SUPPORTING GLOBAL GOALS SUSTAINABILITY REPORT 2015 SUSTAINABILITY REPORT 2015 CONTENT 06 Group Chief Executive Officer’s Message 08 Vision, Mission & Values ORGANISATIONAL PROFILE 12 Ownership & Legal Form 12 Locations 13 Number of Employees 14 Primary Brands, Products & Services 15 Market Segments & Industries Served 16 Product Impact SUPPORTING GLOBAL GOALS 18 Sustainability Vision 20 Sustainability Approach 22 Stakeholder Engagements 23 Materiality 24 Community Engagement 26 External Partnerships & Participations SUSTAINABLE IMPACTS 28 A Better Source 36 Zero Harm, Zero Waste 37 Innovation For Sustainable Development 42 Green Packaging / Carbon Net Positive SUSTAINABILITY DASHBOARD 44 Habitability 52 Prosperity 55 Profitability 56 GRI G4 INDEX TABLE 5 A Message From Our Group Chief Executive Officer "I did then what I knew how to do. Now that I know better, I do better.” - Maya Angelou (1928-2014) perating a business in a responsible O and sustainable manner has come at a more pivotal time than ever. With 2015 being the year that saw the global adoption of the Paris Agreement and the formal acceptance of 17 measurable Sustainable Development Goals (SDGs) - what was merely a growing consensus has become a unified pursuit for long-term solutions to some of the greatest challenges mankind faces. To be achieved by 2030, the measurable goals range from ending world poverty to achieving gender equality, increasing sustainable consumption and production, providing clean water and sanitation to addressing climate change actions among others. That said, the narrative today is about the best and quickest way to achieve these goals. 6 Emery Oleochemicals 2015 Sustainability Report Cincinnati, USA Loxstedt, Germany Telok Panglima Garang, Malaysia At Emery Oleochemicals, even before the My role outside the company as the President formalisation of the 2030 Global Goals, we looked of Global Compact Malaysia provides me with to define the field by focusing on key operational a different lens with which to view the breadth issues and sought out opportunities that allow us of influence Corporate Sustainability can offer. to best deliver positive, social impact as part of Establishing more private-public partnerships conducting our business. Last year, we focused on while aligning business operations with universally implementing ‘traceability’ which is consistent with accepted principles in the areas of human rights, the SDG’s Goal 12: Responsible Consumption and labour, environment and anti-corruption is a Production. In the reporting period, 81% of the palm redefinition of the model of successful leadership. oil procured was found to be traceable, surpassing our intended goal. In addition, the partnerships we Maya Angelou said, "I did then what I knew how sought were increasingly based on goals for the to do. Now that I know better, I do better.” I am common good, while leveraging our knowledge. fortunate enough to be in the leadership position By becoming a local partner to the United Nations of an industry-leading company as well as a United through our support of Bluenumber, we saw the Nations sustainability initiative. It gives me a greater benefits of increasing the visibility of farmers and perspective on the long sustainability journey agribusinesses and their sustainable practices. we have to undertake; I "know better", now, so We now have an opportunity to participate in am trying to "do better” in my unique capacity. capacity-building with them while continuing to develop real-world solutions in crop care. While our 2015 Sustainability Report underscores much of the invaluable work we have done, it is Adopting the Global Goals in 2016 and being guided the journey of nurturing lifelong advocates of by purposes that go beyond manufacturing and sustainable living – in and out of our workplace – immediate shareholder value generation are both that motivates us to keep getting better. And I know strategic and visionary. For me, the Global Goals my leadership aspiration is the same as yours. represent a catalyst in shaping a future driven by innovation and new market opportunities. I continue Let’s continue to reach for those Global Goals! to believe that in order to be the market leaders of tomorrow, we have to think and behave differently. Ramesh Kana 7 Vision, Mission, Values ne of Emery Oleochemicals’ early locations was by the Ohio River, which O aided the transportation of raw materials and products. In the mid- 1880s, the factory relocated to a site in St. Bernard where it remains today after more than a century. Since then, it has developed into a cutting-edge facility. It sits next to the Mill Creek and along a railway system that connects it to the rest of the world. This is an indication that Emery Oleochemicals is destined to reach further and wider than its hometown of Cincinnati. Today, Emery Oleochemicals has more than 900 employees worldwide, all working to build a business that will have a long-term impact on the world. Our vision, mission and values were formed to meet the goal of achieving sustainability for more than our stakeholders’ interests, although they remain one of our highest priorities. We have our sights set on a wider horizon and we want to effect significant changes for the entire world. We aim to create value with our existence in more ways than just providing sustainable products to the marketplace. It is in line with these global goals that we have pledged to support the Sustainable Development Goals (SDGs), newly introduced by the United Nations in September 2015. The SDGs call for “concerted efforts towards building an inclusive, sustainable and resilient future for people and planet” by the year 2030. When we widen our perspective and set higher goals, we find that there is so much more that we can contribute. 8 Emery Oleochemicals 2015 Sustainability Report After considering our capacity as a natural-based chemicals manufacturing company, we have presently pledged to contribute to achieving six SDGs: Goal 8 : Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Goal 9 : Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation. Goal 12 : Ensure sustainable consumption and production patterns. Goal 13 : Take urgent action to combat climate change and its impacts. Goal 15 : Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. Goal 17 : Strengthen the means of implementation and revitalise the global partnership for sustainable development. 9 To support this commitment, we will leverage our scientific and innovative advancements to create sustainable products and we will continue to evolve better practices that could be a benchmark for the industry and beyond. We also engage with other corporations to advocate responsible operation as a way of life for moving forward, with a shared sustainability agenda to propel us closer to these goals. Moving forward, in 2016 we are shifting our sustainability focus to support the SDGs, through : Increased efforts to fulfill regulatory compliance to obtain licenses to operate in more locations and sites; Implementing initiatives that go beyond regulatory compliance to explore risks and opportunities in material sustainable development issues, such as responsible feedstock sourcing, water, energy and waste management, supply chain management and sustainability paradigm enhancement; Improvements in mainstream initiatives, such as better and clearer reporting and fulfilling customer requests; Leading change by creating or partnering in innovative sustainable product development and projects involving our suppliers and customers. We are therefore dedicated to “Supporting Global Goals”. As always, we take advantage of opportunities throughout our entire supply chain - from feedstock procurement to product manufacturing, and thereafter - to offer both immediate benefits as well as far-reaching influence on long-term global sustainability. 10 Emery Oleochemicals 2015 Sustainability Report Organisational Profile 11 Ownership and Legal Form Emery Oleochemicals is jointly owned by Sime Darby Plantation and PTT Global Chemicals, each with a 50 percent stake. We oversee our vast global presence through our regional offices in the USA and Germany, and from our headquarters in Malaysia. This report is written ‘in accordance’ with the GRI G4 Reporting Principles (core option) guidelines and includes disclosure for our key manufacturing sites in Malaysia, the USA and Germany. Our Düsseldorf operation was divested in 2015 and data in this report have been adjusted to exclude any of its contribution. Locations Germany USA Malaysia Contact : 865 843 Emery Oleochemicals782 Headquarters820 Emery Oleochemicals Group 741 Level 5, Building E, Peremba Square Saujana Resort, Section U2 40150 Shah Alam, Selangor, Malaysia 198 184 194 191 Emery Oleochemicals (M) Sdn Bhd 164 Telok Panglima Garang Lot 4, Jalan2011 Perak, Kawasan2012 Perusahaan2013 Telok2014 Panglima2015 Garang 42500 Selangor,1041 Malaysia966 1014 1056 905 Emery Oleochemicals LLC 2015 4900243 Este Avenue,41 284 Cincinnati,Ohio,2015 93 39 132 USA, 452322015 405 84 489 2014 234 38 272 2014 227 56 283 2014 404 97 501 Emery Oleochemicals GmbH 2013 217 35 252 2013 245 62 307 2013 358 97 455 Paul Thomas Str. 56, 40599 Düsseldorf, Germany 2012 211 33 244 2012 268 72 340 2012 303