For a Sustainable World. We Care. We Connect

For a sustainable world. We care. We connect.

HSE Report 2019

Aramids by Teijin 2 Teijin Aramid | HSE Report 2019 3

“We believe that by combining our local, internal focus with an external, value chain perspective, we can make 6.2% 13% energy savings resulting from less recycled material used for pulp a positive difference for the world at large.” Energy Efficiency Plan (EEP) production compared with 2018 8.1% projects in our production caused by unavailability of products (EEP period 2017-2020). to be recycled. Total Welcome to Teijin Aramid’s Health, Safety, In 2019, we continued our efforts to become more energy efficient Recordable and Environment (HSE) report. 2019 was an and to optimize our use of resources. And we continued to demonstrate the added value of Twaron® throughout the chain. Rate exciting year as we accelerated our efforts We believe that by combining our local, internal focus with an to work more sustainably. Having made external, value chain perspective, we can make a positive The Total Recordable Rate (TRR) is the difference for the world at large. total number of incidents (ranging sustainability a strategic focus in 2018, 16% 7.4% from medical treatments to actual our Management Team has broadened its We aim to be transparent about the impact of our activities on increase in direct CO2 emissions at increase in water consumption incidents resulting in absence) per people and the environment. We find it important that we report our locations (Scope 1) compared compared with 2018. one million working hours. In 2019, efforts. In 2019, our Energy Transition & on the HSE performance of our production locations in the with 2018. Marginal increase in CO2 Consumption in terms of m3/ton we unfortunately registered four Sustainable Development department was Netherlands (Twaron® production). We report on our performance emissions ton/ton (Scope 1). was unchanged. incidents. established, an important step forward in our with regard to Twaron®, and we provide insight into the local HSE performance of our facilities in Delfzijl, Emmen, and Arnhem. development.

Sustainability has long been an integral part of our organization We would very much like to receive your feedback on this Avoided emissions in the chain: in various shapes and forms, involving experts from across the report, so that we can make further improvements next year. >215,800 tons CO2 company. We work hard to combine our sustainability ambitions Please send us your views, comments, or observations by sub- with our growth objectives in such a way that they complement mitting the online form on our website (www.teijinaramid.com) The use of aramids in applications such as tires and conveyor belts makes these applications considerably lighter,

each other. or by emailing [email protected]. All feedback is consequently saving energy and other resources. This has resulted in avoided emission of more than 215,800 tons of CO2 greatly appreciated. equivalent in 2019. 4 Teijin Aramid | HSE Report 2019 5

To us, everything connects. Every at reducing energy consumption. In exciting examples include working choice we make and every step we the years since then, we have expan- with the automotive sector to develop take as individuals, and as a whole, ded our focus to include recycling, cars that are lighter, cleaner, and more leaves a mark. At Teijin Aramid, we our impact on people, and our sustainable, or collaborating with our care about our impact on the planet contribution to the chain. customers to develop innovative ways and how this affects future genera- to maximize the amount of materials tions. We seek to actively contribute In 2018, we redefined our ambition: to collected for reuse. These cross-chain to a better world – now and in the achieve a fully sustainable and circular collaborations, which also include our future. aramid chain with a finite use of resour- energy and raw material suppliers, sup- ces on the basis of 50% renewable port our long-term objectives and our I am proud to be leading our collea- energy by 2030 and 100% renewable aim to take care of future generations. gues through the next phase of our energy by 2050, compared with 1990. A great example of one such collabo- journey as we strive for a fully sustaina- Our core product, aramid, already plays ration is our partnership with BioBTX. ble, circular aramid chain with a finite a key sustainability role in a wide range Please go to page 19 for the full story. “ In our spirit of collaboration, use of resources on the basis of 100% of applications and industries. At the renewable energy by 2050. In our spirit same time, we work hard to improve Our HSE report 2019 highlights Teijin we are working side by side with of collaboration, we are working side our processes through our Energy Aramid’s performance in the field of by side with our partners on this crucial Efficiency Plans (EEPs), energy Health, Safety, and Environment in common objective. Together, we transition plans, recycling programs, 2019, as well as the actions taken in our partners on a journey toward can help shape a better future for and other internal initiatives. 2019 to help to drive sustainability generations to come. and circularity across the aramid chain, a fully sustainable and circular including real-world examples of our Working together for a better future expertise and innovation in practice. aramid chain.” Pushing hard for sustainability I am excited to see Teijin Aramid teams We hope you enjoy reading it. Our focus has shifted significantly since around the world collaborating with I joined Teijin Aramid 15 years ago, our partners to unlock innovative Peter ter Horst – CEO of Teijin Aramid when sustainability was mostly aimed future-proof technologies. Some 6 Teijin Aramid | HSE Report 2019 7

Index.

08 The Teijin Group Philosophy 10 Building a better world, together 12 Leading from the front to reduce our impact 20 Connecting for a circular future 26 Investing in our workforce 8 Teijin Aramid | HSE Report 2019 9

The Teijin Group Philosophy.

Enhance quality of life. Climate change, mitigation, Achievement of a and adaption Circular Economy

We follow the Group’s strategy and policies, including its firm commitment to society and the planet. Like the rest

© World Bank / Dana Smillie To limit If the global global warming population AFFORDABLE AND © UN Photo / Martine Perret reaches of the Group, we focus on people, delivering innovative solutions that enhance quality of life and minimizing any CLIMATE ACTION3 billion: to 1.5°C, CLEAN ENERGY: RESPONSIBLE 9.6 billion WHY IT MATTERSpeople global WHY IT MATTERS lack access carbon CONSUMPTION & by 2050, the equivalent What’s the goal here? efficiencyWhat’s the continues goal here? to Areto people’s clean lives improve, and renewable emissions PRODUCTION: Taking urgent action to really being affected of almost To ensure access to afford- energy is making impres- cooking fuels, negative impact on those around us. tackle climate change able, reliable, sustainable by climate change? need to fall sive gains. Nevertheless, resulting in nearly and modern energy for all. and its impacts. WHY IT MATTERS more focused attention is Yes. Severe weather and ris- by a three Why? neededWhy? to improve access ing sea levels are affecting to clean and safe cook- 4people million and their property staggering As greenhouse gas levels planets A well-established energy ing fuels and technolo- in developed and develop- environmental degrada- continue to climb, climate What is the goal here? system supports all sec- gies for 3 billion people. ing countries.premature From a small tion that is endangering change is occurring at 45 per cent will be tors: from businesses, farmer in the Philippines to To ensure sustainable the very systems on which much higher rates than medicine and education I have access to a businessmandeaths in London, consumption and pro- our future development anticipated, and its effects required to to agriculture, infrastruc- electricity. Why should climate change is affect- by 2030 duction patterns and very survival depend. are evident worldwide. By ture, communications ing everyone, each year especially I careaddressing about this climate goal? change, Why? If we don’t act to change sustain current and high-technology. the poor and vulnerable, from ment a our consumption and pro- we can build a sustain- n For many decades, fossil as well as marginalized o l Economic and social prog- Access to electricity in able world for everyone. r V duction patterns, we will lifestyles fuels such as coal, oil or gas groups like women, chil- 2010 levels i ress over the last century poorer countries has begun a cause irreversible dam- haveBut been we need major to sources act now. of v has been accompanied by dren, and the elderly. to accelerate, energy l age to our environment. electricity production, but En ue The Corporate Social Responsibility objectives of Teijin Group Our shared goals

are to support the society of the future through three main These three fields have been translated into measurable

avenues: 1) environmental value solutions; 2) safety, security, indicators and are directly aligned with the relevant UN

and disaster mitigation solutions; and 3) demographic change Sustainable Development Goals (SDGs), which include 17 S

a Human Chemistry, a

D n

f and increased health consciousness solutions. Underpinning key actions on the path to a sustainable world for all. Teijin s e e i

s t u Human Solutions g a y o n this approach is Teijin Group’s Corporate Philosophy to act “in Group fully supports the SDGs as they provide a clear focus , i s t S a c e e h s harmony with society.” Teijin Group’s policies and their impact for its thinking and actions. This connection is reflected in r c C n u M c o r i C are reflected in the Teijin Group Integrated Report 2019. The the following figure. Visit the Teijin website for additional i it h t y h ig , p t a a ra l

report is available to explore here: information regarding this approach. t n g a i d o e on em H www.teijin.com/csr/report. www.teijin.com/csr/vision/value_creation_2020/ D d se rea Inc

Teijin Aramid contributes directly to the vision of Teijin Group and the SDGs. Our objectives and activities are therefore If the global © UN Photo / Hien Macline

© World Bank population © UN Photo / Martine Perret GOOD HEALTH SUSTAINABLE CITIES: 60 reaches Spending RESPONSIBLE 9.6 billion AND WELL-BEING: closely aligned with the shared SDGs. The Teijin Aramid 2019 HSE Report details the Health, Safety, and Environment WHY THEY MATTER per cent $1 billion CONSUMPTION of& the by 2050, WHY IT MATTERS in immunization the equivalent What’s the goal here? growth— contributing coverage Safety and security of Realization of healthymortality rates have been and aboutPRODUCTION: 60 per cent of global world’s What’s the goal here? To make cities inclu- GDP. However, they also of almost reduced, life expectancy can save To ensure healthy lives sive, safe, resilient account for about 70 per population continues to increase glob- and promote well-being and sustainable centWHY of global IT carbon MATTERS three ally, and the fight against 1 million for all at all ages. some infectious diseases (HSE) performance of Teijin Aramid’s production locations in the Netherlands (Twaron® production). Why? emissions and over 60 will live children’s lives per cent of resource use. planets Why? has made steady progress. The world is becoming environmentalin cities degrada - However, in the case increasingly urbanized. WhatWhat are is somethe goal of thehere? Ensuring healthy lives each year tion that is endangering of other diseases such Since 2007, more than half To ensure sustainable will be and promoting well- most pressing challenges the very systems on which as malaria and tuber- the world’s population has consumption and pro- peopleby 2030 and local communities comfortable living beingfor for all at all ages people that cities face today? our future development culosis, progress has been living in cities, and duction patterns required to is important to building and very survival depend. slowed or stalled. that share is projected to Inequality is a big concern. prosperous societies. rise to 60 per cent by 2030. OverWhy? 1 billion people live If we don’t act to change sustain current At least half the world’s Major progress has been in slums and this number our consumption and pro- population are still with- Cities and metropoli- Economic and social prog- made in improving the keeps rising. The levels of duction patterns, we will lifestyles out access to essen- tan areas are power- ress over the last century health of millions of peo- urban energy consump- cause irreversible dam- tial health services. houses of economic has been accompanied by ple. Maternal and child tion and pollution are also age to our environment. 10 Teijin Aramid | HSE Report 2019 11

More than ever, industries and companies are taking responsibility to help contribute to a more sustainable world. At Teijin Aramid, we are working with our employees, suppliers, customers, and other stakeholders to uphold this commitment. We believe that, together, we can achieve a fully sustainable, circular aramid chain by 2050.

Our suppliers, direct customers, and end users are working Like our partners, we care about our industry’s impact on hard to become more sustainable. Teijin Aramid’s products future generations, and we recognize our responsibility to and solutions enable our partners to meet this growing help drive change. By switching to clean, sustainable energy, need. When used in their applications, our aramids are integrating bio-based raw materials or recycled materials, and lighter and last longer than alternative products, resulting in reusing end-of-life products, we can maximize the positive

Building a better world, together. energy savings and reduced CO2 emissions. Our Customer impact of our high-performance fibers across the value chain, Benefit Model (CBM) helps customers calculate and assess while improving our own footprint as a company. the environmental and economic impact of using aramids in “ We cannot do it alone – our success their application or solution. Partnering for success also depends on the cooperation and To achieve our sustainability targets, we need the Connecting the value chain cooperation and readiness of all our partners across the New, global opportunities are emerging for organizations entire value chain. Just as our products help customers readiness of all partners throughout like ours to work collaboratively toward a more sustainable improve their environmental impact, we are working world. The aramid value chain still largely operates according with our raw material suppliers and utility providers to the value chain.” to a traditional linear model, with minor parts being recycled. redesign how we use energy and other resources. We Fossil fuels and other finite materials are still used to make our are discussing with our customers new ways to recover products, and too many aramid-based products are still thrown end-of-life aramids for reuse. Our minds are open to away or incinerated at the end of their life. To change these new ideas and initiatives, and there will be exciting Jan Roos – Director Energy Transition & Sustainable Development patterns, we need to come together to explore alternative, opportunities to join innovative, like-minded companies circular solutions and more sustainable ways of working. going forward. 12 Teijin Aramid | HSE Report 2019 13

Energy & Raw material Customers

Reduce Enlarge Suppliers the pain the gain Users

CO2 footprint Avoided emission reduction in use

Leading from the front to reduce our impact. Production End of life

Taking action on energy As we work toward our sustainability vision, we are taking a critical look at our company’s impact on the world around us. Our mantra – “Reduce the pain, Enlarge the gain, Close the chain” – outlines the different steps we are taking to drive sustainability and circularity within our own business and beyond. The starting point of our mantra – “Reduce and resources. the pain” – relates to the front-end of our processes: the energy and raw materials we consume to make our products. 14 Teijin Aramid | HSE Report 2019 15

Leading from the front to reduce our impact. Our energy performance.

Energy efficiency Energy transition Our performance another stage. Using the warm sulfuric acid condensate for While renewable energy sources play a central role in our Even if we maximize our energy efficiency, we still need Looking at the results of the 2017-2020 EEP period, we heating has reduced the need for steam as a heating and long-term sustainability plans, reducing the use of energy energy. In the long term, we want to eliminate our use of achieved an overall energy saving of 6.2% for this period by cooling agent, while all required entry temperatures still is always the first step. For all its benefits, producing fossil fuels in favor of clean, sustainable energy sources. executing the agreed-upon energy saving projects. In 2018, meet the specifications. Such a project requires a different aramid is energy-intensive, with energy consumption still With the support of our utility suppliers in the Netherlands, we lagged behind our objectives. As such, in 2019 we paid way of thinking, making use of new available technologies the biggest contributor to Teijin Aramid’s CO₂ emissions. In we are exploring ways to make our transition to renewable extra attention and effort to our plans. and good collaboration on production. 2009, we committed to a series of Energy Efficiency Plans energy sources more concrete using new technologies and (EEPs) to reduce our overall energy consumption by 2% partnerships. In this way, we believe we can steadily reduce An example of an important energy-saving project in 2019 Besides our energy efficiency targets, in 2018 we began each year. Our EEP targets are reviewed on a rolling, four- our carbon emissions. Our ultimate goal is to use 100% was a process change in our sulfuric acid recovery plant in looking at our direct CO2 emissions per ton production of year basis. We are currently adhering to our EEP targets for renewable energy across our entire operations by 2050, and Emmen. During the process, the sulfuric acid condensate had Twaron®. This is the direct CO2 emitted by using natural gas the 2017-2020 period. 50% by 2030. to be cooled down, while additional heating was needed at for our drying and heating processes (Scope 1). In 2019, our direct emissions per ton production (Scope 1) slightly We strive for a 2% annual energy reduction, which is in Total tons CO₂/ton Twaron® production (Scope 1) increased. This was mainly caused by a decrease in our line with national guidelines in the Netherlands. However, 1.8 production process efficiency due to prolonged maintenance with each passing year, it is becoming more difficult to 1.6 work at our Delfzijl facility, which resulted in downtime. meet this target, given that many of the simpler solutions Ton/ton 1.4 for reducing our energy consumption have already been 1.2 Energy transition implemented. In response, we constantly evaluate our 1 In 2019, we made the electricity supply to our Research performance, coming up with new ways to save energy 0.8 & Innovation Center (RIC) in Arnhem more sustainable by when certain measures do not result in the expected 0.6 switching to green wind power. This important development 0.4 energy savings. has helped us achieve annual CO2 generation equivalent to 0.2 the energy consumption of 1,000 households. 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year 16 Teijin Aramid | HSE Report 2019 17

Leading from the front to reduce our impact. Waste Water consumption Despite our closed loops, all our production plants still All our factories make use of industrial water. In our produce waste. Where possible, this waste is recycled. Non- production processes, we try to reuse as much water as we Use of resources – Our performance. recyclable waste is incinerated with heat recovery. Waste that can. Nevertheless, we still need additional fresh water. Most cannot be incinerated is sent to landfills. of our water intake is used for the washing process of our yarn. Reducing our water intake is not a strategic priority, We use valuable resources, including raw materials, Input recycled aramids As of 2019, our NMP effluent from our production location in but we do try to improve our footprint in this regard. Over energy, intermediates, and water, in our production Arnhem is considered recycled waste. This effluent is treated the past few years, we have been implementing various 180 processes. % at our production location in Delfzijl to regenerate the NMP efficiency improvements in our production processes. 160 140 for reuse in our production process. Our redefinition of this Our production processes are designed and optimized to 120 process stream explains the increase in the recycling volume. maximize the recycling of our resources. Nevertheless, we 100 still produce waste and make use of finite resources. We are 80 Waste: total tons and total ton waste/ton Twaron® production Water consumption (m3)/ton Twaron® production 60 moving toward a circular economic model by rethinking 40 12,000 how we (re)use raw materials in our production process. 20 0.30 40 /ton Tons 0.28 3

0 m Our ultimate goal is to stop using fossil-based raw materials 10,000 Ton/ton 35 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0.26 0.24 such as petrochemicals in favor of bio-based raw materials Year 8,000 30 or recycled materials. We are at the beginning of this journey 0.22 6,000 0.20 25 and exploring a range of circularity initiatives. These include In addition, we recycle aramid materials from our production 0.18 5,000 collaborations with our suppliers and customers to recover process and reusable aramids from the market. In recent years, 0.16 20 0.14 4,000 15 used materials from applications at the end-of-life stage, as we have focused on increasing our recycled input. The graph 0.12 3,000 0.10 well as new technologies to support this process. shows the tonnage in percentage terms compared with the 10 0.08 2,000 reference year 2010. In 2019, we aimed to further increase the 0.06 5 0.04 Recycling total amount of recycled aramids. However, the positive effect 1,000 0.02 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Where possible, our current production processes have of focusing more on circularity also presents a dilemma as the 0 0 Year closed process loops, through which we recover and reuse availability of materials to be recycled has become scarcer, and 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year auxiliary chemicals such as sulfuric acid, NMP, and water. we were not able to achieve our intended levels of recovery. Landfill total Incineration total Recycled total Waste ton/ton Twaron® 18 Teijin Aramid | HSE Report 2019 19

“At BioBTX, we create sustainable on circularity, and we both operate in based BTX products into Teijin Aramid’s benzene, toluene, and xylene (BTX) the northern Netherlands, which offers production processes. from non-food biomass and plastic practical advantages. waste. Our chemicals are then A close, circular collaboration used as building blocks to develop After initial discussions, we saw an We have successfully identified a route high-performance materials, like opportunity to add value together. to a workable solution through close aramid fibers. In this way, producers Teijin Aramid offers customers high- alignment between our technical are able to limit their use of new, performance aramids that provide teams. BioBTX makes the raw materials non-renewable fossil resources sustainable benefits further along the from sustainable sources and delivers it such as petroleum, to support value chain. However, these products to the technical teams at Teijin Aramid. their sustainability and circularity are still based on non-renewable raw The BioBTX product is used to develop objectives. " materials. the crucial starting building blocks for making polymers and the final aramid Teijin Aramid was looking for a fibers. Adding value, together circular solution that involved using We identified Teijin Aramid as the sustainable materials to produce We are now exploring how to scale up perfect partner to help BioBTX apply aramid fibers. Together, we have been the program. There is still a lot of work to its technology in a real-world context. working on a lab-scale program to be done, but we all share the same goal: Both companies are strongly focused explore the possible introduction bio- a circular future for the aramid market!”

Chemical intermediates BioBTX and Teijin Aramid – Teijin Aramid depends on the chemical industry for many of its raw materials. Aromatic-based chemicals form the building blocks for the raw materials used in our production process. Together with our suppliers, we look for affordable, sustainable, A sustainable collaboration and reliable alternatives for these fossil-based raw materials. built on fibers. Working with Dutch company BioBTX, we are exploring options to develop suitable raw materials based on bio-based ingredients. As such, we are involved in a pilot project to make renewable, non-fossil-based aramid yarn in a laboratory on a small scale using bio-based BTX raw materials. Pieter Imhof, CEO at BioBTX 20 Teijin Aramid | HSE Report 2019 21

Our partnerships and close customer relationships help Maximizing the sustainability value with our customers to amplify our sustainability efforts across the value With our high-performance aramid fibers, Teijin Aramid chain. By taking a leadership role in the aramid industry, enables customers to reduce their use of energy and materials,

we are hoping to drive circular entrepreneurship, for the thereby minimizing CO2 emissions during the use phase of benefit of customers, end users, and the world at large. applications. The durability and low weight of Twaron® enable This approach is a fundamental part of our sustainability applications – from conveyor belts to air freight containers mantra. It’s what we mean when we say, “Enlarge the and pipelines – that last longer, weigh less, and (because they gain, Close the chain.” run more smoothly) require less material. These qualities can unlock major energy savings during the use phase, reducing

Enlarging the gain entails offering sustainable solutions that our customers’ CO2 emissions. generate value for our customers. Working together, we can Connecting for a circular future. materialize the ecological and financial benefits of using For example, the use phase of an application’s lifecycle is often aramids in their products. Closing the chain is the next level. the dominant phase in terms of its environmental impact. In Our approach covers the collaborative ownership we take the lifecycle of an airplane, for instance, the biggest source of with our suppliers and customers to avoid end-of-life and emissions is not the energy consumed during its production, Offering sustainable give new life to the products, again and again. but rather the fuel burnt while in the air. Lighter cargo can greatly reduce the amount of energy required during the use phase of the plane. This is true for many aramid-based solutions that generate applications. value for our customers. 22 Teijin Aramid | HSE Report 2019 23

Connecting for a circular future. A circular model, in which our products are given new life and reused endlessly. Energy & Raw material Customers

The Customer Benefit Model Creating a connected, circular aramid chain With our certified Customer Benefit Model (CBM), we help In an ideal world, there is no waste. However, many aramid- customers to calculate the added environmental and financial based applications are still produced and used according to value of using our aramids compared with other solutions. The the traditional, linear model, with high-value materials ending CBM modeling process is undertaken collaboratively, factoring up as landfill or incinerated at the end of their life. We need to Reduce Enlarge in the specific needs of our customers and any regional work toward a circular model, in which our products are given Suppliers the pain the gain Users variables. In 2019, we worked closely with manufacturers of new life and reused endlessly. CO2 footprint Avoided emission conveyor belts, tires, air freight containers, protective apparel, reduction in use and reinforced thermoplastic pipes (RTP). Using the CBM, We currently make pulp out of recovered aramid material, we calculated that the use of aramid in conveyor belt and but to meet the required demand, we also use new yarn to tire applications enabled our value chain partners to avoid make pulp. To increase the level of reused materials in the approximately 215,800 tons of CO2 equivalent. production of pulp, we need to reorganize the collection of used aramids. In 2019, we began working more closely with Production End of life our suppliers and customers to optimize aramid recovery from used applications at the end-of-life stage. By understanding one another’s processes and needs, we can drive waste Taking action on energyreduction across the chain and increase the reuse of aramids.

24 Teijin Aramid | HSE Report 2019 25

For us, closing the chain is all about ensuring the Keeping an open mind materials we produce come back to us and can be used We are keeping all three options open. Recycling aramid again in some form. The planet has a limited supply of is complex: used materials are rarely returned to us in a certain resources, so we need to leave enough behind continuous, homogenous, constant feed. There is often for future generations. Our ultimate aim is to no longer extreme disparity in quality and quantity, and it is not easy use new fossil raw materials for our processes. To ensure to separate our aramids from other component products. this, we must build on our existing recycling capabilities, For example, end products may contain only small qualities create internal material recycling loops and investigate of Twaron®, which are often mixed with other yarns, a variety of new technologies and approaches. polymers, or metals. And in some cases, our aramid yarns are even chemically linked to the other materials. These There are potentially three ways to recycle aramids. The complexities mean we will likely require a combination of first method, mechanical recycling, has been in use at Teijin different recycling methods in the value chain to meet our Aramid for more than 15 years. It involves reprocessing used circularity goals. aramid yarn recovered from end-of-life applications for reuse. Partnerships and collaborations are therefore an essential part of our strategy. We plan to work closely with external parties We are also exploring two brand-new approaches. Physical – whether companies, customers, institutions, or other value recycling involves recovering our aramid yarns in such a way chain partners – and to remain open to new ideas. We are that they are ready to be used again in our processes. A third also looking at what other industries are doing. For example, “ New technologies and possible solution is chemical recycling. This would mean we are talking to companies experienced in recycling carbon breaking down the collected used materials into their basic composite fibers used in vehicle production. Together, we are chemical components and then rebuilding them to make exploring whether their technology can be used to recycle partnerships can help us the starting blocks for our aramids. aramids, which is a highly specialized product.

achieve our recycling goals.” We are only at the start of the process. We hope to find answers to all these questions over the next few years. And, Bert Gebben – Principal Scientist at Teijin Aramid when the time is right, we will select the most effective and economically viable option for our long-term needs. 26 Teijin Aramid | HSE Report 2019 27

Competent, engaged, enabled employees are essential to our ambition to be the world’s leading aramid producer. This begins with making sure our people are energized, healthy, and safe.

We ask Teijin Aramid colleagues at all levels to take In 2019, we prioritized the further development of the responsibility for ensuring a safe and healthy work Teijin Aramid Academy, our company-wide digital learning environment. In return, they receive the support of their platform. The platform gives each employee a personalized managers and leaders. Our focus is also on the future. On overview of their education options. It enables them to the one hand, our employees need support to perform see whether they have met their mandatory training their tasks. On the other, they must also be encouraged requirements and identify additional development training to continue developing themselves personally and programs and courses that may be needed. We have professionally going forward. also added new e-learning programs – for example, on Life Saving Rules and Hazardous Substances – which are Develop today, prepare for tomorrow mandatory but can be taken individually at a time that fits Ensuring the sustainable performance and development best. These actions support our overall objectives: ensuring of our employees is a key focus of our HR strategy. Our all our team members are able to perform the task at hand development approach aims to meet our employees’ needs safely and competently. and includes personal development as a fundamental element. The approach includes a mix of external and Investing in our workforce. on-the-job training programs, and longer-term career development options. We also organize fitness programs to help our colleagues maintain good physical health. Health & Safety is top of mind. 28 Teijin Aramid | HSE Report 2019 29

Investing in our workforce. Healthy people for a healthy performance.

We care about the health of our employees and monitor Health-related absences Taking the initiative it closely through our ‘absence due to illness rate’. Meanwhile, we continued to undertake a wide range of 8 However, despite our efforts to lower absenteeism, our pre-existing health-focused initiatives together with a 7 % ‘absence due to illness rate’ has been rising, reaching 6 certified occupational health and safety organization. 7.4% in 2019. This is significantly above what we regard 5 These included ‘vitality coaches’, continued investment in as an acceptable level, and we are working hard to 4 improving automation and ergonomic support for workers reverse this trend. Underlying reasons for this recent 3 at our production locations, smoking cessation support 2 increase include the effects of long-term absenteeism 1 programs, regular medical check opportunities, and lifestyle (greater than 12 months), as well as the continuous, 0 improvement programs. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 structural effects of an ageing workforce engaged in Year shift work, and the degree of physical work at our sites. In 2019, we provided voluntary periodic health checks for staff across all locations. We use the results to locally improve To address this trend, in 2019 we introduced a new measure We will continue our efforts to reduce absenteeism due our working standards. In addition, we launched a pilot in our Collective Labor Agreement. The ‘Generation Pact’ to illness. We do this by making use of ‘vitality coaches’ in program to explore the use of a flexible work roster. enables older workers to reduce their work hours (to 80%) collaboration with a certified occupational health and safety Employees also received a personal budget to support their with a partial loss of salary (90% of full salary) up until organization, as well as through various projects geared to long-term sustainable development, including an additional retirement, while retaining 100% of their pension rights. sustainable employability, such as increasing the level of budget for sporting activities that actively support a healthy Other recent measures include piloting flexible rostering automation, lifestyle improvements, (shift) work patterns, etc. lifestyle. We are glad to see our employees making good opportunities and additional physiotherapy opportunities use of these initiatives, which we believe contribute to the on the factory floor. Together, these developments are well-being of our workforce and ensure they are energized, reducing the workload for our older employees, promoting healthy, and safe. sustainable employment. 30 Teijin Aramid | HSE Report 2019 31

Safety. Labor safety – Developing safe behaviors Labor safety refers to the level of safety with regard to At our Arnhem production site, we organized a dedicated HSE Using this information, we calculate the Total Recordable incidents and unsafe situations leading to personal injury. day focusing on behavior. All employees took part and learned Rate (TRR), which is the total number of incidents (i.e. the An injury is often the result of an unsafe situation and often how to improve safety awareness and the possible impact of total of Lost Time Injuries, Restricted Work Cases, and Medical “ We aim to make sure all unsafe behavior. Therefore, we pay specific attention to unsafe not following work instructions and agreements. This day was Treatment Cases) per one million working hours. We also situations and take steps to prevent them wherever possible. the start of an ongoing awareness and training campaign. calculate the LTI frequency rate, which is the total number of our employees and LTIs per one million working hours. contract workers return Unsafe situations and safety incidents are always reported. We While we still see too many safety incidents occurring, we see each report as an opportunity to learn and improve our believe we are on the right track with our focus on safety Safety incidents safety levels. awareness and behaviour. We now need to maintain this level home in good health at the 16 of attention before we start seeing the results in our data. 14 end of each working day.” We have dedicated significant attention to improving our 12 safety behavior in recent years as we work to build a proactive 10 8 safety culture. Various programs now support this ambition. Our safety performance in 2019 6 Health and safety are top priorities in the development In Emmen, nearly 60 trained safety coaches are in place on the Despite our efforts to improve labor safety, hazardous 4 and manufacturing of our products. Given that our core shop floor to help colleagues become more aware of unsafe situations still occur and, unfortunately, incidents still 2 0

business involves handling hazardous chemicals and actions and situations. Eight new safety coaches were trained happen. We do everything we can to prevent this, as we Rate (numbers/million working hours) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 machinery, it is essential that our employees and contract in 2019. believe that each incident is one too many. Total Recordable Rate (TRR) Year workers, as well as people living in our local communities, We measure our safety performance on the basis of the LTI Frequency rate always remain safe. Because experiencing the impact of unsafe situations is just following data: as important as awareness, we organized the “Safety Factory,” Safety is the key to our license to operate. We aim to be a four-hour safety training course for all our permanent (1) Incidents leading to absence (Lost Time Injuries – LTI) among the best in class for our safety levels and to ensure all and temporary employees in Emmen. Everybody, from our (2) Incidents leading to temporary alternative work Safety targets and safety performance our employees and contract workers return home in good operators to our management teams, participated. Part of the (Restricted Work Cases) To be able to measure the effect of our improvement health at the end of each working day. factory hall was transformed into an experience center where (3) Incidents requiring medical treatment programs, we have set ourselves the target of an overall Total various simulations were used to highlight the impact of our (Medical Treatment Cases) Recordable Rate (TRR) of below 8. With a TTR of 8.1 in 2019, We differentiate between labor safety and process safety. behavior. Employees at all levels participated in approximately we did not achieve this target; however, we believe we are on For both areas, we have set up various programs to further 65 training sessions. Similar awareness training is planned for the right track. improve our safety levels. our Delfzijl site in 2020. 32 Teijin Aramid | HSE Report 2019 33

Process safety. Process safety management system Eight years of progress.

At Teijin Aramid, we view process safety as an integral In 2015, a second PSM scan took place at our Delfzijl facility Auditing management part of our ambition to be the leading aramid compa- to assess the progress of the PSM program. A step change and risk analysis Safe work practicesSafe Process knowledge Process Process safety culture safety Process Stakeholder outreach Incident investigation Hazard identification Hazard Operational readiness Operating procedures Conduct of operations Workforce involvement involvement Workforce Management of change Contractor managementContractor Emergency Management Measurement and metricsMeasurement Management and review

ny in the world and pay close attention to it at all our was identified in terms of hazard identification and risk continuous improvement Process safety competency safety Process Compliance with standards Compliance Asset integrity and reliabilityAsset

facilities. To become best in class for process safety, and analysis processes, as well as our incident investigation and performance assuranceTraining to successfully measure our performance, in 2013 we and management review activities. The first PSM scan was Understand adopted the industry standards for process safety based also carried out in Emmen. The outcome of both scans Commit to process safety hazards and Manage risk Learn from experience risks on the Centre for Chemical Process Safety (CCPs)'s risk- highlighted the need for Teijin Aramid to further commit based process safety approach. to process safety. Based on this feedback, we extended the Figure 1: Process safety management system PSM program to our Arnhem production location, hence including all our production facilities in the Netherlands, We also introduced our zero-leakage program at Delfzijl. Based on our progress in the Netherlands, in 2019 we also Introducing a new way of working under the supervision of a dedicated PSM manager. This awareness program encourages all employees to introduced our process safety management approach The maturity of our process safety management (PSM) actively monitor the site for potential small leakages and to to our production facilities in Japan and Thailand. These process is regularly assessed via a PSM scan carried out by a report these, to enable an efficient repair process. We have international collaborations help us to stimulate and certified auditory body. In 2013, our first PSM scan took place Clear signs of progress established a baseline for the number of reports we feel continue developing our process safety programs, and to at our production facility in Delfzijl. A risk-based program In 2019, the third scan took place at Delfzijl, resulting in a should be submitted each year. encourage mutual learning. was developed based on the outcome. The program initially best-practice-level score of 90 out of 100. We finalized a focused on compliance with standards, hazard identification full cycle of so-called HAZOP/LOPA studies to assess the In 2019, a second PSM scan was carried out at our Emmen and risk analysis, conduct of operations, and management risk of occurrence of different safety scenarios. The number facility. A score of 85 out of 100 showed overall progress and review. Asset integrity and reliability, and safe working of process alarms was also reduced to an acceptable level, evidence of a strengthened process safety culture. A risk- practices were identified as leading elements. The results helping to minimize disruption for our employees as well based improvement plan was further developed to continue of the program were then transferred to Teijin Aramid’s as residents living and working near the facility, while our steps toward improvement. A PSM applicability check production facility in Emmen. maintaining the required safety level. was also carried out at our Arnhem production facility.

34 Teijin Aramid | HSE Report 2019 35

“At Teijin Aramid, process safety goes hand in hand A people-based approach “ Process safety – with our business goals. As the global market leader Our process safety management (PSM) system is based in aramids, we play a critical role in the value chain. on an integrated risk-based approach that is designed to Monomers, polymers, fibers, and pulp manufactured give us full control over our operational processes. But we The starting point for at our Delfzijl, Emmen, and Arnhem production sites need aware and skilled people to make it work. At all of provide the starting point for aramid-based solutions our sites, we emphasize the need for a group effort based business continuity.” around the world. A major safety incident such as a on collaboration. This is why we always work with multi- chemical leak could disrupt the entire chain, impacting disciplinary teams that involve not just the operators, but Marco Stam – Global Program Manager Process Safety the many clients and partners who depend on our also the process engineers and mechanics. Everybody has products. Severe incidents also affect our direct a role to play in ensuring safety. Each of these roles comes surroundings and local communities, compromising our together to help us maintain our high standards and license to operate. As we like to say on site, ‘safety is the excellent operational discipline. Colleagues are also asked same as business continuity.’ to take responsibility for monitoring and supervising one another. A process safety incident can potentially occur at any major production facility. Our Delfzijl plant is a highly integrated We began rolling out our new PSM approach in 2012-2013, chemical facility and contains hazardous substances. It is and I am pleased with the positive results so far. From a high essential we do not expose our employees and the local base, we were able to reduce the number of safety incidents community to chemicals that could impact their health. At at Delfzijl by 50% in the first year. We have since extended the same time, we need to minimize the risk of potential this way of working to our other Dutch facilities and more fires and explosions. recently our production sites in Japan and Thailand, too. Our PSM approach has even been acknowledged by the Teijin Group. Together, we are determined to meet both our safety and business goals.” 36 Teijin Aramid | HSE Report 2019 37

Investing in our workforce. Energy Efficiency Index

We express our energy consumption by means of the Energy Efficiency Index (EEI). Performance per This is the total energy consumption per ton of manufactured product per site, production location. compared with our reference year, 2005.

120

Teijin Aramid has an extensive global network of sales offices and agents, 110 enabling customers all over the world to optimally benefit from our products 100 and knowledge. Our head office is located in Arnhem, as is our central R&D department. Our Twaron® production facilities are located in Delfzijl, Emmen, Index compared with 2005 90 and Arnhem. This appendix presents all local facts and figures. 80

In addition to detailing our performance at a company-wide (Twaron®) level, 70 we also report on the performance of our production locations a local level.

If you have any questions regarding this data, feel free to contact us by email 60 ([email protected]). 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year EEI Delfzijl EEI Emmen EEI Arnhem 38 Teijin Aramid | HSE Report 2019 39

Emissions to water Location 2014 2015 2016 2017 2018 2019

Component (in tons) Water Consumption Index Chemical Oxygen Delfzijl 57 60 48 61 51 67 We express our water consumption by means of the water consumption index per Demand (COD) Emmen 5.1 4.5 5.8 5.4 5.2 5,0 location. This is the total water consumption per ton of manufactured product per Arnhem 14.9 7.0 6.1 6.1 6.1 6.0 site, compared with our reference year, 2005. Total nitrogen Delfzijl 5.1 5.6 4.6 5.6 5.1 6.2 Emmen 0.5 0.4 0.4 0.4 0.4 0.4 105 Arnhem 0.2 0.1 0.5 0.5 100 N-methylpyrrolidone Delfzijl 1.7 2.1 1.9 2.2 2.4 2.9 95 Arnhem 0 0.2 0.2 0.1 0.3 0.4 90 Sulfate Delfzijl 54 49 46 50 48 47 85

Index compared with 2005 80 Emmen 226 237 231 253 246 258

75 Arnhem 70 57 49 67 62 41

70 Location 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 65 Emissions to air

60 Component (in kg) 55 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Polymer dust and other Delfzijl 999 884 1,148 1,143 1,070 991 1,029 1,450 1,695 773 Year particulates Arnhem 52 17 15 8 8 2 36 2 13 80 Index Delfzijl Tetrachloromethane Delfzijl 103 145 301 81 184 677 145 132 44 48 Index Emmen - yarn N-Methylpyrrolidon Delfzijl 149 146 251 513 871 624 436 852 517 517 Index Emmen after treatment (NMP) Arnhem 6 10 <0.1 <0.4 <0.5 Index Arnhem Aniline Delfzijl 81 23 26 21 20 20 20 50 42 22 Dichloromethane Delfzijl 1,059 1,609 1,051 1,839 894 366 800 315 360 261 Freon 507 Emmen 490 49 0 245 147 98 245 294 98 245 Arnhem 0 20 0 85*) 70 50 Nitrogen oxide (tons) Delfzijl 11 12 11 11 12 9 8 10 9 11 Emmen 1 2 2 2 2 2 2 2 2 2 Arnhem 1 1 1 1 0.7 0.4 0.4 0.9 0.9 1.2

*) correction due to reporting error To us, everything connects. Every choice we make and every step we take as individuals, as a whole, leaves a mark. Now and in the future. That’s why we aspire to shape a better future for generations to come.

Sustainable thinking and acting matter deeply to us - we continue to meet the needs of society today, without compromising the future. Through inventive thinking and smart collaborations, we challenge ourselves to improve our high- performance products and processes. Every day we contribute to developing sustainable solutions that create new value and reach beyond ourselves – for the present, for new generations, for our planet, and for you.

Let’s think sustainable. Let’s connect. Be sure.

For more information Please email us at: [email protected] or visit www.teijinaramid.com ta-8.1-20192606-en Disclaimer: this data reflects our best knowledge at the time of publication. The content is subject to change as a result of new developments. result of new developments. is subjectto change as a The content It only contains a Disclaimer: this data reflects our best at the time of publication. knowledge (i) the liability no warranties and does not accept any regarding Aramid gives Teijin selection use only. of the propertiescommercial of the product(s) and is meant for infringement of (iii) the usage of products (iv) or any particular and usage of the information, for any completeness (ii) the correctness, fitness of the products use, Aramid. (intellectualTeijin or industrial)any property party. All intellectual the property property of a third – this publication are licensed to rightsof – or are regarding and publishing of (parts our prior written consent, the reproduction Without of) this publication is prohibited.