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 Linde plc, 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 industrial gas capital, CVC is committed to operating with the Colombia & Chile companies with $1.7B in revenue in North and produces industrial gases such as oxygen, upmost integrity and working hard to manage Christian Lafleur, General Manager, Canada South America. Together with Messer Group, nitrogen, argon, carbon dioxide, hydrogen, ESG factors from its due diligence processes, Scott Latta, General Manager, Brazil the company represents a USD $3 billion global helium, shielding gases for welding, 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