PPG Corporate Sustainability Report
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2012 PPG CORPORATE SUSTAINABILITY REPORT Bringing innovation to the surface.™ LETTER FROM THE CHAIRMAN his year marks PPG’s 130th in business. Since our earliest commitment and provide our global employees with the framework T days, sustainable business practices have been embedded to continue to drive environmental stewardship at PPG facilities. in our culture and strategy. Today, our global growth and expansion They also further empower our employees to create safer and continue to be supported by a belief that these practices are not healthier workplaces. 2 only the right things to do, but that they also give PPG and our 0 customers competitive advantages. The launch of our new sustainability vision, values and goals follows 1 more than a year of in-depth internal and external analysis to 2 During the last decade, PPG has transformed itself from a diversified, determine what is most meaningful and impactful to PPG and our multibusiness manufacturer to being the world’s leading coatings stakeholders. These tenets are directly linked to PPG’s core vision P P and specialty products company. In early 2013, PPG completed and values, thereby supporting the sustainability of our enterprise. G two strategic actions first announced in 2012 that have significantly In 2013, we intend to expand and enhance accelerated our transformation. First, we finalized the separation the ways in which we engage employees in I of our former commodity chemicals business and its subsequent innovative programs to achieve our goals. n merger with Georgia Gulf to create Axiall Corporation. Second, we d expanded our architectural coatings portfolio with the acquisition of Metrics in this report include data from our u AkzoNobel’s North American architectural coatings business. former commodity chemicals business. s With the separation of this business t Our 2012 financial results capped off an exceptional year for the and the addition of AkzoNobel’s r company, driven by excellent operating performance. We grew our North American architectural coatings i sales and earnings despite moderate overall economic conditions business, we will include updated e that varied by region and end-use market. You can read more about data in our 2013 report, which will be s our financial accomplishments in PPG’s 2012 Annual Report and issued in early 2014. We are offering Form 10-K. this year’s report—the company’s third C full report—in both a print and online o Also in 2012, we continued our legacy of innovating sustainable format. We encourage you to visit r technologies and solutions for our customers, and we began www.ppg.com/sustainability to view p implementing our community engagement framework at sites all reporting details and learn more o around the world. In addition, we again deployed an employee about our progress. r engagement survey and took action on results from our 2011 a survey. Among our other accomplishments highlighted in this report, Regards, t I consider the establishment of our new sustainability vision, values e and goals as a significant step forward. These principles deepen our S u Charles E. Bunch s PPG Chairman and CEO t a i n a Cover photos, from top: Thirty PPG employee b volunteers joined groups of children from the i Shanghai Children’s Welfare Institute on a special l tour of the Shanghai Zoo (see story on page 25). i A group of cyclists, decked out in riding gear CONTENTS t highlighting Envirobase® High Performance y coatings by PPG, took part in the 117-kilometer “Fruit Loop Ride for Charity” in Shepparton, Sustanability Vision, Values and Goals .................................. 1 Victoria, Australia. The team, led by a local R Engaging Stakeholders ............................................. 2 e collision repair shop owner, included seven PPG Clayton, Victoria, Australia, employees. p Ethics and Compliance ............................................. 5 o Children enjoy the Pittsburgh Zoo and PPG Reducing Environmental Impact ...................................... 8 r Aquarium interactive educational wall sponsored Employees: Foundation of PPG’s Success .............................. 18 t by PPG Industries. Enhancing and Engaging Our Communities ............................. 21 Awards and Recognition ........................................... 25 2 0 1 2 P P G I n SUSTAINABILITY: VISION, VALUES AND GOALS d u s VISION GOALS: 2012 - 2020 t r o continue being the world’s leading coatings Reduce Environmental Impact i Tand specialty products company with a focus e on sustainability to ensure the success and lasting • Reduce spills and releases 10 percent per year. s presence of our company for the benefit of our • Reduce hazardous waste to landfill by 20 percent customers, our employees, our shareholders, our by 2020. C neighbors and our suppliers. We will act in a way • Reduce non-hazardous waste to landfill by o that helps to ensure the longevity and resilience of 10 percent by 2020. r our environment, our economies and our society. • Reduce energy intensity 1.5 percent per year. p o • Reduce greenhouse gas emission intensity r VALUES 1.5 percent per year. a • Achieve 30 percent of sales from sustainable t • Demonstrate operational and environmental, products by 2020. e health and safety excellence, minimizing our environmental impact. S Improve Employees’ Safety, Health and Well-Being u • Partner with employees and their families s to improve their health and well-being. • Reduce PPG illness and injury rate t by 5 percent per year. a • Create an engaging and inclusive workplace. • Implement wellness programs at i 100 percent of PPG facilities globally. n • Conduct business and operations a in an ethical and compliant manner. b i • Deliver innovative and sustainable l products and services to our customers. Encourage and Report Charitable Donations i and Volunteerism t • Enhance value-creating relationships y with suppliers and customers. • Implement community engagement requirements globally. R • Deliver positive change to society and • Publish annual Sustainability Report e to the communities where we operate. and benchmark performance. p o r • Deliver a superior return on investment t to our shareholders. 1 s PPG strives to continually improve its sustainable Abusiness practices, engaging in open communication and cooperation with its stakeholders is critical at all levels. PPG seeks to establish and maintain productive relationships with all of its key stakeholders, among them employees, customers, suppliers, government officials, investors and residents of communities where PPG operates. Each PPG business and function is committed to effectively engaging the company’s stakeholders using various tools to identify their perspectives on the company’s business activities. PPG gathers specific feedback from internal sources to better understand how the company interacts with key stakeholders. Input is secured from departments such as sales and marketing within each business, as well as plant managers and corporate functions for environment, health and safety; purchasing and logistics; investor relations; government affairs; and corporate communications. ENGAGING STAKEHOLDERS While this analysis is conducted on an ongoing basis throughout the company, the matrix presented here provides a snapshot of our stakeholder engagement practices. While it is not inclusive of all stakeholder engagement activities, it captures the core elements of how PPG engages stakeholder groups on topics of interest and the value each group’s input provides to PPG’s business practices. 2 2012 PPG Industries Corporate Sustainability Report How PPG engages • Quarterly earnings announcements, conference calls and presentation materials 2 • News releases and U.S. SEC filings 0 • Annual Report and overview presentations 1 Investors/ • Annual Meeting of Shareholders 2 analysts/ • Capital Markets Day • Presentations by PPG executives at P How PPG engages financial/industry conferences P • One-on-one meetings G • Companywide CEO-led webcast • Investor Center on www.ppg.com presentations and Q&A I • Daily intranet articles and quarterly • Visits to elected officials and agencies n global employee magazine • PPG employee political action committee d u • Regular employee communications from • Government Affairs website Government executives, business leaders and locations • Industry and trade association involvement s t • Global employee communications survey • Plant tours, site visits for government officials r • Training programs • Grassroots advocacy i • HR Service Center e • Family-inclusive activities, such as open houses • PPG Industries Foundation Employees s • Diversity councils • Corporate charitable contributions, including • Wellness programs dinners and events C • Dispute-resolution programs • Employee giving programs o • Global employee engagement surveys • Corporate Global Charitable Contributions r and initiatives Program (Asia Pacific, EMEA and Latin America) p • Open-door programs • China corporate social responsibility (CSR) o Philanthropies committee and program r • Collective bargaining and nonprofits • Ethics hotline • Canadian charitable contributions and a employee programs • Quality programs t • Disaster response • Recognition events e • One-on-one meetings and site visits S • Sales calls • Sponsorships u • Account management interaction • News releases and publicity • Family programs s • Trade shows t • Industry gatherings a • Charitable giving programs • Technical and application support i Customers • Site visits by community emergency