll out Key performance indicators (KPIs) of the agement and internal audit system section. Every operative measures. The Manager Sustain­ scorecard cover and monitor all areas as OXEA employee is requested to report any and ability reports to the Vice President of PSQ. described above (EHS, finance, operations, every possible breach of the Code of Conduct strategy). to the Compliance Council or the OXEA whis- tleblowing hotline, either by e-mail or by phone. Integrated management system (IMS) OXEA has been using lagging indicators (in- For 2018, OXEA lists no recordings. OXEA has implemented its integrated man­ dustry standard) for monitoring environmental, agement system (IMS). The IMS serves the health, and safety performance (EHS perfor- In 2018, OXEA published an updated Code of purpose of implementing the guidelines of the mance) since the late 1990s. Conduct. The updated version includes a spe- corporate policy and the company vision, cific paragraph concerning child labor and more as well as applicable legal requirements and detailed information on the whistleblowing hot- standards (e.g., ISO requirements). line, and includes a section on data protection. 25 Sustainability Report 2018 SUSTAINABLE GOVERNANCE

Every new OXEA employee receives the The Compliance Council reviews country- and jeopardize our ability to continue our business OXEA Code of Conduct and corresponding training region-related corruption indices on a yearly sustainably. Our risk management includes a depending on the exposure level of the em- basis to identify possible areas of risk. Rele- strategic business planning module combined Propanol 2 unit – a success story ployee’s role. Refresher training on the Code vant parties within OXEA will be made aware with detailed reporting tools, which are used as of Conduct and compliance guidelines is to of risks and trained accordingly. an internal early warning and control system. Reporting Section be conducted every two years – also depending 23 Sustainability at OXEA on the exposure level of the employee. Risk management and All functions report potential risks directly 24 Sustainable Governance internal audit system through a risk management system to the 30 Economic Performance For improved follow-up and registration of The goal of risk management is to identify and Management Team. Moreover, the Manage- 32 Environment, Health, the training, an e-learning program is in prepa- evaluate risks at the earliest possible stage, ment Team submits an annual risk report to and Safety (EHS) ration. Information on all changes within the and to limit such risks through adequate mea- the board and the Audit and Risk Committee of 43 Social Performance Code of Conduct is provided automatically by sures, as well as to avoid any risk that might OXEA S.à r.l., Luxembourg. the change management system (information GRI Index by e-mail). Imprint

Whistleblowing reporting system Board of Directors Contact E-Mail International free call number

Direct reporting line if proceedings are Chief Executive Officer brought against the Chief Executive Officer

External provider

Compliance Council Internal Audit Workers’ Council

Attendance and partic- General Counsel EHS Product Safety / Quality ipation under the rules of codetermination Consultative roles

Supply Chain / Intellectual Human Finance / IT Operations Marketing / Sales USA Purchasing Property Resources 26 Compliance representatives Sustainability Report 2018 SUSTAINABLE GOVERNANCE

Areas of risk for OXEA include: ments, along with supply and demand changes A detailed risk report is included in our OXEA and exchange rate developments, OXEA is ­Financial Statements 2018. Operating risks exposed to fluctuation in raw material prices as Propanol 2 unit – a success story OXEA has high safety standards for the opera- well. OXEA maintains purchasing contracts OXEA has established an appropriate risk tion of its plants, in order to protect employees with major suppliers to ensure secure supplies management system (R2C = Risk to Chance) Reporting Section and the environment, and has established a at contract market conditions, in order to avoid and internal audit system covering all process- 23 Sustainability at OXEA clear Code of Conduct and company principles. spot price risks. es on all levels within the company. This risk 24 Sustainable Governance It has also taken organizational measures to management tool is a comprehensive system 30 Economic Performance avoid illegal acts or noncompliance with guide- Currency risks based on a defined risk strategy with proce- 32 Environment, Health, lines. Overall risk exposure in this area is low, Currency risks as defined byIFRS 7 arise on dures covering the following elements: and Safety (EHS) due to the countermeasures taken. account of financial instruments being denom- 43 Social Performance inated in a currency that is not the functional Risk identification Financial risks currency and being of a monetary nature; Risk analysis GRI Index The protection against financial risks is a differences resulting from the translation of Risk evaluation Imprint material part of the risk management system financial statements into the Group’s reporting Risk control of OXEA, is based on detailed guidelines and currency are not taken into consideration. Risk reporting instructions, and is controlled by management. Compliance with the requirements set out OXEA is exposed to currency risks from its The risk management is based on the COSO in the financing contracts is regularly ensured investing, financing, and operating activities. Framework, supported by the legal rules through stringent contract management and OXEA’s assessment of exchange rate risk from of the German Corporate Governance Code forecasting of the agreed financial covenants. operations is low, due to the countermeasures (GCGC), as well as the Corporate Sector taken. Supervision and Transparency Act (KonTraG) Commodity price risks – raw material and the German Commercial Code (HGB). The supply Market risks OXEA Management Team is committed to act- OXEA does not consume crude oil and is Besides the risks associated with the devel- ing responsibly and addressing business risks therefore not directly exposed to the price vola- opment of general economic conditions, fluc- that could negatively impact the OXEA Group, tility of this commodity. However, several of the tuations in demand from important customers in order to safeguard the assets of OXEA. raw materials purchased by OXEA are directly represent a risk in the sales market. OXEA or indirectly related to naphtha or other crude counteracts these risks through its active cus- derivatives. As feedstock cost is one of the tomer relationship management and related primary drivers for raw material price develop- strategic measures. >> please refer to Strategy – Vision and Goals

27 Sustainability Report 2018 SUSTAINABLE GOVERNANCE

Internal Audit’s risk management process The main objective of the OXEA Internal OXEA employs a “supplier evaluation tool” OXEA Audit Function (IAF) is to assist the Audit and for the rating of its suppliers in the respective Risk Committee (ARC) and OXEA’s (senior) procurement organizations. The supplier rating Propanol 2 unit – a success story Identification management in achieving the company’s ob- consists of different parameters referring to jectives and in their oversight responsibilities, quality and safety aspects, as well as to en- Reporting Section by providing objective insights, assurance, and vironmental parameters. Supplier ratings are

23 Sustainability at OXEA Audit plan Communication advice. revised on a regular basis. 24 Sustainable Governance 30 Economic Performance The Audit and Risk Committee, as appointed The supplier evaluation allows for a ranking of 32 Environment, Health, by the Board of Directors, meets at least on a suppliers and subsequently has an influence and Safety (EHS) Follow-up audit Analysis and evaluation quarterly basis and reviews the effectiveness on the preference and selection of suppliers. 43 Social Performance of the risk management process. Over 95% of our suppliers (based on volume and spending) hold ISO certifications. GRI Index For 2019, OXEA is targeting the establishment Imprint Systematic follow-up Documentation of a further-optimized enterprise risk manage- In 2018, OXEA started to work on the integra- of defined measures ment (ERM) system. An updated risk analysis tion of social aspects into the supplier ratings is intended to be completed within 2019. in Europe, which will be rolled out to the other Define measures regions. OXEA’s supplier base is mainly Supply chain management situated in OECD countries, therefore the risk The purchasing of raw materials is part of an exposure in the area of human rights breaches integrated planning approach (S & OP process is relatively low. The Internal Audit Function supports the Audit = Sales & Operations Planning process). and Risk Committee and the Management Data protection Team on a global basis in monitoring all orga- The procurement budget entails the costs As a company that takes responsibility for the nizations and potential risks and opportunities of raw and support materials, maintenance protection of its customers, employees, and (internally and externally induced). Internal and repair operations payments (MRO), and others, OXEA works to comply with all data se- audit is an independent, objective assurance logistics costs. Around 55% of the budget is curity laws and avoids unauthorized transfers and consulting function designed to add value spent at the production sites in Europe. OXEA of personal information. and improve an organization’s operations. It has more than 1,900 suppliers globally – the helps an organization accomplish its objectives majority providing MRO services. No complaints were issued regarding data by bringing a systematic, disciplined approach protection in 2018. to evaluating and improving the effectiveness Major raw materials >> see the value chain in of risk management, control, and governance section 1 for the production of Oxo Intermediates processes. OXEA IAF provides internal audit and Oxo Derivatives are olefines (ethylene, work in compliance with the International Pro- propylene, higher olefines), syngas, and natural fessional Practices Framework of the Institute gas. Around 70% of raw materials are sourced 28 of Internal Auditors. locally, close to our production sites.

Sustainability Report 2018 SUSTAINABLE GOVERNANCE

Stakeholder Engagement OXEA employees worldwide actively engage Local communities OXEA in health and safety programs like “iSafety”, OXEA’s impacts on local communities are Key to OXEA’s sustainable success is constant also known as “Safety = I”, and provide input ­multiple; OXEA represents an important Propanol 2 unit – a success story interaction with our stakeholders. Among oth- for improvements within the company. For employer, especially in Oberhausen and Bay ers, key stakeholders of OXEA are our employ- more details, please refer to the Occupational City, where our major production sites are Reporting Section ees, business partners, and local communities safety section. located, and offers job opportunities and 23 Sustainability at OXEA that are impacted by our activities. apprenticeships. OXEA also has a high level of 24 Sustainable Governance Business partners responsibility for environmental, health, and 30 Economic Performance A transparent and consistent information flow Conferences, trade shows and fairs, regular safety impact as a manufacturer of chemicals. 32 Environment, Health, is key for trustful relationships. At OXEA, we customer visits, special events like roadshows, and Safety (EHS) employ different channels throughout the dif- and OXEA’s webpage are just some of the We involve local communities via regional 43 Social Performance ferent organizational levels; the most important channels we use to communicate closely with media and social events (such as open days), one being direct contact. our business partners. Strong customer orien- allowing our neighbors to get an insight into GRI Index tation and excellent communication with our our current activities. Furthermore, we are Imprint Employees suppliers play essential roles for our business. represented in various local organizations, e.g., OXEA stays close to its employees via the the “Texas Chemical Council – Outreach Com- intranet, regular newsletters, the publishing of In November 2018, an EHS partner day was mittee” and the “Emschergenossenschaft” in an OXEA journal, regular town hall meetings, held in OXEA’s Oberhausen plant with local Oberhausen, where OXEA takes an active role and other related tools. In line with our compa- partner companies of OXEA. The day was in the renaturation project of the Emscher river. ny value of open communication, there is con- used for an exchange of best practices, vari- stant dialog between OXEA representatives ous presentations on proper safety equipment, In September 2018, OXEA opened its doors to and the senior management. and practical exercises. the public in Oberhausen. Neighbors and inter- ested people were allowed onto the premises More than 70% of OXEA’s employees are con- In 2018, OXEA’s Customer Relations organi­ of the Oberhausen site and could learn about tracted representatives in collective bargaining zation conducted a global customer satisfac- OXEA and talk to OXEA employees. agreements. tion survey to measure customers’ satisfaction regarding lead time, technical information, The Bay City plant hosted an Opening Cere­ The IMPULSE online-based tool invites OXEA communication with the customer, complaint mony and Luncheon to celebrate the new employees to enter ideas for improvement in handling, etc. All regular customers, who in ­Propanol 2 unit in September 2018. Members all areas. Ideas are collected and evaluated total accumulate to ~ 70% of OXEA’s average of the community were invited and the by defined and qualifiedOXEA employees on turnover per fiscal year, were included. The attending guests included elected officials, a regular basis. In 2018, around 321 ideas next survey is set to be carried out in the year the ­chamber of commerce, and economic were collected, of which around 150 will be 2020 (biennial rhythm). development leaders. implemented (final numbers not available yet, data based on experience of past years). All The results present OXEA as a highly valued successfully submitted and implemented ideas supplier demonstrating excellent communica- 29 will be rewarded. tion with its customers. Sustainability Report 2018 ECONOMIC PERFORMANCE

Global economic development* It was possible to partly balance out negative OXEA In 2018, the global economy continued its influences such as the turnaround at the plant Revenue by region growth momentum after the economic recov- in Oberhausen, weather-related low Rhine Propanol 2 unit – a success story ery that started in 2016. At the same time, levels, and increased import duties into China. however, the expansion has become less Reporting Section balanced and may have peaked in some major With a trend toward healthy growth in the 1% 23 Sustainability at OXEA advanced economies, while the emerging mar­ global economy and the chemical sector, 3% 24 Sustainable Governance ket and developing economy group continued OXEA started the fiscal year 2018 with very 14% 30 Economic Performance to expand at broadly the same pace as in 2017. strong performance. The second quarter was 32 Environment, Health, Slower export growth contributed notably negatively impacted by the major turnaround and Safety (EHS) to the eurozone slowdown. The US economy and corresponding five-week downtime of the 43 Social Performance 48% maintained robust growth, and also picked whole plant in Oberhausen, Germany. up with strong private consumption and income GRI Index growth, with private sector activity buoyed In July, OXEA successfully started up its new 34% Imprint further by considerable fiscal stimulus. The 100,000 mt per annum global-scale Propanol 2 Chinese economy moderated in response production unit at its Bay City, Texas, USA, to regulatory tightening of the property sector site. The now fully operational, state-of-the-art and nonbank financial intermediation. unit increased OXEA’s production capacity for n-propanol by 75%. Supported by strong global Europe Growth of global gross domestic product demand, product portfolio optimization, and North American Free Trade Agreement (GDP) in 2018 remained stable at 3.7%. the new unit, OXEA delivered the strongest Asia-Pacific For more details, please refer to OXEA’s quarter of the year in the third quarter. South America Financial Statements 2018. Rest of World The fourth quarter in 2018 was negatively in- Business development at OXEA fluenced by several one-off events, and on No- 2018 was another strong year for OXEA. vember 20, 2018, OXEA had to declare force OXEA’s performance in 2018 was driven by majeure for individual product groups due to the positive development of the Derivatives an incident at the syngas supplier at the Ober- business and strongly performing US Interme- hausen site in Germany. Additionally, OXEA diates business. OXEA profited successfully was affected by a 5% additional import duty on from overall healthy demand, an optimization two products exported into China. Despite the of its product mix, and capacity increase. turnaround in Oberhausen and the negative one-off events in the fourth quarter, OXEA revenues grew substantially to €1,453.6 million *OXEA’s analysis of the global economy is based on figures and in 2018, 10.0% higher than the previous year forecasts provided by renowned institutions, such as the Organiza- (2017: €1,321.3 million). tion for Economic Co-operation and Development (OECD) and the 30 International Monetary Fund (IMF). Sustainability Report 2018 ECONOMIC PERFORMANCE

OXEA steers and monitors its business per- The world economy is projected to decline to OXEA formance throughout the year. Relevant KPIs 3.5% growth in 2019 before picking up slightly for business performance (among others) are to 3.6% in 2020. For more details, please refer Propanol 2 unit – a success story EBITDA, sales, and EBITDA margin. to OXEA’s Financial Statements 2018.

Reporting Section OXEA’s strong performance was duly recog­ After strong performance in 2018, OXEA’s 23 Sustainability at OXEA nized by our financial investors and rating ­expectations are for that to continue in 24 Sustainable Governance agencies. In March, the credit rating agency 2019. We expect robust growth based on a 30 Economic Performance Standard & Poor’s Global Ratings (S&P) further-improved product mix aimed toward 32 Environment, Health, upgraded its long-term corporate credit rating specialized derivatives, high demand for and Safety (EHS) for OXEA to B+ from B with a stable outlook. carboxylic acids and polyols, and a volume 43 Social Performance In late July, Moody’s Investors Service also increase based on the new propanol unit in upgraded the corporate family rating (CFR) for Bay City. GRI Index OXEA to B2 from B3. Imprint Possible negative impacts on the business are Outlook 2019 monitored closely. >> See the Risk management Global economic growth for 2019 is expected and internal audit system section to remain steady at its 2018 level, although the global expansion is becoming less synchro- >> For anti-corruption training, please refer to the nized. Compared with 2017, a smaller share of Compliance management and Code of Conduct countries, particularly among advanced econo- section. mies, is expected to experience an acceleration of activity in 2019. The forecasts presented here for GDP are based on a report from the IMF in October 2018 and the OECD economic outlook in November 2018.

31 Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

Environmental protection, health care, and receive appropriate training, thereby enabling are documented in our integrated management OXEA safety, including occupational and process them to effectively contribute to EHS perfor- system (IMS) (please refer to the Sustainable safety, are collectively ranked our first priority mance and EHS improvement processes. Governance section). Our site in Oberhausen Propanol 2 unit – a success story among the OXEA core values. also holds the SCC (Supplier Contractor Certi- Our key goal within OXEA is to achieve zero fication) certificate. Reporting Section It is OXEA’s policy to design, build, run, and EHS incidents. 23 Sustainability at OXEA maintain our manufacturing units and processes The following graph shows OXEA’s ISO certi- 24 Sustainable Governance with a focus on high environmental and OXEA’s EHS management and standards fications: 30 Economic Performance safety standards. Our products are developed, are based on the requirements of national 32 Environment, Health, evaluated, and documented in a responsible regulations, the requirements of ISO 14001, and Safety (EHS) manner, so that our employees, customers, the ISO 9001, ISO 50001, and OXEA internal 43 Social Performance public, and the environment are protected from policies,­ which go beyond regulatory require- avoidable risks. We ensure that all employees ments. Policies following these EHS standards GRI Index

Imprint

ISO ISO ISO Certificates 9001:2015 14001: 2015 50001:2015 SCCP GMP+ B1 GMP+ B2 ISO 9001:2008 Europe Marl X X X X Monheim X X X X Oberhausen X X X X Amsterdam X X X North America Bay City X X Bishop X X Dallas X X Asia Nanjing X

32 Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

Two key targets in 2018 were the ISO 14001 Product releases due to leakages at heat OXEA certification of our sites in Bay City and Bishop. Incidents exchangers led to the three environmental K 2 Another milestone in 2018 was the ISO 50001 incidents. Propanol 2 unit – 2017 2018 a success story certification of our site in Amsterdam. Environmental incidents In 2018, OXEA’s Bay City facility won several Reporting Section As planned, our facility in Nanjing started its K1 0 0 awards acknowledging excellent environmen- 23 Sustainability at OXEA preparations for the ISO 14001 certification in tal and safety standards: K2 2 3 24 Sustainable Governance 2018. The certification is targeted for the year Injuries 30 Economic Performance 2020. For the second time in a row, the Bay City 32 Environment, Health, K1 5 4 Facility won the Excellence in “Caring for and Safety (EHS) EHS performance K2 3 3 Texas” award by the Texas Chemical Council 43 Social Performance OXEA’s EHS performance is reflected, mea- Fire and explosion incidents (TCC), rewarding OXEA for its environmental sured, and evaluated in the Company Score- K1 0 0 protection and community involvement pro- GRI Index card (CSC). OXEA has been using lagging grams. Bay City won the top award from TCC K2 0 0 Imprint indicators for monitoring environmental, health, for “Caring for Texas”, competing with 28 other and safety performance (EHS performance) companies of similar size (61–200 employees). since the late 1990s (still part of Hoechst AG at that time). An additional component was in- An OIR rate (OSHA Incident Rate) of 0.58 was OXEA Bay City also won the “TCC Zero troduced in 2018 by OXEA, known as “leading achieved (prior year: 0.65), with a Lost Time Incident Award”, awarding those TCC member indicators”. The leading indicators are a form of Injury Rate (LTIR) of 0.33 (prior year: 0.41). manufacturing facilities demonstrating zero “measuring before an incident”. Safety-relevant For the German sites, the Thousand Man OHSA-recordable injuries or illnesses, as well data is collected in order to make predictions Quota (TMQ; reportable injuries per thousand as the “TCC Zero Contractor Incident Rate and thus serves to help avoid incidents and to employees) in 2018 was 2.67 (prior year: 4.44). Award” rewarding manufacturing facilities improve EHS performance and culture through The OSHA (Occupational Safety and Health without any recordable OHSA injury or illness preventive measures. >> For more information, Administration) indicators serve as an inter- of contractor employees, and the “TCC Zero please refer to the EHS leading indicators 2018 nationally applied standard for work-related Process Safety Incident Rate Award” awarding section. injuries. manufacturing facilities without any Tier 1 or Tier 2 process safety incidents. EHS performance 2018 Typical incidents at OXEA are “slip and trip” (compared with 2017) incidents, as well as “cuts and bruises”. Inci- OXEA Bishop was also awarded the “TCC The following table and graphs depict the EHS dents directly linked to contact with chemicals, Zero Process Safety Incident Rate Award” in performance in 2018 within each category: which might be understood to be typical for the 2018 and won the “Texas A & M – Mary Kay chemical industry, are in general less common. O’Connor Process Safety Center Award for Distinguished Process Safety Initiative”. This is In 2018, there were no serious or major fire an award presented by the Mary Kay O’Connor and explosion incidents. Center for Process Safety Management at 33 Texas A&M University for outstanding initia- Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

tives in Process Safety Management in the The iSafety initiative challenges every single OXEA Chemical / Petrochemical Industries. Only one employee to ask him- / herself: What can I company is awarded per category. contribute to improve safety, environmental Propanol 2 unit – a success story protection, or health care? Furthermore, Bay City was awarded the Reporting Section prestigious “Elite Safety Silver Award” from The initiative comprises various projects and 23 Sustainability at OXEA the AFPM (American Fuel and Petrochemical aspects tailored to the different organizations. 24 Sustainable Governance Manufacturers) in 2018. The Elite safety award The iSafety initiative has become a fixed part 30 Economic Performance metrics include process safety performance, of every OXEA employee’s daily life. The single 32 Environment, Health, emergency response, environmental ratings elements are adapted to the needs of the At the Oberhausen turnaround 2018, and Safety (EHS) among industry, and community involvement. respective sites. awareness banners were placed throughout 43 Social Performance With this award, the Bay City facility is among the entire site – in line with iSafety. the top 1–5% of performers in industry safety. The iSafety initiative comprises many GRI Index elements, e.g., the monthly carrying out of SIP Imprint OXEA’s facility in Amsterdam was able to ce- meetings (Safety Involvement Program) at the lebrate another year without a Lost Time Injury European sites. A monthly SIP agenda for Global EHS Day 2018 – worldwide umbrella Rate (LTIR). The Amsterdam plant has now review is distributed by the EHS organization concept with success – part of the iSafety been running for the last 17 years (6,209 days) and consists of statistics and different opera- initiative without any lost time incidents. tional environmental, health, and safety topics, As in 2017, OXEA’s Global EHS Day was once and can be adapted as needed. Participation again held in September at OXEA production OXEA is performing within the range of the at SIP meetings is recorded and documented. sites and offices, inviting all employees to leading companies in the chemical industry Each employee is expected to be provided with participate. The aim is to raise awareness of and showing continuous improvement regard- periodic SIP meetings by their supervisor. environmental protection, health, and safety, ing EHS criteria. We are dedicated to further and to interactively involve employees in dis- improving our performance – our goal remains Changing focus areas were worked on and cussions, feedback, etc. at zero EHS incidents. covered by iSafety; a major one being the safe implementation of the turnaround in Ober­ An EHS lunch was held at OXEA’s facility in iSafety initiative (or Safety = I) – successful hausen. During the 2018 turnaround at the Amsterdam under the umbrella of the Global through safety, environmental protection, Oberhausen site, the initiative was omnipres- EHS day. Employees of the facility in Marl and health care ent through banners and posters, reminding spent their EHS day at a Safety Working World each employee of their responsibility and Exhibition. At the headquarters in Monheim, One corporate program actively involving impact. the focus was set on “safe travels”, and the day every employee is the iSafety initiative, which closed with a presentation comprising results was started at the end of 2014 and since then of the iSafety workshops held in the months has further developed year by year. before.

34 Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

The production unit in Nanjing used the Global EHS committees and councils The number of inspections required in the first OXEA EHS Day for detailed firefighting and safety Each OXEA site has established dedicated year was exceeded by a large margin. It was training and a discussion on the Safety Produc- EHS committees or councils, consisting of a particularly encouraging that these inspections Propanol 2 unit – a success story tion Responsibility System. site Leadership Team, EHS experts, and were often carried out by groups of managers employee­ representatives, who jointly work on from several different areas of the company. Reporting Section The site in Oberhausen combined the Global EHS topics. At the German sites, “Arbeits­ This contributes to improved understanding 23 Sustainability at OXEA EHS Day with the nationwide Open Day for schutz- und Umwelt-Ausschüsse” work on the and collaboration between the individual 24 Sustainable Governance more than 4,300 visitors to OXEA’s plant in EHS programs. At our sites in North America, departments. We had set 300 inspections as 30 Economic Performance Oberhausen. The Open Day offered an ex- China, and the Netherlands, similar councils our (stretch) goal; by the end of the year it was 32 Environment, Health, cellent opportunity to cover EHS topics – not are established, such as the Employee Safety over 400. and Safety (EHS) only for OXEA employees but also for local Councils in the USA. 43 Social Performance residents and other visitors. In 2019 we want to intensify the focus on hav- EHS leading indicators 2018 ing managers from all business areas conduct GRI Index EHS at the OXEA sites With the introduction of the leading indicators inspections together. Imprint Each OXEA site has one or more assigned program, OXEA intends to strengthen pre- EHS persons. These persons, in cooperation dictive EHS work and support the improve- with the EHS organization, consult and support ment / development of the EHS culture. leadership, as well as all other employees, to solve EHS-related problems and to improve EHS inspections by management: EHS performance and culture. By auditing on-site inspections by management and controlling, they provide support to ensure Regular rounds of plant facilities and depart- compliance with national regulatory require- ments are conducted by groups of up to five ments as well as with OXEA’s EHS standards persons at management level. The group con- and policies. They also support a global cross- sists of employees with responsibilities inside site and cross-functional exchange on EHS and outside the specific facility and depart- topics. ment, allowing for cross-functional exchange and communication. The Global Product Stewardship, Sustainabil­ ity, Quality Management, and Analytics orga­ Communication between management and nization (PSQ) is responsible for all matters employees is extremely important. A particular of product safety >> please also refer to the EHS topic is selected for each round. Con- Product safety section and quality management. cerns and observations that are brought up PSQ and EHS are both part of the Global during these tours will be followed up on. Operations Group and responsibilities are strongly interlinked.

35 Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

per quarter. That meant a (stretch) goal of At OXEA, we have and will continue to incur OXEA approximately 16,800 trained employees per substantial ongoing capital and operating year; nearly 24,900 were registered. We were expenditures for environmental protection Propanol 2 unit – 416 a success story EHS Leadership Walkthroughs pleased to note that both Operations and Ad- measures. min contributed equally to exceeding this goal. Reporting Section In 2018, we invested €7,546,384 in environ- 23 Sustainability at OXEA EHS Moments mental protection, compared to €4,700,000 in 24 Sustainable Governance Every meeting at OXEA, whether internal or 2017. The sum includes dedicated EHS activ- 30 Economic Performance 9,324 with business partners or visitors, is started ities and projects (e.g., waste management, 32 Environment, Health, Participants of EHS Moments with an EHS-relevant theme – a short state- emission control, renaturation of the Emscher and Safety (EHS) ment that covers the various aspects of envi- river) and singular cost positions that can be 43 Social Performance ronmental protection, health, and safety. linked to a direct impact on the environmental footprint (e.g., dedicated modernization proj- GRI Index In 2018, around 90% of qualifying events were ects in the production area aimed at energy Imprint 565 opened with an EHS Moment. We were thus savings). EHS Moments able to exceed our goal of 80%. The spending in 2018 was higher than in 2017 565 EHS Moments were reported, with ex- (and 2016), since the turnaround in Oberhausen ternal guests present at around 100 of these was used to implement various modernization meetings. This means that we were able to measures (please refer to the Turnaround 24, 900 reach over 9,324 people within the reporting 2018 in Oberhausen section). Participants of monthly EHS training sessions period, and demonstrated to 888 external par- ticipants how important EHS topics are to us. Costs for REACH, the energy-efficiency pro- gram, the Propanol 2 unit, ISO site certifica- For many of our colleagues, beginning a meet- tions, and general PSQ-related costs, etc. are EHS training ing with an EHS Moment has become a habit. not included in the environmental spending. The purpose of EHS training is to create aware- ness of the importance of EHS topics, to con- Environmental protection vey the relevant knowledge to all employees, OXEA is committed to the protection of the and to profit from the experience of others. environment, the reduction of adverse envi- ronmental impacts, and meeting all environ- Our goal for 2018 was for every employee mental compliance obligations crucial to our in the Operations area to receive at least industry. Furthermore, our goal is to achieve an one EHS training course per month, while above-compliance state, based on our internal Administrative employees would receive one policies. There were no incidents related to none-compliance with regulations or environ- 36 mental laws in 2018. Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

Energy Increase OXEA’s total energy efficiency by In 2018, OXEA achieved the interim set goals OXEA In an energy-intense industry, efficient usage 2.5% by 2020 (base year 2017) for the energy efficiency program in Europe. of energy is essential to reduce the environ- Propanol 2 unit – a success story mental footprint. An efficiency gain of 2.5% represents savings Various energy efficiency / savings programs of around (depending on conditions, etc.) are run at OXEA sites. Reporting Section OXEA’s target is to increase energy 20,000,000 kWh. The reduction of energy

23 Sustainability at OXEA efficiency while reducing overall energy usage translates into CO2 emissions of In 2018, our production site in Nanjing imple- 24 Sustainable Governance consumption ~12,000 tons. mented a six sigma project with the support of 30 Economic Performance OXEA colleagues in Germany, leading to an 32 Environment, Health, With its extensive experience in the production OXEA’s power plant is the main provider of average reduction of electricity usage of 20% and Safety (EHS) of oxo chemicals of more than 80 years, OXEA energy for the whole Oberhausen site and also per hour (absolute numbers vary and depend 43 Social Performance runs its production units highly efficiently. provides energy to third parties off-site. The on product mix of the unit). Based on the highly developed and optimized power plant is an important provider of district GRI Index oxo production process, major potential for heating to “Energieversorgung Oberhausen In Bay City, different energy saving projects are Imprint optimization of OXEA’s energy profile and sub- AG” (evo), also contributing to an overall reduc- conducted and planned in the production area.

sequently the GHG (greenhouse gas) emission tion of CO2 emissions in the municipal area. A possible reduction of steam loss is one focal profile lies in increased energy efficiency. area to be evaluated in 2019. The most important fuels for the generation At our site in Oberhausen, we operate our own of energy at OXEA in Oberhausen are liquid Apart from the projects with a big impact, power plant – thus offering a key opportunity wastes, exhaust gas, distillation residues, and OXEA also has an eye on the smaller projects, for OXEA-driven changes and improvements to a minor extent natural gas – therefore, the often direct results of ideas handed in by our with a significant impact. reuse of “waste” (residues from the production employees. In 2018, OXEA started to exchange units) in a closed cycle represents by far the light bulbs for LEDs in Bay City (though not Projects to reach the targets described above largest share for energy generation. demanded by regulations), not only leading to include modernization measures in the power energy savings but also to greater stability of plant, as well as technology projects in produc- As long ago as 2016, a process of simple the power network in Bay City. The exchange tion and related areas. steam pressure reduction was supplemented should be completed in 2020. by the combined heat and power (CHP) As reported in our Sustainability Report 2016, process of a new back pressure turbine in the OXEA has identified projects to increase en- power plant. ergy efficiency and had started to work on the identification of energy goals, which were first At the end of 2017, OXEA replaced another implemented and communicated in OXEA’s steam turbine with a highly efficient turbine. corporate goals for 2018 in Europe: The new turbine generates significantly more electrical energy with the same steam input. This results in an increase of energy efficiency 37 by up to 15% in this process area. Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

Since 2018, our headquarters in Monheim Energy Efficiency Network EEN( ) Emissions to air // Greenhouse gas OXEA have been 100% supplied with certified OXEA is a member of the “Energy Efficiency emissions “Ökostrom” electricity, taking into account a Network”, consisting of 13 companies in the The generation of GHG emissions and related Propanol 2 unit – a success story higher electricity price than for the “normal” chemical and paper industry based in the climate change through global warming has residual mix. The energy consumption globally Rhine-Ruhr area. The EEN started its work in become one of the major environmental con- Reporting Section for 2018 sums up to: 2016, originally with 11 members (please refer cerns globally. 23 Sustainability at OXEA to Sustainability Report 2016), and entered its

24 Sustainable Governance second two-year period in 2018. Main contributors to global direct CO2 emis- 30 Economic Performance sions generated by OXEA’s activities are the 32 Environment, Health, The initiative is based on the agreement production of energy in Oberhausen and Bay and Safety (EHS) between industry associations and the federal City for the supply of OXEA and third parties 43 Social Performance government to reduce energy consumption by (please also refer to the Energy section), the

the end of 2020, following the German federal generation of synthesis gas (CO / H2) for the GRI Index government’s goal to reduce greenhouse gas hydroformylation process, and the incineration

Imprint (GHG) emissions by 40% by 2020 based on of off-gas in Bay City. Indirect CO2 emissions the year 1990. are insignificant in comparison and therefore 2,004 omitted in the reporting. Energy consumption [GWh] 2018* The EEN has been set up to share experi- ence and best practices and provide support With our target to increase OXEA’s total *Consumption includes total fuel consumption and exter- nal energy purchase. between industries to drive energy efficiency ­energy efficiency by 2.5% by 2020 (base year projects and a reduction in usage. 2017) in Europe, we have established a first target of reducing GHG emissions in Europe Up until mid-2018, the network’s cumulative by around 12,000 tons by 2020 based on com- energy consumption had been reduced by 158 parable production volume. We are currently working on the refinement million kWh. This corresponds to the annual of our data basis and updated calculation energy consumption of 50,000 households and In our production facility in Bay City, the

methods, therefore data from recent years is translates into 80,580 tons of CO2 emissions process control of the synthesis gas unit was

not directly comparable. Reports for the years (emission factor of 510 g CO2 / kWh, German changed in 2017, which led to a significant 2017 and 2016 did not include the complete national grid). reduction in flaring of synthesis gas and subse- data set and values for energy. quently to a reduction of natural gas needs and

OXEA reports its savings from the energy CO2 emissions. A comparison of relevant data is intended to efficiency program achieved in the different

be published in the next Sustainability Report. projects anonymously to the EEN. The overall increase in direct CO2 emissions Furthermore, the evaluation of additional compared to 2017 and 2016 is based on energy-saving potential linked with waste generally higher production rates in 2018, the reduction programs and emission reduction change of product mix in the production units, 38 targets is planned for 2019. and the starting up of the Propanol 2 unit. Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

In 2019, we aim to evaluate meaningful contri- The main source of water is surface water

OXEA bution areas and targets for OXEA to reduce Direct CO2 emissions (Scope 1) [kt] derived from rivers close by to our production GHG emissions further. sites. Propanol 2 unit – a success story 600 Indirect emissions // Scope 2 The relatively higher water consumption is Reporting Section The publication of relevant Scope 2 emission mainly driven by higher production rates and 23 Sustainability at OXEA data is planned for the Sustainability Report 500 the new Propanol 2 unit in Bay City. 24 Sustainable Governance 2019. 30 Economic Performance 400 32 Environment, Health, Water consumption and Safety (EHS) OXEA’s goal is to use water in a responsible 43 Social Performance 300 588 and efficient manner. 513 528 OXEA’s main usage of water is for cooling pur- 200 GRI Index poses in the production units in closed state- Imprint of-the-art cooling cycles; the water is reused and recycled multiple times by means of our 100 Global water withdrawal* [million m3] production processes. Another major usage area of water is the generation of steam. 0 2016 2017 2018 10 OXEA production sites are generally not locat- ed in water-stressed areas. 8 Emissions of NOx, SOx in 2018 [t] For Bay City, the LCRA (Lower Colorado River 6 Authority), which supplies water to the Bay 8.80 1000 7.15 7.75 City plant, monitors the level in the river and NOx 4 reservoirs, sends out reports to the major us- SOx ers, and activates drought levels during water 800 scarcity. Levels are tracked very closely and 2 communicated periodically to the users to take 600 measures to reduce water usage as needed. 0

400 824 2016 2017** 2018 OXEA ensures that its water usage does not increase energy consumption or otherwise * Values contain water withdrawal for the whole Ober- 200 hausen and Bay City sites including volumes supplied to negatively impact the environment. Wastewater third parties. is purified and discharged according to regula- 5.09 ** Number does not include water withdrawal of Bishop site. tory requirements (please see next page). 0 39 Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

Effluents and waste The major part of OXEA’s water consumption goal to achieve “good ecological and chemical OXEA OXEA’s target is to avoid waste wherever pos- is used for cooling purposes and steam gen- status” of all community waters, the target was sible, and our processes are set up accordingly. eration; production process water or cleaning set to channel wastewater in closed conduits Propanol 2 unit – a success story water between production cycles represent a through the Emscher region and to convert the With our extensive experience in the produc- smaller share. Emscher river and its tributaries into natural Reporting Section tion of oxo chemicals of more than 80 years, waterways again. 23 Sustainability at OXEA OXEA runs its production units highly efficient- In Nanjing, the wastewater pretreatment facility 24 Sustainable Governance ly. Our value chain of Oxo Intermediates and is operated by a contractor company. After pre- One key part of the project is the building of 30 Economic Performance Oxo Derivatives is highly integrated, and the treatment, the low-concentration wastewater is a segregated channel for wastewater and 32 Environment, Health, site product of one reaction builds the starting drained to the NCIP wastewater pipe network effluents generated at the OXEA Oberhausen and Safety (EHS) material for another production chain. There- for further treatment. site that will directly lead into the Emscher 43 Social Performance fore the generation of “waste” (materials for wastewater treatment unit. In 2018, OXEA ran disposal) is kept to a minimum in our produc- In Oberhausen and Bay City, OXEA runs different dedicated projects related to linkage GRI Index tion processes. OXEA is dedicated to working wastewater treatment units. In Bay City, the with the channel system, as well as related to Imprint on further improvements in projects across wastewater treatment unit comprises a physi- the renaturation. the value chain – to minimize the input of raw cal and biological cleaning step. Clean water materials and maximize the output of products. is then released back into the Colorado river. The Emscher conversion project is intended to We plan, construct, and operate processes to be finalized by the end of 2020. generate either no waste or as little waste as The Oberhausen site currently runs a physical possible. Each OXEA site has waste manage- wastewater treatment for part of the effluents. ment in place. The wastewater is further biologically treated at the wastewater treatment plant of “Emscher­ In Bay City, the adaption of the process control genossenschaft (EG)”. unit (please refer to the Emissions to air // Green­ house gas emissions section) also represented As part of the “Emschergenossenschaft (EG)”, a waste avoidance project. For 2019 / 2020, a OXEA is actively involved in the renaturation recycling project is planned, leading to a signifi- project of the Emscher river. Driven by the cant reduction of landfill volumes of waste (to be formation of the coal industry in the Rhine- reported in Sustainability Report 2019). Ruhr area over 100 years ago, the previously unrestrained Emscher river was transformed For the disposal of waste (solid and liquid), into an open sewage channel system created OXEA works together globally with qualified by man. The EG wastewater treatment plant, and specialized waste disposal companies. located 2 km (1.25 miles) downstream from the In the cases of our sites in Marl and Bishop, OXEA Oberhausen site, cleans the whole Em- the sites are connected with the waste man- scher river before it flows into the Rhine. With agement systems of Evonik and Celanese – the introduction of the EU Water Framework 40 including for wastewater. Directive (2000 / 60 / EC) in the 1990s and the Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

Another project run in Oberhausen in 2018 The charging and treatment of wastewater Substances Hazardous to Water) in Germany OXEA was the renewal of an “Auffangbecken” in locally varies depending on the value chain; at trigger additional measures. The AwSV the production area as a preventive measure all our sites we comply with local regulations. requires all plant operators to classify all sub- Propanol 2 unit – a success story within the framework of the “Gewässerschutz- stances and mixtures in their plant according richtlinie”. We have refined and corrected our database of to a predetermined schema, to maintain the Reporting Section waste numbers for 2018. Numbers differ from corresponding documentation, and to keep it 23 Sustainability at OXEA 2017 and 2016. up to date. 24 Sustainable Governance 30 Economic Performance Waste numbers 2018 Product safety For the German production sites, all sales 32 Environment, Health, As a manufacturer of Oxo Intermediates and products, raw materials, intermediates, and and Safety (EHS) 60 Oxo Derivatives, OXEA is responsible for the mixtures throughout the entire production 43 Social Performance safe handling and usage of its sales products. process were reassessed in 2018 to ensure All our sales products are therefore tested correct assessment of the hazard potential 50 GRI Index accordingly and accompanied by appropriate under the new regulations. Results of the Imprint documentation and labeling that allows safe activities are documented and build the basis 40 handling by all people in contact with our for possible future projects (cross-site). products. In 2018, no incidents were reported related to 30 59 OXEA’s safety data sheets (SDS) include all documentation and labeling of OXEA products. safety-relevant information necessary for the 20 identified usage of the product. REACH As an importer and exporter of chemicals into Safety data sheets are available for all OXEA the European Union, OXEA is responsible for 10 sales products; for each sales product either the REACH registration of OXEA’s end products the national or a standard SDS is provided for and intermediates and the provision of data 7 the countries in which the product is marketed. regarding product safety and impact on the 0 For national SDS, more than 30 languages environment (please also refer to the Product are supported. Electronic distribution ensures safety section).

Hazardous waste [kt]* customers receive the latest SDS before the first delivery of a product or once anSDS has “REACH (EC 1907 / 2006) aims to improve the Non-hazardous waste [kt] been updated. In addition, SDS are available protection of human health and the environ- on OXEA’s homepage. All SDS are kept up to ment through the better and earlier identification date and checked at regular intervals (please of the intrinsic properties of chemical sub- * Includes waste for energy recovery and recycling. also refer to the REACH section). stances. This is done by the four processes of REACH, namely the registration, evaluation, Changes in national legislation such as the authorisation and restriction of chemicals”* 41 revised AwSV (Ordinance on the Handling of (*Citation from the ECHA webpage) Sustainability Report 2018 ENVIRONMENT, HEALTH, AND SAFETY (EHS)

In May 2018, the phase-in period of REACH Beyond the requirements of the ECHA, OXEA the reduction of energy usage and water con- OXEA came to an end and the legislation has proactively checks all relevant product data on sumption. entered its normal working life. With ten new a regular basis and evaluates the correctness Propanol 2 unit – a success story registrations and PPROD (Product- and of the dossiers handed in to ensure best data The turnaround was completed with only three ­process-orientated research and development) quality. OXEA’s target is to evaluate 25% of the days’ delay, and OXEA had a very successful Reporting Section submissions, OXEA registered all its remaining REACH dossiers per year. start-up without any incidents. 23 Sustainability at OXEA products by the May deadline, as well as two 24 Sustainable Governance new products. 25 dossier updates were per- OXEA does not have any sales products An essential element of the successful carrying 30 Economic Performance formed, reporting changes in volume bands, in its portfolio that are considered SVHCs out of the turnaround was the strong commu- 32 Environment, Health, results of new (eco-)toxicological studies, (substances of very high concern) or PBTs nication and EHS training of third-party compa- and Safety (EHS) updates to the chemical safety report, or gen- (persistent, bioaccumulative and toxic). nies beforehand, as well as adequate quality 43 Social Performance eral dossier quality improvements. For seven management and general maintenance. products, OXEA claimed ceased manufacture. Turnaround 2018 in Oberhausen GRI Index The ECHA (European Chemicals Agency) of- From May 26 to June 23, 2018, OXEA carried Biodiversity Imprint ficially concluded the substance evaluation of out a “turnaround” of the whole Oberhausen All OXEA production sites are located in n-butanol without any need for further action. site. The turnaround is obligatory for all German established industrial areas. In general, OXEA sites, takes place every five years, and is sites do not include any natural habitats. Our In this way, OXEA successfully completed the required by German regulations. All production production sites are either surrounded by registration of 100% of its sales products, as activities have to be stopped and every facility farmland or inhabited areas, or are adjacent to well as all interim products / precursors relevant is checked regarding its operational safety, rivers. for import and export into and out of Europe. proper control of processes, and documentation of the latter. At the Oberhausen site, OXEA provides nest- OXEA is the lead registrant for 40% of its sales ing aids for the peregrine falcon, an endan- products. The turnaround was planned thoroughly with gered bird species, in chimneys. Since 2004, all necessary functions involved, including ex- a couple of peregrines have been bringing As a member of Cefic,OXEA sends one ternal companies. All preparational work was up to four young birds each year. The project is representative­ to the “Evaluation Network of checked and rated by an external accredited supported by the plant’s fire brigade and the Experts”, a working group dedicated to the pro- consultancy to ensure smooth implementation “Wanderfalkenschutz NRW”. cess of improving the quality of the dossiers. and identify possible risks and potential for improvement. At our Bay City facility, the mature forested OXEA acts as active member of the VCI areas and wastewater ponds attract different (Verband der Chemischen Industrie) and is During the time of the turnaround, different bird species like the belted kingfisher, as represented in the “Arbeitskreis REACH Um- maintenance and modernization projects such well as other animals. The water quality of the setzung”, dealing with the implementation of as updating the control unit for part of the pro- ponds is suitable to serve as a food source REACH regulations (e.g., life cycle analysis). duction, revamping a cooling tower, etc. were for the birds. successfully completed – contributing to 42 Sustainability Report 2018 SOCIAL PERFORMANCE

Working at OXEA itoring at d Mon a High OXEA s an Pe sic rfo Ba rm Labor practices and performance R an Propanol 2 unit – H ce a success story management re L su Attract ev n e E l Reporting Section Our employees form our most important – Strategic Recruitment – Employer Branding 23 Sustainability at OXEA resource. OXEA believes in the value of its – Onboarding 24 Sustainable Governance employees and the diversity and experience 30 Economic Performance they bring to the organization. 32 Environment, Health, Motivate / Diversity Engagement and Safety (EHS) vat Our Human Resources Strategy builds upon & Inno ion i ve n H 43 Social Performance Inclusion ri R – Performance OXEA’s core values: safety, trust, commu­ D

Management

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nication, and respect. l

n

e

s

GRI Index v

u

e

r

L

Imprint We continually strive to strengthen our at- e Human

e

H tractiveness and competitiveness for (future) c R Resources n

a employees by pursuing a strategy that is B a m Strategy r s both future-oriented and consistent with our o i f Develop c r Retain s e core values. a n P d h – Development Plans ig – Talent Management Mo H OXEA’s HR strategy focuses with: – OXEA Academy nitoring at a – Succession Planning – HR Risk Management – Assignments attracting, growing, and retaining talent.

Various initiatives, programs, and tools are Compensate utilized globally to ensure we attract the right employees, develop them, and can thrive with – Job Profiles, Band Levels incl. Benchmarking a workforce with growing experience in the – Bonus & Benefits future. The HR organization plays an important role in pursuing and implementing these goals by operating as a partner of the various OXEA organizations, in order to keep OXEA fit for the future of personnel management. The HR strategy builds on the pillars listed in the diagram on the right.

43 Sustainability Report 2018 SOCIAL PERFORMANCE

The number of people employed by OXEA in OXEA uses different channels for attracting portunities – tailored to their job profiles and OXEA the 2018 financial year grew slightly across all talent into the diverse employment areas. needs. Training covers a wide variety of topics regions to 1,401 (recording date: December 31, In Oberhausen, OXEA represents an important and ranges from software training and job-­ Propanol 2 unit – a success story 2018, number excludes apprentices). employer. By offering apprenticeships in tech- specific training toOXEA -specific topics, and nical and commercial areas, OXEA is the most can be internally or externally conducted. Reporting Section At OXEA, we attracted 89 new qualified staff important provider of industrial apprenticeships 23 Sustainability at OXEA members worldwide. Approximately 66% in the city. The apprenticeship model is run As in 2017, OXEA’s employees received an 24 Sustainable Governance of our workforce operates in research, produc- as “dual education” that offers apprentices the average of 15.5 hours of training in 2018. 30 Economic Performance tion, and engineering, to a large extent sup- opportunity to work and study at the same time. 32 Environment, Health, porting our strategic investment projects. All development activities for the individual em- and Safety (EHS) Nearly 100% of the apprentices are offered ployee are part of what is known as the perfor- 43 Social Performance a permanent job within OXEA once they finish mance management system, which provides the program successfully. an overarching concept by bundling together all GRI Index Headcount performance-promoting activities, continuous Imprint Another educational program is the FOX train- education, and seminars. Additionally, it builds ee program, tailored specifically for university the framework for the development of each 1,500 graduates with a master’s degree, and OXEA employee. implements regular exchange programs in co- operation with the Oman Oil Group (e.g., Oman In 2018, OXEA introduced a performance man- Oil Graduate Program). agement system, following the Cooperation and Leadership model introduced in 2017. The 1,000 With three new FOX trainees and 39 fresh ap- new performance management system allows prentices, a total of 104 young people worked a more accurate breakdown of company goals and studied at OXEA’s own center for vocation- into individual goals set for each employee, as al education and on the job in 2018. specified in the CSC. It promotes regular feed- back and actively reinforces the OXEA values 500 OXEA globally fosters cooperation with univer- with a strong focus on the empowerment of sities in different areas and offers opportunities employees. for graduate students to conduct a part of their thesis at or with OXEA. The Cooperation and Leadership model has a strong focus on the OXEA values, fosters open 0 For the development of OXEA’s employees, communication, and enhances a feedback 2016 2017 2018 training, coaching, and personal development ­culture between different functions and hierar- are key components of our personnel policy. chy levels. The Cooperation and Leadership Through our internal training programs, we model aims to empower employees to take re- Asia Americas Europe provide our employees with state-of-the-art sponsibility and supports independent behavior 44 individual development and qualification op- throughout the organization. Sustainability Report 2018 SOCIAL PERFORMANCE

Annual performance review 2018 ment goals for each person in the best possi- of the candidate’s role as a driving force in the OXEA One feedback tool of the performance man- ble way. Overall, an inspiring atmosphere with team. An additional focus area is the exchange agement system is the employee performance possibilities for development and responsibility of information within the organization, so that Propanol 2 unit – a success story review, which is conducted annually by the acceptance are the intended focus. the courses will have diverse membership from employee’s direct supervisor and should be various business lines, sites, regions, and hi- Reporting Section accompanied by an additional two to three The understanding at OXEA is that demon- erarchies. 23 Sustainability at OXEA intra-year reviews or feedback sessions. This strating leadership is not the same as carrying 24 Sustainable Governance review is based on the principles of the Coop- out a supervisory role. Instead, leadership is Management staff at all levels are considered 30 Economic Performance eration and Leadership model. something an individual does to inspire others to be Agile Leaders at OXEA. A prerequisite 32 Environment, Health, and have a positive impact on them. for participation in the program is the comple- and Safety (EHS) All employees are assessed using predefined tion of the “Golden Profiler of Personality” test 43 Social Performance categories. An assessment scale is used to In the academy, two groups have been de- or an equivalent personality test such as the grade the achievement of each category’s re- fined, OXEA’s Agile Professionals and Agile MBTI. All managers should be aware of their GRI Index quirements. The results are officially recorded Leaders, and the respective seminars have own management style and behavior. The Imprint and evaluated by HR, who forward the agreed been designed to meet the individual needs of course begins with seminars on “Agile Leader- development measures such as further train- staff members. ship” and “Change Management”. Applicants ing activities to the Human Resources Devel- will be personally contacted by their supervisor opment department (for scheduling and im- Two groups: Agile Professionals (AP) and or by the Human Resources department if plementation together with the organizational Agile Leaders (AL) they qualify as participants in the Agile Leaders units). Agile Professionals at OXEA are all employees program. who are preparing themselves to assume With the new performance system in 2018, the more responsibility, or who are in their first In 2018, a total of 36 employees (one group of OXEA values have been actively integrated as leadership position. This isn’t just a matter of 12 people as Agile Leaders and two groups performance criteria and receive greater focus being the supervisor of a group of employees. of 12 people each as Agile Professionals) went than in previous years. Rather, leadership is a role that one assumes through different training blocks at the OXEA in order to provide inspiration and positively Academy. 100% of OXEA employees are covered by the influence others. “Personality and Leadership” annual performance review. and “Stepping into Leadership” are the first seminars recommended as an introduction. OXEA Academy – 2018 news Employees need to apply on their own initia- OXEA’s in-house training program has been tive. revamped and newly implemented, using the Cooperation and Leadership model as a Evaluation criteria include the application form, framework. letter of recommendation, length of time at the company, evaluation information from pre- The idea is to promote leadership capabilities vious performance reviews, and length of time 45 of individual employees, and to define develop- in management, or, alternatively, a description Sustainability Report 2018 SOCIAL PERFORMANCE

Overview of mix and match seminars at the OXEA Academy OXEA

Propanol 2 unit – What are innovation and creativity? a success story Innovation Management Design thinking, disruptive thinking ... Reporting Section

23 Sustainability at OXEA Mix and match Coaching, mentoring, leading. Coaching Skills for Leaders Different approaches, different outcomes. 24 Sustainable Governance – Cross-faculty training groups 30 Economic Performance – Cross-function 32 Environment, Health, How to present yourself in a convincing way – Self-Marketing and Safety (EHS) feedback. – Cross-hierarchical 43 Social Performance

Conflict – styles and patterns. Conflict Resolution GRI Index The how and the why of conflict escalation.

Imprint

FOX trainee program 2018 To ensure that both OXEA and the trainees get The FOX trainee program (Focus on OXEA) maximum benefit from the program, it is clearly was revised in 2018. This program is geared defined beforehand which tasks will form part toward graduates who wish to get acquainted of the traineeship and in which projects trainees with a specific field by rotating between differ- will be involved. ent areas. At present, OXEA has three trainees in the areas of Human Resources, Marketing, The aim is to provide trainees with a wide and Operations. The program, which lasts for network throughout the company and to impart a total of two years, consists of four six-month both theoretical and hands-on knowledge to job rotations in different areas of the company. them. Besides being involved in departmental In addition, trainees work on one or two proj- work, they attend specially designed seminars ects of their own, approaching these from the and workshops and take part in trainee get-­ various departmental perspectives. togethers. As well as having a designated contact from Human Resources Development, trainees are assigned a mentor from another specialist area.

46 Sustainability Report 2018 SOCIAL PERFORMANCE

Diversity In 2018, OXEA participated in the “Girls’ Day” OXEA Fair treatment of all employees, such as equal Employees by age in % event (held throughout Germany) for the 18th opportunities, ethics, and non-harassment in time in a row and opened its doors at the Propanol 2 unit – a success story the workplace, are of the utmost importance Oberhausen facility to 22 females still attend- (please also refer to OXEA’s Code of Conduct). 100 ing high school. The Girls’ Day is specifically Reporting Section 16 15 18 aimed at informing females about appren- 23 Sustainability at OXEA The company is responsible for preserving the ticeship and job opportunities in supposedly 24 Sustainable Governance principles of equal opportunities and for creat- 80 male-dominated technical areas. 30 Economic Performance ing a culturally diverse working environment. 32 Environment, Health, Germany’s General Treatment Act (or AGG) 40 40 39 and Safety (EHS) has high priority and similar rules apply under 60 43 Social Performance US law. Employees by gender in %

GRI Index Any kind of discrimination may be reported 40 100 Imprint via the whistleblowing hotline, the compliance council, the supervisor, or directly to the HR 17 17 17 44 45 43 department. For 2018, no recordings were 20 80 listed.

Age structure at OXEA is closely monitored 0 60 and demographic change constitutes a chal- 2016 2017 2018 lenge that OXEA is faced with. OXEA’s ap- prenticeship program is one of the counter- 30–50 >50 <30 40 83 83 83 measures to fill the workforce pipeline for the future.

20 The percentage of female employees of around 17% lies within the typical range of the chemical industry. OXEA offers individualized solutions to females returning from parental 0 leave and is working on strategic initiatives 2016 2017 2018 to increase the proportion of women in the company. Male Female

47 Sustainability Report 2018 SOCIAL PERFORMANCE

Compensation and benefits considered a full-time employee and eligible Occupational safety OXEA The employees’ compensation is linked to both for benefits. Employees are eligible for all Relevant data and program descriptions can company and individual performance goals provided benefits from their date of hire, which be found in the Environment, Health, and Safety Propanol 2 unit – a success story (please refer to the CSC and performance include medical, dental, life, accidental death (EHS) section. management system). OXEA’s benefit system and dismemberment, and short- and long-term Reporting Section reflects national standards and can vary de- disability insurances. OXEA participates in the Corporate Health Promotion Program 23 Sustainability at OXEA pending on hierarchy and remuneration level, 401(k) retirement plan, where we match up to Our employees’ health and well-being is a 24 Sustainable Governance service years, etc. 5% of employee contributions and contribute ­priority at OXEA, and the Corporate Health 30 Economic Performance an additional 5% of the employee’s biweekly Promotion Program aims to promote physical 32 Environment, Health, OXEA offers supplementary health insurance to salary every pay period to this account. and mental capabilities both at work and in and Safety (EHS) all employees. Furthermore, OXEA employees their personal lives. It comprises four pillars 43 Social Performance can benefit from the following programs: OXEA encourages both paternity and maternity and covers the areas of mobility, nutrition, leave models and provides for the employees prevention, and relaxation. Program compo- GRI Index At the European sites, OXEA provides a de- according to the regulations of the countries in nents vary at different OXEA sites according Imprint fined benefit that will be paid upon retirement. which OXEA operates. to needs and topics in focus. Remotely located Employees who are employed for more than employees can benefit from individualized six months are included in the collective agree- offerings and online courses. ment for single payments and retirement pro­ vision according to the company’s collective Number of employees returning from The Corporate Health Promotion Program agreement. parental leave 2018 is currently established at the OXEA European and US sites. OXEA’s site in Nanjing is plan- OXEA also offers flexible working hours ning to establish tailored health activities at the (respecting core requirements) and long-term 15 beginning of 2020. accounts. This model offers the opportunity to save up parts of the salary or extra work hours, The Corporate Health Promotion Program in order to retire prematurely from work or 10 offers a wide range of services, activities, and schedule a personal break while still receiving courses OXEA employees can benefit from – 15 salary payments. In addition, private accident either for zero costs or with pecuniary contri- 5 insurance is provided. 9 bution.

The above-mentioned benefits represent an These include: physical training and prevention extract and are offered to permanent full- and 0 courses (physical fitness, relaxation, nonsmoker part-time employees. training, nutritional training), participation in

Male Female public sport events, sponsored online courses, At the US sites, OXEA offers flexible working etc. hours with certain core requirements. Each 48 employee must work 30 hours a week to be Sustainability Report 2018 SOCIAL PERFORMANCE

At our OXEA sites in Oberhausen and Mon- OXEA conducts training for first responders at OXEA heim, we offer medical services for employees, all sites. ntal Inte me lle including medical checkups, vaccinations, and n ct Propanol 2 unit – iro ua nv l a success story the services of an optician and orthopedist, New Wellness Committee in Bay City E through our own medical team. In Marl, those In October 2018, the facility in Bay City estab- Reporting Section

services are provided by Chemical Park. lished what is known as a Wellness Commit- l a E n m o 23 Sustainability at OXEA tee. The aim of the Wellness Committee is the i o t t a i o p 24 Sustainable Governance n In 2018, the following services were used: establishment of programs and organization u

a

c

l 30 Economic Performance c Elements of of activities that Bay City employees can join O Wellness 32 Environment, Health, to enhance a healthy and satisfying lifestyle and Safety (EHS) (work-life balance). 43 Social Performance 2018 (persons) S l p a ir c The committee has more than 25 members i i tu s a y GRI Index l h 147 and has joined the “Wellness Works” program P Imprint 471 of the Bay City Matagorda Regional Medical Center, which offers a wide variety of services Social such as the attendance of local fitness centers for reduced costs.

470 nd fiit – m d u ac The plan is to roll out the initiative to the other n h su m e it US sites. G !

1796

Preventive medical checkup Doctor’s consultations Paramedic treatment Vaccinations

49 Sustainability Report 2018 SOCIAL PERFORMANCE

Local Community Cooperation with local universities and Another important partner is Friedensdorf OXEA schools; internship and employment options International. OXEA supports the institution Engagement for students annually. Friedensdorf International is an NGO Propanol 2 unit – a success story Growth and success require a solid founda- Donations to medical and social institutions in Oberhausen that brings sick and injured tion. At OXEA, this means trust and responsi- and charities children from war and crisis zones to Germany Reporting Section bility. We appreciate and nurture the trust that etc. for medical care. After medical treatment, the 23 Sustainability at OXEA our customers and our neighbors have placed children return to their families. 24 Sustainable Governance in us. We intend to be recognized as a valu- In the USA, OXEA employees are active in 30 Economic Performance able corporate citizen and make every effort to reoccurring events with specific focus themes: In addition, we support schools, kindergartens, 32 Environment, Health, operate responsibly in our local communities. OXEA employees at the Bay City facility and sports clubs next to our production sites and Safety (EHS) We take responsibility for the people who work regularly participate as volunteers in e.g., the with various donation measures. 43 Social Performance for OXEA and those who live in the areas sur- Matagorda Beach Clean-up (twice a year) rounding our sites. coordinated by the Texas General Land Office. You will find an extract of activities in 2018 in GRI Index Trash data (volume and kind) is recorded and the following paragraphs. Imprint We support projects in cooperation with part- helps to determine the source and support ners such as communities, associations, local avoidance of waste. Oberhausen: Open Day 2018 governments, and nearby institutions, and In September 2018, the OXEA site in Ober­ extend financial support to programs covering Yearly events are the Hazardous Household hausen opened its doors to the public for environmental and social aspects. Waste Collection Day (please refer to para- neighbors, relatives, and anyone interested to graph below) and the United Way Day of view the premises of OXEA (please also Our aim is to be a decisive community partner Caring, for example. In the United Way Day refer to Global EHS Day), as part of a VCI-wide and a responsible corporate citizen by posi- of Caring, OXEA employees are joined by event. From 10 a.m. to 4 p.m., different de- tively impacting social development. We strive students from local high schools and help with partments at OXEA were available to answer to develop a volunteering work culture and home repairs, lawn work, etc. at the homes visitors’ questions and to present interesting encourage our employees to get involved in of local residents in need of support. information on their day-to-day work. activities with a positive impact on society. In Europe, we’ve also opted for a mix of sup- Supported activities cover: port methods. Every two years, OXEA supports the MULTI Educational initiatives (e.g., training at project in Oberhausen. The basic idea of the schools and / or institutions of science) MULTI is a peaceful meeting of young people Open days from different cultural backgrounds. In com- Sponsorship of events mon activities, young people recognize similar- Volunteering work* with different focus areas ities, but also differences. During the MULTI, hundreds of bridges will be built between the

*Volunteering work: hours during work time are individually agreed young people. The project aims to foster a 50 upon between the employee and the respective supervisor. tolerant, diverse culture. Sustainability Report 2018 SOCIAL PERFORMANCE

Oberhausen: waste-free environment – Household hazardous waste (HHW) is any OXEA trash collection day product labeled toxic, irritant, corrosive, poi- OXEA’s apprentices spent one working day son, combustible, or flammable. Items include Propanol 2 unit – a success story on trash collection around the premises at used batteries, motor oil, pool chemicals, the Oberhausen site. One driver for the event pesticides, and herbicides, as well as paints Reporting Section is OXEA’s participation in the Waste Free and household cleaners. 23 Sustainability at OXEA Environment Initiative**. With events such as 24 Sustainable Governance this, OXEA wants to set a positive example The data from previous events reflects the 30 Economic Performance for plastic recycling and responsible waste positive impact on pollution prevention to 32 Environment, Health, disposal. A total of 18 60-liter bags of garbage which the activity contributes. In 2017, the and Safety (EHS) were collected. The event is aimed at creating Matagorda HHW event collected 13,032 43 Social Performance awareness. gallons of paint, 2,365 tires, 10,905 pounds of household waste, and 12 pallets of electronic GRI Index Bay City: Household Hazardous Waste waste – and that was only part of the collec- Imprint Collection Day tion! The volume highlights the importance Household hazardous waste presents a real of proper waste management, not only at the disposal challenge. While this waste consti- plant, but also at home. tutes only a small percentage of the residential waste stream, the potential damage from Marl: Site on the Move improper disposal is significant. The health and Hundreds of employees gathered at the sports safety of families, neighborhoods, and the field next to the entrance of the chemical environment are threatened when household park in Marl on June 2018. “Site on the Move” hazardous waste is stored or disposed of (Standort in Bewegung) was the motto of the improperly. 17th sports day, which was not only about med- als, but about a good cause. Eleven OXEA em- OXEA Bay City employees volunteered at the ployees from Marl took part in this event, which 24th annual Household Hazardous Waste was organized by Frank Krause. Among the Collection Day on Saturday, October 27, 2018. participants were CEO Salim Al Huthaili and The plant has been a major sponsor of the Markus Rüther, who each ran an impressive ten activity for many years. Supporting the event kilometers (6.2 miles). A total of €14,500 was benefits the community, strengthens partner- given to the Pusteblume kindergarten. ships with local industries, and reflectsOXEA ’s commitment to sustainability.

** The Waste Free Environment Initiative is an international campaign sponsored by the Gulf Petrochemicals and Chemicals 51 Association (GPCA) Sustainability Report 2018 GRI CONTENT INDEX

OXEA This report is oriented to the Sustainability Reporting Standards 2016 of the Global Reporting Inititiative (GRI), which is the most established framework for sustainability reporting worldwide. Propanol 2 unit – a success story The report covers the OXEA Group of companies (OXEA). The group structure is described in OXEA’s Financial Statements 2018. Reporting Section

GRI Index GRI Indicator Page GRI 101: Foundation Imprint GRI 102: General Disclosures Organizational Profile GRI 102-1 Name of the organization 5 GRI 102-2 Activities, brands, products, and services 8–10 GRI 102-3 Location of headquarters 5 GRI 102-4 Location of operations 5, 6 GRI 102-5 Ownership and legal form 5 GRI 102-6 Markets served 8 GRI 102-7 Scale of the organization 5 GRI 102-8 Information on employees and other workers 44 GRI 102-9 Supply chain 28 GRI 102-12 External initiatives 23 Strategy GRI 102-14 Statement from senior decision-maker 4 GRI 102-15 Key impact, risks, and opportunities 26–28 Ethics and Integrity GRI 102-16 Values, principles, standards and norms of behavior 25, 26, 43 Governance GRI 102-18 Governance structure 11–13, 24–26 Stakeholder Engagement GRI 102-40 List of stakeholder groups 29 GRI 102-41 Collective bargaining groups 29 GRI 102-42 Identifying and selecting stakeholders 29 GRI 102-43 Approach to stakeholder engagement 29 Reporting Practice GRI 102-53 Contact point for questions regarding the report 55 GRI 102-54 Claims of reporting in accordance with the GRI Standards 52 GRI 102-55 GRI content index 52ff.

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Material topics OXEA GRI 201 Economic Performance GRI 103 Management Approach (including 103-1, 103-2, 103-3) 30 Propanol 2 unit – a success story GRI 201-1 Direct economic value generated and distributed 30 GRI 201-3 Defined benefit plan obligations and other retirement plans 48 Reporting Section GRI 204 Procurement Practices GRI 103 Management Approach (including 103-1, 103-2, 103-3) 28 GRI Index GRI 204-1 Proportion of spending on local suppliers 28 GRI 205 Anti-corruption Imprint GRI 103 Management Approach (including 103-1, 103-2, 103-3) 25, 26 GRI 205-2 Communication and training about anti-corruption policies and procedures 25, 26 GRI 205-3 Confirmed incidents of corruption and actions taken 25

GRI 302 Energy GRI 103 Management Approach (including 103-1, 103-2, 103-3) 32–38 GRI 302-1 Energy consumption within the organization 38 GRI 302-5 Reductions in energy requirements of products and services 37, 38 GRI 303 Water GRI 103 Management Approach (including 103-1, 103-2, 103-3) 32–36, 39 GRI 303-1 Water withdrawal by source GRI 304 Biodiversity GRI 103 Management Approach (including 103-1, 103-2, 103-3) 32–36, 42

Operational sites owned, leased, managed in, or adjacent to, GRI 304-1 42 protected areas and areas of high biodiversity value outside protected areas

GRI 304-3 Habitats protected or restored 40 GRI 305 Emissions GRI 103 Management Approach (including 103-1, 103-2, 103-3) 32–36, 38 GRI 305-1 Direct (Scope 1) GHG emissions 39 GRI 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions 39 GRI 306 Effluents and Waste GRI 103 Management Approach (including 103-1, 103-2, 103-3) 32–36, 40 GRI 306-1 Water discharge by quality and destination 40 GRI 306-2 Waste by type and disposal method 40 GRI 307 Environmental Compliance GRI 103 Management Approach (including 103-1, 103-2, 103-3) 36 GRI 307-1 Non-compliance with environmental laws and regulations 36

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GRI 401 Employment OXEA GRI 103 Management Approach (including 103-1, 103-2, 103-3) 43–45 GRI 401-1 New employees hires and employee turnover 44 Propanol 2 unit – a success story Benefits provided to full-time employees that are not provided GRI 401-2 48 to temporary or part-time employees Reporting Section GRI 401-3 Parental leave 48 GRI 403 Occupational Health and Safety GRI Index GRI 103 Management Approach (including 103-1, 103-2, 103-3) 32–36, 48, 49

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, Imprint GRI 403-2 33 and number of work-related fatalities

GRI 403-3 Workers with high incidence or high risk of diseases related to their occupation 33 GRI 404 Training and Education GRI 103 Management Approach (including 103-1, 103-2, 103-3) 44–46 GRI 404-1 Average hours of training per year per employee 44 GRI 404-3 Percentage of employees receiving regular performance and career development reviews 45 GRI 405 Diversity and Equal Opportunity GRI 103 Management Approach (including 103-1, 103-2, 103-3) 47 GRI 405-1 Diversity of governance bodies and employees 47 GRI 406 Non-discrimination GRI 103 Management Approach (including 103-1, 103-2, 103-3) 47 GRI 406-1 Incidents of discrimination and corrective actions taken 47 GRI 413 Local Communities GRI 103 Management Approach (including 103-1, 103-2, 103-3) 50 GRI 413-1 Operations with local community engagement, impact assessments, and development programs 50 GRI 414 Supplier Social Assessment GRI 103 Management Approach (including 103-1, 103-2, 103-3) 28 GRI 416 Customer Health and Safety GRI 103 Management Approach (including 103-1, 103-2, 103-3) 41, 42 GRI 417 Marketing and Labeling GRI 103 Management Approach (including 103-1, 103-2, 103-3) 41, 42 GRI 417-1 Requirements for product and service information and labeling 41 GRI 417-2 Incidents of non-compliance concerning product and service information and labeling 41 GRI 418 Customer Privacy GRI 103 Management Approach (including 103-1, 103-2, 103-3) 28 GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 28 GRI 419 Socioeconomic Compliance GRI 103 Management Approach (including 103-1, 103-2, 103-3) 25, 26 GRI 419-1 Non-compliance with laws and regulations in the social and economic area 25 54 Sustainability Report 2018 IMPRINT

Publisher OXEA OXEA GmbH Rheinpromenade 4a Propanol 2 unit – a success story 40789 Monheim am Rhein Germany Reporting Section

GRI-Index Tel +49 2173 9993-0

Imprint [email protected] www.oxea-chemicals.com

Trade Register: Amtsgericht Düsseldorf HRB 79958

VAT-Identification Number: DE813758906

Print run 200

Layout 3st kommunikation GmbH, Taunusstraße 59 – 61, 55118 Mainz Germany

Pictures Sebastian Moelleken, Mölleken Fotografie: Cover, p. 4, 11, 12, 13, 21 3st kommunikation: p. 3, 14 Michelle Woodley, Memories by Michelle: p.18 John Yoon, Tov Studio: p. 19

All other pictures by OXEA https://www.oxea-chemicals.com/en/sustainability.html

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