< PreviousSafic-Alcan believes that the way a company does business is as important as its financial performance and the quality of its products and services. As a durable link in the value chain, Safic-Alcan allows its customers and principals to access innovation for final consumers, guaranteeing that it does its business as a distributor in a responsible way. Develop a sustainability-advantaged products portfolio Contribute to circular operational practices Pursue ethical business practices Enhance our commitment to our People and our Culture Our vision is to be recognised as a premier speciality chemicals distributor with a genuine and deep-rooted commitment to sustainability. It is embedded in our new business strategy, representing our culture of continuous improvement, innovation and responsibility. Using the materiality assessment, Safic-Alcan updated its priority issues and selected 6 ESG challenges to guide our efforts towards a responsible transformation. Our updated strategy will enhance our focus on our vision and mission as a specialty chemicals distributor committed to continuous improvement, innovation and responsibility. Since February 2018, Safic-Alcan has been committed to the UN Global Compact corporate responsibility initiative and its principlesin the areas of human rights, labour, the environment and anti-corruption. Until now, the Company has been aiming to contribute to five of the Sustainable Development Goals (SDGs), but following our updated strategy we have decided to concentrate on four SDGs. While our initial strategy was based on the usual three pillars of sustainability (economy, environment and social), Safic-Alcan felt that it was more judicious to build our updated strategy around our critical role, emphasising the strong linkage that we represent in the value chain for the promotion of collaboration and innovation. Our priority ESG challenges Employee Engagement & Company Culture Ethics & Compliance Reputation & Transparency Responsible Innovation & Adaptability Responsible Value Chain Circular Economy & Waste Management Our New ESG strategy Moving forward Durable Link Enhance the Everywhere and for Everyone With our first objective: “Develop a sustainability-advantaged product portfolio” , we want to focus our efforts on the selection of new suppliers and the identification of products in our current portfolio that contribute to sustainable development goals. Our third objective, “Contribute to circular operational practices” , is aimed at embedding circular economy principles into our way of doing business and in the services we provide in the value chain to our customers, principals and warehousing/logistics partners. In the long-run, health, wellness and ethics are the values that underpin our development and guarantee our performance. Consequently, we want to enhance our efforts to ensure responsible behaviour and our fourth objective is to “Pursue ethical business practices” . Our fifth and final objective is to maintain a strong link between Safic-Alcan employees, fostered by our company culture, to “Enhance our commitment to our people and our culture” . We are retaining one 2019 objective as our second objective, “Deploy Sustainability in our Value Chain” , focused on joining forces and promoting industry-wide practices to drive change along the value chain and to go further with our actions. Our new strategy is more mature and is based on five objectives with nine key initiatives. The new initiatives will create a baseline for understanding our impact. We will launch new targets and new actions as we go forward. Our goal is to introduce this new roadmap in our largest entities that are covering 80% of our turnover and to add the others as we gain traction and maturity. Overwiew of our new objectives Safic-Alcan - Sustainability Report 2020-2021 10 Safic-Alcan - Sustainability Report 2020-2021 11 Deploy sustainability in our value chainSafic-Alcan believes that the way a company does business is as important as its financial performance and the quality of its products and services. As a durable link in the value chain, Safic-Alcan allows its customers and principals to access innovation for final consumers, guaranteeing that it does its business as a distributor in a responsible way. Develop a sustainability-advantaged products portfolio Contribute to circular operational practices Pursue ethical business practices Enhance our commitment to our People and our Culture Our vision is to be recognised as a premier speciality chemicals distributor with a genuine and deep-rooted commitment to sustainability. It is embedded in our new business strategy, representing our culture of continuous improvement, innovation and responsibility. Using the materiality assessment, Safic-Alcan updated its priority issues and selected 6 ESG challenges to guide our efforts towards a responsible transformation. Our updated strategy will enhance our focus on our vision and mission as a specialty chemicals distributor committed to continuous improvement, innovation and responsibility. Since February 2018, Safic-Alcan has been committed to the UN Global Compact corporate responsibility initiative and its principlesin the areas of human rights, labour, the environment and anti-corruption. Until now, the Company has been aiming to contribute to five of the Sustainable Development Goals (SDGs), but following our updated strategy we have decided to concentrate on four SDGs. While our initial strategy was based on the usual three pillars of sustainability (economy, environment and social), Safic-Alcan felt that it was more judicious to build our updated strategy around our critical role, emphasising the strong linkage that we represent in the value chain for the promotion of collaboration and innovation. Our priority ESG challenges Employee Engagement & Company Culture Ethics & Compliance Reputation & Transparency Responsible Innovation & Adaptability Responsible Value Chain Circular Economy & Waste Management Our New ESG strategy Moving forward Durable Link Enhance the Everywhere and for Everyone With our first objective: “Develop a sustainability-advantaged product portfolio” , we want to focus our efforts on the selection of new suppliers and the identification of products in our current portfolio that contribute to sustainable development goals. Our third objective, “Contribute to circular operational practices” , is aimed at embedding circular economy principles into our way of doing business and in the services we provide in the value chain to our customers, principals and warehousing/logistics partners. In the long-run, health, wellness and ethics are the values that underpin our development and guarantee our performance. Consequently, we want to enhance our efforts to ensure responsible behaviour and our fourth objective is to “Pursue ethical business practices” . Our fifth and final objective is to maintain a strong link between Safic-Alcan employees, fostered by our company culture, to “Enhance our commitment to our people and our culture” . We are retaining one 2019 objective as our second objective, “Deploy Sustainability in our Value Chain” , focused on joining forces and promoting industry-wide practices to drive change along the value chain and to go further with our actions. Our new strategy is more mature and is based on five objectives with nine key initiatives. The new initiatives will create a baseline for understanding our impact. We will launch new targets and new actions as we go forward. Our goal is to introduce this new roadmap in our largest entities that are covering 80% of our turnover and to add the others as we gain traction and maturity. Overwiew of our new objectives Safic-Alcan - Sustainability Report 2020-2021 10 Safic-Alcan - Sustainability Report 2020-2021 11 Deploy sustainability in our value chainInitiative No. 1 INNOVATION InnovationLink Safic-Alcan - Sustainability Report 2020-2021 12 Safic-Alcan - Sustainability Report 2020-2021 13 Develop a sustainability-advantaged product portfolio Developing a sustainability-advantaged product portfolio will drive our business growth and provide a foundation for our shared future success. It will deliver innovative and sustainable solutions to our customers throughout the world. As a distributor, we are focusing our efforts on both the future, with our future partners, and the present, by understanding the impact of our current portfolio to identify not only innovative but responsible solutions. ESG challenge:Responsible Value Chain Steward:Innovation & Growth Sub-Council Policies:Third-party Code of Conduct Integrate ESG criteria into the assessment process for new suppliers Today, Safic-Alcan’s Third-Party Code of Conduct ensures that suppliers, including contractors, are aware of Safic-Alcan’s expectations. We want to go further with our actions, which is why our initiative is to integrate ESG criteria into our supplier management process in order to manage risks and improve responsibility across the value chain, for Safic-Alcan but also for our customers. Initiative No. 2 ESG challenge:Responsible Adaptation & Innovation Steward:Innovation & Growth Sub-Council Philippe Villequey Personal Care & Nutraceuticals Business Development Director “Screening new suppliers for ESG and sustainability is about investing in the progress of those companies who are focused on contributing to solutions to environmental or social challenges. Safic-Alcan believes that these companies are well-placed for faster and longer-term growth. The idea is to evaluate new suppliers and to determine what effort they have made to develop pioneering operational, product or business strategies.On top of bringing innovative solutions to the market, do they properly address key ESG challenges?“ Identify sustainability-advantaged products in our current portfolio Since we serve several industries, it is important to understand the impact of our portfolio and to highlight products that are better alternatives in our markets with the same or better functionality. Our sustainability-advantaged products are solutions that contribute to sustainable development goals on several criteria (toxicity, energy use, use of natural resources, emissions and waste, risks, health, etc.). By 2025, we want to have evaluated the portfolio of each Business Unit to identify products that contribute positively to the SDGs. Key Measure No. 2 Evaluate our product portfolio to identify “sustainability-advantaged products” from the top 10 suppliers per Business Unit in the Safic-Alcan entities that account for 80% of our turnover by 2022. Reducing our footprint with our in-house water-based roof coating (Safic-Alcan Necarbo) Safic-Alcan Necarbo has introduced a heat-reflective, water-based preparation to use in facade and roof coatings: SAFIC-CHEM® FP 2361 K . The use of heat-reflective or infrared-reflective (IR) coatings on buildings helps to reduce heat build-up in buildings and therefore reduces energy consumption from cooling devices. This is one example of in-house innovation which can help customers to develop more innovative and sustainable solutions for coatings. Key Measure No. 1 Integrate ESG criteria into the assessment process for new suppliers by 2022. In addition to the local QHSE process to manage suppliers, our Development teams are developing a scoring tool to formalise the assessment of our new suppliers. We are integrating ESG items into this new tool to ensure that we are improving our sustainable procurement. Our Our innovative expertise for urban and e-mobility The automotive industry is rapidly shifting from internal combustion engines to hybrid and electric vehicles, and this advancement brings some tremendous changes for rubber and plastic parts requirements. To address these challenges, Safic-Alcan, working with its suppliers, provides end-users with innovative and high-performance solutions. This covers technical fields such as flame retardancy, lightweighting, thermal management, electrical conductivity, magnetic shielding, and noise & vibration reduction.Initiative No. 1 INNOVATION InnovationLink Safic-Alcan - Sustainability Report 2020-2021 12 Safic-Alcan - Sustainability Report 2020-2021 13 Develop a sustainability-advantaged product portfolio Developing a sustainability-advantaged product portfolio will drive our business growth and provide a foundation for our shared future success. It will deliver innovative and sustainable solutions to our customers throughout the world. As a distributor, we are focusing our efforts on both the future, with our future partners, and the present, by understanding the impact of our current portfolio to identify not only innovative but responsible solutions. ESG challenge:Responsible Value Chain Steward:Innovation & Growth Sub-Council Policies:Third-party Code of Conduct Integrate ESG criteria into the assessment process for new suppliers Today, Safic-Alcan’s Third-Party Code of Conduct ensures that suppliers, including contractors, are aware of Safic-Alcan’s expectations. We want to go further with our actions, which is why our initiative is to integrate ESG criteria into our supplier management process in order to manage risks and improve responsibility across the value chain, for Safic-Alcan but also for our customers. Initiative No. 2 ESG challenge:Responsible Adaptation & Innovation Steward:Innovation & Growth Sub-Council Philippe Villequey Personal Care & Nutraceuticals Business Development Director “Screening new suppliers for ESG and sustainability is about investing in the progress of those companies who are focused on contributing to solutions to environmental or social challenges. Safic-Alcan believes that these companies are well-placed for faster and longer-term growth. The idea is to evaluate new suppliers and to determine what effort they have made to develop pioneering operational, product or business strategies.On top of bringing innovative solutions to the market, do they properly address key ESG challenges?“ Identify sustainability-advantaged products in our current portfolio Since we serve several industries, it is important to understand the impact of our portfolio and to highlight products that are better alternatives in our markets with the same or better functionality. Our sustainability-advantaged products are solutions that contribute to sustainable development goals on several criteria (toxicity, energy use, use of natural resources, emissions and waste, risks, health, etc.). By 2025, we want to have evaluated the portfolio of each Business Unit to identify products that contribute positively to the SDGs. Key Measure No. 2 Evaluate our product portfolio to identify “sustainability-advantaged products” from the top 10 suppliers per Business Unit in the Safic-Alcan entities that account for 80% of our turnover by 2022. Reducing our footprint with our in-house water-based roof coating (Safic-Alcan Necarbo) Safic-Alcan Necarbo has introduced a heat-reflective, water-based preparation to use in facade and roof coatings: SAFIC-CHEM® FP 2361 K . The use of heat-reflective or infrared-reflective (IR) coatings on buildings helps to reduce heat build-up in buildings and therefore reduces energy consumption from cooling devices. This is one example of in-house innovation which can help customers to develop more innovative and sustainable solutions for coatings. Key Measure No. 1 Integrate ESG criteria into the assessment process for new suppliers by 2022. In addition to the local QHSE process to manage suppliers, our Development teams are developing a scoring tool to formalise the assessment of our new suppliers. We are integrating ESG items into this new tool to ensure that we are improving our sustainable procurement. Our Our innovative expertise for urban and e-mobility The automotive industry is rapidly shifting from internal combustion engines to hybrid and electric vehicles, and this advancement brings some tremendous changes for rubber and plastic parts requirements. To address these challenges, Safic-Alcan, working with its suppliers, provides end-users with innovative and high-performance solutions. This covers technical fields such as flame retardancy, lightweighting, thermal management, electrical conductivity, magnetic shielding, and noise & vibration reduction.Safic-Alcan - Sustainability Report 2020-2021 14 DEVELOPING Safic-Alcan - Sustainability Report 2020-2021 15 Initiative No. 3 Deploy sustainability in our value chain As a distributor, we are committed to deploying sustainability in our value chain. Linked to our first objective, which enables us to understand the impact of our products, this objective aims to enhance collaboration between all our partners to improve our products and solutions and to foster clear and transparent communication. Improve communication with our stakeholders on sustainability We place great importance on clear communication,not only about our products but also about whowe are. As such, we are committed to communicating with our partners to manage chemical products and to provide comprehensiveinformation on their sustainability performancein order to promote sustainable consumption. As a result, we ensure that our stakeholders have access to the right support to meet the increasing demands for health, safety and, environmental protection and sustainability along the value chain. Key Measure No. 3 Adapt our communication tools and channels to promote sustainable consumption by the end of 2021. As part of our digital strategy, we are launching our new website, which includes a blog section to share market expertise and trends as well as information on our products and company performance. Transition to RSPO-certified Life Sciences products (Safic-Alcan UK) Safic-Alcan UK is committed to being a certified and audited member of a non-governmental certified body contributing to the sustainable production of palm oil. The chosen organisation is the Roundtable on Sustainable Palm Oil . The ultimate goal is to move all Life Sciences products containing palm oil and/or palm oil derivatives to RSPO certified products.At the end of 2020, 78% of these products were from certified sources. Initiative No. 4 ESG challenge: Responsible Adaptation & Innovation Steward:Innovation & Growth Sub-Council Small actions can make a big impact (Etampes, France) The secret to making big changes might lie not in grand gestures, but in the cumulative effect of numerous small acts like the ones our laboratory in Etampes, France, has implemented as part of their work practices. In 2020, all new formulas developed had to be eco-conscious by providing at least one sustainability advantage. All new formulas are now tested in PLA (biodegradable polymer), glass or metal containers to reduce single-use plastic packaging and, where we can reduce the size of our samples, we use small single-dose packs (~6 grams) instead of our 15g plastic vial. Finally, the packaging and cleaning of our remaining glass flasks are done by an ESAT, which is a medico-social establishment reserved for people with disabilities, aimed at their social and professional integration or reintegration. Sustainability-advantaged products for coatings (Safic-Alcan, France) Following the evaluation of their top suppliers, the French Coating Team launched their first leaflet during Safic’Coat 2021 (a virtual coatings event), with all sustainability-advantaged products identified in order to guide our customers in their formulation of sustainably-advantaged paints. ESG challenge:Responsible Value Chain and Reputation & Transparency Steward:Innovation & Growth Sub-Council with the support of the Societal Sub-Council Juliette Gamez Chief Digital Officer “Communicating our portfolio’s ESG impact and our progress towards our sustainability commitments influences our customers’ feelings and builds on our reputation. That is why we are using digital tools to collate ESG information from various sources and make it easily available to our customers.” Collaboration to create innovative and sustainable solutions Driven by the importance of innovative collaboration, we are joining forces with our partners to co-develop eco-conscious solutions with an improved impact. The objective is to enable our partners to offer more sustainable solutions. As such, we have several areas for improvement including enhancing certifications for products or players in the value chain, offering alternatives to controversial raw materials, developing eco-conscious formulations in our laboratories and improving traceability and responsible sourcing. Key Measure No. 4 Co-develop two new projects per year that contribute to responsible consumption and production. DevelopingLink OurSafic-Alcan - Sustainability Report 2020-2021 14 DEVELOPING Safic-Alcan - Sustainability Report 2020-2021 15 Initiative No. 3 Deploy sustainability in our value chain As a distributor, we are committed to deploying sustainability in our value chain. Linked to our first objective, which enables us to understand the impact of our products, this objective aims to enhance collaboration between all our partners to improve our products and solutions and to foster clear and transparent communication. Improve communication with our stakeholders on sustainability We place great importance on clear communication,not only about our products but also about whowe are. As such, we are committed to communicating with our partners to manage chemical products and to provide comprehensiveinformation on their sustainability performancein order to promote sustainable consumption. As a result, we ensure that our stakeholders have access to the right support to meet the increasing demands for health, safety and, environmental protection and sustainability along the value chain. Key Measure No. 3 Adapt our communication tools and channels to promote sustainable consumption by the end of 2021. As part of our digital strategy, we are launching our new website, which includes a blog section to share market expertise and trends as well as information on our products and company performance. Transition to RSPO-certified Life Sciences products (Safic-Alcan UK) Safic-Alcan UK is committed to being a certified and audited member of a non-governmental certified body contributing to the sustainable production of palm oil. The chosen organisation is the Roundtable on Sustainable Palm Oil . The ultimate goal is to move all Life Sciences products containing palm oil and/or palm oil derivatives to RSPO certified products.At the end of 2020, 78% of these products were from certified sources. Initiative No. 4 ESG challenge: Responsible Adaptation & Innovation Steward:Innovation & Growth Sub-Council Small actions can make a big impact (Etampes, France) The secret to making big changes might lie not in grand gestures, but in the cumulative effect of numerous small acts like the ones our laboratory in Etampes, France, has implemented as part of their work practices. In 2020, all new formulas developed had to be eco-conscious by providing at least one sustainability advantage. All new formulas are now tested in PLA (biodegradable polymer), glass or metal containers to reduce single-use plastic packaging and, where we can reduce the size of our samples, we use small single-dose packs (~6 grams) instead of our 15g plastic vial. Finally, the packaging and cleaning of our remaining glass flasks are done by an ESAT, which is a medico-social establishment reserved for people with disabilities, aimed at their social and professional integration or reintegration. Sustainability-advantaged products for coatings (Safic-Alcan, France) Following the evaluation of their top suppliers, the French Coating Team launched their first leaflet during Safic’Coat 2021 (a virtual coatings event), with all sustainability-advantaged products identified in order to guide our customers in their formulation of sustainably-advantaged paints. ESG challenge:Responsible Value Chain and Reputation & Transparency Steward:Innovation & Growth Sub-Council with the support of the Societal Sub-Council Juliette Gamez Chief Digital Officer “Communicating our portfolio’s ESG impact and our progress towards our sustainability commitments influences our customers’ feelings and builds on our reputation. That is why we are using digital tools to collate ESG information from various sources and make it easily available to our customers.” Collaboration to create innovative and sustainable solutions Driven by the importance of innovative collaboration, we are joining forces with our partners to co-develop eco-conscious solutions with an improved impact. The objective is to enable our partners to offer more sustainable solutions. As such, we have several areas for improvement including enhancing certifications for products or players in the value chain, offering alternatives to controversial raw materials, developing eco-conscious formulations in our laboratories and improving traceability and responsible sourcing. Key Measure No. 4 Co-develop two new projects per year that contribute to responsible consumption and production. DevelopingLink OurENVIRONMENTAL Contribute to circular operational practices Initiative No. 5 For a speciality chemicals distributor, product stewardship is one of the key features of a truly sustainable product offering. As such, we are committed to the Responsible Care® and Responsible Distribution® programmes. These are voluntary initiatives from the chemical industry for the continuous improvement of Health, Safety and Environment (HSE) standards. At Safic-Alcan we want to enhance our Environmental Link to ensure responsible operations. As such, the I&S Council has decided to embed circular economy principles into our operational practices. Lower the value chain footprint Due to our position in the value chain, we need to understand our direct and also indirect impacts. This will allow us to set targets and implement relevant actions to minimise our value chain footprint. We are aware that, due to our activity, this process will require the collaboration of all our partners (customers, suppliers, sub-contractors for logistics and also warehousing) to make a positive change. Key Measure No. 5 Implement our climate strategy and set our group targets by the end of 2022. We recognise that climate change is a real challenge for our planet, biodiversity and people. As a company, we are committed to reducing our impact and implementing environmental responsibility initiatives along our value chain. 79% of offices*certified ISO 9001 : 2015 *Offices with more than 6 people Expand capability to recycle and reduce waste As a company whose sites are mainly offices, we have established programmes to reduce waste from our business activity and enhance recyclability in many of our offices. This can consist of sorting and recycling paper and implementing waste sorting programmes. Our goal is to go further with our actions internally but also externally with the collaboration of our partners, especially when it comes to managing products reaching the end of their life. Initiate at least 2 projects per year to expand capability to recycle and reduce waste in our value chain. Key Measure No. 6 “Reduce, reuse and recycle” (Safic-Alcan Deutschland) At Safic-Alcan Deutschland, they are doing their utmost to practice this well-known tagline. Most waste material is due to damaged packaging or quality and shelf-life issues. This means that by working closely with our customers, we can better anticipate their demand and procure the optimal amount of material to procure from our suppliers. This collaboration notably reduces the amount of material that runs out of shelf-life. As a result, we reduced the total amount of material that eventually needed to be destroyed/incinerated by 20% between 2018 and 2020. Initiative No. 6 Optimise warehousing to reduce carbon emissions (ChemSpec North America) ChemSpec sells large volumes of rubber additive products to major tire producers across North America. Customers often pick up material from one centralised affiliated warehouse several times a week. Several years ago, we began storing products locally to the production facility. While this adjustment certainly reduced the freight costs associated with weekly or monthly pick-ups, another positive impact was the reduction in carbon emissions through reduced petrol consumption. In one customer case study, it was possible to avoid 50,000km of transportation a year, which is equivalent to a ~ 7,500tonnes reduction in CO2. Independence with solar energy (Safic-Alcan Nordic) Our office building in Sweden is equipped with solar panels. Of all the many benefits of solar panels, the most important is that solar energyis a truly renewable energy source. Another big advantage of solar energy is that electricity created with solar panels does not produce any greenhouse gas emissions. Finally, while the panels meet our energy needs for our daily usage, they also provide additional electricity for 8 electric car chargingstations at no extra cost. A real win! Safic-Alcan - Sustainability Report 2020-202116Safic-Alcan - Sustainability Report 2020-202117 Pietro Affer Managing Director, Safic-Alcan Italia “We took advantage of our recent move to a new location to earn some serious eco-friendly bragging rights. First, we removed unnecessary equipment from the old office by donating or recycling them. Then, we implemented waste-sorting collection points in the new office. Our new water fountain providing microfiltered water eliminates the need for the 16-liter plastic bottles. The new electric hand dryers also create much less waste than paper towels – not to mention all the trees that are not destroyed.“ ESG challenge:Circular Economy & Waste Management Steward:Environment & Climate Change Sub-Council Policies:Group Environmental Charter & local policies EnvironmentalLink Our ESG challenge:Circular Economy & Waste Management Steward:Environment & Climate Change Sub-Council Policies:Group Environmental Charter & local policiesENVIRONMENTAL Contribute to circular operational practices Initiative No. 5 For a speciality chemicals distributor, product stewardship is one of the key features of a truly sustainable product offering. As such, we are committed to the Responsible Care® and Responsible Distribution® programmes. These are voluntary initiatives from the chemical industry for the continuous improvement of Health, Safety and Environment (HSE) standards. At Safic-Alcan we want to enhance our Environmental Link to ensure responsible operations. As such, the I&S Council has decided to embed circular economy principles into our operational practices. Lover the value chain footprint Due to our position in the value chain, we need to understand our direct and also indirect impacts. This will allow us to set targets and implement relevant actions to minimise our value chain footprint. We are aware that, due to our activity, this process will require the collaboration of all our partners (customers, suppliers, sub-contractors for logistics and also warehousing) to make a positive change. Key Measure No. 5 Implement our climate strategy and set our group targets by the end of 2022. We recognise that climate change is a real challenge for our planet, biodiversity and people. As a company, we are committed to reducing our impact and implementing environmental responsibility initiatives along our value chain. 79% of offices*certified ISO 9001 : 2015 *Offices with more than 6 people Expand capability to recycle and reduce waste As a company whose sites are mainly offices, we have established programmes to reduce waste from our business activity and enhance recyclability in many of our offices. This can consist of sorting and recycling paper and implementing waste sorting programmes. Our goal is to go further with our actions internally but also externally with the collaboration of our partners, especially when it comes to managing products reaching the end of their life. Initiate at least 2 projects per year to expand capability to recycle and reduce waste in our value chain. Key Measure No. 6 “Reduce, reuse and recycle” (Safic-Alcan Deutschland) At Safic-Alcan Deutschland, they are doing their utmost to practice this well-known tagline. Most waste material is due to damaged packaging or quality and shelf-life issues. This means that by working closely with our customers, we can better anticipate their demand and procure the optimal amount of material to procure from our suppliers. This collaboration notably reduces the amount of material that runs out of shelf-life. As a result, we reduced the total amount of material that eventually needed to be destroyed/incinerated by 20% between 2018 and 2020 . Initiative No. 6 Optimise warehousing to reduce carbon emissions (ChemSpec North America) ChemSpec sells large volumes of rubber additive products to major tire producers across North America. Customers often pick up material from one centralised affiliated warehouse several times a week. Several years ago, we began storing products locally to the production facility. While this adjustment certainly reduced the freight costs associated with weekly or monthly pick-ups, another positive impact was the reduction in carbon emissions through reduced petrol consumption. In one customer case study, it was possible to avoid 50,000km of transportation a year, which is equivalent to a ~ 7,500tonnes reduction in CO2. Independence with solar energy (Safic-Alcan Nordic) Our office building in Sweden is equipped with solar panels. Of all the many benefits of solar panels, the most important is that solar energyis a truly renewable energy source. Another big advantage of solar energy is that electricity created with solar panels does not produce any greenhouse gas emissions. Finally, while the panels meet our energy needs for our daily usage, they also provide additional electricity for 8 electric car chargingstations at no extra cost. A real win! Safic-Alcan - Sustainability Report 2020-2021 16 Safic-Alcan - Sustainability Report 2020-2021 17 Pietro Affer Managing Director, Safic-Alcan Italia “We took advantage of our recent move to a new location to earn some serious eco-friendly bragging rights. First, we removed unnecessary equipment from the old office by donating or recycling them. Then, we implemented waste-sorting collection points in the new office. Our new water fountain providing microfiltered water eliminates the need for the 16-liter plastic bottles. The new electric hand dryers also create much less waste than paper towels – not to mention all the trees that are not destroyed.“ ESG challenge:Circular Economy & Waste Management Steward:Environment & Climate Change Sub-Council Policies:Group Environmental Charter & local policies EnvironmentalLink Our ESG challenge:Circular Economy & Waste Management Steward:Environment & Climate Change Sub-Council Policies:Group Environmental Charter & local policiesPursue ethical business practices Initiative No. 7 Cultivate our ethical way of doing business We have formalised our values and ethical business practices in our Code of Conduct, and they have continued to serve as the foundation of our culture across all levels of our organisation. All employees are required to understand and comply with Safic-Alcan’s Code of Conduct and all applicable laws, regulations and company policies. It encompasses the fundamental requirements for Safic-Alcan’s overall business activities in fields such as human rights and working conditions, business integrity and ethics and data privacy and information security. Key Measure No. 7 Establish an awareness programme focused on our Code of Conduct by 2022. Our intention is to familiarise our teams with the foundation of our Code of Conduct so that we are able to act as one Safic-Alcan. It is our responsibility to provide information to cultivate our ethical way of doing business and so that we are able to apply the right response to any particular situation. 100% of our Employees had signed our new Code of Conduct By January 2020, Based on our commitment to the Ten Principles of the UN Global Compact, Safic-Alcan is committed to conducting all our business activities with a view to securing a sustainable and ethical business relationship in accordance with the applicable laws and standards relating to our work.Our positioning allows us to provide “human” collaboration along the value chain. This is the core theme at Safic-Alcan as the best way to progress is to work together. ETHICAL Safic-Alcan - Sustainability Report 2020-2021 18 Safic-Alcan - Sustainability Report 2020-2021 19 Claire Paitier Legal Manager, Group “Cultivating business ethics is about creating a culture that defines right and wrong and provides a guiding philosophy. Our “Code of Conduct” and “Third-Party Code of Conduct” are used as guideposts to develop a strong sense of ethics, internally and externally, and to help us do what we believe in and take actions consistent with our principles time and time again.” ESG challenge: Ethics & Compliance and Responsible Value chain Steward:Societal Sub-Council Policies:Third-Party Code of Conduct, Conflict Minerals position, Modern Slavery Initiative No. 8 Ensure responsible behaviour in our value chain. The year 2020 was like no other for all of us, with new risks appearing and inequalities increasing all around the world. We are all responsible for our own economic, social and environmental issues; government have a duty to protect the human rights of all people, and as a company, it is our responsibility to respect these rights and to ensure that we are working with business partners who are committed to respecting them as well. Verify that the suppliers that account for 80% of our revenue comply with our Third-Party Code of Conduct by 2022. Key Measure No. 8 Deploying our Third-Party Code of Conduct in 2020 has made it possible for us to ensure that suppliers, including contractors are aware of Safic-Alcan’s expectations. It focuses on the environment, health & safety, social & human rights, and business ethics. This measure is a continuation of our previous initiative as we want to improve our response rate and share it with additional third-party providers by 2022. Whistleblowing process At Safic-Alcan, we are encouraging our stakeholders to seek guidance regarding our policies when needed and to raise concerns regarding actions that may involve illegal activity, violations of policy or unethical conduct. For the year 2020, nothing was reported under the whistleblowing process as described in our Code of Conduct and Third-Party Code of Conduct. Applying our expertise to sourcing in China (HuaFaMei) Our key commitment is to ensure that our suppliers in China are in compliance with all the environmental regulations and laws applicable to their activities and the markets they serve. As such, we have applied our own EHS procedures to identify risks for each supplier and to verify that they are in compliance. Questionnaires and documentation assessments are completed with an on-site audit by our own local EHS Manager, Jiang Weidong at HuaFaMei. As of today, 129 suppliers have been assessed by questionnaire or documentation, and 16 suppliers have been audited. This approach allows us to collaborate with our Chinese suppliers to ensure that their upstream producers and suppliers meet our environmental requirements. The Modern Slavery Policy (Safic-Alcan UK) As a signatory of the UN Global Compact, Safic-Alcan Group is committed to respecting internationally-recognised human rights. At Safic-Alcan UK, our efforts with regard to the UK Modern Slavery Act are part of a specific “Statement of Compliance”. We recognise that transparency within supply chains is a complex issue which requires us to engage and collaborate with all our partners. We are keen to be part of the movement that eradicates exploitative practices. As with all human rights violations, we have a zero-tolerance policy regarding any type of forced labour including modern slavery. ESG challenge:Ethics & Compliance Steward:Societal Sub-Council Policies:Code of Conduct, Governance Rules 66% of our suppliers that accounted for 80% of our revenue had confirmed their compliance with our Third-PartyCode of Conduct At the end of 2020, EthicalLink OurPursue ethical business practices Initiative No. 7 Cultivate our ethical way of doing business We have formalised our values and ethical business practices in our Code of Conduct, and they have continued to serve as the foundation of our culture across all levels of our organisation. All employees are required to understand and comply with Safic-Alcan’s Code of Conduct and all applicable laws, regulations and company policies. It encompasses the fundamental requirements for Safic-Alcan’s overall business activities in fields such as human rights and working conditions, business integrity and ethics and data privacy and information security. Key Measure No. 7 Establish an awareness programme focused on our Code of Conduct by 2022. Our intention is to familiarise our teams with the foundation of our Code of Conduct so that we are able to act as one Safic-Alcan. It is our responsibility to provide information to cultivate our ethical way of doing business and so that we are able to apply the right response to any particular situation. 100% of our Employees had signed our new Code of Conduct By January 2020, Based on our commitment to the Ten Principles of the UN Global Compact, Safic-Alcan is committed to conducting all our business activities with a view to securing a sustainable and ethical business relationship in accordance with the applicable laws and standards relating to our work.Our positioning allows us to provide “human” collaboration along the value chain. This is the core theme at Safic-Alcan as the best way to progress is to work together. ETHICAL Safic-Alcan - Sustainability Report 2020-2021 18 Safic-Alcan - Sustainability Report 2020-2021 19 Claire Paitier Legal Manager, Group “Cultivating business ethics is about creating a culture that defines right and wrong and provides a guiding philosophy. Our “Code of Conduct” and “Third-Party Code of Conduct” are used as guideposts to develop a strong sense of ethics, internally and externally, and to help us do what we believe in and take actions consistent with our principles time and time again.” ESG challenge: Ethics & Compliance and Responsible Value chain Steward:Societal Sub-Council Policies:Third-Party Code of Conduct, Conflict Minerals position, Modern Slavery Initiative No. 8 Ensure responsible behaviour in our value chain. The year 2020 was like no other for all of us, with new risks appearing and inequalities increasing all around the world. We are all responsible for our own economic, social and environmental issues; government have a duty to protect the human rights of all people, and as a company, it is our responsibility to respect these rights and to ensure that we are working with business partners who are committed to respecting them as well. Verify that the suppliers that account for 80% of our revenue comply with our Third-Party Code of Conduct by 2022. Key Measure No. 8 Deploying our Third-Party Code of Conduct in 2020 has made it possible for us to ensure that suppliers, including contractors are aware of Safic-Alcan’s expectations. It focuses on the environment, health & safety, social & human rights, and business ethics. This measure is a continuation of our previous initiative as we want to improve our response rate and share it with additional third-party providers by 2022. Whistleblowing process At Safic-Alcan, we are encouraging our stakeholders to seek guidance regarding our policies when needed and to raise concerns regarding actions that may involve illegal activity, violations of policy or unethical conduct. For the year 2020, nothing was reported under the whistleblowing process as described in our Code of Conduct and Third-Party Code of Conduct. Applying our expertise to sourcing in China (HuaFaMei) Our key commitment is to ensure that our suppliers in China are in compliance with all the environmental regulations and laws applicable to their activities and the markets they serve. As such, we have applied our own EHS procedures to identify risks for each supplier and to verify that they are in compliance. Questionnaires and documentation assessments are completed with an on-site audit by our own local EHS Manager, Jiang Weidong at HuaFaMei. As of today, 129 suppliers have been assessed by questionnaire or documentation, and 16 suppliers have been audited. This approach allows us to collaborate with our Chinese suppliers to ensure that their upstream producers and suppliers meet our environmental requirements. The Modern Slavery Policy (Safic-Alcan UK) As a signatory of the UN Global Compact, Safic-Alcan Group is committed to respecting internationally-recognised human rights. At Safic-Alcan UK, our efforts with regard to the UK Modern Slavery Act are part of a specific “Statement of Compliance”. We recognise that transparency within supply chains is a complex issue which requires us to engage and collaborate with all our partners. We are keen to be part of the movement that eradicates exploitative practices. As with all human rights violations, we have a zero-tolerance policy regarding any type of forced labour including modern slavery. ESG challenge:Ethics & Compliance Steward:Societal Sub-Council Policies:Code of Conduct, Governance Rules 66% of our suppliers that accounted for 80% of our revenue had confirmed their compliance with our Third-PartyCode of Conduct At the end of 2020, EthicalLink OurNext >