Corporate Responsibility at Messer Americas

Supplement to the Corporate Responsibility Report of the Messer Group GmbH 2018 2 Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas 3 Corporate

Responsibility: About CVC Americas Management and Advisory Board CVC Capital Partners is a leading private equity A Core Value and investment advisory firm. Established Advisory Board: in 1981, the company now has over 450 Hans-Gerd Wienands, Chairman and ex CFO, At Messer Americas, Corporate Responsibility represents a core employees at 24 offices in Europe, Asia and Messer Group value for our business. We responsibly manage our resources and the USA. At the moment, CVC has a total of Stefan Messer, CEO and Owner, Messer Group apply the talents of our employees to positively benefit society and more than US$69 billion of invested assets Ernst Bode, COO, Messer Group under management. CVC funds are presently our communities. Our business decisions and actions demonstrate Daniel Pindur, Senior Managing Director, invested in some 72 companies worldwide CVC Capital Partners our commitment to the triple bottom line of long-term financial, with more than 200,000 employees across Alexander Dibelius, Managing Partner and Head numerous locations. All together, these social and environmental sustainability. This report captures our of Germany, CVC Capital Partners portfolio companies represent total sales of commitments and impact as part of the world’s largest privately Lars Haegg, Principal, CVC Capital Partners held industrial gases company. over US$150 billion. Management Team: CVC believes the management of Jens Luehring, President & CEO, Americas About Messer Americas employees worldwide work in accordance environmental, social and governance (ESG) with defined principles: these include a focus issues is a critical part of ensuring the long- Gareth Parkin, CFO and Senior Vice President, Americas On March 1, 2019, Messer Group and CVC on customers and employees, responsible term success of any business today. Building Capital Partners Fund VII (CVC) jointly acquired behavior, corporate responsibility, excellence as better businesses through effective ownership Chris Ebeling, Executive Vice President, most of the North American gases business well as trust and respect. Messer Group GmbH and management benefits all stakeholders, Sales & Marketing, North America of , as well as certain Linde business generated consolidated sales of 1.3 billion from employees to customers, suppliers and Rob Capellman, Executive Vice President, activities in South America. With over 70 euros in 2018. shareholders, and the wider community at large MPG Americas & Tonnage US, Americas production facilities and approximately 5,400 by creating jobs, supporting local communities Brian Kenney, Executive Vice President, Ranging from acetylene to xenon, Messer employees operating in the United States, and securing the future of millions of people Operations, Americas offers one of the most extensive product Canada, Brazil, Colombia and Chile, Messer around the world. As careful stewards of Maria Iglesias, General Manager, portfolios on the market – the company today is one of the leading capital, CVC is committed to operating with the Colombia & Chile companies with $1.7B in revenue in North and produces industrial gases such as , upmost integrity and working hard to manage Christian Lafleur, General Manager, Canada South America. Together with Messer Group, , , , , ESG factors from its due diligence processes, Scott Latta, General Manager, Brazil the company represents a USD $3 billion global , shielding gases for , specialty during the management of investments enterprise with presence in the Americas, gases, medical gases and a wide variety of and in ongoing support. CVC has adopted a Europe and Asia and more than 11,000 mixed gases. comprehensive ESG Policy, describing what is employees worldwide. expected of CVC as an investment manager In state-of-the-art research and development as well as what is expected from portfolio About Messer Group centers, Messer develops application companies. CVC’s ESG policy details how it is technologies for the use of gases in almost committed to supporting ethical behaviors in all The Messer Group was founded in 1898 and is all branches of industry, in food technology, of its activities together with investing in and today the world’s largest family-run specialist in environmental technology, medicine, research working with local communities. industrial, medical and specialty gases. Under and science. the brand ‘Messer – Gases for Life’, products and services are offered in Europe, Asia and the Americas. Stefan Messer, CEO and owner of Messer Group GmbH, and the company’s 4 Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas 5

We make gases out of air

Industrial operations require oxygen, nitrogen, argon, xenon, neon and krypton, along with carbon dioxide, acetylene, hydrogen and helium, and a wide variety of gas mixtures. Who needs Gases for Life? At Messer we call these gases Gases for Life. They are Food and produced in largescale industrial plants and are just as important Electronics beverage industry as water and electric power for many manufacturing processes Steel industry industry Construction which make everyday products. What is air? Automotive industry

78 % Nitrogen (N2)

21 % Oxygen (O2) 0.9 % Argon (Ar)

0.1 % Carbon dioxide (CO2), Glass and ceramics Medicine and Chemical Research and Metalworking Neon (Ne), Helium (He), industry pharmaceuticals industry development industry Methane (CH4), Krypton (Kr),

Hydrogen (H2), Nitrous oxide (N O), Where do Gases for Life come from? 2 Xenon (Xe) How are Gases for Life Underground sources Chemical (He) production supplied to the customer? (H2, C2H2) Industrial exhaust

Air separation (CO2) Smaller quantities: Pressurized gas cylinders (N2, O2, Ar, Ne, He, Kr) Separating the air Larger quantities: Tanks on the customer’s premises, delivery of gases in tank trucks

Major industrial quantities: Air separation units on the customer’s premises; alternatively – where available – Pre-cooling the air supply via pipeline Cooling the air How are Gases for Life produced from air?

In order to produce these gases, we use air separation units which can reach 60 meters high or more. Inside them, a Extraction and storage physical process takes place which separates the air into its components. This process is also known as cryogenic distillation.

Compressing the air Cleaning the air 6 Our Employees Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas Our Employees 7 Our Employees

Current staff structure and Employee orientation length of employment and integrity

As of March 1, 2019, Messer Americas At Messer, we develop and promote motivated, comprises 5,262 employees across five efficient and effective employees. We expect countries in North and South America. The our employees to act with integrity and to be proportion of women in the workforce is resourceful and responsible team players. 36.2%. The average length of service of our staff is 11.3 years. Total Americas staff turnover Financial parity is 5.4% between March – June 30th. The average age of our staff is 42.5 years. Our salaries are based on the specific role for an employee, job evaluation, the market, Training and professional performance, skills and qualifications and, development where applicable, on collective agreements and inflation compensation. The company is Messer promotes and fosters professional committed to equitable treatment regardless of growth through a variety of training, education, gender, race, ethnicity or sexual orientation. and development strategies including Emerging Leader and Front-Line Management programs Diversity, equal treatment in support of Messer’s commitment to people and anti-discrimination excellence. The company launched a micro- learning video library to support competency Messer maintains a comprehensive suite development. The tuition assistance program is of policies to support our commitments to also utilized by many to enhance their skill sets Diversity and Anti-Discrimination, as well as and further their careers. Data Privacy. If employees feel discriminated against or that they are not being treated equally, they can, at any time, turn to their local human resources manager, “Solutions”, Messer America’s complaint resolution program, Messer’s Integrity Line or Messer’s compliance officer, for help in dealing with the matter and ensuring equality is maintained. 8 Safety Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas Safety 9 Safety

At Messer, safety is our top priority and core Product stewardship to everything we do. We are committed to the safe and reliable production, handling, Each day, Messer delivers products to transport and use of our products, with a our customers and distributor networks vision of zero harm to people, society and the all across North and South America. Our environment. We strive to continually improve Product Stewardship team is responsible the quality and safety of our products and for the management of products throughout services. Our integrated management system its life cycle focusing on the health, safety helps us achieve these goals by embedding and environmental issues at each phase. health, safety, and environment into our daily Messer product stewards monitor existing operations. and emerging regulations, ensure material registrations, manufacturing, distribution, In 2018, Messer held its annual Safety Day by packaging, and other requirements are met. sponsoring a drawing contest for the children of Messer employees, themed ‘Be safe, your Product Stewardship requires good family is waiting!’ This sparked meaningful communication all along the product’s life dialogue among our employees on the cycle to assess the needs of all involved importance of practicing safe behavior always, stakeholders. This includes working with so that all of our employees return safely to our customers to develop appropriate risk their homes and family each and every day. management measures and to address their emerging needs for the products and services Employee safety we supply. These activities may include the development of safety data sheets and labels The number of industrial accidents reported (indicating hazard and use information), and by Messer Americas that involved a loss of training. Product Stewardship includes the working hours went from 29 in 2017 to 27 review and the publication of information on the cases in 2018. The rate of loss of employee safe use, storage and handling of our products. working time per 200,000 hours worked (lost time accident frequency rate) went down from Messer also participates in relevant trade and 0.54 in 2017 to 0.50 in 2018. The number of industry associations, including the American working days lost (industrial accident severity Chemistry Council’s (ACC), Responsible Care rate) per 200,000 hours worked increased Certification Program and the Compressed Gas slightly from 11.34 in 2017 to 15.29 in 2018. Association (CGA) and works with other key There were 74 reportable industrial accidents stakeholders on the development of standards, in both 2017 and 2018. The frequency rate and partners with governmental and non- of reportable industrial accidents per 200,000 governmental organizations (NGOs). hours worked was 1.38 for both years. Most injuries occurred as a result of manual handling, slips/trips/falls or taking shortcuts. In 2019, additional programs have been put in place to address these issues.

For assistance involving Messer products, gases and equipment, 24 hours a day, 7 days a week: 800-232-4726 (Continental U.S. and Puerto Rico) 10 Environment Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas Environment 11 Environmental Guidelines

Messer Americas (Messer) has established an integrated HSEQ (Health, Safety, Environmental and Quality Policy (Messer Americas HSE Policy). The environmental elements covered by this policy conform to the policy requirements of ISO14001 while establishing a framework for setting environmental objectives and targets. Messer HSEQ guidelines form an integrated standard reflecting our commitment to environmental protection. As such, Messer adheres to a set of general environmental guidelines that include:

• determining the material impact of its business activity on the environment, • reducing the undesirable impact of its products and services on the environment, • supporting waste reduction and pollution prevention programs, • providing operating principles, processes, procedures and resources for the implementation of its environmental guidelines, taking into consideration the best available technology, • raising awareness among its employees about the importance to act in an environmentally friendly way, both at work and at home, • comply with or exceed the requirements of existing environmental legislation, • carrying out environmental impact assessments before building new facilities or modifying existing ones, • communicating openly and honestly with all stakeholders and neighbors, and • minimizing specific energy consumption and, wherever possible, reusing materials in an economically viable way.

Environmental Commitment

Messer Americas has implemented an Plan is prepared to systematically identify integrated environmental management system and implement techniques and strategies (EMS) that ensures all the critical elements to properly manage environmental aspects, managing our operations and our environmental and to comply with regulatory requirements performance continuously improves. In while minimizing hazardous material use, addition, Messer adheres to the American waste generation, and releases to all Chemistry Counsel‘s (ACC) Responsible Care environmental media. The Environmental (RC) program, under which 29 locations in the Plan also supports coordination of site United States are certified. In Colombia, there environmental requirements/practices related

are two ASUs and one CO2 production sites to Messer America‘s Integrated Management with ISO14001:2015 and OHSAS 18001:2007 System and Standards (IMSS), the American certifications. In Brazil, there are ISO14001 Chemistry Council Responsible Care Pollution certificates for four locations (ASU Cubatão, Management System and environmentally Ave. Brazil, Jundiai and Alphaville). related elements. The Environmental Plan is the principal document to be used by sites pursuing To help establish, implement and maintain the ISO14001 certification. EMS, all major sites have completed a Site Environmental Plan. The Environmental 12 Environment Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas Environment 13

Finally, Messer’s environmental footprint Our total greenhouse gas emissions will be Water consumption regulations and classify our waste as hazardous is monitored and will be reported annually. shown as CO2 equivalents (CO2e). Conversion or non-hazardous in accordance with relevant Environmental sustainability indicators such of the quantity of emissions will be done In 2018, our plants in the United States legislation in the country in which we are as, electricity, natural gas and water per production facility, and greenhouse gas consumed a total of approximately 1,800 million operating. We focus in particular on hazardous consumption; waste generation and recycling; equivalents will be determined for production gallons of water, with most of it being used in waste when devising measures to achieve and air emissions. We note that as a new carve facilities using the local energy providers’ our air separation units. further reductions in waste. As the amount of out company established in 2019, the year conversion factors. Note that most of the waste at different sites depends on the type of 2019 will be the first-year monitoring for the electricity required by Messer is used for We use water as efficiently as possible and business operations being carried out there, our operations that constitute Messer Americas the operation of our air separation plants. work to ensure that our emissions to water waste management objectives are based on and therefore, will form the baseline for Around 60 percent of our total CO emissions regional requirements. 2 are constantly being reduced. The majority comparisons moving forward. are the by-product of the generation of this of our annual water requirement is used in electricity by energy providers and will be cooling processes. Most of this cooling water Environmental protection at our Environmental protection reported as indirect emissions. Our calculation is just heated and can subsequently used back customers’ sites through energy management of greenhouse gases will consider both those into the water system without the need for indirect emissions as well as direct emissions, treatment. We take care to ensure that the Reducing greenhouse gases through efficient Messer develops and builds its own air in accordance with the Greenhouse temperature reached does not pose any risk use of industrial gases separation units. Energy efficiency is a key Gas Protocol. to the surrounding ecosystem. The rest of the We offer our customers a variety of aspect in terms of their design, as is cost- water we use is applied to production, used solutions to make production and energy effective procurement of energy in terms of Fuel consumption and other as a source of steam or in office buildings. We generation processes more efficient and operating the production facilities. emissions encourage closed-looped systems as a means more environmentally friendly. Our gases and of reducing our water consumption, as these technologies help our customers reduce their Messer’s objective is to reduce the specific Fuel consumption by our bulk and cylinder enable water to be used multiple times. own greenhouse gas emissions and make energy consumption of our air separation fleets will be tracked and will be a focus of our our customers’ products and processes more units. We aim to achieve this through better climate protection measures. Optimized routes Waste generation environmentally friendly. capacity utilization of our production facilities, and better use of transport capacity will help us continuous investment in even more efficient reduce the number of miles travelled, cut the We keep our consumption of resources as The use of industrial gases also reduces our facilities and targeted energy efficiency amount of fuel consumed and bring down the low as possible and are constantly reviewing customers’ greenhouse gas emissions in projects. level of transport emissions. how waste can be avoided. Our most common other areas of application technology. In the waste products are oil and oleaginous upcoming years, Messer will ascertain this Greenhouse gas emissions In addition, Messer operates nitrous oxide materials, waste which contains metal, and gas reduction potential for all environmentally (N O) production facilities. This gas is used relevant processes. We assume that the 2 cylinders which have reached the end of their Air separation units process ambient air without in medicine and in the electronics and food useful life. By using closed-looped systems for potential for reducing greenhouse gases producing any toxic or environmentally harmful industries. Messer also operates hydrogen products, we increase both material efficiency at our customers’ sites will be significantly emissions. Even in the event of a shut-down plants. In its gaseous state, hydrogen can be and resource efficiency and cut the volume greater than the amount of greenhouse gases or fault, only air components are emitted. Our used in many industry segments, including as a of waste produced. We dispose of any waste produced in connection with the manufacture products are gases which are delivered either food additive, in heat treatment processes, as which cannot be recycled in an environmentally of our industrial gases. via pipeline, by tankers to fill customer tanks an energy source or even as a fuel. sound manner. We comply with local or in steel cylinders in compressed form.

Only cylinder gases are packaged products The total CO2 equivalent for our fleet’s fuel

and these cylinders are usually rented out to consumption and for emissions of N2O and customers and returned empty after use. They hydrogen will be calculated and reported as part are therefore 100 percent reusable after the of our sustainability indicators. requisite cleaning and inspection. 14 Social Responsibility Corporate Responsibility at Messer Americas Corporate Responsibility at Messer Americas Social Responsibility 15 Social Responsibility

Our philosophy Messer collaborates with US EPA for Buffalo River habitat restoration As a company, we are committed to doing our In New York, USA, Messer actively partners with part to positively impact the communities in the US EPA, the US Army Corps of Engineers which we operate and society at large. Through and other local businesses to support a habitat employee volunteerism and charitable giving, restoration project along the Buffalo River. we work together with non-profit organizations The multi-year project involves rehabilitating and local schools to make a difference in our the shoreline, removing invasive species, communities, with focus on Safety, Health, renaturalizing the riverbank with native species, Education and the Environment. In addition, and improving river access for public use. All we take seriously our role as a responsible of this aligns with Messer’s commitments to Partnerships with Mutual Support Committees employer and economic contributor to our environmental stewardship and to enhancing our improve emergency preparedness communities, providing well-paying jobs, local communities. In Colombia, we participated in two Mutual contributing our share of local, state and Support Committees (MSC), located in Bogota federal taxes, and providing essential gases Holiday campaigns benefit and Tocancipa. Through each MSC, Messer and services for hospitals, manufacturers and communities across Brazil works together with public officials and customers representing a range of consumer In 2018, our teams in Brazil continued their private entities to strengthen local prevention, markets, from food & beverages to electronics. annual tradition of initiating nationwide giving preparation and response capabilities for 2018 our employees contributed to volunteer campaigns to support local charities, schools any emergencies that might impact the Messer gives back collection drives to support local community and the environment during the Christmas and communities in which we operate. In 2018, members recovering from natural disasters Easter holiday seasons. Our annual Christmas we actively partnered with MSC members to Employee drives support vital services and and emergencies. Employees also gathered campaign benefited more than 40 non-profit address common issues related to security, risk disaster relief for communities in crisis and donated personal care products, clothing organizations and schools in communities and potential emergency scenarios. In the United States, Messer continues a and other non-perishable items for use by across Brazil. Our employees donated over long-standing partnership with the American community members in crisis, as well as three tons of food, 700kg of cleaning materials, School supply donation benefits children Red Cross at the national and local levels. In military veterans and their families. hundreds of articles of clothing and hundreds and the environment more school supplies for local families in need. Our local team gathered office supplies that For our 2018 Easter campaign, more than 200 were no longer used and donated the items, employee volunteers collected and distributed including 250 needed binders to the APAE Easter Baskets to children via 10 charitable of Jundiaí in Brazil. This action also provided institutions, bringing 100kg of chocolate and environmental gains, in the reuse of materials smiles to our youngest neighbors in Brazil. that were previously disposed of as waste and that would have otherwise been discarded. School materials were also donated.

Toy and book drives bring smiles to children in Messer Healthcare facilities In 2018, our employees donated and delivered toys and books to children receiving care in our REMEO facilities across Colombia. This drive brought joy to our youngest respiratory patients and their families, reinforcing Messer‘s commitment to improving the lives of those in our care. Messer North America, Inc. 200 Somerset Corporate Blvd Suite 7000 Bridgewater, NJ 08807 Phone: 1-800-755-9277 [email protected] www.messer-us.com

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