Sustainability Report 2019 Table of 2 Contents

LIVING SUSTAINABILITY. TOGETHER.

SUSTAINABILITY REPORT 2019 TABLE OF 2 CONTENTS

OVERVIEW 02 53 VALUING OUR PEOPLE MESSAGE FROM OUR CEO 03 ENGAGING AND DEVELOPING OUR EMPLOYEES 54 BOARD MEMBERS’ VIEW 04 DRIVING SUSTAINABILITY ALONG THE VALUE CHAIN 59 SUPPORTING THE COMMUNITIES IN WHICH WE LIVE AND WORK 61

OUR COMMITMENT TO SUSTAINABILITY 05 64 MANAGING OUR BUSINESS RESPONSIBLY ENSURING FAIR BUSINESS PRACTICES 65 MAKING SUSTAINABLE GROWTH A REALITY 68

SHAPING THE FUTURE WITH 19 72 ANNEXE SUSTAINABLE STYRENICS ABOUT THIS REPORT 72 GRI INDEX 73

ENSURING SAFE AND RESOURCE- 36 EFFICIENT OPERATIONS UPHOLDING SAFETY AS OUR CORE VALUE 37 REDUCING OUR ENVIRONMENTAL FOOTPRINT 41 MESSAGE FROM 3 OUR CEO

I am pleased to share with you INEOS depolymerisation by producing 100% recycled clear proof point that recycled polystyrene has Styrolution’s latest sustainability report and polystyrene at lab-scale. This breakthrough an excellent environmental footprint. provide some insights on our commitments triggered a lot of positive interest from our and actions to contribute to a circular and customers as well as other stakeholders along I am pleased to share that our leadership on low-carbon economy. the value chain, notably at the K 2019 trade fair. sustainability has been recognised externally. Polystyrene has many lives and we have We were awarded a platinum rating by We have been on a journey of continuous capitalised on the unique, intrinsic properties EcoVadis, which places us in the top 1% in the improvement since we began our sustainability of this material by investing in different state- category of plastics manufacturers. Our year- safety above all else. We will continue to programme in 2014. We initially concentrated of-the-art recycling technologies in parallel. It on-year improvement over the past seven years promote a safe and inclusive workplace our efforts on optimising our portfolio and is easily sortable, has an excellent motivates us to strive further, however, we are environment, while providing opportunities for providing high-quality, safe and durable environmental footprint, and can be used to aware of the challenge to not fall back as the personal development and growth. styrenics products to our customers. To produce food-grade applications. assessment becomes increasingly stringent. address the increasing global challenges, we We are undertaking major efforts to provide have expanded our focus to developing Another notable achievement was the Our progress would not have been possible significant volumes of recycled polystyrene to circular solutions. introduction of INEOS Styrolution ECO, our without the passion and dedication of our our customers by 2025. By delivering recycled family of sustainable products. We set a new 3500 colleagues who strive on a daily basis to and bio-attributed solutions, we will jointly As I step into my new role as CEO, we commit standard in the industry with Terluran® ECO, make our vision of a sustainable future a reality. take a first bold step to significantly reduce our to further drive our business and operations our first ABS product made from post- We continue to collaborate with stakeholders carbon footprint. With this journey ahead of with the highest environmental, social and consumer electronic waste and Styrolux® ECO, across our value chain − customers, suppliers, us, we will make our plastics circular and create governance standards. We believe we are well- the world’s first specialty styrenics material technology providers, sorters and recyclers as a positive impact on our planet and our positioned to help deliver select UN Sustainable made using renewable feedstock. We are well as universities and institutes − to deliver people, and help our customers to meet their Development Goals (SDGs) through our working to grow our ECO portfolio over time innovative, commercial-scale solutions of the sustainability targets. concerted actions. As the world tackles the to make more sustainable solutions available same high quality and performance as before. far-reaching effects of COVID-19, we have on a commercial scale. Our investors trust us and share our vision for We invite you to read this report and learn helped combat the spread of this pandemic by sustainability. more about our aspiration and achievements safeguarding our employees, supporting local We continue our efforts to reduce our to become more sustainable and welcome communities and supplying material to environmental footprint and have cut our Compliance with legislation as well as with our your suggestions and support. produce safety and medical equipment such greenhouse gas and wastewater emissions, own business principles is a precondition for as COVID-19 detection kits, respiratory water use as well as landfill waste over the past sustainability. Our daily decision-making is Sincerely yours, devices, safety goggles and face shields. five years. The promising initial results from based on a strong foundation on compliance two life cycle assessment studies on with high standards of business practice. Our major success story in 2019 was depolymerisation of polystyrene predict Steve Harrington demonstrating the proof-of-concept of significant greenhouse gas savings. This is a Safety is our core value and we put people’s CEO INEOS Styrolution

As the leading styrenics Finance is an integral part of Our customers are looking to We are strongly committed Styrenics are circular. We supplier, we have embarked our sustainability efforts and us for sustainable offerings to contribute to the have made significant on a journey to lead the way by we are seeing increasing relevance for their applications, ranging from development of a circular economy. progress in scaling-up existing operating sustainably. We focus on of sustainability performance in our using recycled materials at the outset With polystyrene, we offer an technologies that enable the resource efficiency and are operations and investments. We are or making them recyclable after use. extremely versatile product that also circularity of polystyrene as well as developing initiatives and projects dedicated to meeting the In addition to creating new products stands out with its unique properties our other polymers. But we don’t to reduce our environmental expectations of our stakeholders containing a significant percentage of as a true circular polymer. It can be stop here. We are collaborating with footprint. Zero accidents is lived including investors, financial experts recycled material from post- recycled using different technologies technology providers along the every day at our production sites and rating agencies to address consumer recycling schemes, we are (mechanical and depolymerisation) value chain, recyclers, governmental and offices, with a clear focus on key sustainability in all our business improving our supply chain to ensure allowing our customers to benefit authorities, and most importantly indicators to relentlessly learn and areas. access to these recycling sources. We from polystyrene applications while with our customers to enable a adjust. We have reached our are working hard to provide our meeting their own sustainability circular economy for all our styrenics best-ever safety performance over MARKUS FIESELER customers with innovative, best-in- goals. products. the last twelve months and will Chief Financial Officer class solutions that support their continue to improve our actions to sustainability objectives. ALEXANDER GLÜCK GREG FORDYCE prevent pellet loss. President Europe Middle East President Americas* ROB BUNTINX & Africa* PIERRE MINGUET President Asia-Pacific* President Operations

*These positions were effective August 1, 2020.

For INEOS Styrolution, sustainability is a lever for growth and will enable us 3,500+ 10 20 6 R&D 24 sales to tap into new and emerging business EMPLOYEES COUNTRIES PRODUCTION SITES CENTERS offices models. We are committed to enabling a circular economy for styrenics, further APPROX. 1,000 improving our carbon footprint and PATENTS promoting sustainable operations o throughout our entire value chain. N 1 + GLOBAL 90 founded in 2011 + LEADER YEARS of experience 4,000 in styrenics CUSTOMERS in styrenics INEOS STYROLUTION + AT A GLANCE 1,500 PRODUCTS

INEOS Styrolution is the leading global styrenics supplier with a focus on styrene 3,717 KILOTONNES monomer, polystyrene, ABS standard and OF STYRENE MONOMER, styrenic specialties. As of December 31, 2019, POLYSTYRENE, ABS STANDARD & STYRENICS SPECIALTIES SOLD the company operated 20 manufacturing sites in Belgium, Canada, China, France, Germany, India, Mexico, South Korea, Thailand and USA, + with six R&D centres and 24 sales offices 2,000 APPLICATIONS ACROSS SEVEN INDUSTRIES around the globe. 4.9 BILLION EUROS IN REVENUE INEOS Styrolution has four headquarters around the world – the global and EMEA AUTOMOTIVE ELECTRONICS HOUSEHOLD CONSTRUCTION HEALTHCARE PACKAGING TOYS, SPORTS headquarters for specialties in Frankfurt am & LEISURE Main, Germany, the EMEA headquarters for 4 BILLION EUROS TOTAL ASSETS commodities and standard products in Rolle, Global styrene monomer 17% 2 BILLION EUROS Switzerland, the American headquarters in TOTAL EQUITY Aurora, Illinois, USA, and the Asia-Pacific OPERATING Polymers Americas 23% 2 BILLION EUROS headquarters in Singapore. SEGMENTS Polymers Asia-Pacific 29% TOTAL LIABILITIES INCLUDING FINANCIAL Polymers EMEA 31% INDEBTEDNESS

as of December 31, 2019

OUR PRODUCT SCOPE IN THE STYRENICS VALUE CHAIN

Styrolution® PS Benzene • GPPS Styrene monomer • HIPS

Our product portfolio now includes Ethylene • Styrene monomer • Ethylbenzene ABS standard INEOS Styrolution ECO, our new family of sustainable products. It comprises products • Terluran ® made from post-consumer recycled material • Terluran® ECO as well as renewable feedstock and Acrylonitrile complements our existing strong portfolio Specialties of styrenics standard products and specialties.

ABS ASA & ASA+PC SMMA & MBS Butadiene • Absolac® (Asia only) • Luran® S • Clearblend® • Absolac® High Heat • Luran® SC (Americas & Asia only) (Asia only) (EMEA & Asia only) • NAS® • Novodur® • Zylar® • Novodur® High Heat SAN Butylacrylate • Lustran® Standard • Absolan® (Asia only) COMPOSITES • Lustran® Specialties • Luran® • StyLight® (SAN) • Lustran® High Heat • Luran® High Heat • StyLight® SL • Lustran® (Americas only) (Back moulding) Methyl methacrylate ABS+PA & ASA+PA • Terblend® N SBC • Terblend® S • Styrolux® • Triax ® (Americas only) • Styrolux® ECO • Styroflex® Purchased by INEOS Styrolution MABS • Styroflex® ECO • Terlux ® • K-Resin® Produced by INEOS Styrolution • Clearlux®

OWNERSHIP SIGNIFICANT CHANGES TO THE ORGANISATION

INEOS Styrolution is wholly owned by INEOS Limited. Effective July 1, 2020, Steve Harrington was appointed as the company’s Chief Executive Officer. Prior to this, he was President Asia-Pacific and Global Styrene Monomer for INEOS Styrolution. He succeeds Kevin McQuade, who was appointed Chairman of INEOS Styrolution effective July 1, 2020.

INEOS Limited Alexander Glück, former President Americas was appointed President Europe, Middle East and Africa. Rob Buntinx, former President Europe, Middle East and Africa was appointed President Asia-Pacific. Greg Fordyce, former Vice President, Supply Chain Americas, was appointed President Americas. All these positions were effective August 1, 2020.

INEOS Styrolution INEOS Styrolution Switzerland SA Investment GmbH

INEOS Styrolution Group GmbH

Legal entities Legal entities Legal entities Americas Specialties EMEA Asia-Pacific

OUR SUSTAINABILITY FOCUS

INEOS Styrolution intends to operate and develop its business in a way that balances current and future needs, taking into account economic, environmental and social factors so that we can sustain and further grow our business in the long term.

Our focus industries are driven by sustainable megatrends such as …

DEMOGRAPHIC CHANGE CLIMATE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS CHANGE RESOURCE SCARCITY CIRCULAR ECONOMY ENERGY RISING LIVING STANDARDS MARINE LITTER EFFICIENCY IN EMERGING AND DEVELOPING COUNTRIES URBANISATION

Our vision To be recognised as the global leader in sustainable styrenics solutions Our mission To utilise our entrepreneurial culture to deliver long-term value to our customers and stakeholders. We do this by operating in a safe, environmentally and socially responsible manner to provide sustainable styrenics solutions across the full lifecycle of our products.

OUR APPROACH

Styrenics are one of the most versatile recycling rounds. Moreover, we collaborate We favour the use of rail and sea transport, of our production processes. In addition, we materials in the 21st century, and have with the entire value chain including sorters rather than road-based transport and also invest in technology upgrades at our revolutionised the way we live today. Our and recyclers to ensure a consistent, high- encourage our customers to order in bulk manufacturing sites and implement energy products have become an indispensable part quality supply of post-consumer styrenics that when possible, to further lower our transport reduction projects as part of our operational of consumers’ everyday lives and provide we can recycle. footprint. excellence programmes. solutions to societal challenges such as climate change, resource scarcity, urbanisation, rising Modal shift: To keep the environmental Improving energy efficiency:Styrenics Deploying GHG reduction technologies: living standards and population growth. Our footprint of our products low, we reduce the products are durable and weather-resistant, We now offer the integration of renewable products extend food shelf life, thereby impact caused by transportation. Therefore, making them a longer-lasting and energy- feedstock as a replacement for fossil fuel that reducing food waste while also providing we rely on an intermodal distribution model of efficient alternative to other materials. We are complies with the highest sustainability criteria. lightweight solutions leading to lower fuel trains, ships and trucks to find the most incrementally improving our operations by This bio-attributed approach uses fewer fossil consumption. Some of our plastic products efficient route to distribute our products. efficiently using raw materials and optimising resources and has a 50% to 90% lower OUR ROAD MAP TO A LOW-CARBON ECONOMY have become even more indispensable in the fight against COVID-19. Our styrenics materials Our road map to a low-carbon economy are being used to produce safety equipment such as safety goggles and face shields as well SHIFTING TO A CIRCULAR ECONOMY in progress Potential reduction of CO2 emissions from: as medical devices such as COVID-19 IMPROVING ENERGY EFFICIENCY in progress detection kits, intubation devices, infusion sets Mechanical and advanced recycling and blood pressure monitors. STYRENICS 2 1 PRODUCTION

We are taking a step-wise approach to Modal shifts + logistics efficiency move towards a low-carbon economy. TRANSPORT

Shifting to a circular economy: As a first step, we are working to close the loop at the GREENHOUSE GAS REDUCTION TECHNOLOGIES end-of-life phase of our products. We have invested in mechanical and advanced H CO recycling of our polystyrene and ABS 3 2 products, which we believe will significantly BIO-ATTRIBUTION ELECTRIFICATION HYDROGEN CARBON CAPTURE CARBON OFFSET reduce our carbon emissions. On the one DEPLOYING GHG REDUCTION integration of green energy development development neutralising hand, we have recycling processes with a under evaluation TECHNOLOGIES renewable feedstock as fuel source ongoing with ongoing with the impact of lower greenhouse gas footprint compared to that complies INEOS Group INEOS Group residual with the highest emissions virgin feedstock; on the other hand, we avoid sustainability certification criteria landfill or incineration and allow for multiple Adapted from: “Mission Possible” by Energy Transitions Commission Adapted from: “Mission Possible” by Energy Transitions Commission

greenhouse gas footprint (depending on the AS AN INDUSTRY … We are actively contributing to a circular economy – feedstock and polymers) when compared …we are committed to playing a key role in as an industry, a group and a company to styrene produced by fossil fuel. contributing to innovative and sustainable solutions, together with our value chain. This allows us to reduce fossil fuel Together with the European plastics industry, consumption as well as save GHG emissions. we have set a series of ambitious targets and Plastics/ INEOS Group INEOS Styrolution In comparison with certain types of initiatives called “Plastics 2030: styrenics industry • Best practice and • Support the shift to a biopolymers (which although bio-based, are PlasticsEurope’s Voluntary Commitment to • Voluntary experience exchange circular economy not always recyclable), this approach supports increasing circularity and resource efficiency,” Commitment • Explore joint • Develop the best the use of bio-feedstock as a drop-in solution to achieve the goal of 100% reuse, recycling • Styrenics Circular opportunities and solutions in recycling in highly optimised, large-scale petrochemical and recovery of all plastics packaging by 2040. Solutions (SCS) projects of styrenics installations to produce circular solutions such as recycled polystyrene and ABS. We are also one of the founding members of Styrenics Circular Solutions (SCS), promoting Find and define joint Leverage on group Offer our customers Today, part of our electricity consumption is circular solutions in the industry in solutions with high capabilities of a major leading-edge already based on green energy. Together with collaboration with the complete value chain. leverage as an industry player in chemicals sustainable choices the INEOS Group, we are looking at new technologies such as carbon capture and AS A MEMBER OF INEOS GROUP … utilisation as well as using increasing amounts …we are committed to achieving the of hydrogen in our furnaces to reduce carbon following five ambitious targets that By 2025, INEOS will … emissions. The use of carbon offsets for were set by our parent company for residual emissions is our last option. 2025. This includes, amongst others, a pledge to use on average 30% of … use, on average As this is the beginning of our journey to a recycled content in products destined … incorporate at least low-carbon economy, some technologies are for polystyrene packaging in Europe, % recycled content in products still in the initial stages, while some incorporate recycled material into our kt/a destined for polystyrene of recycled technologies are more mature yet requiring products and ensure 100% of our packaging in Europe 325 material into products further development. However, we believe this polymer products can be recycled. 30 is the only way forward. While major steps are now being taken to close the loop and provide … deliver … offer a range of polyolefin circular plastics, reducing our carbon footprint products for packaging … ensure applications in Europe containing in the medium term is part of our sustainability kt/a 100 % vinyl recycling by our of polymer products or more recycled agenda. Our objective is to develop innovative 900 leadership of VinylPlus programme can be recycled % content and circular solutions with a lower carbon 50 footprint.

AS A COMPANY … footprint of recycled polystyrene versus virgin assumptions and the best available data and …we build on the fact that styrenics, and in polystyrene. Initial results of the German are thus open to some inaccuracy. However, particular polystyrene, is very well suited to government-funded ResolVe project and an these initial findings are extremely promising, recycling due to its excellent and proven internal GHG calculation study predict CO2 and we will continue to push these sortability and its unique properties, allowing equivalent emission savings between 37% and technologies forward to contribute to a circular for a range of recycling technologies. Globally, 50%, respectively. Both these studies rely on economy for styrenics. we are collaborating with a number of leading technology companies to implement technical Contribution of styrenics towards a circular economy and commercial solutions as well as beneficial life cycle assessments (LCA) to close the loop for styrenics, thereby helping to reduce waste Other material to landfill and incineration. streams Recycling Converting post-consumer waste to a raw Significantly enhance recycling Radically improve recycling material for our polymer production is our key Mechanical recycling of ABS and PS challenge. Together with several technology Depolymerisation of polystyrene providers, we have proven the technological Advanced recycling of mixed waste and economic feasibility of polystyrene Reuse depolymerisation and upscaling is underway. In addition, we have proven excellent environmental footprint of the solutions, where the greenhouse gas (GHG) emissions is significantly lower compared with fossil Design & Anaerobic digestion production and has additional significant Use production and/or composting end-of-life savings. This underlines the benefits of this approach. Renewably sourced virgin feedstock Instead of only using virgin raw materials to Energy recovery manufacture products that could end up as Use renewable resources waste, we see an opportunity in converting this Leakage Use of bio-based materials plastic waste into raw materials for the plastics Reduce marine litter in the supply chain industry, making the value chain circular. Lead pellet loss reduction along value chain Enhanced sorting and collection through collaborations We undertook two LCAs of our polystyrene recycling process to compare the GHG Adapted from: “A New Plastics Economy: Rethinking the Future of Plastics” by World Economic Forum, Ellen MacArthur Foundation, McKinsey & Company

OUR SUSTAINABILITY TEAM AND WORKING STRUCTURE

We have a dynamic team that manages our sustainability efforts across all our business areas. strategic guidance, creates and implements initiatives and ensures top management backing. For each business area listed below, we have established a work stream staffed with global and The team is supported by an internal ambassador group, comprising colleagues from all regional experts, driving the implementation of our sustainability programme. The responsibility functions, regions and levels. It is their role to promote sustainability within and outside our for steering and aligning our company-wide sustainability strategy lies with our steering company. committee, chaired by management board members. The steering committee sets targets, gives

Sustainability Steering Committee Rob Buntinx (Chair), Alexander Glück, Pierre Minguet, Johannes Musseleck, Ralf Leinemann

Communications Sustainability lead Susan Steinhagen Petra Inghelbrecht

Labour Environment Procurement Product practices Community Sustainability & SHE sustainability Human Resources (HR) involvement & Legal

Herman Savenije Kevin Koerner Johannes Musseleck Edgar Zwanink (HR) Katja Stache Christine Bröder (Sustainability) Petra Inghelbrecht Myrthe Hessels (HR) Julie Dietz Robert Hodge (SHE) Susanne Albert (Legal)

(+ regional (+ regional (+ regional (+ regional (+ regional representatives) representatives) representatives) representatives) representatives)

DETERMINING WHAT IS MATERIAL

We regularly engage with our stakeholders to the management board in depth, and Materiality matrix understand the sustainability issues that are of evaluated in light of the company’s objectives, relevance to them and important to our strategy and current development targets. In 5.0 business. To ensure we prioritise these issues, addition, an external verification of the matrix we periodically conduct a formal materiality was also undertaken. The matrix shows the Health & assessment. In accordance with the reporting position of all our 16 material topics relative to safety framework of the new GRI Standards, we the degree of stakeholder interest and Product undertook a focused materiality assessment in potential business impact. We have developed stewardship 2017 involving key internal and external KPIs and targets for the three newly added 4.5 stakeholders. topics, which we have shared in this report. Product Human rights & innovation compliance Reliable MATERIALITY ASSESSMENT PROCESS We use the materiality assessment findings to Circular employer The starting point for the current materiality prioritise the sustainability topics in our report Low carbon economy matrix was based on the findings of our so that it responds to our stakeholders’ needs economy Energy materiality analysis conducted in 2014-2015. and expectations. The results of this 4.0 Emissions Education & We re-evaluated these findings in 2017, and assessment will be reviewed and approved by training Resource taking into account current trends and internal and external stakeholders on a Sustainable efficiency Marine litter & procurement developments, we included three new topics – periodic basis to confirm relevance and Water Waste water pellet loss & waste circular economy, low carbon economy, as well appropriateness. Importance stakeholders for as marine litter and pellet loss. We then decided on 16 topics that we deemed as most 3.5 Community important for our stakeholders as well as most involvement relevant to our business.

External and internal stakeholders were identified based on their impact on our business operations and their knowledge of 3.0 our business activities. All our key stakeholders 3.5 4.0 4.5 5.0 represented a wide variety of functions, Importance for INEOS Styrolution regions and business segments.

The views of our stakeholders were incorporated into a matrix, discussed with

THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

The United Nations Sustainable Development Goals (UN SDGs) are essentially a materiality Amid the unprecedented global pandemic we are facing today, we continue to help our assessment of our planet and lay out a path to end extreme poverty, address inequality and customers find solutions to tackle COVID-19. Our company supplies materials that are used in a injustice, and protect the earth. These goals provide guidance and direction on sustainable variety of applications used in the fight against this disease. These applications are used for development for both industry and society. We strongly believe that we can contribute positively diagnosis (blood analysis kits), treatment of patients (ventilators, IV sets), and personal protective to these goals through our concerted sustainability actions. We have indicated below where we equipment (safety goggles and face shields). are focusing our sustainability efforts towards meeting these goals. For more information on the UN SDGs, please visit www.un.org/sustainabledevelopment

OUR PRIORITY IS TO ADDRESS THE FOLLOWING SDGs

Contributing to a circular Ensuring resource-efficient Shifting to a low carbon Addressing marine litter and Forming strategic partnerships economy by developing innovative production and use of our economy and taking action to pellet loss in our operations as well to drive sustainable development and sustainable solutions. Read products. Read more: “Reducing combat climate change and its as in our value chain. Read more: across our entire value chain. more: “Shaping the future with our environmental footprint” impacts. Read more: “Reducing “Reducing our environmental Read more: “Our commitment to sustainable styrenics” our environmental footprint” footprint” and sustainability” and “Driving sustainability along the “Shaping the future with value chain” sustainable styrenics”

AS PART OF OUR EFFORTS TO ENSURE A SUSTAINABLE BUSINESS, WE ALSO ADDRESS THE FOLLOWING SDGs Ensuring the health and safety of our entire workforce. Promoting lifelong learning opportunities through training Driving sustainable economic growth through investments Read more: “Upholding safety as our core value” and development of our workforce and strong business performance Promoting the well-being of our workforce as well as the people Read more:“Engaging and developing our employees” Read more: “Making sustainable growth a reality” living in the communities we operate in. Supporting education and provide necessary infrastructure to Promoting productive employment and decent work for all Read more: “Engaging and developing our employees” and ensure inclusive education in our local communities Read more: “Engaging and developing our employees” “Supporting the communities in which we live and work” Read more: “Supporting the communities in which we live and “Ensuring fair business practices” and work”

SUSTAINABILITY HIGHLIGHTS RESPONSIBLE OPERATIONS

Here is a selection of our key achievements that demonstrate our sustainability performance in our key focus areas. SAFETY reduction in greenhouse gas emissions Total 3.1% OVERALL case injury rate Audits for (TCIR) of EcoVadis bio-attributed 0.12 offerings conducted in Antwerp platinum compared to an overall target of 0.25 rating RESPONSIBLE PRODUCTS ICIS innovation Launch of award SUSTAINABLE PROCUREMENT range of sustainable for advanced recycling ECO products of polystyrene Launch of ECO sourcing strategy Polystyrene produced from with procurement of renewable and post-consumer waste as future 100% feedstock recycled monomer at lab-scale

RELIABLE EMPLOYER ABS grades with post-consumer recycled material introduced Implementation/ first merit round in FAIR BUSINESS PRACTICES Compensation module of HR World’s first Information system specialty styrenics material Biennial training on made using renewable feedstock Code of Conduct introduced Development and launch of our regional conducted globally recruitment website in EMEA Life cycle assessments conducted Global training on data protection to calculate carbon footprint regulation launched of polystyrene depolymerisation

SUSTAINABILITY TARGETS AND ACTIONS RESPONSIBLE OPERATIONS

We committed ourselves to short-term and medium-term global sustainability of sites ISO 14001 Achieved targets and actions covering key focus areas of our business. Here is an update % certified by 2019 of our progress in the past year. 100 Under review (due to RESPONSIBLE PRODUCTS % reduction* changes in legislation, acquisitions, and advanced of VOC by 2019 7 measurements) % recycled polystyrene in plastic In progress 30 packaging in Europe by 2025 Operation Clean Sweep® In progress (postponed to 2021 due to audits for all sites COVID-19 restrictions) by 2020 Offer recycled ABS Achieved at commercial scale by 2020 (*baseline year 2015) RELIABLE EMPLOYER Established certification for recycled and bio-attributed Achieved of exempt employees to have an content in our product offerings by 2020 % Achieved (91%) 80 Employee Development Interview FAIR BUSINESS PRACTICES Implementation of Management Online refresher training on Development Programmes Achieved anti-bribery, NEW ! SUSTAINABLE PROCUREMENT in all regions in 2019 anti-corruption, and Postponed to Employee survey 2021 due to of buyers trained on COVID-19 anti-money-laundering % Achieved for the entire workforce conducted in 2020 100 sustainability in 2019 restrictions SAFETY of total supplier spend to be % On track (78%) Continuous improvement of our company‘s 80 third-party assessed by 2020 safety performance In progress Sustainability to be included as a key component in supplier excellence In progress Annual total case injury rate Achieved (0.20) programme by 2020 (TCIR) of 0.25

STAKEHOLDER DIALOGUE

Engaging stakeholders and developing (SCS), Circular Plastics Alliance (CPA), the and committed to making the company a In addition, we have rolled out internal meaningful partnerships with them over time is Chinese International Chemical Association sustainability leader. They are keen to learn, communication activities via multiple channels, essential for our long-term business success. (AICM), the Styrene Information & Research understand and support our sustainability to openly inform colleagues on our We realise that regular, open and proactive Center (SIRC), the Plastic Food Packaging approach and initiatives, and become programme, initiatives and progress and to dialogue with all relevant stakeholders helps Group in the American Chemistry Council, the ambassadors in their peer groups inside and establish a feedback channel for all employees us to understand their perspectives, World Plastics Council, the Roundtable for outside of the company. to make sure they have the opportunity to expectations, key issues and needs. Sustainable Biomaterials (RSB), as well as local contribute and make their voice heard. community advisory panel organisations in Therefore, we set up an integrated concept In this way, we are able to integrate them into Canada, Mexico and USA. that puts sustainability on the agenda of group our business decision-making processes and regional conferences, management and wherever possible, ensuring that our strategy INEOS Styrolution employees are passionate sales meetings, as well as town hall events. addresses the issues that are important to them. Dialogue with stakeholders gives us the STAKEHOLDERS METHODS OF ENGAGEMENT KEY TOPICS opportunity to explain our clear and Investors, financial experts Quarterly disclosures, sustainability report, Strategy, performance, market and corporate developments, committed approach to sustainability as well & rating agencies annual investor days, investor relations releases sustainability as the value of our work, and our products and Customers Innovation workshops, sustainability report, customer Strategy, performance, sustainability, product quality, services for society. meetings, direct engagement, industry trade group meetings safety and reliability (safety data sheets) Suppliers Direct engagement, assessments and audits Product quality, safety and reliability, sustainability We have identified our key stakeholders as Employees Group & regional conferences, town hall meetings, work Strategic initiatives, business performance, policies, those who contribute to our economic, social council meetings, workshops, management board briefings, IT security, new developments, personnel changes, R&D, and environmental performance. These sustainability report, intranet, eMagazines, newsletters, innovation, sustainability, health and safety stakeholder groups comprise our customers, training sessions, webinars, anonymous 24/7 hotline suppliers, employees, investors, financial Industry associations Memberships, direct engagement, task force & working Sustainable business practices experts and rating agencies, local group engagements, dialogue, conferences, workshops communities, technology partners, industry Universities, scientific institutions Direct engagement, collaborative partnerships, R&D, innovation, sustainability associations, NGOs, universities, scientific & technology partners quarterly face-to-face meetings institutions and value chain partners such as Local communities Direct engagement, collaborative partnerships, sports and Community sponsorships, volunteering, waste sorters and recyclers. educational programmes, employee volunteering, local engagement sponsorships We hold membership in national and Non-governmental organisations Direct engagement, dialogue, conferences, workshops Sustainable business practices international industry associations, such as the Value chain Direct engagement, collaborative partnerships, face-to-face Sustainable business practices European Chemical Industry Council (cefic), meetings, joint development projects PlasticsEurope, Styrenics Circular Solutions

We strive to provide sustainable significant challenges not only for original near-infrared technology up to 99.9% plus We are constantly striving to optimise and solutions to our customers and end- equipment manufacturers, plastics packaging purity can be reached. Polystyrene also has develop innovative products and applications. consumers by taking a responsible producers and plastics manufacturers, but also intrinsic properties that allow for thermal We work closely with our customers by approach to our product portfolio for our society. Currently, efficient waste depolymerisation into a styrene monomer. offering services ranging from innovation across the entire value chain. management solutions are not available in This straightforward process brings sorted workshops to development support and every region of the world. We are aware that polystyrene waste back to styrene in just one co-development projects to solve technical some of our products are used in single-use step, which after purification gives us back a and performance challenges. applications and we cannot accept that highly valuable monomer. This process avoids OUR APPROACH inefficient or lack of inadequate waste multiple steps compared to traditional fossil Our customers require safe products that are management cause these products to end up production, resulting in depolymerisation compliant with local and international As the global market leader in styrenics, we in marine and land environments where they contributing to significant greenhouse gas regulations during handling and for their final take a holistic approach looking at our entire do not belong. savings. applications. Thus, responsible product value chain. Our aim is to create sustainable stewardship by complying with regulations and styrenics solutions that have the product Instead of disposing polystyrene and other This approach shows demonstrated delivering safe, top-quality solutions to our performance and properties on par with styrenics products after a single use, a tangible technological, environmental and economical customers is at the heart of our business. conventional solutions – for all applications solution is to close the loop to contribute to a savings across the life cycle of polystyrene. It using styrenics today and in the future. circular economy: collect plastic waste, sort it, allows us to take the single out of single-use Together with customers and a variety of recycle this valuable resource and use it again polystyrene and make it a circular solution. waste sorters, recyclers and technology as a raw material to produce polystyrene and providers, we engage in collaborative other styrenics products. The entire styrenics Now that the feasibility of recycling is proven, innovation of cutting-edge sustainable industry has undertaken a significant amount we are preparing the first recycling plants and products. Product stewardship and quality of effort to analyse, plan, and develop these upscaling towards larger volumes for our management play a pivotal role in this process, recycling processes. Investments are underway customers, together with our partners. ensuring compliance with product regulations to make this a reality and to unlock the true and delivering safe, best-quality and high- potential of styrenics in the circular economy. MATERIALITY ASSESSMENT performance products to our customers. The circular economy is a topic of very high Together with associations and our business Due to its moderate decomposition relevance to our stakeholders and us. It offers partners, we strive to achieve high and well- temperature and good barrier properties, a solution to global and societal challenges, acknowledged sustainability standards in the polystyrene has an excellent performance in particularly marine litter and landfill of waste. styrenics industry. major recycling methods, such as mechanical Contributing to a circular economy will help recycling, dissolution, depolymerisation, and improve our resource efficiency by better Marine litter, inadequate waste management advanced recycling of mixed waste. waste management. Our innovation efforts like systems, low recycling rates and lack of depolymerisation will contribute to stopping end-of-life solutions for plastics waste are It has excellent properties for sorting and with landfill and reducing marine litter.

OUR STRATEGY FOR A CIRCULAR Our approach for a circular economy for styrenics ECONOMY Our aim is to create a positive, targeted impact and actively shift our industry to create a circular economy through our efforts in the upcoming years. Colleagues from all geographical regions representing a broad Feedstock range of functions, including sales, marketing, technology, operations, R&D, innovation and B strategy contributed to develop the strategy. Monomers The strategy touches areas such as our various developments in recycling processes of styrenics and the introduction of renewable feedstock, supporting our customers in their Shredded clean waste path towards more circular products. A

Use Polymers

Shredded clean waste

Products

Modiﬁers

OUR PERFORMANCE

Key highlights

Sustainability targets and actions • Launch of ECO range of sustainable Changes in the legislative environment, increasing public pressure and demands from products customers accelerate the need for us to find sustainable, circular solutions for our products and • 30% recycled polystyrene in bring solutions to the market that support our customers to implement circularity as part of • Polystyrene produced from 100 % plastic packaging in Europe by 2025 their products’ end-of-life strategy. recycled monomer at lab-scale | In progress • ABS grades with post-consumer • Offer recycled ABS at commercial We are committed to providing our customers with the best solutions for their business. In recycled material introduced scale by 2020 | Achieved order to reinforce this commitment, in 2019, we launched INEOS Styrolution ECO, our new • for family of sustainable styrenics solutions. INEOS Styrolution ECO comprises products made • World’s first specialty styrenics material Establish certification recycled and bio-attributed content in from recycled post-consumer plastic waste as well as materials based on renewable feedstock. made using renewable feedstock our product offerings by 2020 As this new product range matches the performance of our existing product portfolio, it will introduced | Achieved reduce our greenhouse gas footprint, reduce the amount of post-consumer waste going to • Life cycle assessments conducted to landfill, support the recycling of post-consumer plastic waste, and help our customers to meet calculate carbon footprint of their sustainability targets. styrolution-eco.com polystyrene depolymerisation

INEOS Styrolution ECO: A growing family of sustainable products

TOYS, SPORTS PACKAGING HOUSEHOLD CONSTRUCTION & LEISURE HEALTHCARE ELECTRONICS AUTOMOTIVE

TERLURAN® ECO ✔ ✔ ✔ ✔ ✔

STYROLUTION® PS ECO ✔ ✔ ✔ ✔ ✔

® NOVODUR ECO ✔ ✔ ✔ ✔ ✔ NOVODUR® ECO HH

STYROLUX® ECO ✔ ✔ ✔ ✔ ✔

STYROFLEX® ECO ✔ ✔ ✔ ✔ ✔

RESPONSIBLE BUSINESS PRACTICES ACROSS OUR VALUE CHAIN

In 2019, as part of the INEOS Group, we defined global targets that are aligned with our The complexity of a circular economy requires DRIVING SUSTAINABILITY THROUGH material topics and key business needs. By 2025, we commit to deliver significant volumes of a collaborative approach. Currently we are R&D AND INNOVATION recycled polystyrene and use, on average, 30% recycled content in our polystyrene packaging embarking on several projects to develop Our global R&D pipeline is the foundation for products in Europe. This is a very ambitious target and to achieve this, mandatory separate sustainable solutions in our products’ the future growth of INEOS Styrolution, as it collection of all plastics, the development of state-of-the-art sorting technologies to support lifecycles, by engaging not only styrenics comprises concepts for innovative future sorting polystyrene from post-consumer waste, as well as the acceptance of depolymerisation manufacturers but also stakeholders across products, improved polymerisation processes and advanced recycling methods by the European Union is crucial. our value chain, such as recyclers, brand and new applications. A key criteria in our owners and consumers. innovation project prioritisation is the With increased collection of plastics waste, including polystyrene (which is already happening sustainability screening tool, which helps in Belgium, France and Germany), the development and expansion of polystyrene sorting Together with the European plastics industry, identifying the environmental impact of new technologies, our joint efforts across the value chain and our active participation in cefic (the we have set a series of targets and initiatives products and applications throughout the full European Chemical Industry council), PlasticsEurope, the Circular Plastics Alliance, Styrenics called “Plastics 2030: PlasticsEurope’s product life cycle. Circular Solutions (SCS), the American Chemistry Council and the World Plastics Council, we Voluntary Commitment to increasing circularity are confident that we can deliver sustainable solutions to our customers. and resource efficiency,” to achieve the goal of Design for recycling 100% reuse, recycling and recovery of all Creating a circular economy also includes Sustainability strategy team plastics packaging by 2040. designing products to increase circularity within our core business segments -- packaging, Sustainability strategy lead We are a founding member of a joint initiative automotive, household and electronics. Johannes Musseleck of the styrenics industry called Styrenics Therefore, we are actively looking at how we Petra Inghelbrecht Circular Solutions (SCS), which was set up as an can design our material portfolio to enhance independent legal entity in December 2018. Its the recyclability of our products and help our primary aim is to increase the circularity of customers design more recyclable products. End of life solutions New materials Business models styrenics by engaging stakeholders across the Design for recycling can cover many areas Mohammed Abboud Audrey Debande & offerings styrenics value chain to identify, develop and such as: Mark Beitz | Cassie Bradley Janna Michaelis Yvonne van Veen industrialise new closed-loop recycling • making sorting of material easier Oliver Carstensen Norbert Niessner Marcela Villegas technologies and solutions including improved • choosing materials that retain highest value Ricardo Cuetos Peter Weinkoetz Daniela Wallinda Frank Eisenträger Bianca Wilhelmus sorting capabilities for styrenics. after recycling Eike Jahnke • making material recapture easier Sven Riechers • avoiding contaminating materials Kyongho Shon Michiel Verswyvel • including recycled content in products Nils Wittenberg

FUNDAMENTAL REDESIGN & REDUCING OUR ENVIRONMENTAL INNOVATION FOOTPRINT Delivering circular solutions for our styrenics process is far less energy-intensive than the products helps to avoid littering, landfill and conventional multi-step fossil feedstock 20% REUSE incineration. But that’s not all: Our styrenics production process. The avoidance of further 30% solutions also contribute to significant fossil fuel use and waste incineration at the environmental savings during their life cycle end of life are all benefits of this circular due to the reduced use of fossil fuel and lower solution that help to keep our valuable 50% greenhouse gas emissions during recycling. materials in the value chain.

Life cycle assessments Another benefit of the depolymerisation

Adapted from: “The New Plastics Economy – In 2019, we undertook two life cycle process is that it produces styrene monomer RECYCLING WITH RADICALLY Catalysing action” by World Economic assessments (LCA) to understand the impact identical to that of fossil-based styrene. With IMPROVED ECONOMICS & QUALITY Forum and Ellen MacArthur Foundation of depolymerisation as a recycling technique. food-approval for depolymerisation, we Our goal was to compare the environmental foresee no need for downcycling and no limit In 2019, we conducted an internal workshop on with some of our customers. The design briefs impact of polystyrene produced from recycled to the number of product cycles we can design for recycling. The aim of the workshop that we worked on were: feedstock versus fossil feedstock. Both our supply. This allows us to target products that was to understand what the latest trends were, • A mono material yoghurt cup to improve ResolVe project and our internal GHG will create huge impact savings during their find areas of opportunities for our products recapture of polystyrene for a more circular calculation project gave very promising results. use phase. One prominent example is food and applications, identify threats, and pinpoint solution The ResolVe study funded by the German packaging. By prolonging shelf life, we can where and how we could support our • Meal delivery kits in a convenient, re-usable, government and in partnership with InVerTec ensure that carbon-intensive food production customers with more recyclable applications. and recyclable concept at end of life predicted CO2 equivalent emission savings of is not wasted before reaching consumers. • Improving packaging in the FMCG (fast- 37%. Our internal GHG study, based on our As a result of the workshop, we are now moving consumer goods) supply chain to own plant engineering data and data provided Both these studies rely on assumptions and focusing on three main areas: reduce waste, improve convenience and by a recycling partner showed savings of 50%. the best available data. The assumptions will • application opportunities (e.g. single increase circularity by using materials which These calculations were validated by be validated during our upscaling activities. material yoghurt cups) are easy to recycle Manchester University. Further reductions in However, we foresee an increase in significant • application threats (e.g. shrink sleeve • A large format mineral water delivery system GHG emission of up to another 40% to 50% positive impact by capturing the valuable recyclability) designed for saving on usage of plastic are expected when modelling the by-products in our plants. These initial findings • process opportunities (e.g. co-injection of water bottles conventional end-of-life scenarios of the fossil are extremely promising, and we will continue post-consumer recyclates) • A municipal water dispenser to motivate based materials, such as incineration or landfill. our efforts investing in recycling technologies. consumers to use refill concepts and at the We also attended a design sprint workshop, same time giving an enjoyable drinking Depolymerisation of polystyrene affords a For more information, please read the chapter organised by the IDEO design agency, to experience lower impact feedstock than traditional fossil “Reducing our environmental footprint” develop select circular packaging solutions fuels. The simple one-step depolymerisation

OPTIMISING PRODUCT PERFORMANCE Our styrenics products Made with 60% renewable contribute to every facet material of our daily lives due to their intrinsic and versatile C properties. Styrenics are LWER CARBN RPIN FTPRINT durable and weather- SLUTIN resistant, making them a YOGHURT CUPS MADE OF RECYCLED SHRINK SLEEVES longer-lasting alternative ® to other materials. They STYROLUTION PS ECO 158N CR100 MADE OF ® also have a low density IN BLENDS WITH HIPS STYROLUX ECO and a high stiffness compared to other Recycled polystyrene has the potential to become one of the best Styrolux® ECO is the world’s first specialty styrenics material made engineering plastics, products for food-contact applications in terms of environmental using renewable feedstock. It uses fewer fossil resources and reduces which allows the impact as well as performance. We are now working together with GHG footprint by at least 74% when compared to styrenic polymers manufacture of leading-edge technology providers and partners across the value chain produced using fossil fuel. All renewable feedstock sources are certified lightweight applications to deliver commercial-scale production of recycled yoghurt cups by 2022. by RSB and comply with the highest sustainability certification criteria. with reduced transportation costs and CUSTOMER CHALLENGE CUSTOMER CHALLENGE fuel emissions. Changes in the legislative environment and increasing public pressure and Our customers are looking for products made with renewable materials and demands from customers, consumers and non-governmental organisations, with a reduced carbon footprint. The grades need to match the Here are some reinforce the need for us to provide recycled and recyclable polystyrene performance and have the same property profile as conventional materials. examples of our products to our customers. In addition, retaining already optimised and highly efficient infrastructure products used in and processes are necessary. applications. OUR SOLUTION OUR SOLUTION Polystyrene recycled via depolymerisation is a truly unique circular solution Bio-attributed styrenics are made by mixing renewable and fossil feedstock for food packaging, such as yoghurt cups. The advantage of this process is during production. Our renewable feedstock is sourced from local the generation of high-quality virgin polystyrene for food-related use. This household kitchen waste as well as Scandinavian wood waste. Styrolux® ECO recycled material is also recyclable, with no degradation in purity and grades are available in two versions: the B60, where 100% of the fossil-based performance even after being recycled multiple times. The depolymerisation styrene is replaced by bio-attributed styrene and the B30, where 50% of the process also has a much lower carbon footprint in comparison to conventional fossil-based styrene is replaced by bio-attributed styrene. production processes.

LWER ENERGY CNSUPTIN

COFFEE MACHINE LOW-EMISSION AIR VENT PARTS INSULATION PANELS MADE OF MADE OF MADE OF TERLURAN® ECO GP-22 MR70 TERBLEND® S SG-02EF STYROLUTION® PS 158 N/L

Post-consumer-recycled ABS can now be used in visible The new Terblend® S SG-02EF is an 8% glass-fibre Styrolution® PS 158 N/L is a heat-resistant, rapid applications such as housings due to its high surface reinforced grade with superior heat resistance and freezing general purpose grade. It is suitable for quality and is available to our customers as a drop-in dimensional stability. It provides a cost-effective matte expanded sheets and films and helps to reduce heating solution. surface finish that does not require painting. energy and reduce CO2 emissions.

CUSTOMER CHALLENGE CUSTOMER CHALLENGE CUSTOMER CHALLENGE The use of recycled ABS in household & electronics applications A premium car manufacturer was looking for a low-emission A manufacturer in the building and construction industry requires a consistent supply of high-quality materials. Our grade with a low-gloss finish and without the need to paint was looking for the best material to be used in insulation customers are looking for a reliable partner to deliver a in order to optimise material savings. Moreover, automotive panels. The material needed to offer easy processing and drop-in solution, which can be used in existing production interior parts impose a particularly wide variety of high heat resistance. processes. And at the same time, they require a consistent requirements on the material used, such as high heat and supply of materials with conventional material specifications. scratch resistance.

OUR SOLUTION OUR SOLUTION OUR SOLUTION In collaboration with selected recycling partners, we have The new Terblend® S SG-02EF is a low-emission and Styrolution® PS 158 N/L is the ideal material for developed a black Terluran® ECO GP-22 MR70 grade. This high-heat 8% GF PA/ ASA grade and features high heat physically foamed high-quality applications, as it does not grade, containing 70% post-consumer-recycled ABS, matches resistance and excellent flow performance. The grade collapse or lose its rigidity once formed as panel. the current technical requirements of our standard grade, and provides 5% material savings compared to conventional provides a high surface quality. We can offer a consistent alternative painted PC/ ABS, due to reduced scrap rate. high-quality supply to our customers, first starting in Europe.

EFFECTIVE RECYCLING STARTS WITH EFFECTIVE SORTING The sorting of plastics waste is the essential The circular economy for plastics is not just processes, as well as developing the market for materials. The trials we have conducted with step in the waste management of mixed about sorting and recycling a limited set of the recycled material. Trials with technology Austrian recycler bage plastics has shown a plastics waste streams. Effective sorting and polymers. It is about each polymer that providers at specific sorting locations have very consistent quality of ABS and we have washing of plastics waste can divert this contributes to innovations and circular proven the excellent sortability of styrenics out seen promising results for colour and white valuable resource from either incineration or solutions that can be realised within a clear of mixed plastics waste and that all types and sorting. We are also exploring a new sorting landfill to deliver material with the required timeframe. We aim to make this vision clear to forms of styrenics (such as HIPS, GPPS, EPS, test with an international sorter of electronic quality and specifications needed for all stakeholders and regulators and build on XPS) can be perfectly separated. This paves waste. recycling. the added value of all plastics that can the way to have this new raw material available contribute to circular solutions. for recycling technologies. In Asia, we analysed samples of recycled ABS Polystyrene waste is already collected and and recycled polystyrene sourced from China, sorted today, and we see new developments We are currently in talks with waste sorters and As part of our efforts to bring high-quality Malaysia, Indonesia and South Korea. We and sorting infrastructure being built. There is recyclers in order to ensure a consistent and recycled ABS to the market, we have identified believe 70% of the recycled ABS samples already enough polystyrene waste in the high-quality supply of post-consumer material various waste sources. This, in combination tested have sufficient quality to produce European waste market today. So, we can that we can recycle, and these collaborations with state-of-the-art sorting technology and Terluran ® ECO with 50% and 70% recycled move ahead with our upscaled plants. The fact have evolved to be extremely positive. our manufacturing expertise can help us content. that polystyrene is easily sortable with existing deliver a consistent, high quality of recycled sorting technologies such as near-infrared With new innovative NIR technology and state- (NIR) is a clear advantage as there is sufficient of-the-art washing, high-quality recycled affinity with sorters for this. Once sorted post- polystyrene is now technologically feasible, consumer waste gets valued as input for and we are currently aiming to get recycled recycling plants, we believe that the enhanced polystyrene with a purity of 99.9% plus out of ecological and economical value will drive household waste. This will ensure a consistent further sorting of polystyrene. and high-quality supply of material that can then be recycled. Today, many stakeholders promote sorting of a limited set of polymers, which neither make it We are also working with Styrenics Circular toward recycled content in products nor to Solutions (SCS) to create a market pull away food-grade applications. On the other hand, from incineration and landfill towards game- polystyrene, once collected and sorted, can changing recycling solutions for styrenics by be efficiently recycled, ensuring a full uptake engaging with regional waste collection and into products as well as applications with the sorting partners. SCS is building a close link highest quality requirements. between waste stream volumes of relevant quality and the respective high-tech recycling

POLYSTYRENE: MADE FOR RECYCLING Recycling technologies for polystyrene Polystyrene is not only a versatile, aesthetic and durable material, it is also one of the most Gasification of mixed waste recyclable polymers. Its unique properties Pyrolysis of mixed waste allow it to be recycled using several different Depolymerisation technologies from mechanical recycling to Dissolution advanced recycling methods. These technologies offer recycled polystyrene with Mechanical recycling no sacrifice in properties, enabling food- Advanced contact applications and nearly infinite recycling Recycling recycling cycles. Therefore, we are working on all these technologies in parallel to reach the Highly recycling quota for polystyrene and offer this effi cient, recycled material to our customers by 2025. cheapest solution Application fl exibility Best time Mechanical recycling of polystyrene: Highest (yields styrene) to market fl exibility Mechanical recycling is a method by which expected (waste feed, Food contact plastic waste is physically processed back into recyclate) expected Best CO2 / greenhouse pellets, without changing the basic structure of INEOS-wide gas foot print the material. With know-how from cooperation Landfi ll INEOS Styrolution, this method can generate Feedstock Monomers Polymers Waste Waste new polymer grades that come very close to Incineration virgin polymer performance. This method of recycling polystyrene has a comparably high inclusion of an additional ‘super-cleaning’ Dissolution: Dissolution purifies polystyrene Depolymerisation: Through this advanced technology maturity, is the quickest available, process step, we believe that mechanical by multiple washing steps including solvent recycling method, polystyrene waste is and has the lowest carbon footprint. recycling of polystyrene will have the potential extraction, which eliminates or reduces converted back to its monomer for use in to enable food-grade approval. impurities. This has been established by the polymerisation processing. The styrene Under the umbrella of SCS, we are working on PolystyreneLoop solution based on Creasolv® monomer produced from depolymerisation is mechanical recycling solutions for polystyrene We are in the final stage of the so-called technology. This reduces or eliminates legacy equivalent to virgin styrene monomer with the ultimate target to use recycled challenge tests to demonstrate that the super additives and impurities to create a valuable produced by fossil fuels. polystyrene in food contact applications. cleaning process works as expected. In source of polystyrene for construction SCS has successfully demonstrated high-purity cooperation with the Fraunhofer Institute, we applications. Dissolution, being developed by Depolymerisation is a straightforward recyclability of polystyrene via mechanical are working towards for the approval of Montreal-based technology company, is showing recycling technology that works with selected recycling, proving the viability of achieving mechanically recycled polystyrene as a food- results of high yields of GPPS as well HIPS. polymers such as polystyrene. This technology purity levels that exceed 99.9%. With the contact material. avoids multiple processing steps in

comparison to virgin material produced from twofold: it provides large-scale recycling We focus on technology developers and demo-installation in the port of Antwerp, with fossil fuel. Thus, it uses fewer resources, solutions from mixed plastics waste (amongst leading recycling companies that can support a recycling capacity of 15,000 tonnes a year resulting in a significantly lower greenhouse other sources such as domestic waste and us in developing short term to market recycling and will be operational in 2022. gas footprint. Due the fact that bio-waste) and breaks it down to syngas. After plants and fast upscaling with additional units. depolymerisation breaks down polymer chains purification, this syngas is used as a carbon In the meantime, we need to pursue and Besides these two main developments that will into molecules which are used to produce source for synthesis of chemicals such as develop second-generation technologies with deliver the shortest term to market, we also have virgin polymers again, we can reach the same methanol, ethanol or oils, thus recovering the better scalability and enhanced yields for the other developments under way. We are qualities and applications as with virgin styrene. carbon as a product. next set of recycling plants. undertaking feasibility studies for investments as a joint effort with another large styrenics Pyrolysis of mixed waste: In this method, Gasification offers the highest flexibility and We assess potential future technologies for producer, and these are progressing at a fast pace. plastic waste is converted to an oil via a scalability in terms of waste, feed and polystyrene recycling jointly with research thermal cracking process. The resulting oil is recyclate. However, it requires significant institutions, and technology developers, while Beyond our investments in polystyrene further purified and processed, used as investments and development, for which prioritising our short term to market solutions. recycling plants, we are aware that several feedstock in steam crackers to produce the joined industry collaboration will be needed. parameters such as yield, availability of base molecules (ethylene, propylene, We currently invest in various large polystyrene waste, and recycling of butadiene, benzene) for polymer production. All the technologies mentioned above recycling projects: by-products will enhance the competitiveness This recycling method is developing rapidly complement each other and will be needed Our facility in Channahon, Illinois, will use of our future plants. Therefore, we are focusing and is being led by polyolefin producers. As a depending on the quality of input waste and proprietary technology from Agilyx, a on in-depth R&D of recycling technologies. styrenics company, we highly welcome these the requirements of the final products, with technology leader that focuses on converting developments as they foster the circularity of each technology having a different waste polystyrene via depolymerisation. Agilyx For example, Project ResolVe, led by our plastics. This method also provides an add-on environmental impact. Therefore, we are has already confirmed the availability of global R&D team, was granted a funding from solution by providing base molecules for the actively pursuing the development of all these sufficient polystyrene waste to be used as the German Federal Ministry of Education and production of styrene styrenics co-polymers. technologies in parallel, with a priority on feedstock, and believes that this plant will Research (BMBF) to explore the recycling of those uniquely suited for polystyrene. dramatically increase recycling rates in the polystyrene. This project, which ended this As an INEOS business, we benefit from greater Chicago area. The plant will be year, concluded that depolymerisation is a very collaboration within the INEOS group, WORKING TOGETHER TO DEVELOP capable of recycling up to 100 tonnes of appropriate recycling solution for polystyrene particularly INEOS Olefins & Polymers, which is SOLUTIONS polystyrene waste per day after its scheduled in combination with distillation of the output currently collaborating on a new advanced We are working with several leading-edge completion in 2023. for further polymerisation. It was executed with plastics recycling facility with Plastics Energy. technology providers in North America and contributions from INEOS in Cologne, Germany, Europe to further advance a circular economy Another activity is being pursued with Indaver, two institutes of the University of Aachen (RWTH) Gasification:Although gasification of mixed for polystyrene. We combine state-of the-art a leading European waste management – the Institute for Processing and Recycling plastics waste is still in its infancy in Europe, technologies from technology providers such company with large-scale treatment facilities in (Institut für Aufbereitung und Recycling, I.A.R.) there are some clear pilot to commercial-scale as Agilyx, Indaver, GreenMantra and Pyrowave the port of Antwerp, to build a demo-plant for and the Institute of Plastics Processing (Institut plants up and running in North America. The with our own manufacturing expertise to advanced recycling, where polystyrene waste für Kunststoffverarbeitung, IKV) – as well as potential and benefits of this method are convert waste polystyrene back into feedstock. will be recycled to purified styrene. The Neue Materialien Bayreuth GmbH.

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY SHAPING THE FUTURE WITH SUSTAINABLE STYRENICS 30 Our road map for advanced recycling of polystyrene

Ensuring recycled polystyrene ResolVe: INEOS Styrolution Collaboration with by 2025: our timeline receives funding from the Breakthrough in advanced Unternehmensgruppe German government to research recycling: ﬁ rst production of Theo Müller to recycling of post-consumer virgin PS from only develop advanced recycling PS waste depolymerised material solution for PS

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TOMRA proves superiority of PS in waste Joint agreement with Agilyx Joint agreement with SCS members Trinseo sorting with more than 99.9% purity for PS recycling in the USA GreenMantra to drive and INEOS Styrolution advanced recycling of PS plan commercial scale Collaboration with SCS members including INEOS Styrolution Joint project with Sirap Indaver on advanced Strategic partnership with advanced recycling initiate evaluation of Pyrowave plastic-to- aimed at depolymerisation recycling of PS Pyrowave to recycle plant with Agilyx 21 plastic chemical recycling technology solution for PS post-consumer PS in Europe

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INEOS Styrolution Launch of new ECO range INEOS Styrolution receives ICIS Innovation of sustainable products publishes initial results of Joint agreement with Indaver recycling plant in Award for advanced LCA studies on Recycling Technologies to Antwerp with capacity of Dedicated upscaling 22 recycling of PS First yoghurt cups advanced recycling of PS recycled post-consumer PS 15,000 tonnes to become of recycling plants with in Europe operational produced from recycled PS enhanced capacity

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INEOS Styrolution and INEOS Styrolution-Agilyx Trinseo advance plans for ﬁ rst advanced recycling facility in Ensure 100% of polymer European PS recycling plant Channahon to products can be recycled become operational Incorporate recycled material into products

Produce 30% recycled content in products destined for PS packaging in Europe POSITIVE FEEDBACK FROM CUSTOMERS We have already provided some batches of recycled polystyrene to selected customers for Unternehmensgruppe Theo Müller, Germany’s largest privately-held dairy business received testing. Sirap, an international leader of food-packaging containers, is working with us to be the some test samples from us and are pleased with the results. The dairy company believes that this first-mover to use recycled polystyrene in the food-packaging sector. First samples of recycled test material has the potential to become one of the best products in terms of environmental polystyrene at lab-scale have already been analysed. impact as well as performance. We are now working together to develop a solution that aims to deliver commercial-scale production of recycled yoghurt cups by 2022.

MAXIMISING THE POTENTIAL OF MECHANICAL RECYCLING Since early 2018, we have been exploring We plan to offer Terluran® ECO in Americas as Mechanical recycling: a proven technology that works for various styrenics polymers mechanical recycling to develop a lean well as start manufacturing Terluran® ECO in portfolio of basic grades for our standard Asia from locally sourced post-consumer applications. In 2019, we introduced recycled ABS. Terluran ® ECO, our first standard ABS grades with post-consumer recycled material. The two We are developing another recycled ABS new grades Terluran® ECO GP-22 MR50 and product, Novodur® ECO, in white as well as Feedstock Terluran ® ECO GP-22 MR70 contain 50 and 70 colour options. In addition to that are we percent of recycled post-consumer waste developing Novodur® High Heat and electrical and electronic equipment (WEEE), polycarbonate blends. Test materials are respectively. The materials, which have a high- currently being sampled by customers and we gloss surface finish, are available in black and aim to make this product available early next Monomers grey, and are aimed at household and year. Shredded waste electronics applications. Several blue-chip companies have already started to evaluate Mechanical recycling is the best available and the new material and plan first applications to proven technology to reuse end-of-life plastic enter the market soon. waste on a short to medium term, and is Mechanical recycling currently the most feasible option for ABS. As Use Polymers These recycled ABS solutions match the this process is less energy-intensive, it has a mechanical property profile of our virgin GP much lower carbon footprint in comparison to ABS grades and can be used as a drop-in conventional production processes and will solution by our customers. reduce the amount of waste that ends up in landfill and incineration. We are now entering into collaborations with Products select recyclers to scale up production of the newly developed ABS recycled grades. The first partnership was signed with bage plastics, an Austrian WEEE recycling company in 2019 to produce high-quality ABS grades with up to 70% recycled content at commercial scale. We plan to integrate bage plastics’ post-consumer recycled electrical and electronic waste into state-of-the-art recycling ABS formulations.

USING RENEWABLE RESOURCES AS A RAW MATERIAL Bio-attributed feedstock: a drop-in solution that can be used for our complete portfolio Since 2019, we have been working on offering Our renewable feedstock is sourced from the integration of renewable feedstock as a several types of bio-feedstock (amongst Petrochemical production replacement for fossil fuel in upstream by-products from biofuel production) which existing petrochemical installations. After a comply with the highest sustainability criteria rigorous audit process, we launched and which significantly save GHG sources. Feedstock Products Styrolux® ECO, the world’s first specialty Therefore, the bio feedstock does not Fossil Conventional styrenics material made using renewable compete with food and does not compete feedstock within the value chain. When with land use. The renewable feedstock A credible external compared to styrenic polymers produced sources are certified by the Roundtable for certification system using fossil fuel, GHG savings for Sustainable Biomaterials (RSB) to assess that is used bio-attribution range from 70% to 100%, they are managed in accordance with their depending on the sourcing and on the sustainability criteria. polymer. Renewable Allocated

How bio-attribution works How bio-attribution works

Bio-naphtha/ Kitchen biogas waste/wood waste Steam cracker/ syngas plant Chemical production

Basic organic Bio-attributed chemicals styrenics

Fossil fuel Naphtha/ natural gas

The variable content of bio-feedstockThe variable in the final content product of bio-feedstockis attributed as in a thepercentage final product of production. is attributed as a percentage of production.

Following an extensive audit of our production site in Antwerp in 2019, RSB fully certified that the processing of the bio-based feedstock along our entire supply chain is socially responsible, environmentally sustainable and Overview and timeline of our sustainable product offerings credibly sourced, ensuring that our operations are in line with the highest legal, environmental, social and management requirements. INEOS Styrolution is now a Available now 1-3 years > 3 years member of RSB. Styrolution® PS ECO: food grade For our customers, this bio-attributed PS from depolymerisation approach enables an easy transition from fossil Polystyrene High purity mechanically to renewables as it offers a drop-in solution. As recycled grades with virgin-like we operate in large-scale manufacturing sites performance and the bio-feedstock is mixed with fossil Terluran® ECO: feedstock, we cannot define where and in Recycled ABS grades in a wide Standard ABS grades with Grades based on styrene from which quantities the bio-feedstock is present ABS colour and performance range virgin-like performance PS depolymerisation in our end products. However, we can ensure sustainable processing and in that way significantly reduce GHG emissions along the Styrolux® ECO & Styroflex® ECO: Luran® ECO & NAS® ECO: Grades based on styrene from Transparent value chain and avoid the use of fossil fuel. Certified transparent products Certified transparent products PS depolymerisation and other specialties based on bio-attributed feedstock based on bio-attributed feedstock monomers from recycling We also reduce the GHG footprint in our customer’s supply chain, and for them there is ® Novodur ECO* & Terblend N® ECO: no compromise in performance, no product Novodur® ECO HH*: Pre-coloured Grades based on styrene from Opaque Pre-coloured ABS/ PA blends with ABS grades with mechanically PS depolymerisation and other development necessary, no need to adapt specialties mechanically recycled content monomers from recycling technology and no new regulatory approvals recycled content providing providing virgin-like performance virgin-like performance needed. As this approach allows for the creation of sustainable supply chains, while *available now as development grades retaining already optimised and highly efficient infrastructure and processes, we believe this attribution method will be suitable for our advanced recycling activities as well.

PLASTICS FOR THE PLANET, PLASTICS FOR PEOPLE Plastics can contribute to a better and safer planet and thus play a key role in the shift to a circular, low-carbon economy. Plastics have always benefited people, and it has become even more essential during a pandemic where there are enhanced health concerns and medical needs. It is fundamental for us as a plastics producer to contribute to the safety and enhanced medical care of people.

COMBATING COVID-19 WITH OUR PRODUCTS

During this unprecedented global pandemic, Some examples include, but are not limited to: commonly found in supermarkets, office we are successfully helping our customers find K-Resin® and polystyrene from our Yeosu and spaces, and other public venues. solutions to tackle COVID-19. INEOS Styrolution Ulsan facilities are utilised in different types of is recognised as a “business essential” COVID-19 detection kits. Terluran ® ABS grades produced from each of company integral to the healthcare industry our sites have been used around the world in supply chain. Products such as Terlux® HD and Novodur® HD applications such as safety goggles, paper made in Ludwigshafen/ Schwarzheide and towel dispensers, hand sanitiser housings, and We supply materials that are used in a variety Cologne, respectively, are being used in the testing devices. of applications across various market sub- production of various respiratory and oxygen segments. These include labware, respiratory delivery equipment. We have supported many of our “non- and drug delivery, IV and fluid transfer, healthcare” customers (from automotive, mobile/ digital health, surgical equipment, Addressing the shortages of PPE (personal household, extrusion segments) who notified and medical packaging. Our team has protective equipment) for frontline healthcare us of their intention to start producing successfully partnered with many of our providers, Styrolux® from Altamira, polystyrene medical equipment. With our expansive customers to answer the global outcry for from Channahon, and Lustran® ABS from global reach, extensive technical knowledge, much-needed medical supplies, be it the Addyston have been evaluated for suitability in and in-depth insight of various industries, we diagnosis of the of the disease (blood analysis face shields and respirators. have helped guide many of these customers, kits), treatment of patients (ventilators, IV sets), who may have no experience producing or personal protective equipment (face Styrolux® from Antwerp and NAS® XC from medical devices, in the proper material shields). Decatur are being used in the production of selection and processing for the targeted social distancing barriers that are now applications.

RESPONSIBLE PRODUCT STEWARDSHIP

Ensuring compliance with various national and Information & Research Center. These PRODUCT RESPONSIBILITY our website services in order to make it more international regulations is an ongoing partnerships help us better understand current We constantly monitor international user-friendly for our customers. obligation and forms an integral part of our and future regulatory developments, for regulations as they develop: to anticipate operations. We make sure that our styrenics instance, by giving us access to studies on requirements, improve our products and Concerning “conflict minerals” as defined by and raw materials comply with legal feedstock and product safety. Our certified ensure compliance in all markets in which we the Securities and Exchange Commission requirements in all the regions and industries quality management system ensures the operate. (SEC), i.e. cassiterite, columbite-tantalite, we serve. For example, in the food packaging consistent delivery of high-quality products gold, wolframite and their derivatives, these industry, our products meet strict standards, around the world, and in combination with For example, in applying global inventory have not been intentionally added as including those set by the European Food regulatory affairs, assists in building and management, we have implemented ingredients in the manufacture of our Safety Authority (EFSA) and the U.S. Food and maintaining the trust of our customers. The automated tools such as the Substance products and, to the best of our knowledge, Drug Administration (FDA). system is based on best practices and Volume Tracking Tool for REACH to avoid are not known to be present in the final international standards, such as ISO 9001 and non-compliance cases. products. In order to provide customer-centric regulatory ISO 14001. support and proactively address global We make use of an eShop on our website to regulatory and product safety trends, we rely PRECAUTIONARY PRINCIPLE provide up-to-date information to our on our global network of internal and external As a manufacturer committed to the customers on product stewardship, providing experts. long-term sustainability of our business, a wide range of information that can be we manage the use of our chemicals in a downloaded at any time to assist customers To ensure product safety and to give our responsible manner by applying the in using our products effectively and safely. customers a competitive edge, we offer a precautionary principle. This principle is We provide over 3,000 downloadable safety comprehensive range of services. Via an online an inherent part of our approach to risk data sheets directly on our website that cover portal, we provide important information – assessment and risk management. We are our large range of products. They are such as safety data sheets in various languages, familiar with and closely scrutinise our provided in 32 languages covering the 40 technical data sheets and regulatory substances’ properties, establish different countries in which those products documents. In addition, a team of dedicated guidelines for safe handling and processing are sold. professionals is on hand to help our customers and will continuously review and update meet strict international regulatory our criteria and guidelines for the For customers who register on our website, requirements. development of new products. In all our around 265 regulatory documents are plants, the precautionary principle is an available for download, including regulations To gain a broader market overview, assess integral component in our management of on food contact, RoHS*, REACH**, and product quality and minimise risks, we also change process, requiring a documented SVHC***. Customers that download * RoHS: Restriction of Hazardous Substances Directive ** REACH: EU regulation on Registration, Evaluation, work closely with industry associations, such as risk assessment for all process changes. regulatory documents receive notification of Authorisation and Restriction of Chemicals PlasticsEurope and the U.S. Styrene updates. We constantly review and improve *** SVHC: Substance of very high concern

UPHOLDING SAFETY AS OUR CORE VALUE

REDUCING OUR ENVIRONMENTAL FOOTPRINT

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY UPHOLDING SAFETY that we do every day. every do we that everything in health and safety of standards highest the to ensure INEOS Styrolution at everyone of responsibility the is However, it performance. safety our for responsible being board management the with top, the at starts to safety commitment Our operations. our all across performance improving acontinually to delivering committed fully are and seriously very (SHE) environment and health safety, for responsibility our We take preventable. are accidents all that and record safety outstanding an with hand-in-hand goes leader market a being that convinced is INEOS Styrolution APPROACH OUR objective. For us, incident-free operation is our value. core our remains and is safety workplace why is which asset, valuable most our are personnel logistics site on- and contractors employees, Our BOARD MEMBERS’ VIEW MESSAGE FROM OUR CEO & ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS RESOURCE-EFFICIENT AND ENSURING SAFE AS OURAS CORE VALUE SUSTAINABILITY OUR COMMITMENT TO within our SHE Excellence programme. Excellence SHE our within principles, guidelines and lifesaving rules SHE INEOS Group’s the integrated we 2016, By systems. management and standards SHE high 2012 to establish early in introduced was programme Excellence SHE global Our PROGRAMME OUR GLOBAL SHE EXCELLENCE stakeholders. external and internal to our importance highest of being as rated was safety workplace topics, 2017, in 16 all of conducted key out analysis materiality to our According required. as nationally, and locally results our publish and performance our about transparent We are targets. performance health and safety strict exceed feasible, where and to meet, We strive partner. and neighbour responsible a are we that to ensure stakeholders key close with partnership community groups and in working means This environments. local and communities local on have facilities our impact the Weto minimise aim performance. SHE our reinforces that trust and coaching dialogue, open of culture aSHE We established have SUSTAINABLE STYRENICS SHAPING THE FUTURE WITH II UPHOLDING SAFETY AS OUR CORE VALUE OUR AS SAFETY IIUPHOLDING RESOURCE-EFFICIENT OPERATIONS AND SAFE ENSURING further increased the rigour of our internal internal our of rigour the increased further 2018, in we Starting Excellence. SHE of journey the continue sites our to ensure protocol audit internal arigorous We utilise operations. of forefront the at safety keep sites and regions all across practices best of exchange the and auditing activities, training Regular please visit our website For more information on our 20 Principles, basis. aday-to-day on businesses and contractors employees, our all of expected is what define and programme, Excellence SHE our of foundation the form principles 20 These principles. 20 our become have that principles safety key ten of sets two follow we businesses, INEOS Group other all with alignment In expect. we behaviours the and apply we processes the in safety on attention our We focus PRINCIPLESOUR SAFETY Our foundation for Group Group INEOS Guide Notes Saving Rules Life- Principles 20 20 SHE Excellence VALUING OUR PEOPLE Asset Asset Care

audit recommendations. the through identified improvements on work will we 2020, In sites. our all at audited were principles safety 2019,In behavioural ten our schedule. three-year to arolling according place take processes audit These plan. improvement SHE site’s annual the into integrated are deviations to minor related Findings resolved by immediate actions. corrective are deviations serious to related findings audits, such During business. our of aspects operational the and SHE in knowledgeable team Audit Internal an by accompanied within our Operational Leadership team, members trained by led are Audits protocol. today’s of standard normal the now are cycles audit past during identified practices best that to ensure protocol the adapting by standards

INEOS Process Safety RESPONSIBLY MANAGING OUR BUSINESS Group principles & guidelines Occupational

Safety SHE Excellence

Environmental Responsibilty

SHE Governance ANNEXE

SHE Culture 37 ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS II UPHOLDING SAFETY AS OUR CORE VALUE 38

OUR PERFORMANCE made significant contributions to sustainable (TCIR) of 0.12 vs 0.20 in 2018. The number of that we have halved the number of LOC events Key highlights safety, health and environmental compliance. injury cases that resulted in employees and since 2015. contractors being away from work for one or • Total case injury rate In 2020, the regional SHE Excellence award more days remained the same, as reflected in TRANSPORTATION AND DISTRIBUTION (TCIR) of 0.12 compared to an winners for Asia-Pacific, EMEA and the the lost time injury rate (LTIR). SAFETY overall target of 0.25 Americas are our manufacturing sites in Yeosu, In the interest of improving transportation and Antwerp (styrene monomer plant), and The DART rate measures how many workplace distribution safety (TDS), we monitor and track Decatur. Out of these three, Decatur was injuries and illnesses require employees to logistics safety incidents involving our Sustainability targets recognised as the global winner of the SHE miss work, perform restricted work activities or products and raw materials. Most of these Excellence award. transfer to another job within a calendar year. occurrences are the responsibility of our • Continuous improvement DART focuses on more severe injuries and carriers. However, we understand that our of our company’s safety performance INJURIES, OCCUPATIONAL DISEASES, illness that may result in life-changing events, selection of carriers that demonstrate high • Annual total case injury rate LOST DAYS AND WORK-RELATED similar to LTIR. We have steadily reduced our performance in SHE provides reliable material (TCIR) of 0.25 for 2020 FATALITIES DART rate since 2015. delivery to our operations and customers, as INEOS Styrolution reports all safety matters to well as ensures public safety in the its management board within 24 hours. All LOSS OF CONTAINMENT communities where we do business. Major We further strive for continuous improvement incidents are reviewed by the board on a We are required to report any loss of transportation incidents are reported of our safety performance. An example of this monthly basis. In terms of key parameters, we containment (LOC) events that occur at our according to the criteria below. has been the recent development and focus on personal injuries, environmental production sites that are above release implementation of INEOS Styrolution Guide performance, non-compliance with thresholds equal to 1/10th the U.S. EPA Notes. These standards, which require our regulations, asset integrity, loss of reportable quantity (RQ) threshold, as a Criteria per incident type operations to utilise best practices, focuses on containment, technical inspections, other process safety and environmental impact INCIDENT CRITERIA the prevention of our most common incidents. high-potential incidents or near misses and indicator. Our performance trend indicates TYPE These include standards for working at height, behavioural-based safety observations Injury Death or >3 days absence from work pelletiser safety, prevention of extruder fires, (BBSOs). In 2019, 100% of our locations had LOC data by number or occurrences across incident global business since 2015 and prevention of dropped objects. safety committees comprising both Spillage/ > 50 kg ADR transport category 0 & 1 management and wage employees. YEAR LOSS OF CONTAINMENT leakage > 333 kg ADR transport category 2 > 1,000 kg ADR transport category Our overall safety target for 2020 includes a (LOC) 3 & 4 target TCIR of 0.25 for our employees as well Last year, we saw an overall year-on-year 2015 16 Property > 50,000 euros as our contractors. improvement in our in-plant operations and damage 2016 15 safety performance. The number of injuries Public Impact of more than 1 hour 2017 6 SHE EXCELLENCE AWARDS that resulted in employees or contractors disruption 2018 5 We established the SHE Excellence awards in having OSHA recordable cases was reduced Media National media coverage 2018 to reward sites and offices that have by 38% as indicated in the total case injury rate 2019 8 coverage

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS II UPHOLDING SAFETY AS OUR CORE VALUE 39

Total number of injuries First aid cases Recordable cases Performance trend TCIR LTIR DART

161 157 149 151 151

147 8

19 145

11 0.45

134 24 16 13 17

149 0.40 142 24 140 134 133 0.34

128 0.31 127 0.28 0.37 110 0.23 0.18 0.20 0.16 0.17 0.14 0.22 0.18 0.11 0.11 0.12 0.11 0.12 0.06 0.09 0.09 0.06 0.06

2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019

Severity rate TCIR Total case injury rate per 200,000 work hours (includes employees and contractors) 10.47 LTIR Lost time injury rate per 200,000 work hours 9.32 (includes employees and contractors) 8.15 DART Rate of injury cases involving days away or restricted transfer per 200,000 work hours (includes employees and contractors)

Severity Reflects the number of days away from work per 200,000 work hours 6.03 rate (includes employees and contractors) 4.75 2.71

2.49 1.06

2012 2013 2014 2015 2016 2017 2018 2019

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS II UPHOLDING SAFETY AS OUR CORE VALUE 40

COMBATING COVID-19: ENSURING SAFE AND We had an average of 35% of our workforce The return to offices and production sites has RELIABLE OPERATIONS present at each site, thus ensuring that our been gradual, taking into account strict assets kept running, without going under the hygiene measures as well as social distancing minimum safety staffing to run them. The rest procedures. This is being monitored on a daily As the COVID-19 pandemic spreads across of the employees continued to work from basis in case additional measures need to be countries and continents, manufacturing home. This helped curtail the number of implemented. In addition, we require companies such as us are faced with many COVID-19 cases within the company. mandatory respiration protection with several challenges. disinfectant and hand sanitiser stations At the same time, we remained focused on installed at several locations in our sites and To curtail the spread of the coronavirus, we safety as our core value: our OSHA rate was offices. acted swiftly to protect employees and 0.13 (YTD May 2020), which is our immediately implemented strict hygiene best-ever safety performance. measures as well as social distancing procedures. We put in place a set of 10 With the tremendous support of our workplace rules for all employees to follow workforce, all our plants have been in when working at our offices and production operation since March 2020, with the sites. We also developed and implemented exception of our plants in India where the detailed workplace readiness essentials government had instructed us to shut down (based on Cushman & Wakefield’s guide to for a period of time. reopening workplaces). Our construction site in Bayport, Texas, USA, Despite the uncertainty in the supply of raw and our project in Ningbo, China, faced materials and demand for our products, our minimal disruption with construction and site leaders guided their teams while following engineering rates as expected and on track. strict hygiene measures as well as social distancing procedures. The teams Our operations in China, which were the first to demonstrated flexibility, adjusting the undergo these special measures and are now production rate at our plants to meet the back to full staffing and full production. demands of our customers. Visual adapted from: Cushman & Wakefield’s guide to reopening workplaces.

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS II REDUCING OUR ENVIRONMENTAL FOOTPRINT 41

REDUCING OUR ENVIRONMENTAL FOOTPRINT

Operating responsibly is deeply embedded in our corporate values. • Reduction of air emissions and waste- by our site, regional and global SHE This new application allows sites to We are strongly committed to using water discharge: prevention of accidental representatives. This includes reporting of independently input site environmental data that resources efficiently and safeguarding emissions through advanced process control data, investigation of environmental incidents, can be reviewed by a regional team. Additionally, the environment. and arigorous procedural approach risk assessments, defining and review of changes in emission factors, local regulatory • Prevention of pellet loss: Avoid the processes as well as internal and external ISO guidance can be programmed on a site basis OUR APPROACH spillage of pellets into the environment audits. As of 2019, we achieved 100% ISO to ensure the upmost accuracy in reporting. through preventative and mitigation 14001 certification of all our sites. Further As a leading manufacturer for polystyrene and measures as well as monitoring at our implementation of an energy management As part of our goal to continually improve our styrenics specialities globally, we aim to use production sites and during transportation system (EMS) is in line with other priorities of operational and sustainability performance, we available resources efficiently and reduce our • Transparency and open communication our recycling and low-carbon agenda. combine our site expertise with our global environmental footprint. on our environmental performance with technology team, exchanging and developing the stakeholders: (personnel, customers, Environmental topics are part of our Risk & best available process and technology solutions Complete compliance with local and national authorities, communities) Control audit programme and includes testing environmental legislation is mandatory for our on compliance evaluations, soil investigations Our two new Chinese sites have been integrated operations. We strive to continually improve To monitor the evolution of our environmental or remediation, and environmental control into the company and construction has begun in our operations as well as our sustainability performance, we have integrated key measures. In addition, all our sites have both the ABS conversion project in Wingles, performance by following the key drivers of performance indicators (KPIs) on energy and programmes to ensure open communication France and the ASA plant in Texas, USA. our environmental policy: water use, material yield, waste management with the local communities. Expanding our operations gives us the • Reduction in energy use and greenhouse and air emissions into our business and site opportunity to debottleneck our capacities and gas emissions: Striving to continually procedures. Our global sustainability data are collected on be more resource-efficient in our production, optimise the energy efficiency of our tech- an annual basis, in accordance with the GRI while implementing the best available nology and operations The continuous tracking and improvement of Standards disclosures and in compliance with technology to supply markets locally and reduce • Resource efficiency, including scrap our data accuracy and our improvement local and national legislation. The sustainability the environmental footprint of our products. reduction and waste management: projects reflects the expertise of our data from our manufacturing sites are Efficiently using raw materials, including manufacturing processes, and our target of consolidated by SHE, energy, technology and In our materiality assessment, greenhouse gas reuse, recycling and recovery through opti- operational excellence. sustainability managers and validated at site, emissions, energy, resource efficiency, marine misation of our processes regional and global levels. As a follow-up to the litter and pellet loss, water use, wastewater and • Efficient use of water:Reducing the use of Complying with required regulations, environmental data collection audit, we have waste generation, and air emissions were rated water where possible and optimising the especially for waste and air emissions, is part of integrated a new global software tool to support as being of high significance to our stakeholders water efficiency of our operations: our SHE Excellence programme and managed data collection and automation of processes. and of key importance to our business.

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS II REDUCING OUR ENVIRONMENTAL FOOTPRINT 42

OUR PERFORMANCE local legal requirements for monitoring and and reviewed by our management team. reporting. As measuring equipment is not We use material yield as an indicator for our Key highlights available at all sites, we used an accuracy limit resource efficiency performance. Raw material of +/-3% for measuring, monitoring and yield is defined as polymer or monomer • 3.1 % reduction in greenhouse gas emissions collection of data for emissions and produced per unit of raw material used. Our • Audits for bio-attributed offerings conducted in Antwerp consumption. At our production site in Ulsan, yield definition excludes low value by-products South Korea, additional legal monitoring for and waste streams, which however are also Sustainability targets VOC was required, which explains the change mostly further reused, recycled or recovered. in scope and methodology from 2018 onwards. • 100 % of sites ISO 14001 certified by 2019 Achieved DISCUSSION OF DATA RESOURCE EFFICIENCY The diagram illustrates the development of the under review (due to changes in Resource efficiency is central to our business material yield for our polymers and for our • 7 % reduction of VOC by 2019 legislation, acquisitions, and advanced measurements) and fundamental to our operational excellence ethylbenzene styrene monomer (EBSM) plants. as it relates to reliable operations. It is a driver The yield for both polymers and monomers • ® in progress (postponed to 2021 Operation Clean Sweep audits for many of our improvement initiatives and are at a stable high level. Monomer yield is for all sites by 2020 due to COVID-19 restrictions) capital expenditures as well as in our daily work lower than polymer yield, as more by-products at our production sites. It is internally reported are formed in the EBSM production process.

ENVIRONMENTAL DATA Resource efficiency: material yield [%] BOUNDARY The following data represents the summary of We have retained the same scope since the

the environmental impact, measured at all start of our environmental data collection in 98.7 98.5 98.5 98.7 98.5 98.4 98.2 98.5 98.4 98.5 98.5 93.5 92.8 92.9 93.5 92.8 92.9 92.8 92.5 92.2 assets and legal entities of our 20 production 2014. Any change has been described in detail 92.5 sites worldwide. This covers the consumption in our previous sustainability reports. and emissions from our activities and utilities that we source from third parties, but METHOD AND ACCURACY excluding emissions from our raw materials. Water, wastewater, waste and energy usage is predominantly based on conducted SCOPE measurements. In the cases where accurate The performance data refers to the net impact measurements were not possible, estimates of INEOS Styrolution’s production activities, and assumptions have been made. including emissions and consumption of 2014 2015 2016 2017 2018 2019 resources. Treatment of wastewater or air For air emissions from combustion gases emissions resulting from activities provided to (NOx) and solvent air emissions (VOC), our non-INEOS Styrolution plants are excluded. measurements and estimates comply with Monomers Polymers

MESSAGE FROM OUR CEO & OUR COMMITMENT TO SHAPING THE FUTURE WITH ENSURING SAFE AND VALUING OUR PEOPLE MANAGING OUR BUSINESS ANNEXE BOARD MEMBERS’ VIEW SUSTAINABILITY SUSTAINABLE STYRENICS RESOURCE-EFFICIENT OPERATIONS RESPONSIBLY ENSURING SAFE AND RESOURCE-EFFICIENT OPERATIONS II REDUCING OUR ENVIRONMENTAL FOOTPRINT 43

WASTE REDUCTION For INEOS Styrolution, waste management disposal are additional measures that we take We separate waste from demolition and asset sites in South-east and North-east Asia have starts with efficient use of raw materials and to mitigate waste. care projects as these are project-related and reduced their specific waste by 39%. the avoidance of waste generation where not part of our daily operations. In order to possible. When waste is produced, we first For our measurements, we define waste in reduce risk and increase to the safety within Investment in our new Chinese sites has shown consider recycling, followed by energy accordance with international standards and as our sites, significant effort has been great promise as the sites in Ningbo and recovery, and incineration or landfill as the last defined by national legislation and comply undertaken at numerous sites to remove Foshan are quite modern and generate very option. with all local waste management regulations. redundant assets from our facilities. Sarnia, little waste. In Ulsan, South Korea, significant Waste accumulation at our sites can vary Cologne and Antwerp had significant removal efforts have been taken to reduce the amount Although a significant amount of waste is depending on the chemical processes and the work done in 2019. of sludge by enhanced dewatering. avoided by optimised operations and the presence of on-site utilities such as wastewater reuse of side streams at neighbouring plants treatment plants. We aim to reduce landfill DISCUSSION OF DATA The total specific waste linked to demolition or sites, the amount of generated waste is still waste by exploring opportunities to recycle Our Asian sites are leading the way with and infrastructure projects decreased by 27% relevant. Our conscious waste management and reuse. In addition, we strive to reduce the significant reductions in the waste generated compared to 2018. The waste from projects is including appropriate storage, handling and overall amount of waste related to production. per kilogramme of production. Since 2014, our highly impacted by turnarounds at our

Specific waste (kg/tonne produced) 2014 2018 2019 Specific waste excluding project waste [kg/tonne produced]

By source Operations 2.72 2.88 2.69 9.48 9.26 9.21 9.48 9.21 Projects 0.80 0.94 0.69 9.05 6.26 Sludge 2.42 2.03 2.26 5.88 5.95 Municipal 0.67 0.65 0.48 Other 0.07 0.04 0.82

By destination including project waste 2.02 Recycling & recovery 2.14 3.42 2.48 1.36 1.23 Incineration 1.97 2.33 2.18 Landfill 2.37 1.13 1.65 2014 2018 2019 Other 0.05 0.03 0.63

By category including project waste

Hazardous waste 2.04 2.05 2.23 Monomers Polymers INEOS Styrolution Non-hazardous waste 4.50 4.86 4.71

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production sites. During the shutdown, large Over the last years, we have successfully be reused or recycled. projects and reducing the amount of waste projects are executed and equipment is shifted from landfill waste to recycling and sent to landfill. New acquisitions, project lines exchanged. In 2019, a low number of sites had recovery. Currently, 36% of our overall waste Another key waste indicator is the distribution and construction works as well as a shift in our their turnaround. is sent to recycling and recovery and 24% to between hazardous and non-hazardous waste: product portfolio towards specialties and landfill. Over the period 2014 to 2019, landfill 32% of our waste is hazardous waste and 68% high-quality polymer products (that generate As part of a redundant asset removal plan and waste has been reduced by 30%, while is non-hazardous waste. Hazardous waste a higher quantity of intermediate waste) has upcoming investments, we expect figures for waste that is recycled and recovered increased requires special handling, disposal and impacted our overall waste figures. demolition waste to increase within the two by 16%. storage measures. We aim to minimise and next years while this plan is still in execution. recover our hazardous waste and recycle For waste arising from necessary infrastructure We continue to evaluate further measures to non-hazardous waste as much as possible. or demolition works, we mainly focus on good reduce landfill waste over the next years. One handling practices and maximisation of example of such a project is the evaluation of Total specific waste linked to production from recycling and reuse of the generated waste. applications for an ABS rubber waste stream to our polymer and monomer sites, excluding project waste increased by 6% compared to 2014. The main sources of production waste for polymers are process waste from ABS rubber production and sludge from wastewater treatment plants. The main sources of waste in EBSM production are project waste, spent catalyst and exported wastewater.

Over the period 2014 to 2019, waste generated by monomer production increased, resulting in an overall specific waste increase of 6%. Although we did not meet our overall waste reduction target, we were successful in significantly reducing the overall impact of our waste through specific waste reduction

INEOS Styrolution production site in Map Ta Phut, Thailand

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ENERGY EFFICIENCY Conscious energy usage is integral to our improvements. Best practices in terms of Energy reporting at our 20 sites involves fossil energy use in 2019. Leading the way are our resource efficiency efforts and is a key driver technology are shared during global fuels, electricity, steam and oil residues. The European polymers sites that have shown for all capital expenditure projects. Since the technology exchange meetings. Benchmarks energy usage can vary annually depending on continual improvement year over year since establishment of our company in 2011, we have of sites with similar technology are shared and site-specific conditions such as turnarounds 2014. Additionally, the two new Chinese completed a significant number of energy coordinated by our global technology group. and the type of chemical process. polystyrene plants have shown to be highly reduction projects, and every year, our Capex energy-efficient. programme includes numerous initiatives to Energy management starts and ends with the DISCUSSION OF DATA improve energy efficiency. We have efforts on each site. It is being integrated into In 2019, 54.8% of our energy use was from fossil Our four EBSM plants represent approximately implemented energy management systems to daily operations and its implementation is fuels, 35.0% from steam and 8.6% from 80% of our global energy usage. This is a measure, monitor, internally report, and continuously ensured. Therefore, the sites have electricity. In general, steam and fossil fuels are direct result of the different thermodynamics evaluate the use of energy. energy managers or project managers in mainly used by EBSM plants, whereas of EBSM processes versus polymer processes. place, who coordinate actions within the extruders at polymer production sites use a An inventory of all ongoing energy departments. For Europe and the Americas, higher quantity of electricity. improvement projects as well as other energy management is further coordinated at potential projects has been made, to ensure a regional level, led by a dedicated regional Compared to 2018, our polymers production clear understanding of the pipeline on energy energy manager. sites show a decrease of 11.5% in specific

Specific energy consumption [kWh/tonne produced] 2019 Share by energy source

0.1 % 35 % Others

3,962 Steam 3,828 4,216 3,999 3,828

2,131 2,093 2,160

Monomers 8.6 % 54.8 % Electricity Fuel 795 751 704 Polymers

INEOS Styrolution 1.5 % Oil residues 2014 2018 2019

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GREENHOUSE GAS EMISSIONS We have committed to reduce our greenhouse conversion factors or calculated based on the depending on the local supplier. The gas (GHG) emissions and take actions to carbon content in fuels. The used conversion accessibility and availability of energy sources, mitigate the negative effects of climate factors are either given by energy suppliers, especially renewable energies, can be change to keep temperature increase well national/ regional authorities or taken from nationally and regionally limited. Increasing the below 2°C (above pre-industrial levels). Our global warming potentials as stated in share of renewables in our electricity mix to efforts and interests to comply with the international standards such as the reduce the carbon impact of this energy globally established carbon emission targets, Intergovernmental Panel on Climate Change source will be subject to further follow-up in is of high interest to our customers, (IPCC) or the GHG protocol. 2020 and beyond. stakeholders and investors. DISCUSSION OF DATA In 2019, our EBSM production sites reported We report and review our carbon dioxide In 2019, 48% of our total greenhouse gas an increase in specific greenhouse gas while scope 1 and 2 emissions on an annual basis. emissions were emitted by scope 1 emissions the polymer production sites saw a decrease This includes review and validation of each site, and 52% by scope 2 emissions. It can be seen of 16.6% when compared to 2018. The methodology, conversion factors and ETS that 20% of our GHG emissions was related to combination of polymers and monomer (emissions trading system) reporting. Energy electricity production, although only 9% of our production sites led to an overall specific and GHG reduction projects are identified and energy consumption was electricity-based. decrease of 3.1% compared to 2018. Overall, tracked in our Capex system and exchanged The key factors here are CO2 conversion we have reduced our GHG emissions by 8.4% within the INEOS Carbon & Energy network. factors for electricity that can strongly vary over the period 2014 to 2019. Within this network, joint cooperation within INEOS businesses for energy efficiency Specific greenhouse gas emissions [kg/tonne produced] projects as well as innovations are shared and 2019 Greenhouse gas emissions by source discussed on a regular basis. 0.5 % 47.9 %

814 Scope 1 process The reported emissions cover the scope 1 and Scope 1 755 emissions 2 CO emissions as defined in the Greenhouse 714 fossil fuel 2 482 Gas Protocol. Scope 1 emissions include direct 455 441 emissions from fossil fuel consumption at our sites as well as process-related emissions from Monomers 32.3 % NOx (nitrous oxides), CH (methane) and CFC/ Scope 2 4 Polymers 262

236 steam

HCFCs (chlorofluorocarbons/ 218 hydrochlorofluorocarbons). Scope 2 includes INEOS Styrolution 19.8 % Scope 2 indirect CO2 emissions related to sourced 2014 2018 2019 electricity electricity and utilities such as steam. CO2 emissions are evaluated either based on CO2

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WATER USE We report on process and cooling water, the river via dedicated discharge points, possible during turnarounds or other operations. Our initiatives to reduce water use relating to the efficiency of our processes. By separated from wastewater. The cooling water installation replacements. are also in line with our set target focus on definition, process water comes in contact with demand of the semi-open systems is more process water. our product and can be either reused or sent dependent on the temperature of the water At our styrene monomer sites in the Americas, to an on-site or off-site wastewater treatment source and is impacted by the warm summer evaporative cooling systems are used, in which The table and graph indicate the breakdown facility. Cooling water does not come into period in the EMEA region. cooling water ends up as water vapour. In of data on our total water use in cooling water direct contact with the product, therefore no addition to technical differences, these and process water as well as our wastewater organic contamination occurs. In case of a In Asia-Pacific and in Americas, the cooling systems require significantly higher cooling discharge. Compared to 2018, specific water separate discharge point, it can be routed water is discharged together with process water amounts during the warmer summer use including cooling water decreased by 16%. back directly to a river or sea, without further wastewater, leading to relative higher volumes months. Process water use fluctuates much Excluding cooling water, the process water treatment by a wastewater facility. Regardless of discharged wastewater. Closed cooling less due to meteorological circumstances and demand also reduced by 10%. of regional differences, the use and discharge water loops are being installed wherever is rather linked to stable and reliable of process and cooling water are monitored by quantity and quality. Water withdrawal excluding cooling water 2019 Water usage by source At our EMEA sites, we use semi-open primary [m3/tonne produced] cooling water systems that often extract water from nearby surface water bodies, such as the Rhine and Scheldt rivers. After use in cooling 1.77 6.4 % processes, this water is partially routed back to 1.69 1.96 Public water 1.52 1.73 1.97 75.8 % Surface water 14.4 % 1.50 WATER Steam WITHDRAWAL 1.33 condensate 9 % process water 1.24 3.3 % 91 % recirculation Ground water of cooling water SURFACE WATER

28 % internal 72 % external waste waste water water treatment 2014 2018 2019 treatment and discharge Monomers Polymers INEOS Styrolution

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DISCUSSION OF DATA Water used for production purposes is drawn 0.8% and public water increased by 5%. production reduced by 6.2%, whereas our period 2014 to 2018. Over the past years, we from different sources, such as surface water Groundwater use increased by 15% due to an polymer production plants increased their have executed multiple water reduction and wells. It can also be imported from underground leak and limited measurement water use by 3.5%. The reasons for this projects, such as the reuse of process water at neighbouring sites, which has a different for detection. This will be subject to further fluctuation are limited measurements, our EBSM plant in Antwerp, Belgium, and the environmental impact. Groundwater is the less follow-up and improvement in 2019 and beyond. housekeeping, increased cleaning and a new efficient new underwater pelletising unit at our favoured source. Only 4.1% of our total process The water imported by steam condensate demineralised water plant in Altamira, Mexico. polystyrene plant in Wingles, France. water consumption comes from ground water. decreased by 9%. The usage of steam In addition, our polymer portfolio shift towards condensate can vary at sites, depending on the high quality specialties products, for example Reporting the total volume of our water use required import and export to other facilities. for medical applications, caused higher water subdivided by source contributes to our consumption. Overall, withdrawal of process understanding of its overall impact and In general, polymer production sites use more water reduced by 0.2% in 2018, resulting in a evolution. Compared to 2017, surface water process water than monomer production sites. reduction 4.3% between 2014 and 2018. This is (our primary source of water use) increased by Compared to 2017, water use by monomer in line with our target of 3% reduction over the

INEOS Styrolution production site in Altamira, Mexico

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WASTEWATER The amount and quality of water discharged well as procedures to reuse their process water All process wastewater as well as 14.6% decrease in wastewater discharge for by our sites is directly linked to both ecological or condensate at neighbouring production contaminated cooling water are included in polymer production sites in 2019 is connected impact and operational costs. Good treatment plants, are in place or in progress. Our process the reported scheme. After internal or external with the decrease in water use at these sites. of emissions and reduction of wastewater sedimentation basins, filters, as well as treatment in wastewater treatment facilities, the During 2014 to 2019, we achieved a 24% discharge mitigates our impact on rivers and flotation units contribute significantly to water is directly discharged to surface water. reduction in wastewater discharge. This means local habitats. We are committed to further preventing solids from entering wastewater we have continued to improve beyond our reducing our environmental impact by treatment facilities. Due to water scarcity in DISCUSSION OF DATA reduction target of 7%. progressively improving the quality of India, effluents from the wastewater treatment Globally, 28% of our total wastewater is treated discharged water and by reducing volumes. is used for irrigation on site. on site and 72% of our total wastewater is sent to a third party wastewater treatment facility. All of our production sites have wastewater Wastewater is a key indicator and part of local Compared to 2018, we reduced overall specific treatment plants at site or send their and national reporting at each of our wastewater by 8%. In general, polymer wastewater to an external wastewater production facilities. Compliance with all local production sites discharge more wastewater treatment facility. Several measures, such as requirements is actively monitored and than monomer production sites. Wastewater closed-loop water systems to reuse the water anticipated, led by our SHE managers onsite discharge by monomer production sites for cleaning purposes or as cooling water, as as well as our regional SHE managers. increased by 9.5% since the previous year. The

Specific waste water discharge [m3/tonne produced] 2019 Destination of discharge

2.15 2.64 72.3 % 27.7 % 1.78 2.35 1.64 External Internal

2.01 waste water waste water treatment treatment, routed to 1.50 surface water

1.11 Monomers 1.02

Polymers

INEOS Styrolution 2014 2018 2019

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AIR EMISSIONS Air emission management is of high environmental management of our sites. Air DISCUSSION OF DATA In Ulsan, South Korea, new measuring points significance to our industry’s environmental emissions from manufacturing (VOC) and Compared to 2018, we reported a 1.5% were installed due to additional legal management. It ensures that the air quality in combustion gases (NOx, SOx, CO and dust) increase in global specific air emissions, NOx monitoring of VOCs, improving our baseline the neighbourhood remains suitable and that are monitored at each site according to local increased by 6.8% and VOC by 4.3%, while CO and giving us a broader scope for future the impact on nearby habitats and our legislation. We treat our air emissions from our decreased by 20.5% and dust increased by 2.2%. improvements. atmosphere is limited. Air emissions are production sites with methods such as therefore highly regulated and part of the condensation, filtration, absorption or The air emissions of NOx, CO, SO2 and dust In Antwerp, Belgium, measures to reduce VOC technical handling, advanced monitoring and incineration, in line with national and local are related to the combustion of fossil fuel and emissions back to 2015 levels have been reporting, and are subject to continuous legislation requirements. The results are waste. The large increase in SOx is due to implemented. Our overall specific VOC improvement. reviewed and evaluated for further optimisation. specific monitoring activity at our polymer site emissions decreased by 15.4% from 2014 to 2019. Diffuse air emissions in operations are monitored in Thailand, which we have adjusted. Air management is an integral part of the via leak detection and repair procedures.

Specific VOC emissions [g/tonne produced] 2019 Air emissions by share

43.2 45.0

46.1 36.1 14.4 % 15.8 % 50.2 46.4 41.4

40.8 VOC Carbon monoxide 6.4 % Dust 28.7 1.2 % Monomers Sulphur oxide Polymers 62.1 % Nitrogen oxide INEOS Styrolution 2014 2018 2019

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PREVENTING PLASTIC PELLET LOSS WITH OPERATION CLEAN SWEEP® Marine litter and pellet loss is a global issue incident, preventive and mitigations our engineering study on truck blowing and annual waste collection events are part and a key concern for us. The general sources measurements are re-evaluated and enhanced. We reviewed best-practice solutions of our engagement. for pellet loss in the environment are pellet- regionally as well at the INEOS group level. handling facilities such as pellet manufacturers, To continually improve our OCS approach, we At each site, we reviewed potential locations, Due to the success of our supply chain audit logistics and transportation companies, enhanced our cleaning equipment protocols, engineering possibilities and required and the on-boarding of all regions to OCS, we processors, compounders, suppliers or reviewed our housekeeping programme, regulations. Once finalised, the project will are extending the level of transparency to customers. extended AsCare initiatives, and trained move to the next implementation stage. ensure that all sites fulfil the same standard employees and contractors. In addition, • In the Americas, we continue to enhance requirements. Operational audits started in Operation Clean Sweep® (OCS), the industry supervisors performed frequent checks in preventive and mitigation measures. In 2019, but have been postponed due to programme to prevent pellet loss, which we higher risk areas. The importance of OCS has Channahon, we cleaned up rail car gravel, COVID-19 restrictions. joined in 2015, is an important priority for us. been communicated to our contractors and silo trenches and upgraded our piping OCS builds up on five action pillars: integrated where possible in their bonus malus junctions. At our Mexican site in Altamira, commitment, assessment, facility upgrade, performance measurement. root causes for silo overfilling have been awareness and improvement. mediated, and pelletiser gaskets and clamps OCS is integrated in internal awareness have been replaced. During our implementation period, we campaigns, in internally and externally • In our supply chain: Systematic audits of performed a root cause analysis and defined performed audits, and communicated to the our supply chain have been implemented in preventive and mitigation measurements to supply chain to encourage and raise all regions. Hereby internal and external avoid the escape of pellets from their primary awareness to the OCS programme. warehouses, tollers and transloading areas containment. Potential locations for spillage have been reviewed. Based on the results, can be within operations (such as packaging HIGHLIGHTS OF OUR 2019 audits will be repeated on a longer or areas), logistics (loading and unloading areas) PERFORMANCE shorter timeframe. or warehouses. The following examples highlight initiatives • We continued our engagement within the undertaken at a regional level: PlasticsEurope OCS task force to increase Examples of our preventive measurements are communication with governmental and additional covers for pelletisers, spilling • All our Asian sites completed their non-governmental organisations on pellet protections, funnels, sizing of collection tools on-boarding to the OCS programme. loss and exchange best practice examples. or pipes. In case of an occasional spill, Hereby, all the pillars of OCS have been Locally in Antwerp, we participate in the Port mitigation steps such as systematic clean-up integrated and adapted into daily of Antwerp OCS initiative to address and by our employees, pit collections, filters in operations. We will continue to improve our prevent pellet loss at the regional chemical rainwater drainages and wastewater treatment preventive and mitigation measures in hub, collaborating with all stakeholders such facilities have been installed to prevent stray operations. as manufacturers and logistics providers. pellets leaving our sites. In case of such an • At our sites in the EMEA, we continued Frequent exchange meetings, investments

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TRANSPORT & DISTRIBUTION

ENVIRONMENTAL FOOTPRINT TRANSPORT SAFETY Transport and distribution is integrated into Euro 6/ VI is the latest and most We have internal reporting criteria for It helps us spot trends and develop our supply chain management. We rely on an comprehensive EU standard on the reduction distribution incidents that require detailed interventions in areas, such as driver fitness, intermodal distribution model of trains, ships of exhaust emissions from passenger and follow-up and reporting to our management vehicle maintenance, and unsafe driving. For and trucks to find the most efficient route for commercial vehicles. We encourage our board. This means that all transport incidents sea terminals, we are rolling out a programme the worldwide distribution of our products. logistics providers to always be at the highest have a very high visibility and priority in the to assess management systems against Oil norm (Euro 6/ VI), with tendering being company and learnings from all transport Companies International Marine Forum As we have production sites worldwide, we are undertaken regularly. Measuring our safety incidents are shared within the organisation. (OCIMF)’s International Safety Guide for Oil able to serve our customers from closer and environmental impact helps us optimise Tankers and Terminals (ISGOTT) management locations, which helps minimise our performance and monitor improvements. We also use the European Chemical Industry standards. OCIMF is a voluntary association of intercontinental transport. We do not apply Therefore, we collaborate with environmentally Council (Cefic)’s Safety & Quality Assessment oil companies with an interest in the shipment airfreight as a regular mode for friendly logistics partners to set and measure System (SQAS) to evaluate the performance of and terminalling of crude oil, oil products, intercontinental transports. our environmental and safety performance, our logistics service providers and chemical petrochemicals and gas. ISGOTT contains such as miles travelled, fuel consumed, distributors, and thereby assure carrier management standards for equipment, In order to lower our environmental impact, we greenhouse gas emissions, loss of competence and reduce the likelihood of security, emergency response, risk favour the use of rail and sea transport, rather containment as well as transport accidents and incidents. SQAS assessments cover quality, assessment, tanker/ terminal interface and than road-based transport. We aim to ship our collaborate with them on reducing their safety, security, environment and CSR. personal safety. It is intended to reduce the products directly to our customers without the carbon footprint. likelihood of injury to people as well as to use of intermediaries and use off-site In EMEA, we are increasing the rigour of the reduce both the likelihood and severity of warehouses for temporary or overflow storage In support of the Operation Clean Sweep® application of the SQAS, and in Asia-Pacific, environmental incidents. All our sea terminals only. (OCS) initiative, we regularly audit our logistics we are in the process of implementing SQAS will conduct a self-assessment against these service providers and ensure sharing of best and performing our own assessments of our standards, which we will follow up with a Since bulk shipments have a lower practices to avoid any pellet loss in the logistics service providers. In the Americas, we validation inspection with the INEOS Marine environmental impact, we encourage our environment. rolled out a logistics service provider Assurance Group. customers to order in bulk when possible. We assessment where we monitor U.S. motor select our service providers according to a set carrier safety and performance data published of quality standards, such as safety, by the Federal Motor Carrier Safety environmental friendliness, as well as Administration via their Safety Management adherence to social, ethical standards and System (SMS) tool. The SMS is a huge technical standards of the chemical industry database, which contains all incidents, audits and the INEOS Styrolution Supplier Code of and assessment data relative to our contracted Conduct. carrier fleet.

ENGAGING AND DEVELOPING OUR EMPLOYEES

DRIVING SUSTAINABILITY ALONG THE VALUE CHAIN

SUPPORTING THE COMMUNITIES IN WHICH WE LIVE AND WORK

ENGAGING AND DEVELOPING OUR EMPLOYEES

Nevertheless, regardless of location, we are In our materiality assessment, being a reliable Our people are INEOS Styrolution’s committed to offering employees an employer as well as education and training most important asset. Their creativity, appealing work environment with competitive were rated as being of high significance to our diversity, knowledge, passion and remuneration and benefits, as well as attractive stakeholders and of strategic importance to expertise help us achieve a competitive opportunities to grow and develop our business. advantage and drive business success. professionally. Our remuneration policy is geared – through higher variable terms – toward an above-average remuneration of OUR PERFORMANCE employees, and is oriented toward country- OUR APPROACH specific conditions within the chemical Key highlights industry, in all countries in which the company One of our core guiding principles is “valuing is active. We do not deviate between part-time • Implementation/ first merit round in Sustainability targets and respecting people” and we aim to and full-time employees in terms of Compensation module of maintain positive relations with our employees remuneration and apply equal salary and HR Information system and develop a healthy working environment remuneration development for new hires as • 80 % of exempt employees to have where our workforce can develop and well as employees. • Development and launch of our an Employee Development maximise their potential. regional requirement website Interview Achieved (91 %) In a competitive, global industry such as ours, in EMEA • Implementation of Management With 20 manufacturing sites in ten countries success hinges on our ability to attract and Development Programmes and 24 sales offices around the world, our retain the most qualified and committed in all regions in 2019 Achieved employees are accustomed to working with employees in each of the markets we operate. people of diverse cultural backgrounds. We We are always looking for people whose skills • Employee survey for the entire truly believe in diversity and equal and aspirations are an optimal fit for the workforce conducted in 2021 employment opportunities regardless of responsibilities they will undertake. We gender, age, nationality, religion, race, or welcome the best candidates based on merit, cultural background. and practice principles of equal opportunity for recruiting and advancement in order to Market conditions and local legislation vary access a broader talent pool and foster per country, and because of this, our innovation. employment strategy is mainly locally driven.

EMPLOYEE DEMOGRAPHICS Since 2014, we have been tracking changes in ethnicity because definitions of racial disclose employment data based on part-time male and 17% female employees. Higher our employee demographics by region and minorities differ from country to country, and and fulltime contracts, as it is not material in gender diversity is evident in our three business unit based on gender and age. We collecting such data in some regions is a our business. In 2019, INEOS Styrolution’s regional headquarters, where categories of do not track demographic data based on violation of privacy laws. We currently do not workforce totalled 3,585 employees with 83% professional function are broader.

Breakdown of employees by contract type

Exempt 1,131 134 115 228 357 297

Non- exempt 2,317 21 197 927 871 301

S-level 137 30 16 30 30 31

Total 3,585

Global Global Styrene Monomer Polymers EMEA Polymers Asia-Pacific Polymers Americas

2015 2016 2017 2018 2019

206 187 166 136 185 610 309 554 316 532 320 528 323 629 328

Breakdown of employees by segment 1,047 1,221 960 1,185 967 1,183 957 1,179 1,258 1,185

Total Total Total Total Total 3,393 3,202 3,168 3,123 3,585

Male Female Male Female Male Female Male Female Male Female Gender 70 % 30 % 71 % 29 % 74 % 26 % 72 % 28 % 72 % 28 % 96 40 118 48 138 49 150 59 133 52 diversity by 85 % 15 % 87 % 13 % 87 % 13 % 89 % 11 % 87 % 13 % segment 275 48 279 42 274 42 229 27 286 42 82 % 18% 81 % 19% 82 % 18% 81 % 19% 81 % 19 % 964 216 963 220 971 214 993 228 963 222 91 % 9 % 91 % 9 % 91 % 9 % 90 % 10 % 87 % 13 % 867 90 881 86 873 87 952 102 1,094 164 80 % 20 % 81 % 19 % 81 % 19 % 81 % 19 % 80 % 20 % 424 104 429 103 449 105 532 126 494 135 84 % 16% 84 % 16% 85 % 15% 84 % 16% 83 % 17% Total 2,625 498 Total 2,669 499 Total 2,709 496 Total 2,856 542 Total 2,970 615

17 5 % 33 13 % 33 11 % 12 3 % 20 6 % Breakdown of 25 8 % 25 8 % 38 16 % 48 16 % 93 27 % 15 4 % 80 25 % 5 1 % new hires by 17 7 % 33 11 % segment 109 34 % 96 40 % 114 37 % 131 38 % 81 25 % 116 36 % 58 24 % 80 26 % 97 28 % 138 43 %

Global Global Styrene Monomer Polymers EMEA Polymers Asia-Pacific Polymers Americas

GLOBAL EMPLOYEE TURNOVER INEOS Styrolution strives to provide a setting In 2019, we developed recruitment websites have implemented processes to make exit the changes made, we will be conducting a for rewarding, life-long careers. We track both for the EMEA region. Through these interviews consistent across all regions and follow-up survey in 2021. voluntary exits and involuntary exits. In 2019, dedicated websites, job applicants from include more job levels. In addition to this new 234 employees left INEOS Styrolution, which Germany, Belgium and France immediately globally structured process, we expanded our Health and fitness of our employees is translates to a global employee turnover of get some basic information about the management development programme to important to their physical and mental well- 6.8%. The increase is mainly driven by the company and their potential job environment. include the Americas and Asia-Pacific. being. Therefore, we support and encourage a increasing number of retirements. We will Following the successful launch of the healthier lifestyle for our employees. Many of continue our efforts to retain talent as well as websites in EMEA, we are now developing GLOBAL HR INFORMATION SYSTEM our production sites and offices have fitness introduce young talent to the company. recruitment websites in the Americas and Asia- Our global Human Resources Information centres within the company premises, where Pacific as well. We plan to launch the two System, which was launched in 2018, resulted employees can make use of the facilities We also recruit young graduates as part of a regional websites in 2020. in a big improvement in terms of the accuracy thanks to subsidised fees by the company. programme offered by our parent company and quality of our global employee master INEOS that aims at recruiting and developing In order to reduce our voluntary departures, data. This system has also enabled globally DEVELOPING OUR PEOPLE the best commercial and engineering we are working to get a better understanding aligned, transparent and professional We follow local legislation with regard to graduates internationally. of the motivations of those who resign. We processes around recruitment, on-boarding, renewing technical certificates for employees learning and performance reviews. both at our offices as well as at our manufacturing sites. To further drive Employee turnover Professional development was extended with generational balance, we focus on tailor-made GLOBAL STYRENE EMEA ASIA- AMERICAS TOTAL our Senior Management Development training and succession planning for all MONOMER PACIFIC Programme, our regional Management employees globally. Resignations 9 2 62 59 28 160 Development Programmes, and an increased

Terminations 3 0 4 8 8 23 focus on employee development interviews In 2019, we introduced DISC, a behaviour (EDI). Moreover, our performance review assessment tool, to enhance collaboration Redundancies 1 0 0 1 0 2 system has been optimised. Two new modules, within teams. A series of elearning courses as Retirements 3 1 3 19 20 46 Performance & Goals and Compensation, well as workshops about DISC were provided Others (incl. 0 0 2 1 0 3 deceased, were added in 2018 and 2019, respectively. The with individual feedback sessions also offered disabled, module on Succession Planning and on demand. probation period failure) Development will be included in the system in 2020. For exempt employees, a management Total 16 3 71 88 56 234 development programme has been Compared 8.1 % 0.9 % 6.8 % 7.0 % 8.9 % to total leavers IMPROVING EMPLOYEE ENGAGEMENT implemented in each region. By the end of Compared 0.4 % 0.1 % 2.2 % 2.5 % 1.6 % 6.8 % In 2019, we further implemented measures 2019, around 116 employees attended either to average following on the outcome of our global survey the global senior or the regional management headcount conducted in 2017. To measure the impact of development programme. These programmes

will continue to run with new candidates & Goals module in our global information manager jointly discuss skills needed to every year. system, Human Resources, direct managers perform their work, skills that might be COMBATING COVID-19: and upper management are capable of needed to fulfil future requirements and SUPPORTING OUR In 2019, all 1,268 exempt employees reported tracking objectives, calibration and the aspirations, and professional development EMPLOYEES an annual performance review with their progress of employees. steps that can be taken to enable the manager. In the case annual performance acquisition of those skills. To curtail the spread of COVID-19, we acted reviews were not done, it was due to factors In addition, an employee development swiftly to safeguard employees and migrate to such as maternity leave, parental leave or interview (EDI) process is available for exempt In 2019, 91% of our exempt employees had a new way of working. We implemented long-term illness. Due to the new Performance employees worldwide. The employee and their employee development interviews jointly “working from home” for all office staff, even with their manager. before the official mandate by governmental authorities. Our teams globally have been as Collective bargaining 1,237 36 % OPERATIONAL CHANGE AND productive from home as in the offices with by region* 723 20 % 2019 COLLECTIVE BARGAINING virtual meetings and digital communication 241 27 % INEOS Styrolution makes every effort to give seamlessly replacing face-to-face discussions. Total 2,261 63 % a reasonable notice period to employees We ensured that only required staff were impacted by significant change. We respect present at a time in our production facilities 1,235 86 % and apply legal notice periods in compliance with the necessary distancing and hygiene 674 64 % 2018 with local legislation regarding advanced measures in place. Sufficient masks, 256 29 % notification of operational change. Our disinfectant and hand sanitisers have been Total 2,158 64 % employees have the freedom to organise provided to all employees when entering the and collectively bargain. We do not intend to company premises. 1,240 86 % impair the rights of any employees included 675 70 % 2017 in any collective bargaining agreement, or Since the beginning and throughout the 246 31 % prohibit the lawful exercise of any rights lockdown phase, we ensured periodic and Total 2,161 67 % guaranteed by any applicable legislation. In consistent messaging to employees. 2019, 63% of INEOS Styrolution’s workforce 1,238 87 % was covered by collective bargaining The return to offices is being done gradually in 624 64 % 2016 agreements. specific locations, with strict hygiene measures 244 31 % Polymers EMEA as well as social distancing procedures. This is Total 2,106 66 % being monitored on a daily basis in case Polymers Asia-Pacific additional measures need to be implemented. Polymers Americas 1,189 86 % 550 57 % 2015 *this includes non-exempt employees 244 31 % globally, except South Korea where employees up to grade 37 are included Total 1,983 63 %

DRIVING SUSTAINABILITY ALONG THE VALUE CHAIN

In our materiality assessment undertaken in The cornerstone of our supply chain Our efforts to monitor and enhance 2017, sustainable procurement was assessed as management is our Supplier Code of Conduct, our sustainability performance are being of significance to our stakeholders and and defines our minimum expectations and grounded in the activities of our own of strategic importance to our business. requirements in supplier standards, including business. We believe, however, that labour practices and human rights, health and our overall responsibility is not limited Together with our various supply chain safety, environmental protection, ethics and to our own manufacturing sites. partners, we continue to ensure efficient and fair business practices. We, therefore, assess sustainability effective production planning and execution performance along the entire styrenics as well as filling and storing of finished and We expect all our suppliers – at a minimum – supply chain to ensure that our intermediate material, based on customer to comply with INEOS Styrolution’s Supplier suppliers meet high sustainability demand and requirements. By engaging our Code of Conduct, which provides additional standards. stakeholders on sustainability performance, details of our expectations from suppliers. We we limit the risk of delivering products to the also monitor and review their performance marketplace that are not in line with our values through our own internal assessments as well or the stated intent of our sustainability as through third-party assessors. OUR APPROACH programme.

Sustainable procurement practices are increasingly driving companies’ purchasing Responsible business practices across our supply chain decisions, policies and reputation. We work with over 10,000 suppliers worldwide that provide us with raw materials, equipment as well as services, such as logistics, utilities and IT. As a company with a global reach, we have the ability to influence the sustainability practices in our supply base and are committed to forming strategic partnerships Responsible procurement of our raw Energy- & resource-efficient Safe & reliable transportation of our with our top suppliers that have the most materials & supply chain production of granules in our plants granules to our customer’s site impact on our business from a risk and spend perspective.

OUR PERFORMANCE

Key highlights Our newly launched ECO family of sustainable To quantify the sustainability of our supply environmental and social criteria increased products includes materials comprising chain, we conducted detailed greenhouse gas from 67% to 78% and we are on track to reach recycled post-consumer plastic waste as well (GHG) calculations of key materials (scope 3 the target of 80% by 2020. As a next step, we • Development of an ECO sourcing as materials based on renewable feedstock. emissions) such as our recycled material as well aim to identify our critical suppliers based on strategy with procurement of Therefore, we are engaging with waste as bio-feedstock. The use of recycled and risk assessment to prioritise ones that have a renewable and post-consumer waste collectors, sorters, and recyclers in our supply bio-feedstock as raw materials will be relevant sustainable impact to our business as future feedstock | In progress chain to secure high-quality post-consumer measured as a key indicator towards our 2025 and include them in our monitoring and waste for our recycled polystyrene and ABS roadmap. Our baseline will be the year 2020, assessment. products. as upscaling has planned from then on. As part of our Supplier Excellence initiative, in Sustainability targets We are also offering the integration of In addition, we limit the negative impact of 2019, we developed a sustainability dashboard, renewable feedstock as a replacement for plastics in the environment due to pellet loss which gives us an overview of our suppliers fossil fuel. Our renewable feedstock is sourced by engaging with our downstream value chain based on sustainability criteria such as • 80 % of total supplier spend to be from several types of bio-feedstock, and is to have them comply with our efforts to avoid. environmental protection, labour practices, third-party assessed by end of 2020 | certified by the Roundtable for Sustainable For more information, see chapter “Reducing ethics and fair business practices, as well as On track (78 %) Biomaterials (RSB), thus complying with the our environmental footprint” health and safety. The data is updated in real • 100 % of buyers trained on highest sustainability criteria. time by our robotic automation process. sustainability in 2019 Achieved ENVIRONMENTAL AND SOCIAL Through this process, we ensure a systematic Our entire ECO family supply chain from RESPONSIBILITY IN OUR SUPPLY CHAIN sustainability screening of our suppliers, • Sustainability to be included as a key bio-feedstock producers to our own In 2019, we provided a refresher training for all evaluate the sustainability performance of our component in supplier excellence manufacturing has been assessed according our existing buyers as well as a training for new suppliers and monitor our own sustainability programme by 2020 | In progress to international recognised RSB criteria. These buyers as part of their onboarding. Our top performance. criteria cover legal, environmental, social and suppliers, comprising companies with long- management aspects. Our supply chain will standing sustainability programmes, account We are systematically integrating sustainability ENSURING RESPONSIBLE BUSINESS get certified on an annual basis. for about 80% of spend volume. Since 2016, as a key component in our Supplier Excellence PRACTICES ACROSS OUR SUPPLY CHAIN INEOS Styrolution has been assessing the programme, such as including additional Underpinning a circular economy is a circular With our ECO range of products, we will sustainability performance of our suppliers sustainability criteria to evaluate supplier supply chain. Therefore, in addition to working significantly reduce the greenhouse gas through annual internal assessments as well as performance. This programme encourages with suppliers, collectors, sorters and recyclers footprint -- for ourselves as well as for our through independent third-party assessors buyers to work together with large and small upstream, we also focus on our downstream customers down the value chain. such as EcoVadis. suppliers to innovate around sustainability and value chain. We want to be a responsible and For more information on how we support our move towards a fully circular business model. reliable supplier to our customers and we customers, see chapter “Shaping the future Over the past three years, the percentage of support them in becoming more sustainable. with sustainable styrenics” global supplier spend assessed on

SUPPORTING THE COMMUNITIES IN WHICH WE LIVE AND WORK

Our responsibility does not end at OUR INITIATIVES our company gates. We want to be an active and supportive member of the communities in which we operate. COMBATING COVID-19: CARING FOR from respiratory hazards within their workplace. INEOS in producing hand sanitisers. COMMUNITIES Our Americas headquarters in Aurora, Illinois In association with a sanitation provider, we OUR APPROACH sent face shields to frontline healthcare facilitated a disinfection project in Godhra, workers in New York City, Chicago and adjacent to our plant in Katol, India. This A key cornerstone of our community The outbreak of the pandemic led to a global surrounding suburbs, and the hard-hit Navajo project, which also included monetary support involvement activities is our responsibility and shortage of protective medical equipment Nation community, within Arizona, USA. We to the local communities, has protected accountability to current and future such as surgical masks, protective suits, and also gave a USD 10,000 (over EUR 8700) 150,000 residents by helping contain the generations. We are committed to fostering safety goggles to control the outbreak. donation to local Chicago-area food banks. spread of COVID-19. This project, which also mutually beneficial and long-term relationships included monetary support to the local by supporting our communities with initiatives To help curtail the spread of the virus, we To combat the outbreak, employees and communities, has protected 150,000 residents that are focused on future generations. As part donated 20,000 single-use facemasks to be contractors immediately took proactive steps by helping contain the spread of COVID-19. of the plastics industry, we raise awareness and distributed across Foshan and Ningbo districts to implement safety © Michael Rabenstein/ Uni-Klinikum Erlangen engage our employees to contribute to in China. measures. A colleague environmental activities and aim to enhance from our Sarnia site used a the health and well-being of young and We gave over 1300 kg of Terluran® ABS to recipe published by the disadvantaged children. Besides these Friedrich-Alexander-University Erlangen- World Health Organization initiatives, we also respond to the most pressing Nuremberg, Germany to help produce (WHO) to create liquid needs of the communities by active protective glasses for frontline healthcare hand sanitiser in her very volunteering or by providing financial assistance. workers at the university clinic and other own kitchen, which she healthcare institutions in the area. Within four then donated The spread of COVID-19 was, and continues to weeks, the team at the FAU produced 100,000 to front-line workers. We be, a global concern, particularly affecting pairs of protective glasses. also delegated a business vulnerable and disadvantaged members of development manager society. As a concerned corporate citizen, we In Ontario, Canada, we responded to a responsible for healthcare also stepped up to respond to the crisis to demand and provided personal protection and packaging to support make a meaningful and valuable contribution equipment to protect local healthcare workers our parent company to local communities.

CLEANING UP MARINE LITTER São Paulo, Brazil COMBATING COVID-19: CARING FOR INEOS sites across the world to support To complement our recycling efforts to raise A volunteer group of employees and their COMMUNITIES charitable organisations during this particularly awareness, reduce pollution of plastic waste family members from our São Paulo, Brazil, difficult time. and help protect the local marine wildlife and office conducted a clean-up effort at Praia habitat, volunteers from INEOS Styrolution Branca, on the coastline of São Paulo state. The INEOS Community Fund of GBP 1 million Below are the organisations to which we have support the local community by participating The team established a partnership with the was established by INEOS Chairman Sir Jim donated up to EUR 10,000. We hope that this in clean-up initiatives. organisation Instituto EcoFaxina, which Ratcliffe in March 2020. The fund enables contribution with help them in carrying out performs clean-ups at beaches, mangroves, vital work in their local communities. Mexico City, Mexico and conservation areas. INEOS Community Fund donations to combat COVID-19 Volunteers from our Mexico City office conducted a clean-up at the heavily polluted, Antwerp, Belgium LOCATION ORGANISATION El Capulin Dam in Mexico City. The team’s Colleagues from our site in Antwerp, Belgium, Foshan, China Jinben Primary and Jinben Middle Schools hard work resulted in the collection of 1500 kg joined a big clean-up initiative in the Singapore Singapore Food Bank of litter, which they stopped from making its Galgeschoor nature reserve, where 8.2 tonnes Antwerp, Belgium Maud&Co, Bring a Smile, Hearts 4 Mercy way into the Gulf of Mexico. of litter were collected. This clean-up is Cologne, Germany Förderverein für krebskranke Kinder e.V. organised annually just before the breeding Frankfurt, Germany School@Home Aurora, USA season by the Port of Antwerp and Natuurpunt Ludwigshafen, Germany Deutsche Leukämie-Forschungshilfe – Aktion für krebskranke Kinder About 50 volunteers from our Aurora office Antwerpen Noord. The reserve is a tidal Sao Paulo, Brazil Associação de Apoio à Criança com Câncer spent the day at a local park cleaning-up and saltmarsh area on the banks of the Scheldt disposing of litter responsibly. Working estuary, and a nesting area for many species of Sarnia, Canada Canadian Mental Health Association of Lambton-Kent, St. Clair Child and Youth Services alongside the Fox Valley Park District, the team migratory birds. Due to the varying salt Mexico City, Mexico Ayuda y Solidaridad con las Niñas de la Ca also performed landscaping activities creating content, this reserve is also a habitat for Aurora, Illinois, USA Boys and Girls Club of Chicago a beautiful and clean environment within their specially adapted plants, and while the mudflat Bayport, Texas, USA Today's Harbor for Children local park for the whole community to enjoy. may look uninhabited, under the surface, it is Texas City, Texas, USA The Salvation Army Galveston County crawling with life. The recycling company Sarnia, Canada Indaver, will process part of the collected litter Volunteers from our Sarnia office worked with and either sort it for re-use or incinerate it to the St. Clair Conservation Authority, cleaning recover energy. We also cooperate with the environment and planting trees at the Dow Indaver to recycle post-consumer polystyrene Wetlands. Colleagues from Sarnia also waste back into feedstock for reuse. participated in the 2019 clean-up of

Volunteers from our office in Aamjiwnaang First Nation event, an annual Ludwigshafen, Germany São Paulo, Brazil, conducted Earth Day celebration to strengthen Employees from our production site in a clean-up effort at Praia relationships within the community. Ludwigshafen, Germany, did their first clean-up Branca, on the coastline of São Paulo state initiative on a 5 km route along the Rhine river.

The clean-up was coordinated with the local parent company INEOS with their global GO disposal companies, which also handed out their Run For Fun (GRFF) campaign. With more than working materials. The team collected 20 bags 287,200 children participating since its of trash, mainly plastic waste and cigarette butts. inception in 2013, the GRFF is the world’s largest running series for children, encouraging Map Ta Phut, Thailand young people’s participation in sports. About 90 volunteers and their families from our Thailand office participated in the annual In 2019, we further expanded our GRFF series Go Run For Fun, Vadodara, India International Coastal Cleanup (ICC), alongside and hosted events in all three regions. We 3,000 volunteers from 32 companies. This staged six events with nearly 2,000 elementary IMPROVING GREEN SPACES benefit nearly 2,000 residents and over 5,000 initiative, led by Ocean Conservancy, is the school students between the ages of 5 and 11 We support the “Moxi Green Zone” project in workers in the industrial areas around world’s largest volunteer effort to clean up the participating in these runs. These events took India together with 1,000 people from the Nandesari and Moxi. ocean, waterways, and coastlines, to help place in Frankfurt, Addyston, Singapore, and Moxi village in India. Through this initiative, we protect local marine wildlife and habitats. About for the first time in Vadodara, India. created a green community area for the public We constructed a rainwater-harvesting tank at 97 tonnes of litter was collected along the 15 by refurbishing a garbage dump near a local the Dodka village elementary school near km long coastline from Rayong’s Suchada Colleagues from our European, American and pond, planting saplings and connecting a Moxi. The tank has a 1000 litre capacity and Beach, to Ban Chang’s Nam Rin-Payoon Beach. Asia-Pacific offices and production sites water source to the green zone for watering surplus water is connected to a borewell to volunteered as track marshals to ensure the the plants and creating a walkway for joggers. recharge water table underground. This READY, SET, GO RUN FOR FUN kids’ safety. system makes the school self-reliant, using We aim to motivate young kids to get involved We also financially supported the Sujalam rainwater as drinking water and for cleaning in sports and enjoy a healthy, active lifestyle on INSPIRING KIDS AND YOUTH ABOUT Sufalam waterbody recharge scheme in Katol, needs for 500 children and staff. into adulthood. This is why we support our SCIENCE India. The Government of Gujarat repaired and As the leading global styrenics supplier, we developed the water bodies to hold more We also installed a reverse-osmosis water Go Run For Fun, Frankfurt, Germany want to inspire interest in polymer science rainwater. This reduces the dependency on purifier in Katol to give clean and cold water among young students at an early age. We ground water for daily use and irrigation, and consumption for nearly 300 children. organised a training session for 90 children in helps retain and replenish the groundwater Antwerp with “Kunos coole Kunststoff-Kiste”, table. In Seoul, South Korea, our colleagues and their an experimental kit for child-oriented scientific families planted 600 trees along the banks of experiments. This helps them explore the wide We also erected four new green zones in the the Han River. This activity was done in variety of properties and applications of plastics. industrial area around our production sites in coordination with the Environmental Action Nandesari and Moxi, India. The green zones Association Korea and to both promote Beyond our efforts in primary schools, we are built on a wasteland and around an effluent teamwork and create a green space through support several programmes that encourage canal. These green zones absorb excessive this reforestation.

university students with scholarships to pursue CO2, help reduce smog and balance the Visit our website for an overview of our these sciences and explore its career possibilities. natural biodiversity in the area. These zones community involvement activities globally

ENSURING FAIR BUSINESS PRACTICES

MAKING SUSTAINABLE GROWTH A REALITY

ENSURING FAIR BUSINESS PRACTICES

transparency. We will not compromise our active employee base is trained on its content at and one global team. Each of these teams is We operate with a fundamental safety, health or environmental standards for a minimum every two years. A quarterly made up of a representative from Legal, respect for the rights of the individual, any reason, including profit or production. We publication, summarising policy updates and Business, Human Resources, SHE and Finance. our employees as well as business continue to refine our policies, increase information about ongoing compliance events, Members of other departments participate partners. We are firmly opposed to awareness and understanding of these among is provided by the CEO and emailed to occasionally as members of the extended team. all forms of human rights violations or employees and business partners, and enforce employees. In addition, an internal newsletter deficient labour conditions, and expect compliance in accordance with the policies’ on compliance topics is regularly issued, which The Chief Compliance Officer of the company, this across our value chain. intent. In our materiality assessment highlights the policies, explains new updates, reporting directly to the CEO, chairs the global undertaken in 2017, human rights and business and provides concrete examples of compliant team, as well as oversees and manages integrity were rated as being of high and non-compliant behaviour. regulatory compliance issues, ensuring that the OUR APPROACH significance to our stakeholders and of company complies with both its internal policies strategic importance to our business. INEOS Styrolution maintains four compliance and its outside regulatory requirements. INEOS Styrolution, with the strong support of teams: one team for each of the three regions its senior management, is dedicated to OUR GLOBAL COMPLIANCE maintaining a high standard of corporate PROGRAMME Compliance team roles and responsibilities governance and regularly articulates the We have in place a Compliance programme company’s policies on business integrity and with an organisational framework at global, Legal requirements human rights. We believe that high standards regional and country levels to ensure that INEOS INEOS Styrolution guidelines and policies on business integrity and human rights are Styrolution always operates as a responsible critical to deliver our strategy, create long-term corporate citizen everywhere. The Compliance value and maintain our licence to operate. programme is strongly supported by the Risk & Management board Control programme. The cornerstone of our Supports management board, drafts We are committed to complying with all Compliance programme is the INEOS INEOS Styrolution guidelines and policies relevant local, national and international laws, Styrolution Code of Conduct. Acting in Compliance team Regions/ functions/ departments as manifested in our own values and guiding accordance with this Code of Conduct is a • Compliance oversight • Implement requirements principles. Our globally defined policies and prerequisite for each of our employees. To • Communication, education, training • Ensure compliance standards to some extent even exceed the ensure that all employees fully understand our Supports regions, • Auditing and monitoring, request for requirements of local laws, and we strive to live policies, the Code of Conduct has been functions, performance data/ reports departments up to the highest standards of business translated into selected relevant languages and • Other compliance initiatives practice regarding ethics, integrity and is posted on our intranet. In addition, our entire

OUR PERFORMANCE

Key highlights Key actions identification, passports, work permits or travel agents and other representatives of INEOS documents as a condition of employment. Styrolution. All relevant employees were Contracts and human resources policies trained on anti-bribery, corruption and money • Biennial training of entire active • Online refresher training on anti- clearly mention the conditions of employment laundering in 2018, and relevant new recruits employee base on Code of bribery, anti-corruption and in explicit language understood by our are assigned to the training as part of their launched anti-money-laundering Conduct employees. All our operations are assessed on-boarding. Anti-bribery and anti-corruption • Global training on data with a view to comply with our human rights was also one of the subjects highlighted in the protection conducted policies, which are mirrored in our human 2019 Code of Conduct training. CHILD LABOUR resources policies. • Procedure for data protection According to the Code of Conduct and ANTI-COMPETITIVE BEHAVIOUR breach launched Supplier Code of Conduct, only persons who ANTI-BRIBERY, ANTI-CORRUPTION AND All employees are prohibited from entering are at least 15 years of age or the applicable ANTI-MONEY LAUNDERING into any discussions, formal or informal minimum legal age, whichever is higher, may Anti-corruption and anti-bribery is included in agreements or understandings with HUMAN RIGHTS be engaged as employees. Legitimate work- the Code of Conduct and consequently competitors that may restrict competition. We focus on identifying and managing human place apprenticeship programmes for brought to the awareness of INEOS Vigorous competition, free from collusion and rights-related risks in all our activities. educational benefit may be provided that are Styrolution’s employees. Further information unreasonable restraint, is the most effective Thorough due diligence is performed to consistent with Article 6 or 7 of ILO’s Minimum on this topic is embedded in the anti-bribery mechanism to ensure that we provide high- mitigate those risks, and we seek to remediate Age Convention No. 138. Employees are free and corruption policy (also covering the main quality and well-priced products and services. any possible adverse human rights impacts to terminate their employment upon areas and expectations of money laundering Failure to comply with competition, antitrust that we might have caused or to which we reasonable notice. We ensure that there are no regulations). This policy specifically includes – and other trade regulation laws in any might have contributed. We set minimum unreasonable restrictions imposed on as already contained in the Code of Conduct – jurisdiction in which we conduct business mandatory requirements for all our suppliers movement within the workplace or upon a clear statement that no gifts or could result in serious consequences, for both and relevant contractors on topics such as entering or exiting company-provided entertainment of any kind may be offered to our company and the offending individuals, freedom of association, non-discrimination, facilities. any politician, political party or any politically including significant civil and criminal fair treatment of employees, and zero exposed persons. penalties. tolerance in relation to child labour, forced FORCED OR COMPULSORY LABOUR labour and modern slavery. AND MODERN SLAVERY In addition, a compliance due diligence We encourage and support employees in All work performed for INEOS Styrolution has checklist has been issued clarifying the need familiarising themselves and complying with Although the chemical and plastics industry is to be voluntary. There is zero tolerance for for information, when dealing with identified the competition laws relevant to their role and not usually prone to these human rights- trafficking of persons or the use of any form of high-risk countries (in line with the corruption their business. For employees whose job related risks, we are vigilant to prevent it and forced, bonded, slave or prison labour. No perception index issued by Transparency function puts them at risk of non-compliance, have set clear criteria in the Code of Conduct employee or contractor can be required to International) and introducing certain further guidance is provided through regularly as well as the Supplier Code of Conduct. surrender any government-issued requirements when identifying and selecting repeated, mandatory training on policies

related to compliance with antitrust and INFORMATION AND CYBER SECURITY management process, we also implemented (24 hours a day, 365 days a year) and is free of competition law. We have implemented an information and an easy way to report and react to these kind charge to the caller. Each call received on the cyber security programme to protect the data of threats within our company. We also engage compliance hotline is categorised and tracked We have in place a policy related to interaction and IT environment of our company and an external company to check our data according to a variety of criteria, including with competitors that defines certain reporting employees, as well as that of our customers security by attempting to “hack” into our labour and business practices as well as human and filing requirements. In 2018, a global and business partners, from any kind of systems. rights issues. online training on antitrust was provided to security-related threats. relevant employees including senior DATA PROTECTION In 2019, all reports received via the compliance management, account managers and sales The IT department is part of the enterprise risk Due to the adoption of the GDPR, a major hotline were fully investigated and resolved. managers. In 2019, relevant individuals management and performs regular IT risk reform designed to strengthen and unify data The reported issues were related to labour received a refresher training prior to large assessments and audits of our internal IT protection, we have introduced a global data practices and business practices. None of the trade shows. control system. Our IT security-related policies protection policy. In addition, we ensured that calls were related to impacts on society or and processes are based on the ISO 27001 our current practices are re-assessed, human rights. INTERNATIONAL TRADE standard and the NIST framework. One of our documented and shared, in order to meet the Our international trade policy outlines the main goals is to be compliant with applicable requirements of the GDPR as it came into To the best of our knowledge, in 2019, in none areas in which national and international laws laws, regulations and contractual obligations, effect in 2018. Standard employee statements of INEOS Styrolution operations, were cases of and regulations can impact our business. The especially to the European General Data related to data protection as well as the human rights abuse, child or forced labour, policy also introduces certain requirements on Protection Regulation (GDPR). We have the templates for “commissioned data corruption, or incidents in anti-competitive due diligence for interacting with third parties, claim to provide and verify end-to-end security processing” have been reviewed and updated behaviour identified. We can also confirm that, such as customers, suppliers or agents, in all aspects of our IT environment, starting in line with the GDPR. To strengthen the to the best of our knowledge, we did not incur particularly if located in or transacting into and with client and server security up to vendor risk understanding of data protection within the any justified cases of employee discrimination out of certain listed countries. Selection of management and internal audits. organisation and inform about the meaning of in 2019. countries is based on issued and active trade the GDPR, all relevant employees were restrictions, on the corruption perception Together with our cyber security team, we provided training in 2019. index issued by Transparency International, as provide more in-depth IT security to our well as an IT screening tool that has been existing security landscape and establish more MANAGING COMPLIANCE VIOLATIONS rolled out globally to support such due sophisticated protection against external and Since 2014, we have a reporting mechanism in diligence processes electronically. Should internal threats. We perform a global IT place with an independent provider operating there be any doubt about the propriety of any security awareness training on an annual basis, a standardised compliance hotline accessible trans- action or course of conduct, the Code of comprising internet and email attacks, by phone, email or via the internet, which also Conduct instructs employees to contact the especially phishing and social engineering. As offers response in various languages. This Legal department immediately for direction. part of our global IT security incident response anonymous hotline is available at all times

MAKING SUSTAINABLE GROWTH A REALITY

these industries is supported by global activities. We are constantly optimising our OUR PERFORMANCE We take an integrated approach megatrends, such as resource efficiency, need economic, environmental and social to deliver a strong sustainability for mobility and demographic change. performance to deliver safe, best-quality and We believe that sustainable management and performance that benefits both our high-performance products that eventually operations are the basis of our business customers as well as society. We The second shift refers to a stronger focus on render our customers’ businesses as well as success. Since our foundation in 2011, we have are convinced that truly sustainable higher-value specialties and ABS standard end consumers’ choices more sustainable. significantly strengthened our competitiveness business management is a prerequisite products and is reflected in INEOS in many business areas and have continuously for accomplishing growth and long- Styrolution’s broad portfolio of more than Our Triple Shift Strategy has proven to be a delivered a strong business performance. term success – for our customers and 1,500 high-performance and value-added sound guideline for the company for many ourselves. products, a large number of customised years – and we expect it to guide us for many Today, we are the leading global styrenics solutions, comprehensive service packages more years to come. We do and will continue supplier with access to customers in growth and a close relationship with key customers to revisit our strategy on a regular basis, but industries, such as automotive, electronics and OUR APPROACH and external partners. we do not expect short-term impacts and healthcare. We are well-positioned in the disruptions such as the Coronavirus pandemic higher-value ABS standard and specialties INEOS Styrolution looks at sustainability as a Finally, our global presence enables a shift in 2020 to result in significant changes to our markets and have a strong asset footprint genuine driver of growth and value and is towards high-growth regions. This move successful long-term strategy. globally. We can rely on our broad product embedded in our Triple Shift growth strategy. includes strategically investing in growth portfolio, considerable intellectual property As the name suggests, the strategy is a markets by expanding assets and sales commitment to three essential elements: footprint, particularly in Asia-Pacific and the Annual EBITDA performance [€ million] Americas. Global production and supply

• a focus on and split across all focus industries footprint is continuously strengthened, 813 872 804

• the company’s strong dedication to its enabling local sourcing for customers and 742 704 styrenic specialties business providing them with greater supply security. • Improved global presence with a special This also has a beneficial impact on the

focus on growth regions company’s environmental footprint. 442 391 335 317 In the first shift, we place a stronger focus on We carefully listen to our customers’ needs, five higher-growth industries, namely continuously engage in collaborative automotive, electronics, healthcare, innovation, and position sustainability as an 2011 2012 2013 2014 2015 2016 2017 2018 2019 construction and household. Growth of integral part of our business management

and our world-scale commodity manufacturing We are also expanding our ABS and ASA platform with best-cost technology. We are capacity in the Americas through the leveraging these strengths to the benefit of construction of a new 100 kilotonne capacity our customers. ASA plant in Bayport, Texas, USA, which is expected to be operational in 2021. The Our ability to transform our industry position development of this new site is part of our into solid financial results, as shown in the bigger expansion plan for the Americas, which graph, enables us to develop the company includes increased ABS capacity at the further and invest into the future. Altamira site in Mexico, while transitioning ASA production to the new site in Bayport. This STRATEGIC INVESTMENTS additional capacity will allow us to produce Our investment decisions and growth strategy Groundbreaking more product locally and avoid the need to ceremony for our are guided by an emphasis on sustainable import ABS and ASA from other regions. As new 100kt ASA business practices. plant in Bayport, the plant is also adjacent to our largest styrene Texas, USA production facility, it will allow us to receive In 2019, we completed the acquisition of two beginning. During the engineering phase, also consists of a number of features to styrene, our largest ASA feedstock, via pipeline polystyrene plants in Ningbo and Foshan, sustainability and energy assessments have improve sustainability. This includes: a newly instead of transporting it by ocean vessel. China. As part of our due diligence, we been performed internally as well as with installed sewage treatment plant to treat undertook an environmental and social impact INEOS experts. Based on process knowledge domestic wastewater and using it for As part of our shift to a circular business assessment of both sites. This acquisition of from our existing plants, we included best gardening at the site, acoustic enclosures for model, we are working with several leading- 400 kilotonnes of annual capacity has technology design changes to reduce energy, all blowers to reduce noise pollution, premium edge technology providers in North America significantly increased our manufacturing CO2, water, waste and air emissions where efficiency motors to save energy, LED lights and Europe to further advance a circular footprint in Asia, and allows us to better serve possible and in accordance with local leading to more than 50% energy saving economy for polystyrene. We are combining our existing customers in the region using regulations. We have improved the water compared to conventional lights, air state-of the-art technologies from these tech- locally produced materials. concept and included further re-looping to conditioners with environmentally friendly nology providers such as Agilyx, Indaver, reduce water and waste water consumption. refrigerants, and a defined circular route for GreenMantra, Pyrowave, and Recycling We have also embarked on a plan to construct Best practices from the Operation Clean safe movement of finished goods and raw Technologies with our own manufacturing a green field ABS plant adjacent to the Sweep® (OCS) programme have been material vehicles within the site. expertise to convert waste polystyrene back polystyrene site in Ningbo. The plant will have included and will be taken up again in the last into feedstock, and thus divert this material an estimated annual capacity of 600,000 phase of design. In Europe, we are investing in a new ABS from landfill or incineration. tonnes. Construction is planned to start in production line at our site in Wingles, France, 2020, with completion expected in 2023. As The Moxi 100-compounding expansion to meet the growing demand for ABS. We We are also investing in two advanced sustainability is a key factor for our business, project in India has added two new lines to expect this line to be operational by the end of recycling facilities: one near our production our environmental policy has been achieve a combined 100 kilotonnes per annum 2020. site in Channahon, USA, and the other in implemented for the project right from the capacity at the site. In addition, the project Antwerp, Belgium.

The facility in Channahon, Illinois, will use INEOS Styrolution ECO products include The six pillars of our risk periodically to monitor the risk management proprietary technology from Agilyx, a products based on mechanically or chemically & control programme process and drive continuous improvement technology leader that focuses on converting recycled post-consumer waste and materials within the programme. The Risk & Control waste polystyrene via depolymerisation. Agilyx based on bio-attributed feedstock. This new department coordinates this on a daily basis. has already secured the sourcing of waste family of solutions will reduce the amount of Risk management Risks are identified and assessed by committee polystyrene to be used as feedstock. The plant post-consumer waste going to landfills, considering impact and likelihood through risk will be capable of recycling up to 100 tonnes of significantly reduce greenhouse gas emissions, workshops and risk assessments polystyrene waste per day after its scheduled support the recycling of post-consumer waste, completion in 2023. and efficiently use existing resources. Controls are then implemented to mitigate the

IT identified risks. Annual control testing is Finance business Resources Strategy & & Strategy Operations

Under the umbrella of the industry association For more information on INEOS Styrolution Compliance performed within each pillar to determine if Styrenics Circular Solutions (SCS), we have ECO, please visit: www.styrolution-eco.com controls are well-designed and operating combined resources with another SCS effectively. All controls are tested on a three- member to advance the development of a OUR RISK & CONTROL PROGRAMME year-rotational basis. Results are reported to commercial-scale recycling plant in Europe, INEOS Styrolution is exposed to various risks and maintaining effective internal controls for the CEO, CFO and Risk Management capable of processing up to 50 tonnes of post- that could impact the achievement of its their respective area of responsibility and for Committee members on a regular basis. consumer polystyrene feedstock per day. corporate objectives. In order to identify, executing Risk & Control processes on a daily assess, monitor, and mitigate these risks, a basis. Operational management is also Our Risk & Control programme covers a We are also collaborating with Indaver, a company-wide Risk & Control programme was responsible for implementing corrective sustainability risk, which is also reflected in our European waste management company with established and is continuously developed actions to address control deficiencies. large-scale treatment facilities in the port of further. The scope of the programme covers Antwerp to advance depolymerisation of six pillars reflecting the company’s main SECOND LINE OF DEFENCE Risk management process polystyrene in Europe. Indaver is currently business areas: Strategy & Business, Finance, The second line of defence is undertaken by setting up a demo-installation in the port of Compliance, Operations (including SHE), the Compliance team, the Risk & Control 4 1 Antwerp, with a recycling capacity of 15,000 Human Resources and IT. This programme is department and the Risk Management Risk reporting, Risk tonnes a year and is scheduled to be embedded in a three lines of defence model Committee. The latter acts as the reporting monitoring & auditing identification operational in 2022. as an integral component of our governance, medium for this line of defence. Compliance management and operations. monitors various specific risks, such as In parallel to our strategic investments in our non-compliance with applicable laws and facilities, we continue to improve our product THE THREE LINES OF DEFENCE regulations. portfolio to ensure it is more sustainable and resource-efficient. In 2019, we launched a FIRST LINE OF DEFENCE To strengthen the company’s governance 3 2 brand-new range of sustainable products The first line of defence is undertaken by structure, a Risk Management Committee has Risk Risk analysis & called INEOS Styrolution ECO. operational management, initiated by the pillar been established with representatives from management assessment heads, who are responsible for implementing each of the six pillars. This committee meets

Risk & Control matrix. This risk is ranked in the the management board. Audits cover control top ten key risks of the company, showing its testing as well as sample-based testing. The increasing importance and potential impact. Internal Audit function reports functionally to COMBATING COVID-19: Controls have been set up to mitigate these the CEO and CFO. RISK & CONTROL risks and are part of the above-mentioned control testing. For Risk & Control activities, we use an target safety stocks – critical feedstock, SAP-based tool that is integrated with the Our Risk & Control matrix was supply chain strategy review, monitoring of THIRD LINE OF DEFENCE company’s Enterprise Resource Planning (ERP). comprehensively reviewed by the Risk & supplier financial position The third line of defence is undertaken by our The tool can monitor real-time data in ERP Control team together with the Risk • Risk arising from external/ internal crisis Internal Audit department. Internal audits are under the pre-defined rules set up by our six Management Committee to evaluate communication (Operations): transportation/ performed based on an annual audit plan, pillars and Risk & Control. These automated preparedness to address COVID-19-impact on safety guidelines, global crisis management which is approved by the management board. controls (called continuous control monitoring business activities and processes in all pillars. plan The audit plan is based on a risk approach and or CCM) allow real-time monitoring, and can • Risk arising from inadequate business covers all our entities and business functions. detect any exception to controls when these Major risks affected by a pandemics outbreak continuity management (IT): Business The scope of each audit is defined by the occur, shortening issues identification and are reflected in our company’s risk & control continuity plan is in place and tested Internal Audit department in coordination with ultimately enhancing the internal control system. matrix, and addressed by remediating frequently, disaster recovery plan, backup controls, which are tested for design and and recovery processes The three lines of defence operating effectiveness via annual control • High turnover and recruiting challenges/ testing activities. employees calling ill due to pandemics Management board outbreak (HR): succession planning for key These risks and controls, include, but are not positions. limited to: 1st line of defence 2nd line of defence 3rd line of defence • Risk from global economic conditions, The Risk & Control community continuously addressed by controls such as monitors risk and control activities and reviews • Operational • Compliance • Internal audit External • Finance: customer credit reviews, regional for necessary enhancements for the risk & management • Risk & control • Internal controls audit credit management guideline, country risk control matrix to address any additional risks • Internal controls monitoring coming up with potential impact on our • Strategy & Business: review early warning company´s business activities. • Management • Compliance with • Independent indicators of a downturn, tight management of business in a legal requirements testing of internal of finished goods inventories compliant manner • Systematic controls • Risk from supply shortage or non-in time identification (Strategy & Business): manage and keep and evaluation of risks and internal controls

ABOUT THIS REPORT

This report has been prepared in accordance with the Global Reporting Initiative’s (GRI) Standards core option. The collected data provides an overview of our sustainability efforts between January 1 and December 31, 2019, and covers the activities of all INEOS Styrolution legal entities worldwide, which fell within the scope of the company’s consolidated financial statements as of December 31, 2019. For the avoidance of doubt, this excludes the activities of INEOS ABS, Addyston, USA.

The financial information presented in this report is consistent with the company’s audited consolidated financial statement and management report for the year ending December 31, 2019, which was prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations.

This report has been published on August 31, 2020. The previous year’s report was published on September 16, 2019. INEOS Styrolution has published sustainability reports since 2015, all of which can be downloaded from the company’s website.

All internal stakeholders accountable for the company’s sustainability programme and performance, including the management board, have validated the content of this report.

For more information on our sustainability approach and actions, please write to INSTY.sustainability@ineos.com or visit our website at www.ineos-styrolution.com

GRI INDEX

GENERAL DISCLOSURES

GRI Standard Number Disclosure Chapter Page Comments

Organisational profile

102-1 Name of the organisation Our commitment to sustainability 6

102-2 Activities, brands, products, and services Our commitment to sustainability 6-7

102-3 Location of headquarters Our commitment to sustainability 6

102-4 Location of operations Our commitment to sustainability 6

102-5 Ownership and legal form Our commitment to sustainability 8

102-6 Markets served Our commitment to sustainability 6

102-7 Scale of the organization Our commitment to sustainability 6

102-8 Information on employees and other workers Engaging and developing our employees 54-58

102-9 Supply chain Driving sustainability along the value chain 59-60

102-10 Significant changes to the organization and Our commitment to sustainability 8 its supply chain

102-11 Precautionary principle or approach Shaping the future with sustainable styrenics 35

102-12 External initiatives Our commitment to sustainability 18, Shaping the future with sustainable styrenics 29-33

102-13 Membership of associations Our commitment to sustainability 18

GRI Standard Number Disclosure Chapter Page Comments

Strategy

102-14 Statement from senior decision-maker Message from our CEO 3

102-15 Key impacts, risks, and opportunities Our commitment to sustainability 10-12

Ethics & integrity

102-16 Values, principles, standards, and norms of behavior Ensuring fair business practices 65

102-17 Mechanisms for advice and concerns about ethics Ensuring fair business practices 65-67

Governance

102-18 Governance structure Our commitment to sustainability 13

102-19 Delegating authority Ensuring fair business practices 65

102-20 Executive-level responsibility for economic, Our commitment to sustainability 13 environmental, and social topics

102-25 Conflicts of interest Ensuring fair business practices 65

102-30 Effectiveness of risk management processes Responsible business management 70-71

102-35 Remuneration policies Engaging and developing our employees 54

Stakeholder engagement

102-40 List of stakeholder groups Our commitment to sustainability 18

102-41 Collective bargaining agreements Engaging and developing our employees 58

102-42 Identifying and selecting stakeholders Our commitment to sustainability 18

102-43 Approach to stakeholder engagement Our commitment to sustainability 18

102-44 Key topics and concerns raised Our commitment to sustainability 18

GRI Standard Number Disclosure Chapter Page Comments

Reporting practice

102-45 Entities included in the consolidated financial About this report 72 statements

102-46 Defining report content and topic boundaries About this report 72

102-47 List of material topics Our commitment to sustainability 14

102-50 Reporting period About this report 72

102-51 Date of most recent report About this report 72

102-52 Reporting cycle About this report 72

102-53 Contact point for questions regarding the report About this report 72

102-54 Claims of reporting in accordance with the GRI About this report 72 Standards

102-55 GRI content index GRI index 73-80

MANAGEMENT APPROACH

GRI Standard Number Disclosure Chapter Page Comments

103-1 Explanation of the material topic and its boundary Described in each chapter of report

103-2 The management approach and its components Described in each chapter of report

103-3 Evaluation of the management approach Described in each chapter of report

ECONOMIC

GRI Standard Number Disclosure Chapter Page Comments

Anti-corruption

205-1 Operations assessed for risks related to corruption Ensuring fair business practices 66

205-2 Communication and training about anti-corruption Ensuring fair business practices 65-66 policies and procedures

205-3 Confirmed incidents of corruption and actions taken Ensuring fair business practices 67

Anti-competitive behaviour

206-1 Legal actions for anti-competitive behavior, anti-trust, Ensuring fair business practices 65-67 and monopoly practices

ENVIRONMENT

GRI Standard Number Disclosure Chapter Page Comments

Materials

301-1 Materials used by weight or volume Reducing our environmental footprint 42

Energy

302-1 Energy consumption within the organization Reducing our environmental footprint 45

302-2 Energy consumption outside of the organization Reducing our environmental footprint 45

302-3 Energy intensity Reducing our environmental footprint 45

GRI Standard Number Disclosure Chapter Page Comments

Water

303-1 Water withdrawal by source Reducing our environmental footprint 47-48

Emissions

305-1 Direct (Scope 1) GHG emissions Reducing our environmental footprint 46

305-2 Energy indirect (Scope 2) GHG emissions Reducing our environmental footprint 46

305-4 GHG emissions intensity Reducing our environmental footprint 46

305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), Reducing our environmental footprint 50 and other significant air emissions

Effluents & waste

306-1 Water discharge by quality and destination Reducing our environmental footprint 47-48

306-2 Waste by type and disposal method Reducing our environmental footprint 43-44

306-3 Significant spills Reducing our environmental footprint 38

Environmental compliance

307-1 Non-compliance with environmental laws and Reducing our environmental footprint 42 regulations

Supplier environmental assessment

308-1 New suppliers that were screened using Driving sustainability along the value chain 59-60 We screen suppliers based on % of total spend environmental criteria

308-2 Negative environmental impacts in the supply chain Driving sustainability along the value chain 59 and actions taken

SOCIAL

GRI Standard Number Disclosure Chapter Page Comments

Employment

401-1 New employee hires and employee turnover Engaging and developing our employees 56-57

Labour & management relations

402-1 Minimum notice periods regarding operational Engaging and developing our employees 58 Qualitative statement provided changes

Occupational health & safety

403-2 Types of injury and rates of injury, occupational Upholding safety as our core value 38-39 diseases, lost days, and absenteeism, and number of work-related fatalities

Training & education

404-1 Average hours of training per year per employee Upholding safety as our core value 37 Qualitative statement provided

404-2 Programs for upgrading employee skills and Engaging and developing our employees 57-58 transition assistance programs

404-3 Percentage of employees receiving regular Engaging and developing our employees 57-58 performance and career development reviews

Diversity & equal opportunity

405-1 Diversity of governance bodies and employees Engaging and developing our employees 56-57

405-2 Ratio of basic salary and remuneration of women to Engaging and developing our employees 54 Qualitative statement provided men

GRI Standard Number Disclosure Chapter Page Comments

Non-discrimination

406-1 Incidents of discrimination and corrective actions Ensuring fair business practices 66-67 taken

Freedom of association & collective bargaining

407-1 Operations and suppliers in which the right to Engaging and developing our employees 57-58 freedom of association and collective bargaining may be at risk

Child labour

408-1 Operations and suppliers at significant risk for Foundation of our business success 66 incidents of child labor

Forced or compulsory labour

409-1 Operations and suppliers at significant risk for Foundation of our business success 66 incidents of forced or compulsory labor

Human rights assessment

412-1 Operations that have been subject to human rights Foundation of our business success 66 reviews or impact assessments

412-2 Employee training on human rights policies or Engaging and developing our employees 65-66 procedures

412-3 Significant investment agreements and contracts that Ensuring fair business practices include human rights clauses or that underwent human rights screening

GRI Standard Number Disclosure Chapter Page Comments

Local communities

413-1 Operations with local community engagement, Supporting the communities in which we live 61-63 impact assessments, and development programs and work

Supplier social assessment

414-1 New suppliers that were screened using social criteria Driving sustainability along the value chain 59-60 We screen suppliers based on % of total spend

414-2 Negative social impacts in the supply chain and Driving sustainability along the value chain 59-60 actions taken

Customer health & safety

416-1 Assessment of the health and safety impacts of Shaping the future with sustainable styrenics 35 product and service categories

Marketing & labelling

417-1 Requirements for product and service information Shaping the future with sustainable styrenics 35 and labeling

INEOS Styrolution Group GmbH Global Headquarters Mainzer Landstrasse 50 60325 Frankfurt am Main, Germany ineos-styrolution.com