new 2017 sustainability report valuing compliance, … · 2020. 1. 30. · • industrial...

2 0 1 7 S U STA I N A B I L I T Y R E P O RT

VALUING COMPLIANCE,NATURALLY

We strive to advance sustainability,

be an example in responsible

operation and drive profitability

together.

Valuing Compliance, Naturally.

2017SUSTAINABILITYREPORT

CONTENTS

OUR APPROACH > About Emery Oleochemicals 6 • Vision & Mission 6 • Facts & Figures 8> Sustainability 2017 10 • Sustainability Report Theme 10 • Letter: Group CEO & Chief Sustainability Officer 11

OUR EVOLUTION OF PURPOSE > Pioneering a Business Purpose through Tallow 14 > Introducing Palm Oil into Our Feedstock Portfolio 15 > Natural-based Chemicals Manufacture – The Sustainable Business Model 16

OUR SUSTAINABILITY AGENDA > Vision: Act Sustainably 20 > Embedding Sustainable Development Goals 21 • People: Think Sustainably 21 • Process: Do Innovatively 22 • Impact: Inspire Change 22 > The Journey So Far 23 > Sustainability Goals / Commitments 24 > Materiality 25

STRENGTHENING OUR SUSTAINABILITY LEGACY > Sustainability Progress Dashboard 28 > People: Stakeholder Engagements 30 • Düsseldorf (North Rhine-Westphalia) & Loxstedt (Cuxhaven), Germany 30 • Telok Panglima Garang (Selangor), Malaysia 33 • Cincinnati (Ohio), United States of America 34 > Process: Strengthening Compliance 36 • Case Study: Traceability for Sustainable Palm Oil Sourcing 37 • Case Study: Sourcing with Respect Guidelines (SRG) 38 • Case Study: Alternative Energy Drives Operational Efficiencies and Second-life for By-product 40 • Case Study: Growing Our Tallow-based Product Portfolio 41 • Case Study: Health and Safety Excellence Takes Top Award in Cincinnati 42 > Impact: Innovative Solutions for Sustainable Consumption 43 • Agriculture Sector 44 • Industrial Lubricants Sector 45 • Consumer & Industrial Plastics Sectors 46 • Emery Oleochemicals’ Global Site Enhancements 48

OUR SUSTAINABILITY DASHBOARD > Habitability 53 > Prosperity 60 > Profitability 63

MORE INFORMATION > Ownership & Legal Form 64 > Reporting Standard 64 > GRI G4 Index Table 65

EMERY OLEOC HEMICALS 3

By focusing on our core values

combined with established business

governance, we pursue a sustainable

future to ensure our company

operates responsibly.

GOINGBEYOND THE TRADITIONAL

2017 SUSTAINABILITY REPORT4

OUR APPROACH


COMPETITIVEADVANTAGE

INNOVATION PARTNERSHIP TRUST

OUR APPROACH > About Emery Oleochemicals

Vision & Mission

Core Values

Our vision “To Become The World

Leader In Value-added, Natural-

based Chemicals” was formed

to meet the goal of achieving

sustainability, going beyond the

traditional measures of financial

profitability. We have our sights set

on a broader horizon and we strive

to make positive impacts by creating

value with our existence in more

ways than just providing sustainable

products to the marketplace.

Taking advantage of opportunities

throughout our entire supply chain

- from feedstock procurement

to product manufacturing, and

thereafter, Emery Oleochemicals

provides both immediate benefits

as well as far-reaching influence on

long-term global sustainability.

Supported by our four core values –

“Competitive Advantage, Innovation,

Partnership and Trust” – exemplified

by our employees around the world,

we pursue a sustainable future

through our daily operations. By

focusing on our core values combined

with established business governance,

we can ensure our company operates

responsibly.

To Become The World Leader In Value-added, Natural-based Chemicals


Headquartered in Malaysia, Emery

Oleochemicals is equally owned by Sime

Darby Plantation (SDP) and PTT Global

Chemical Public Company Limited

(GC). Our shareholders provide strategic

oversight to a senior leadership team at

Emery that manages our global operations

through regional offices in Germany,

Malaysia and the USA.

USAEmery Oleochemicals LLC

4900 Este Avenue, Cincinnati, Ohio, USA, 45232

GERMANYEmery Oleochemicals GmbHHelmut-Neynaber Str.49, 27612

Loxstedt, Germany •

Paul Thomas Str. 56,40599 Düsseldorf, Germany

MALAYSIAEmery Oleochemicals (M) Sdn BhdLot 4, Jalan Perak, Kawasan Perusahaan

Telok Panglima Garang 42500 Selangor, Malaysia


OUR APPROACH > About Emery Oleochemicals

Facts & Figures

Global

864

AP

441

NA

280

EU

143

2017

864Male : 698

Female : 166

2016

875Male : 712

Female : 163

2015

905Male : 741

Female : 164

2014

1056Male : 865

Female : 191

2013

1014Male : 820

Female : 194

2017

280F : 41

M : 239

2016

293F : 42

M : 251

2015

284F : 41

M : 243

2014

272F : 38

M : 234

2013

252F : 35

M : 217

NorthAmerica

2017

143F : 45M : 98

2016

139F : 41M : 98

2015

132F : 39M : 93

2014

283F : 56

M : 227

2013

307F : 62

M : 245

Europe

2017

441F : 80

M : 361

2016

443F : 80

M : 363

2015

489F : 84

M : 405

2014

501F : 97

M : 404

2013

455F : 97

M : 358

AsiaPacific

202(23%)

2017 2016 2015 2014 2013

Number ofEmployees in

Managerial Positions


Non-Managerial Positions

662(77%)

175(20%)

700(80%)

209(23%)

696(77%)

233(22%)

826(78%)

247(24%)

767(76%)

2017 2016 2015 2014 2013

% of EmployeesWho Are Local

Citizens

% of WomenEmployed in


98.8%

5.56%

98.5%

5.14%

98.6%

5.86%

98%

5.49%

98.5%

6.21%

Global

864

AP

441

NA

280

EU

143

2017

864Male : 698

Female : 166

2016

875Male : 712

Female : 163

2015

905Male : 741

Female : 164

2014

1056Male : 865

Female : 191

2013

1014Male : 820

Female : 194

2017

280F : 41

M : 239

2016

293F : 42

M : 251

2015

284F : 41

M : 243

2014

272F : 38

M : 234

2013

252F : 35

M : 217

NorthAmerica

2017

143F : 45M : 98

2016

139F : 41M : 98

2015

132F : 39M : 93

2014

283F : 56

M : 227

2013

307F : 62

M : 245

Europe

2017

441F : 80

M : 361

2016

443F : 80

M : 363

2015

489F : 84

M : 405

2014

501F : 97

M : 404

2013

455F : 97

M : 358

AsiaPacific

202(23%)

2017 2016 2015 2014 2013





662(77%)

175(20%)

700(80%)

209(23%)

696(77%)

233(22%)

826(78%)

247(24%)

767(76%)

2017 2016 2015 2014 2013


Citizens



98.8%

5.56%

98.5%

5.14%

98.6%

5.86%

98%

5.49%

98.5%

6.21%

Global

864

AP

441

NA

280

EU

143

2017

864Male : 698

Female : 166

2016

875Male : 712

Female : 163

2015

905Male : 741

Female : 164

2014

1056Male : 865

Female : 191

2013

1014Male : 820

Female : 194

2017

280F : 41

M : 239

2016

293F : 42

M : 251

2015

284F : 41

M : 243

2014

272F : 38

M : 234

2013

252F : 35

M : 217

NorthAmerica

2017

143F : 45M : 98

2016

139F : 41M : 98

2015

132F : 39M : 93

2014

283F : 56

M : 227

2013

307F : 62

M : 245

Europe

2017

441F : 80

M : 361

2016

443F : 80

M : 363

2015

489F : 84

M : 405

2014

501F : 97

M : 404

2013

455F : 97

M : 358

AsiaPacific

202(23%)

2017 2016 2015 2014 2013





662(77%)

175(20%)

700(80%)

209(23%)

696(77%)

233(22%)

826(78%)

247(24%)

767(76%)

2017 2016 2015 2014 2013


Citizens



98.8%

5.56%

98.5%

5.14%

98.6%

5.86%

98%

5.49%

98.5%

6.21%

Global

864

AP

441

NA

280

EU

143

2017

864Male : 698

Female : 166

2016

875Male : 712

Female : 163

2015

905Male : 741

Female : 164

2014

1056Male : 865

Female : 191

2013

1014Male : 820

Female : 194

2017

280F : 41

M : 239

2016

293F : 42

M : 251

2015

284F : 41

M : 243

2014

272F : 38

M : 234

2013

252F : 35

M : 217

NorthAmerica

2017

143F : 45M : 98

2016

139F : 41M : 98

2015

132F : 39M : 93

2014

283F : 56

M : 227

2013

307F : 62

M : 245

Europe

2017

441F : 80

M : 361

2016

443F : 80

M : 363

2015

489F : 84

M : 405

2014

501F : 97

M : 404

2013

455F : 97

M : 358

AsiaPacific

202(23%)

2017 2016 2015 2014 2013





662(77%)

175(20%)

700(80%)

209(23%)

696(77%)

233(22%)

826(78%)

247(24%)

767(76%)

2017 2016 2015 2014 2013


Citizens



98.8%

5.56%

98.5%

5.14%

98.6%

5.86%

98%

5.49%

98.5%

6.21%

Workforce By Other Demographics

Total Workforce

Workforce By Region

Workforce By Gender


Solutions & Industries

Crop Protection Livestock Farming Organic Farming Home & Garden Turfs and Ornamentals

Automotive Building &Construction

Furniture &Bedding

Packaging

Automotive Building &Construction

Toys & SportsEquipment

Coatings &Inks

Electronics Packaging

Body Care Cosmetics Detergents Hair Care Oral Care

Coatings &Adhesives

Food &Beverages

Paper Pharmaceuticals Textiles &Leathers

Automotive Greases IndustrialLubricants

Metal Workings Oilfields MarineLubricants

Agro GreenGreen chemistry transforms natural-based renewable resources to create sustainable solutions for agriculture.

Bio-LubricantsDriving innovations utilising natural-based fatty acids to create lubricant solutions for outstanding performance and environmental safety.

Eco-Friendly PolyolsShaping tomorrow’s comforts with proprietary technologies in renewable chemicals for use in the manufacture of flexible & rigid polyurethane foam.

Green PolymerAdditivesNatural-based solutions that provide improved materials and processing efficiencies for the plastics industry.

Home & Personal WellnessRenewable solutions for cosmetics, hair, dental and skin care, pharmaceuticals and detergents to inspire sustainable living.

OleoBasicsYour preferred global solutions partner in high-performance, natural-based chemicals for common to niche applications.

6Business

Platforms

Global natural-based specialty

chemicals manufacturer

Commodity Semi-Specialty

Specialty Chemicals

>3000Products


OUR APPROACH > Sustainability 2017 OUR APPROACH > Sustainability 2017

Sustainability Report Theme

is a theme selected to reinforce Emery Oleochemicals’

commitment to Creating Value for our stakeholders,

leveraging business processes that are guided by

international compliance standards, providing us the

license to operate a global natural-based chemical

manufacturing business that has been in operation since

1840.

Even before the terms such as “renewable”,

“sustainability”, “closed-loop”, “circular economy”

became commonplace, Emery Oleochemicals’ Value

system has enabled us to be an effective business

partner and an engaged community member for almost

two centuries.

The ’Natural’ commitment is a two-pronged approach.

Firstly, it denotes the business we are in, as reflected

in our vision to “Become The World Leader In Value-

added, Natural-based Chemicals’. This fundamentally

speaks of our focus to expand our natural-based

chemicals portfolio, reduce our environmental footprint

as a good global citizen and work to support the local

communities immediately around our operations.

Secondly, it speaks of who we are as an organisation,

one that intuitively co-innovates with strategic partners,

including our employees, to create a new era of

responsible growth that helps protect the planet and

benefits everyone.

At Emery Oleochemicals, we are committed to a

business that not only delivers top-tier financial returns,

but one that is responsive to the needs of numerous

countries and markets we serve around the world.

We strive to advance sustainability, be an example in

responsible operation and drive profitability together.

Valuing Compliance, Naturally.

“Valuing Compliance, Naturally”


OUR APPROACH > Sustainability 2017

I believe the chemicals industry is at the cusp of great

change. Today, perhaps more than ever, civic society is

seeking to engage and partner with organisations that are

aligned with their own value system, putting their trust in

brands and companies that stand for something. Whether

people are shopping for soap, detergent or snacks, or

looking for employment and a sense of belonging, or a

community is needing support for societal improvements,

an organisation’s principles and role in society are regarded

as highly as the products and services it offers.

At Emery Oleochemicals, we have always believed that

strong partnerships and lasting relationships across our

value chain are formed when there is a convergence of

values and goals. This enables us, as a collective, to be

an agent of change – delivering solutions that meet the

needs of today and shaping the lives of tomorrow.

Reflected in our broad vision of becoming the “World

Leader in Value-added, Natural-based Chemicals”,

our purpose and commitment is echoed in this year’s

Sustainability Report themed “Valuing Compliance,

Naturally”. The report underscores our purpose,

chronicles Emery Oleochemicals’ inherent character of

going beyond the expected in sustainability, and how our

purpose influences the decisions we make and the results

we have delivered and aspire towards.

As our business expands its portfolio of natural-based

chemicals, we continue to do so by consciously reducing

our environmental footprint. Even before terms such

as “renewable-based”, “sustainability”, “closed-loop”,

“circular economy” became commonplace, our moral

compass has always been to bring forth the commercially

important aspects of fats and oils of animal and plant

origins responsibly and to form partnerships that drive

similar outcomes.

In our commitment to be a business that goes beyond

conventional compliance and delivering expected

financial returns, Emery Oleochemicals strives to advance

sustainability and profitability simultaneously. This is

fundamentally, and naturally, who we are - advocates

for furthering the science of natural-based chemicals,

considered innovative and pioneering in how our products

and operations impact the environment, society and the

economy.

From celebrating the 60th anniversary of our world-

renowned Green Polymer Additives LOXIOL® brand to

partnering with J&J in forming evidence-based SDG

dashboards tracking oil palm smallholders’ footprint to

instituting an award-winning Safety Leadership System,

Emery Oleochemicals’ sustainability impacts are the

guiding principles of our global business that is committed

to the wellbeing of our employees, the environment, and

the communities we operate in; while also meeting our

responsibility to profitability targets.

Add creativity, enthusiasm and a go-getter spirit to

the mix, and Emery Oleochemicals is your partner to

successfully delivering natural-based solutions that civic

society can be proud of, as we together answer the clarion

call for tomorrow’s needs through all of today’s deeds.

Let’s continue to make a difference!

RAMESH KANA Group Chief Executive Officer & Chief Sustainability OfficerEmery Oleochemicals

Letter from

Answering the clarion call for tomorrow’s needs through today’s deeds.


The Emery belief system promises

to deliver high-quality, high-

performance and sustainable

products, to respect all people

and to be an active contributor to

societal development.

A BUSINESS BUILTON A LEGACY OFSUSTAINABILITY


OUR EVOLUTIONOF PURPOSE


OUR EVOLUTION OF PURPOSE

Pioneering a Business Purpose Through TallowOur company’s founder, the enterprising Thomas Emery Sr., was a

grocer, wine and hop merchant in Cincinnati, as well as an ‘estate

and money’ agent.

However, the Panic of 1837 would

close many businesses, including

Emery’s - leaving him with a mountain

of debt. The recession was followed

by a period of economic expansion

with prices of land and cotton rising

sharply. It was against this backdrop

that the entrepreneurial Emery picked

himself up again and began looking for

new opportunities.

He saw that copious amounts of lard

were discarded by the meat packing

factories, at the time a booming

industry, centred in Cincinnati. Emery

would procure the lard and convert it

into oil for lamps and candles, the two

products undeniably responsible for

the future financial empire of Emery’s

two sons, Thomas J. and John J. The

advent of today’s rendering industry

(also known as the “invisible industry”),

the purpose of rendering then was to

produce tallow and other rendered

animal fats to make soap and candles.

During this time, as more technological

advancements were being researched

and patented by Emery’s resident

scientist, Dr. Twitchell, the company

was not only firmly positioned in the

United States, it was also exporting

candles and chemical products to

Europe. In 1900, Thomas J. stated in a

newspaper interview that the “candle

business in Europe was good, and we

sell more candles in Germany than in

the state of Ohio”.

Receiving a patent in 1907, Dr.

Twitchell’s discovery in making

triacylglycerols (esterification of

glycerol with fatty acids) led the way

for future industry innovations in

textiles and dyeing, oil paints, food

industries and today, in bio-diesel

- bringing forth the commercially

important aspects of fats and oils of

Thomas Emery Sr.


Introducing Palm Oil into Our Feedstock Portfolio

animal and plant origins. By 1952, the

company had established its position

in personal care and textile chemicals.

Known as one of the oldest known

forms of “recycling”, not only has

the rendering industry changed

for the better with technological

advances altering production systems

and responding to environmental

concerns, hundreds of industrial

chemical applications have used

fats and fatty acids as a key source of

feedstock.

More importantly, for Emery, a new

business purpose – making natural-

based chemicals - was formed.

While the Emery* business was evolving in the USA and Europe, a global

business realignment led to a series of major decisions, as the organisation

sought to expand its cosmetics, detergents, adhesives and surface technologies

businesses.

The most significant of those decisions was one made in 2005, which was

its joint venture with Golden Hope Plantation in Malaysia (later known as

Sime Darby Plantation) in a 50:50 split that made the entity, named Cognis

Oleochemicals (M) Sdn Bhd (COM), the biggest oleochemicals manufacturer

in the US and the second largest fatty acid producer in the world.

By this time, the cultivation of oil palm had taken a significant role in the

Malaysian government’s agricultural diversification programme, which was

introduced to reduce the country’s economic dependence on rubber and tin.

* Note: Emery was called “Cognis” in 2001 through a business alignment of then-owners Henkel.


Today, Emery Oleochemicals

is a global specialty chemical

manufacturing operation that spans

three regions: Asia Pacific, Europe

and North America, providing

manufacturers and formulators alike

with best-in-class renewable solutions

recognised for their ability to improve

processing efficiencies, deliver

outstanding technical performance

and enhance environmental safety.

In 2008, Goldman Sachs Capital

Partner sold its shares to PTT Global

Chemical, bringing to life another era

of this evolving brand. The strategic

partnership combined a shared vision

of this new entity in “becoming the

global leader in value-added and

diversified oleochemicals” with the

convergence of tallow and palm-

based chemical solutions.

Capitalising on the rich history and

heritage that Thomas Emery Sr.

began in 1840, the new shareholders

- Sime Darby Plantation and PTT

Global Chemical - chose the name

“Emery Oleochemicals”, launching

it in 2009. With a commitment to

“invest in growth, focus on customer

needs, expand market driven R&D, and

drive innovation”, the Emery belief

system, passed down through its

almost two-century history (today),

still promises to deliver high-quality,

high-performance and sustainable

products, to respect the people who

represent the Emery community

and for the company to be an active

contributor to societal development.

Natural-based Chemicals Manufacture – The Sustainable Business Model

OUR EVOLUTION OF PURPOSE


We serve many high-growth sectors such as :

Agriculture

Food and Beverage

Lubricants

Textiles

Automotive

Furniture and Bedding

Packaging

Electrical and Home Appliances

Housing and Construction

Home and Personal Care

Pharmaceutical

Oilfield and Exploration


To grow and create value by acting

sustainably to achieve planet

habitability, people prosperity and

financial profitability.

A VISIONOF CONVERGENCEAND EQUILIBRIUM


OUR SUSTAINABILITY AGENDA



Vision: Act SustainablyEmery Oleochemicals’ vision is to become the industry

leader in natural-based chemicals, and to achieve this,

our solutions are the outcome of avid research and

development, while our overall operations are guided

by stringent industry regulations. As we continue to

advance the science of specialty chemicals, we remain

mindful of how our products and operations impact the

environment, society and the economy.

We believe that this will allow us to maintain business

viability while still preserving the world for generations

to come.

This is our sustainability vision: to grow and create

value by acting sustainably to achieve planet

habitability, people prosperity and financial

profitability.

The infinity symbol of our “Act Sustainably”

logo represents the continuous innovation

to meet the needs of today without

compromising the needs of the future

through creation of responsible products

leveraging a sound business approach.

Representing the environment, society and

the economy, where the three coloured

bands converge is where we want to be:

the equilibrium in balancing habitability,

prosperity, and profitability.

Being a Preferred Partnerto create, nurture and maintain strategic partnerships with key stakeholders to meet and advance sustainability agendas.

Future-Proofing Our Environmentto respect and protect the environment and biodiversity around us and strive to continuously reduce our ecological footprint.

Embedding Sustainable Supply Chainsto transition sustainable practices into an efficient and responsible supply chain management system.

Ensuring Sustainable Product Stewardshipto offer products that protect environmental and societal interest while contributing to profitability.

OU

R S

US

TA

INA

BIL

ITY

PIL

LA

RS


Embedding Sustainable Development Goals Incorporating the United Nations’

Sustainable Development Goals

(SDGs) in 2015 provided Emery

Oleochemicals an invaluable

roadmap with which organisations

like us can align our sustainability

efforts, allowing us to meaningfully

contribute to the shared objectives

of the global community at large,

and within the chemicals industry,

specifically. Focusing on the SDGs

where our strategy is aligned so that

we can have the greatest impact, we

continue our commitment to what

matters to our stakeholders, while

leading the marketplace seeking next-

generation solutions in natural-based

chemicals.

Our sustainability approach is

divided into three aspects, each

with its accompanying action and

corresponding SDGs:

We adopt this mindset when making daily operational and strategic

decisions, always leading with the intention of adding value to the

environment, society and business. The concept of prosperity, habitability

& profitability can only be achieved when we think sustainably. Our

aspiration is to progressively move up the sustainability ladder and be

strong advocates of sustainable manufacturing. We feel that this will

continue to provide countless direct and indirect jobs in the regions

around the world where we operate, and that this will also help propel

economic growth in the market segments where we sell our products. In

the long term, Emery Oleochemicals seeks to establish best practices that

can be emulated within the industry, to change existing paradigms and to

implement innovations that lead to ‘next practices’.

People : Think Sustainably

GOAL 17 Strengthen the means of

implementation and revitalise the global partnership for sustainable

development.

GOAL 8 Promote sustained, inclusive and

sustainable economic growth, full and productive employment and

decent work for all.



Process : Do Innovatively

GOAL 13 Take urgent action to combat

climate change and its impacts.

GOAL 9 Build resilient infrastructure,

promote inclusive and sustainable industrialisation and foster

innovation.

We believe leadership and talent are critical for developing a greener industry and see ourselves as agents of change by creating or collaborating in the development of innovative and sustainable products and partnering with suppliers and customers alike in projects that drive environmental and societal impacts.

Our product stewardship efforts are increasingly being influenced by the SDGs which have undeniably begun to shape the broader marketplace. Our in-house programmes focus on identifying and either preventing or minimising potential safety and environmental hazards. Therefore, we conduct extensive testing of our products to identify and understand possible safety, health and environmental hazards and communicate them where necessary through data sheets that outline handling, storing, transporting and usage requirements.

As part of our standard business practices, Emery Oleochemicals ensures compliance with international laws and regulations related to industry best practices including: • Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) • US Environmental Protection Agency Pre-Manufacture Notice (PMN) • US Department of Agriculture BioPreferred® • European Union Ecolabel

Impact : Inspire Change

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 12 Ensure sustainable consumption

and production patterns.

Ideas and decisions are followed through with innovative actions. At

Emery Oleochemicals, throughout our value chain, we have executed

numerous creative improvements and introduced various innovations

in line with our sustainability goals, such as sustainable sourcing, green

product breakthroughs, carbon offsetting initiatives, and more, while

also instilling a sustainability focused mindset. In a complex industry

such as chemicals manufacturing, there are also first-mover advantages

by fostering innovation informed by the evolving requirements of the

marketplace. Additionally, by being at the forefront of compliance, we

can better identify business opportunities and promote inclusive and

sustainable industrialisation, while also steering innovation.


Formalised Emery Oleochemicals’ sustainability vision, pillars, governance model, goals and produced the company’s first GRI-based Sustainability Report.

OperationalisingSustainability

20121

20132

Became signatories to the United Nations Global Compact (UNGC), incorporating

this framework into our operations, driving transparency covering the supply

chain in areas including human rights, labour, environment and corruption.

Driving traceabilityin supply chain

32014

Launched “Sourcing with Respect”, a comprehensive self-assessment tool guided by UNGCC, making it a pre-requisite in company’s contractual agreements with all suppliers. Extended operation sustainability to include the launch of a new Technical Development Centre in Loxstedt, Germany equipped with modern geothermal capabilities, complementing Malaysia's biogas infrastructure to facilitate achieving company-wide energy use commitments.

Strengthened business partnerships and sustainability in day-to-day operations

20154

Pledged to focus on contributing to six SDGs – Decent Work and Economic

Growth; Industry, Innovation and Infrastructure; Responsible Consumption

and Production; Climate Action; Life on Land and Partnerships for the Goals. 100%

traceable palm oil feedstock (segregated oils) was introduced into company’s

portfolio.

Adopted SDGs andcelebrated 175-years

in operation

20176

Celebrated the 60th anniversary of company’s signature polymer additives

product LOXIOL® and expanded production in USA to include LOXIOL® A

4 SPEZIAL providing North America’s plastics industry an alternative to

onylphenol ethoxylate.

Internalisingsustainability commitments

that go beyond conventional

2016

DEHYLUB® bio-lubricants were included in the European Union’s EEL Lubricant Substance Classification (LuSC) List for compliance with strict standards in bio-degradability, toxicity and renewable content. EMEROX® Polyols received U.S. Department of Agriculture’s (USDA) BioPreferred® accreditation in e¢orts to reduce industry’s reliance on conventional petroleum-based products.

Received industryrecognitions for high-qualityrenewable-based solutionsin new applications

5

Our Journey Continues

TheJourneySo Far



The diversity of our employees, customers, product

portfolio and the communities we operate in allows

us the breadth and reach to make a difference. The

alignment between Emery Oleochemicals’ corporate

culture and that of societal needs speaks to the vested

interest we have to achieve mutual success as we strive

towards achieving our sustainability commitments.

Leading this charge is our Sustainability Steering

Committee, helmed by our Group Chief Executive

Officer and in his capacity also as the Chief Sustainability

Officer. We periodically realign our leadership strategy,

daily operations, policies and procedures to achieve our

sustainability vision; instilling them into our corporate

culture so that our employees embrace the same ideals.

To this end, we have implemented sustainability targets

to ensure that we stay on track:

Sustainability Goals and Commitments

Reduce sustainability risks undertaken by our

partners and us

From feedstock to product, sustainability occurs

throughout the entire supply chain and beyond.

TARGET

1

Produce innovative and a�ordable sustainable

derivatives and ingredients

Our products and solutions are designed to support our

customers’ sustainability goals. When sustainability challenges arise, we work

together with customers to overcome them.

TARGET

2

Hone a “responsiblebusiness” model

A responsible business defines sustainability in a broader sense - people,

planet and profit; we continue to hone our own business model to cater to the evolving sustainability

needs of these three aspects.

TARGET

3

Create a culture of responsible and

sustainable practices for our internal and

external stakeholders to meet our short-term

and mid-term targets

We work to build a culture of integrity, mutual respect and social responsibility among our employees, customers,

suppliers, investors, policymakers, NGOs,

business partners and other key stakeholders.

TARGET

4

Our Susta inabi l i ty Targets


Materiality

Our Sustainability Materiality Matrix

assessment process identifies

sustainability-related topics that

are most frequently prioritised

in conversations with our various

stakeholders. While Material Topics

comprises issues that we intend to

manage, measure and report on, it also

represents those our stakeholders

are most keen to understand our

management of and progress on.

Emery Oleochemicals has an impact

on most of these topics through

our direct operations, with the most

significant impacts occurring within

our value chain, either through direct

management or through working

relationships with partners in our

value chain and industry.

In reassessing our Material Topics,

we reconfirmed that our Materiality

Matrix - one of the mechanisms used

to classify sustainability issues that

are important to our stakeholders and

are material within the organization

- aligns with our corporate priorities.

The results of this year’s assessment

largely reaffirmed the relevance of

our current Material Topics with only

slight adjustments needed from our

2016 reporting.

The 2017 Materiality Matrix therefore,

includes the addition of responses

from suppliers and other key

stakeholders.

When benchmarking our materiality

matrices with other industry

counterparts, we found that these

priorities are similar, and therefore,

consistent with industry demands and

best practices.

Significance of Economic, Environment and Social Impacts

Infl

uenc

e on

Sta

keho

lder

Ass

essm

ents

and

Dec

isio

ns

LOW HIGH

HIGH

CG

SBD

SDG

FLHROHS

HSE

SD

PI

PS

PQP

SCT

RSFT

CC

EM

WM

WQS

BM

Corporate Governance

Sustainability Big Data

UN Sustainable Development Goals

Fair Labour Practices & Human Rights

Occupational Health and Safety

Health, Safety & Environment

Stakeholder Development

Product Innovation

Product Safety

CG

SBD

SDG

FLHR

OHS

HSE

SD

PI

PS

Product Quality & Performance

Supply Chain Transparency

Responsible Sourcing

Feedstock Traceability

Climate Change

Energy Management

Waste Management

Water Quality and Supply

Biodiversity Management

PQP

SCT

RS

FT

CC

EM

WM

WQS

BM


Infl

uenc

e on

Sta

keho

lder

Ass

essm

ents

and

Dec

isio

ns

LOW HIGH

HIGH

CG

SBD

SDG

FLHROHS

HSE

SD

PI

PS

PQP

SCT

RSFT

CC

EM

WM

WQS

BM








Product Innovation

Product Safety

CG

SBD

SDG

FLHR

OHS

HSE

SD

PI

PS





Climate Change

Energy Management

Waste Management



PQP

SCT

RS

FT

CC

EM

WM

WQS

BM


Infl

uenc

e on

Sta

keho

lder

Ass

essm

ents

and

Dec

isio

ns

LOW HIGH

HIGH

CG

SBD

SDG

FLHROHS

HSE

SD

PI

PS

PQP

SCT

RSFT

CC

EM

WM

WQS

BM








Product Innovation

Product Safety

CG

SBD

SDG

FLHR

OHS

HSE

SD

PI

PS





Climate Change

Energy Management

Waste Management



PQP

SCT

RS

FT

CC

EM

WM

WQS

BM

Our M ateria l i ty M atrix

STAKEHOLDERS APPROACH KEY SUSTAINABILITY CONCERNS

• Customers• Shareholders• Employees• Policymakers• Business Partners• Communities• NGOs

• Meetings• Townhalls• Site Tours• Audits• Dialogues• Feedback Forms• Suggestion Schemes

Customers• Product & Service Quality• Environmental, Social & Community Impacts• Sustainability Certifications

Shareholders • Ethics & Corporate Values• Corporate Governance

Examples of how we engage with stakeholders

Employees • Health & Safety • Talent Management• Labour Rights

Policymakers • Creating Economic & Social Opportunities

Business Partners • Supply Chain Management

Communities • Environmental & Social Impacts

NGOs • Accountability & Transparency


We are commited to Creating Value

for our stakeholders, leveraging

business processes that are guided

by international compliance

standards.

CREATING A NEW ERA OF RESPONSIBLE GROWTH


STRENGTHENING OUR SUSTAINABILITY LEGACY


STRENGTHENING OUR SUSTAINABILITY LEGACY

Sustainability Progress DashboardWith shared global sustainability goals, we believe there are

mutually beneficial outcomes for all stakeholders who are

involved with our business, and the opportunity to advance

the broader natural-based chemical industry too.

When committing to the United Nations’ Sustainable

Development Goals in 2015, we set out to focus on meeting

specific goals in Supply Chain, Sustainable Products and

Partnerships.

SUPPLY CHAINS

2015

50% key suppliers self-audited against Sourcing with Respect

Guidelines.

2017

100% key suppliers self-audited against Sourcing with Respect

Guidelines.

50%Achieved

90%In Progress

SUSTAINABLE PRODUCTS

2015

Increase the uptake of sustainable palm products by o�ering commercially viable

RSPO MB & SG Grade solutions.

2017

Produce 5 innovative solutions that improve environmental & social impact whilst increasing

profitability.

PARTNERSHIPS

2015

Establish 3 programmes that further strengthens Emery

Oleochemicals’ responsible business mindset and practices

with a focus on internal stakeholders.

2017

Establish 3 key initiatives that embed a culture of sustainability and responsible business within

internal and external stakeholders and create win-win

partnerships.

100%Achieved

100%Achieved

100%Achieved

100%Achieved


We are proud to have achieved the following in 2017:

Supply Chain

In line with our aspirations to be our customers strongest

sustainability link, 100% of our key suppliers have

undergone self-audits, benchmarking their operation

against Emery Oleochemicals’ Sourcing with Respect

Guidelines.

Sustainable Products

Our tallow-based feedstock is part of an eco-system

designed to provide second-life to agriculture waste

which would otherwise have a detrimental effect to

people and the environment if left to landfills. Going

beyond that, we have developed and launched several

innovative, natural-based specialty chemicals that

contribute towards several SDGs, detailed in the Case

Study section of this report.

Partnerships

In line with SDG 17 (‘Strengthen the means of

implementation and revitalise the global partnership for

sustainable development’), we have actively collaborated

with internal and external stakeholders to drive

measurable and long-term impact. Key programmes

revolve around traceability, developing and strengthening

the sustainability culture and enabling responsible supply

chains.


STRENGTHENING OUR SUSTAINABILITY LEGACY > People

People : Stakeholder Engagements

Düsseldorf (North Rhine-

Westphalia) & Loxstedt

(Cuxhaven), Germany

Cyclists Live Up to Their “Sustainable Promise” with Return Trip a Year Later

Within the initiative “Loxstedt turns

the climate wheel”, several Emery

Oleochemicals’ employees cycled

from Loxstedt to Düsseldorf to attend

a business meeting. Raising awareness

on environmental protection through

cycling to work, the team kept a

promise made in 2016 (when they

cycled from Düsseldorf to Loxstedt) to

do a return trip, only this time, cycling

in the opposite direction.

Riding approximately 400km for a

meeting in Loxstedt, the journey was

not without its weather challenges!

Setting out in the late morning

from Düsseldorf, the summer June

weather with its mix of rain and sun,

only served to strengthen the team’s

determination to clock in a shorter

ride time compared to the previous

year’s.

With only two stops, they arrived in

Loxstedt two days later, amid a fanfare

set up to receive them. Like 2016,

several other cyclists joined them

in the final 40km journey, in show of

solidarity and support to the cause.

Each round trip between Düsseldorf and Loxstedt clocks in at 900 rail km.

Almost 2.5 tons CO2 is generated with a weekly travel in one year! (52 weeks x 900 km x 5kg CO2/100 km = 2.3 tons).


Loxstedt, Germany

Tree Donation Helps Achieve Carbon Dioxide Compensation and Climate Protection

With commuting being one of the

key sources of carbon emissions,

Jörn Ellerbrake, Regional Managing

Director of the company’s Europe

operation, decided on a unique

approach to compensate for train

travel regularly undertaken from

Loxstedt to Düsseldorf – a common

business journey undertaken by many

of Emery’s Germany employees .

Spearheading the move, the team

converted the total CO2 emissions for

a year-long worth of return train travel

regularly made, into the minimum

tree-cover needed to compensate for

emissions. Subsequently, in partnership

with the city of Loxstedt, signatories of

a national climate protection initiative,

Emery Oleochemicals GmbH donated

240 oak trees to the local community.

Planted only 1.5 kilometres away from

the company’s Loxstedt facility, the

oak trees are known for their climate-

resilient properties.

Overseen by Hinrich Hildebrandt,

Head of Regional Safety, Health,

Environment and Quality (SHEQ)

Management and Production,

experts from a local nursery

planted the saplings in public land

space maintained by the Loxstedt

community. These oaks are expected

to compensate for three tons of CO2

over their lifetime.

From left to right : Anne Boettjer (Community of Loxstedt, responsible for climate protection initiative),

Detlef Wellbrock (Mayor of Loxstedt), Jörn Ellerbrake (Emery Oleochemicals GmbH, Regional Managing Director),

Hinrich Hildebrandt (Emery Oleochemicals GmbH, Head of Regional SHEQ-Management and Production)

Electric rail travel is still one of the most environmentally-friendly passenger transports with only 5kg CO2 /100 km emissions generated on average per person.

80 oak trees can absorb a tonne of CO2 over their lifetime.



Loxstedt, Germany“Wishing Tree” Donations Bring Great Joy at Christmas

The holidays can be a special time for

gift-giving and receiving. However,

having the means to give gifts can

be a struggle for some families.

For Christmas, Emery employees

supported a project organised by the

local newspaper - Nordsee-Zeitung

- together with the local municipality

and Loxstedter Tafel, a local charity,

to provide children from socially

disadvantaged families with a little joy

at Christmas.

A “Wishing Tree” was set up in the

Loxstedt site canteen with wishes

of the children listed on cards hung

all around this special-purpose tree.

Employees, in volunteering to procure

those wishes (presents) on behalf of

the company, fulfilled every single one

– snapping up the cards in mere hours

from it being hung. Presents were

gifted by Santa Claus at a Christmas

party organised by Loxstedter Tafel.


Telok Panglima Garang

(Selangor), Malaysia

Motivational Camp InspiresConfidence Among Students

In an annual workshop held at the Sekolah

Jenis Kebangsaan (T) Telok Panglima

Garang, some 100 high school students

came together for a series of activities

designed to further develop their

academic and non-academic skills and

increase the morale, confidence, resilience

and responsibilities of the students.

Emery Oleochemicals (M) Sdn. Bhd,

through a first-time donation of USD2,800

(MYR11,600), enabled the successful

organising of the well-attended camp.



Cincinnati (Ohio),

United States

100 Faculty and Staff Members from 2017 OSU Roads Scholars Hosted in a Site Tour

Billy Yeoh, Head Specialties Business at Emery Oleochemicals (2nd from left) presents OSU President

Dr. Drake (3rd from left) with Emery’s 175 Year Anniversary commemorative candle and book

Each year, The Ohio State University

(OSU) conducts a 2-day trip around

the great state of Ohio where select

faculty, staff and students literally

travel the roads on buses to visit local

businesses; hence the name “Roads

Scholars”. The 2017 OSU Roads

Scholars comprised of approximately

100 faculty and staff members as

well as students, were hosted at

the Cincinnati site for a half-day

programme that kicked off with a

welcome speech from Billy Yeoh,

Head Specialties Business.

Following a networking lunch,

the scholars attended several

presentations including a showcase

of the facility’s Site Operations, and

the company’s Agro Green and Eco-

Friendly Polyols business platforms.

The event, which concluded with

a guided plant tour provided the

OSU visitors with an opportunity

to gain valuable insight into Emery

Oleochemicals’ business and learn

about potential future employment

opportunities.

OSU’s President, Dr. Michael Drake,

who attended the event, was very

appreciative of our hospitality and

the opportunity to engage with Emery

to further enhance our ongoing and

future collaborations.


Cincinnati (Ohio),

United States

Cincinnati (Ohio),

United States

Enriching the Lives of Neighboursin our Community

Walking for an Important Cause : An End to Alzheimer’s

Emery Oleochemicals LLC was

proud to donate to the Winton

Hills Community, located across

the street from its Cincinnati plant,

through three key initiatives, over the

course of the year. The overarching

summit themed “Believe in

Yourself”, encouraged attendees

to build positive and healthy

relationships to reach their full

potential. The company’s donation

also supported the community’s

Summer Enrichment Camp where

the neighbourhood children had the

opportunity to learn about plants

and gardening from volunteers

of their community garden, to

construct a DNA model out of

candy and to use puppets to tell

stories about their neighbourhood

among other activities. In the Fall,

Emery Oleochemicals’ donation

supported their annual Back-to-

School Backpack Giveaway where

children received a backpack with

supplies to help prepare them for

the upcoming school year.

In October, TEAM EMERY, comprised of

thirty-one Cincinnati employees and

their family members, joined together

for the Cincinnati Tri-State Walk to

End Alzheimer’s. Participating with

hundreds of other people who came

out that day to show support for those

who have had their life impacted by

Alzheimer’s disease, this collaborative

activity was a truly meaningful way

for colleagues to experience such an

inspiring event. Through the generous

donations from employees, and with

a company-matched amount, a final

donation totalling USD3,765 was

made to the Alzheimer’s Association

to help advance their care, support

and research efforts.


STRENGTHENING OUR SUSTAINABILITY LEGACY > Process

“According to a new study by the American Sustainable Business Council and the Green Chemistry & Commerce Council (GC3), it is a market set to jump from $11 billion in 2015 to nearly $100 billion by 2020 as companies grapple to build more sustainable entities and de-risk their processes.” - Corporate Risk and the Growing Case for Sustainable Chemical Management, UL EHS Sustainability

Today, the chemical industry

is increasingly sensitive and

responsive to the growing demand

for transparency and accountability

in the entire lifecycle of chemical

products, from sourcing of

feedstock to the manufacturing

process to waste management to

product impact to labour rights

and right up to the products’

environmental impact and health

and safety of its users.

As part of our broader goal to meet

and exceed industry regulatory

and compliance needs, Emery

Oleochemicals has, in recent years,

extended our risk mitigation efforts

within the context of operation

compliance to include our partners’

key indicators in operational and

regulatory topics. Benchmarked

against the stringent demands of

an evolving industry, we believe

that by proactively addressing

any issues of non-compliances,

including the implementation of

corrective action plans throughout

our value chain, this enables us to

achieve the high standards we have

set for ourselves.

Process : Strengthening ComplianceOur Accreditat ions


Case Study

Continuation of Our 2016 Traceability Agenda for Sustainable Palm Oil Sourcing

Emery Oleochemicals’ efforts to

maintain traceability within our value

chain is an activity that many leading

manufacturers are undertaking as part

of an increasing global drive for ethical

value chains and a shift towards

responsible consumerism. Being able

to track and trace the movement

of palm oil is therefore, not only

necessary for regulatory compliance,

but to also manage operational and

reputational risks, increase quality

control and address inefficiencies

quickly and accurately.

Forming a partnership with J&J, a

unique traceability programme was

initiated, leveraging a customised

digital application introduced by Emery

Oleochemicals in 2016. As part of its

corporate credo, J&J’s commitment

which includes “supporting good

work, and protecting the environment

and natural resources”, embarked on

mapping its smallholder community

within Emery Oleochemicals’ and

J&J’s collective supply chain. The pilot

project involved approximately 3,000

smallholders, with the plan for the

data mapping to be extended to the

supply chain.

The current engagement, conducted

via face to face interactions and digital

tools, collects data with the view of

providing smallholders with incentives

and learning opportunities, promoting

fair trade, and establishing feedback

mechanisms that enable regular

communications, among others.

Big data from these smallholders’

footprint will be used to evidence

relevant SDGs within the partnership’s

supply chain and to provide a palm

footprint dashboard.

This interactive supply chain dashboard

will generate traceability data from

mills down to individual palm

smallholders and will additionally

offer policy-linked data such as no

slash and burn, zero deforestation

and fair labour. Other relevant SDG

impacts can also be evidenced.

Sample data mapping



Case StudySourcing with Respect Guidelines (SRG)

Since its implementation in

2014, the SRG, one of Emery

Oleochemicals’ signature external-

facing initiatives, has improved

our assessment of social and

environmental footprints caused

by upstream feedstock, products

and services, into our supply chain.

Designed as a tool to determine

the sustainability standards upheld

by all our suppliers, the SRG Self-

Assessment exercise implemented

in 2016 has additionally allowed

us to better engage in responsible

sourcing and determine the total

environmental impact of our

operation. Emery Oleochemicals

maintains a zero-tolerance policy

in corruption and labour issues.

These potential risks, and other

critical areas including industry

certification of our suppliers, were

assessed by an independent, third-

party partner, covering the year

2017.

Completed92%

Global

Incomplete0%

Declined8%

106 Suppliers • Registered : 101 (95%)

Completed94%

NorthAmerica

Declined6%

50 Suppliers • Registered : 50 (100%)Completed100%

Asia Pacific


Completed83%Europe

Declined17%


Yes42%

Does your organisation have a whistle blowing policy?

In compliancewith local &

national laws46%

No12%

Yes50%

Does your organisation have an anti-corruption and bribery policy?


national laws44%

No6%

Yes40%

Does your organisation have a policy of anti-competitive practices?


national laws46%

No14%

Has your organisation adopted anenvironmental policy?

Yes59%


national laws37%

No4%

Has your organisation received any significant environmental fines

in the reporting period?

No79%

NotAvailable11%

Yes10%

Yes48%

Does your organisation have a human rights policy?


national laws46%

No6%

Is your organisation compliant withnational employment laws

on working hours?

Yes100%


on minimum age?


on right to association?

Yes100%

Yes100%

Yes64%

Does your organisation have a non-discriminationor equal opportunity policy?


national laws32%

No4%

Yes69%

Does your organisation have a health and safety policy?


national laws27%

No4%

ISO 14001

29%Completed

RSPO

22%Global

RSPO

57%Asia Pacific

RSPO

38%Europe

RSPO

8%North America

Others57%

Palm Oil18%

Transportation12%

Toller/Sub Manufacturer5%

Tallow3%

Energy5%

Completed92%

Global

Incomplete0%

Declined8%


Completed94%

NorthAmerica

Declined6%


Asia Pacific


Completed83%Europe

Declined17%


Yes42%



national laws46%

No12%

Yes50%



national laws44%

No6%

Yes40%



national laws46%

No14%


Yes59%


national laws37%

No4%



No79%

NotAvailable11%

Yes10%

Yes48%



national laws46%

No6%


on working hours?

Yes100%


on minimum age?



Yes100%

Yes100%

Yes64%



national laws32%

No4%

Yes69%



national laws27%

No4%

ISO 14001

29%Completed

RSPO

22%Global

RSPO

57%Asia Pacific

RSPO

38%Europe

RSPO

8%North America

Others57%

Palm Oil18%

Transportation12%


Tallow3%

Energy5%

ENVIRONMENT HUMAN RIGHTS

CORRUPTION


Completed92%

Global

Incomplete0%

Declined8%


Completed94%

NorthAmerica

Declined6%


Asia Pacific


Completed83%Europe

Declined17%


Yes42%



national laws46%

No12%

Yes50%



national laws44%

No6%

Yes40%



national laws46%

No14%


Yes59%


national laws37%

No4%



No79%

NotAvailable11%

Yes10%

Yes48%



national laws46%

No6%


on working hours?

Yes100%


on minimum age?



Yes100%

Yes100%

Yes64%



national laws32%

No4%

Yes69%



national laws27%

No4%

ISO 14001

29%Completed

RSPO

22%Global

RSPO

57%Asia Pacific

RSPO

38%Europe

RSPO

8%North America

Others57%

Palm Oil18%

Transportation12%


Tallow3%

Energy5%

LABOUR

SUPPLIER CERTIFICATIONS

RESPONDENTS BY CATEGORY

OVERALL COMPLETIONSTATUS

Completed92%

Global

Incomplete0%

Declined8%


Completed94%

NorthAmerica

Declined6%


Asia Pacific


Completed83%Europe

Declined17%


Yes42%



national laws46%

No12%

Yes50%



national laws44%

No6%

Yes40%



national laws46%

No14%


Yes59%


national laws37%

No4%



No79%

NotAvailable11%

Yes10%

Yes48%



national laws46%

No6%


on working hours?

Yes100%


on minimum age?



Yes100%

Yes100%

Yes64%



national laws32%

No4%

Yes69%



national laws27%

No4%

ISO 14001

29%Completed

RSPO

22%Global

RSPO

57%Asia Pacific

RSPO

38%Europe

RSPO

8%North America

Others57%

Palm Oil18%

Transportation12%


Tallow3%

Energy5%


Completed92%

Global

Incomplete0%

Declined8%


Completed94%

NorthAmerica

Declined6%


Asia Pacific


Completed83%Europe

Declined17%


Yes42%



national laws46%

No12%

Yes50%



national laws44%

No6%

Yes40%



national laws46%

No14%


Yes59%


national laws37%

No4%



No79%

NotAvailable11%

Yes10%

Yes48%



national laws46%

No6%


on working hours?

Yes100%


on minimum age?



Yes100%

Yes100%

Yes64%



national laws32%

No4%

Yes69%



national laws27%

No4%

ISO 14001

29%Completed

RSPO

22%Global

RSPO

57%Asia Pacific

RSPO

38%Europe

RSPO

8%North America

Others57%

Palm Oil18%

Transportation12%


Tallow3%

Energy5%

Completed92%

Global

Incomplete0%

Declined8%


Completed94%

NorthAmerica

Declined6%


Asia Pacific


Completed83%Europe

Declined17%


Yes42%



national laws46%

No12%

Yes50%



national laws44%

No6%

Yes40%



national laws46%

No14%


Yes59%


national laws37%

No4%



No79%

NotAvailable11%

Yes10%

Yes48%



national laws46%

No6%


on working hours?

Yes100%


on minimum age?



Yes100%

Yes100%

Yes64%



national laws32%

No4%

Yes69%



national laws27%

No4%

ISO 14001

29%Completed

RSPO

22%Global

RSPO

57%Asia Pacific

RSPO

38%Europe

RSPO

8%North America

Others57%

Palm Oil18%

Transportation12%


Tallow3%

Energy5%


Case Study

Alternative Energy Drives Operational Efficiencies and Second-life for By-product

Biogas is a renewable and clean

source of energy with a continuous

production-and-use cycle. Generated

by upcycling waste products, biogas is

non-polluting and reduces greenhouse

emissions as no combustion takes

place in the process. With zero

emission of greenhouse gasses to the

atmosphere, it is unsurprising that

the concern for the environment is a

major reason why the use of biogas

has become more widespread, making

conversion of biogas to electricity a

standard technology (or aspiration) in

many manufacturing sites.

At Emery Oleochemicals, our move to

incorporate alternative energy sources

into our production process began to

take shape with the implementation

of biogas and thermal energy

facilities. This pivotal decision became

the business case for our global

operation’s phased improvement

in energy utilisation. In addition to

recognising the cost advantage, as

part of adopting risk management

models across our sites, we are able to

mitigate adverse environmental and

social impacts that meet and often

go beyond the mandatory ISO14001

certification.

Comprehensive environmental impact

assessments are conducted at all our

facilities, enabling us to maintain high

environmental protection standards

and strengthen our comprehensive

energy management systems that

span energy usage, water utilisation

and disposal, and various types of

emissions.


Case Study

Growing Our Tallow-based Product Portfolio Addresses Key Environmental Challenges

Rendering is a strictly controlled

industry where government

regulations and industry codes of

practice determine the specific criteria

for manufacturing standards that may

apply to that country. Process controls,

infrastructure, volume reduction,

and timely processing are inherent to

the industry. In addition, regulatory

requirements, such as traceability

and environmental regulations, make

rendering the preferred method for

the collection, transportation and

processing of animal by-products and

mortalities.

This green industry protects the

environment by recycling carbon

and energy and allowing items such

as by-products to be utilised as

valuable feedstock ingredients or

bio-diesel rather than entering a

landfill. Billed as the most efficient

and environmentally sound disposal

alternative with a low carbon footprint,

Emery Oleochemicals only obtains

feedstock from tallow suppliers who

follow the industry’s strict hygiene and

environmental standards regulated by

national and trade associations such

as the National Renderers Association,

USA.

Furthermore, preference is given to

suppliers who follow the American

Fats and Oils Association (AFOA)

Trade Rules or German Association

of Wholesale Traders in Oils, Fats

and Oil Raw Materials (GROFOR) or

Netherlands Oils, Fats and Oilseeds

Trade Association (NOFOTA) Trade

Rules.

We have been using tallow as

feedstock since the first candle we ever

produced over 175 years ago. Today,

upcycling of this waste product from

the food animal processing industry

occurs mainly in our North American

and European manufacturing sites.

Responding to the growing need for

natural-based chemicals, we continue

to innovate in sustainably produced

oleochemicals, semi-specialty and

specialty chemicals used in the

manufacture of agricultural products,

home and personal care items,

pharmaceuticals, lubricants, plastic

and rubber products, automotive

solutions, building and construction,

and more.

“Rendering animal

by-products is not

only sustainable

and safe, it provides

ingredients for

countless products

used in every day life.” – National Renderers

Association, USA



Case Study

Health and Safety Excellence Takes Top Award in Cincinnati

As part of the company’s ongoing

safety improvement process, Emery

Oleochemicals instituted a new Safety

Leadership System at its Cincinnati

plant designed to further engage

manufacturing employees on the topic

of Health and Safety. The programme

awards points for participation in

various types of safety-related

activities: job safety analysis, process

hazards analysis, pre-startup safety

review, management of change, safety

coaching, 5S events, participating in

one of our four safety committees,

submitting safety improvement ideas,

and others.

With a theme of “We Watch Out For

Each Other”, the purpose of this Safety

Leadership System is to motivate

employees from being safety “doers”,

i.e. completing training, following

procedures, etc., to a higher and

more active level of involvement in

our safety improvement continuum.

2017 saw the first programme

implementation with 20 employees

recognised as Safety Leaders –

obtaining the required safety points,

while 70 employees were recognised

as Active Safety Participants.

Emery Oleochemicals’ Cincinnati Plant Receives 2017 Award for Excellence in Health & Safety Performance from Ohio Chemistry Technology Council (OCTC)

In May 2017, Mark Zanoni (left), Cincinnati Site Operations Director and Mike Groh (right), Cincinnati SH&E Manager, accepted this

Award for Excellence from the Ohio Chemistry Technology Council (OCTC) in recognition of our new Safety Leadership System.


Impact : Innovative Solutions For Sustainable ConsumptionWhile our mission of ‘Creating

Value’ through the manufacture of

innovative, natural-based chemicals

begins with renewable raw materials

in compliance with our responsible

sourcing requirements, it is Emery

Oleochemicals’ commitment to

develop sustainable solutions that

meet continually-evolving customer,

regulatory and societal needs

that drives our ongoing corporate

governance and business objectives.

Through our proactive approach

to deliver more environmentally-

friendly chemicals that are sustainably

utilised across a broad spectrum of

applications, to their ultimate positive

impact in the marketplace, we can

contribute actively to a more circular

economy and to the SDGs.


STRENGTHENING OUR SUSTAINABILITY LEGACY > Impact

Agriculture Sector

Certified 100% Bio-based Product Label from USDA for EMERION™ Herbicide Products

Bio-based products are cost-

comparative, readily available and

perform as well as, or better than,

their conventional counterparts. Bio-

based products, through petroleum

displacement, have played an

increasingly important role in reducing

greenhouse gas emissions that

exacerbate global climate change.

In 2017, Emery Oleochemicals earned

the U.S. Department of Agriculture

(USDA) “Certified Biobased Product”

label for several of its EMERION™

Herbicide natural-based weed control

solutions. This supports and reinforces

the company’s Agro Green business

philosophy to offer farmers and

growers in the agriculture community

more environmentally-friendly and

renewable solutions so they can most

effectively meet consumer demand to

produce food in a safer manner than

by using conventional petrochemical-

based products.

The company’s herbicide products:

EMERION™ 7000 Concentrate,

EMERION™ 7030 Concentrate and

EMERION™ 7020 Concentrate, were

each certified by the USDA as being

a 100% bio-based product; thus,

earning the right to display a unique

label that highlights its percentage of

bio-based content.

“We applaud Emery

Oleochemicals for earning

the USDA ‘Certified

Biobased Product’ label.

Emery Oleochemicals’

solutions contribute

to an ever-expanding

marketplace that adds value

to renewable agriculture

commodities, creates jobs

in rural communities, and

decreases our reliance on

petroleum.”

- Kate Lewis, USDA BioPreferred Programme



Industrial Lubricants Sector

EMEROX® Azelaic Acid Added to European Ecolabel LuSC-List

The European (EU) Ecolabel helps

identify products that have reduced

environmental impact and proven

technical performance with its

LuSC-List, detailing components

for lubricants that meet stringent

biodegradation, aquatic toxicity and

renewability requirements. Emery

Oleochemicals, following its on-

going commitment to developing

environmentally-friendly products,

added its 11th Bio-Lubricants solution

to the list. The EMEROX® 1144 azelaic

acid, a crucial component for complex

grease thickener systems, achieved

the following ratings on the Brands

‘Thickeners’ LuSC-List:

• 100%A for EEL Biodegradation

• 100%D for EEL Aquatic Toxicity

• 100% for Renewability

Formulators who use products on

the LuSC-List are assured that their

finished lubricant products meet

EU Ecolabel criteria. For marine

applications, products formulated

from EU Ecolabel substances

are considered Environmentally

Acceptable Lubricants (EALs), which

are required by the current U.S. EPA’s

Vessel General Permit (VGP).

“In support of the circular economy and our company’s own sustainability objectives, Emery Oleochemicals has an on-going commitment to provide our customers with high-performance, bio-based lubricant solutions. The addition of EMEROX® 1144 to the LuSC-List Brands section as well as our investments in our own toxicity testing to prove the suitability of Lithium Azelate for EEL compliant

grease formulations reinforces that.”

- Dr. Matthias Hof, Head of Bio-Lubricants Product and Application Development group, Emery Oleochemicals.



Consumer & Industrial Plastics Sectors

Renewably-derived Antifogging Agent Launched in North America Provides the Marketplace a Sustainable Alternativeto NPEs

Emery Oleochemicals expanded

its production capabilities at its

Cincinnati, Ohio, USA plant to support

customers in North America with

its LOXIOL® A 4 SPEZIAL product, a

renewably-derived antifogging agent

and an excellent alternative to NPEs

(nonylphenol ethoxylate).

The use of NPEs is already banned by

the European Union, while the phase-

out of NPEs currently may be done on

a voluntary basis in the United States.

Large consumer companies like

Walmart are encouraging suppliers to

reduce or even eliminate the use of

NPEs due to their potentially negative

impact on human health and the

environment.

As a natural-based product, LOXIOL®

A 4 SPEZIAL has obtained food contact

approval and as an antifogging agent,

it can be incorporated into polymers

during the extrusion process. By

using this antifogging agent in food

wrap, condensed water droplets are

spread into a thin continuous layer

of water, improving the transparency

of the packaging and durability of the

contents. Specifically designed to

match the key properties and effective

performance of NPEs typically used in

these PVC foods wrapping films while

providing a safe, renewable and readily

biodegradable alternative, LOXIOL® A

4 SPEZIAL as an antifogging agent can

be also used in agricultural films. It is

shown to improve light transmission

which results in higher plant growth

rates, higher crop yields, and earlier

crop maturity.

“LOXIOL® A 4 SPEZIAL is a highly efficient, phenol-free solution which is derived from highly renewable raw material. It adds another excellent product to the offerings for our customers in North America, further supporting our vision to be ‘The First Choice in Sustainable Polymer Additives’ by providing high-performance and greener

alternatives.”

- Dr. Harald Klein, Global Business Director, Green Polymer Additives, Emery Oleochemicals


Celebrating 60 Years of LOXIOL® Green Polymer Additives

Emery Oleochemicals’ world-

renowned product brand, LOXIOL®,

celebrated its 60th anniversary with

a milestone event hosted by the

company’s Green Polymer Additives

business platform. Held across two

days, customers, VIPs and employees

from the Loxstedt site and Düsseldorf

office were fêted in a series of activities

as part of the “Heart of the Green

Polymer Additives” celebrations.

Taking place at the Technical

Development Centre (TDC) in

Loxstedt, the city where the LOXIOL®

brand was formed in 1898, attendees

at the event had the opportunity to

participate in guided tours of the

state-of-the-art laboratory, TDC and

production facility, join presentations

chronicling LOXIOL® ‘s history since

its inception by then-company

“Neynaber Chemie”. Guests also had

the chance to mingle over food and

drinks.


New storage tank installationEnabled the site to run larger campaigns thus resulting in reduced energy consumption, less waste (due to less change over), improved overall efficiency and turnaround time for customers.

New heat exchanger installationLocated in the Esterification plant, the unit increased reliability and reduced leakage potential.

End-of-life vessel replacements 2 units in the Demineralisation plant of the boiler house were replaced to mitigate any potential environmental issues due to old vessel failure.


Emery Oleochemicals’ Global Site Enhancements Contribute to Sustainability Objectives

Germany


Malaysia

Sulfonation plant reactors’ dosing pump installationCatering to sulphonic acid processing that allows for full recovery of waste generated during plant start-up process.

Fatty alcohol plant boiler house uses condensate waterAn outcome from the steam generation process, utilisation of condensate water reduces fresh demineralised water production and usage, resulting in operational savings of approximately USD 76,000/year.

Fatty acid plant distillation process fine-tuning Reduced steam consumption via lower temperature settings that lowered natural gas demand and deionised water consumption.

Sulfonation plant enhanced with variable speed drives (VSD)Reduced electricity consumption created operational savings of approximately USD 80,000/year.

Specialties plant reactor’s clean-in-place (CIP) systemNozzles installed to improve batch time during solid-liquid product change over with demonstrated results including process efficiencies and reduced generation of waste and off-spec products.

Glycerine plant fine-tuning and upstream process control Reduced use of activated carbon, chemical consumption and generation of activated carbon waste.


United States

Ozone plant scrubber systems process modificationEliminating the use of ‘once-through’ water with this water recycling project saving over 5mil gallons of water per year (purchased and discharged), equivalent to approximately USD70,000 in operational savings.

Wastewater treatment plant refurbishment Ensured continued reliability and efficient operation of on-site system and reduced the need to discharge to the city’s municipal wastewater treatment facility.

Boiler Continuous Emissions Monitoring System (CEMS) replacement Enabled continued reliability and accurate reporting of the boiler’s air emissions as required by the Cincinnati site’s air permit.

Regenerative Thermal Oxidizer (RTO) refurbishmentFacilitated on-going consistency and capability to provide the level of air emissions control, required by the Cincinnati site’s air permit.

Refined glycerine filter project A new sealed cartridge-style filter was installed to ensure no leakage into the site’s wastewater, thus helping to reduce biological oxygen demand (BOD) which can be harmful to the environment.

Fatty acid plant insulation replacementReduced heat loss, therefore lowering the need for energy consumption used for heating.


Managing our resources to

meet present needs without

compromising those of the future.

OPERATING WITH SUSTAINABILITYAS A FOCUS


OUR SUSTAINABILITY DASHBOARD


OUR SUSTAINABILITY DASHBOARD > Habitability

Habitability

Sustainability requires managing our

resources to meet present needs

without compromising that of the

future. As we continue to expand

our presence into new application

areas and geographies, we are ever

more aware that how we manage

our operations will affect future

generations. Planning for long-term

sustainability at Emery Oleochemicals

requires us to proactively engage with

local stakeholders including regulatory

bodies, conduct regular, detailed

environmental impact assessments,

utilise mine modelling tools and make

strategic decisions that balance present

and future demands for resources.

By proactively building a sustainable

operation, we continue to make

inroads that enable us to achieve our

business, societal and environmental

goals established in line with the six

SDGs we have adopted. In order so

that generations to come are still

able to maintain a high quality of

life, our commitment to maintaining

planet habitability allows us to

simultaneously preserve economic

prosperity, environmental quality

and social consciousness, while still

ensuring business viability.

ENVIRONMENTAL> Materials Used By Weight

Natural Gas (‘000 m3)

Total estimated weightof materials used (’000 mT)

2016

2015

2014

2013

2017295

295

309

415

549

Total estimated weight used that are recycled/renewable input materials (’000 mT)

2016

2015

2014

2013

2017220

220

228

341

299

Total fuel consumption from non-renewablesources in giga-joules (GJ)

2016

2015

2014

2013

20175,555,697

5,495,357

4,775,447

6,246,673

5,344,999

2017 2016 2015 2014 2013

155,

185

128,

318

148,

803

144,

410

149,

347

Light fuel oil or Kerosene [Diesel or Gasoil] (‘000 liters)

2017 2016 2015 2014 2013

136

267

533

106

93

Electricity (‘000 kWh)

2017 2016 2015 2014 2013

209,

802

203,

547

206,

657

173,

917

194,

913

Total fuel consumption from renewable sources (’000 Nm3)

2017 2016 2015 2014 2013

1,77

9

1,05

6

1,06

4

1,151

1,33

0

Renewable energy, Biogas/ Biomass (GJ)

2017 2016 2015 2014 2013

35,5

70

25,7

22

37,0

44

23,4

36

32,4

05

Natural Gas88.27%

Biogas 0.52%

Electricity11.21%

EnergyConsumption

Portfolio 2017

Total energy consumption (’000 kWh)

2016

2015

2014

2013

20171,738,873

1,900,851

1,600,861

2,057,981

2,016,739



2016

2015

2014

2013

2017295

295

309

415

549


2016

2015

2014

2013

2017220

220

228

341

299


2016

2015

2014

2013

20175,555,697

5,495,357

4,775,447

6,246,673

5,344,999

2017 2016 2015 2014 2013

155,

185

128,

318

148,

803

144,

410

149,

347


2017 2016 2015 2014 2013

136

267

533

106

93


2017 2016 2015 2014 2013

209,

802

203,

547

206,

657

173,

917

194,

913


2017 2016 2015 2014 2013

1,77

9

1,05

6

1,06

4

1,151

1,33

0


2017 2016 2015 2014 2013

35,5

70

25,7

22

37,0

44

23,4

36

32,4

05

Natural Gas88.27%

Biogas 0.52%

Electricity11.21%

EnergyConsumption

Portfolio 2017


2016

2015

2014

2013

20171,738,873

1,900,851

1,600,861

2,057,981

2,016,739

Energy Consumption Within The Organisation> Total fuel consumption from non-renewable sources





2016

2015

2014

2013

2017295

295

309

415

549


2016

2015

2014

2013

2017220

220

228

341

299


2016

2015

2014

2013

20175,555,697

5,495,357

4,775,447

6,246,673

5,344,999

2017 2016 2015 2014 2013

155,

185

128,

318

148,

803

144,

410

149,

347


2017 2016 2015 2014 2013

136

267

533

106

93


2017 2016 2015 2014 2013

209,

802

203,

547

206,

657

173,

917

194,

913


2017 2016 2015 2014 2013

1,77

9

1,05

6

1,06

4

1,151

1,33

0


2017 2016 2015 2014 2013

35,5

70

25,7

22

37,0

44

23,4

36

32,4

05

Natural Gas88.27%

Biogas 0.52%

Electricity11.21%

EnergyConsumption

Portfolio 2017


2016

2015

2014

2013

20171,738,873

1,900,851

1,600,861

2,057,981

2,016,739



2016

2015

2014

2013

2017295

295

309

415

549


2016

2015

2014

2013

2017220

220

228

341

299


2016

2015

2014

2013

20175,555,697

5,495,357

4,775,447

6,246,673

5,344,999

2017 2016 2015 2014 2013

155,

185

128,

318

148,

803

144,

410

149,

347


2017 2016 2015 2014 2013

136

267

533

106

93


2017 2016 2015 2014 2013

209,

802

203,

547

206,

657

173,

917

194,

913


2017 2016 2015 2014 2013

1,77

9

1,05

6

1,06

4

1,151

1,33

0


2017 2016 2015 2014 2013

35,5

70

25,7

22

37,0

44

23,4

36

32,4

05

Natural Gas88.27%

Biogas 0.52%

Electricity11.21%

EnergyConsumption

Portfolio 2017


2016

2015

2014

2013

20171,738,873

1,900,851

1,600,861

2,057,981

2,016,739



2016

2015

2014

2013

2017295

295

309

415

549


2016

2015

2014

2013

2017220

220

228

341

299


2016

2015

2014

2013

20175,555,697

5,495,357

4,775,447

6,246,673

5,344,999

2017 2016 2015 2014 2013

155,

185

128,

318

148,

803

144,

410

149,

347


2017 2016 2015 2014 2013

136

267

533

106

93


2017 2016 2015 2014 2013

209,

802

203,

547

206,

657

173,

917

194,

913


2017 2016 2015 2014 2013

1,77

9

1,05

6

1,06

4

1,151

1,33

0


2017 2016 2015 2014 201335

,570

25,7

22

37,0

44

23,4

36

32,4

05

Natural Gas88.27%

Biogas 0.52%

Electricity11.21%

EnergyConsumption

Portfolio 2017


2016

2015

2014

2013

20171,738,873

1,900,851

1,600,861

2,057,981

2,016,739



2016

2015

2014

2013

2017295

295

309

415

549


2016

2015

2014

2013

2017220

220

228

341

299


2016

2015

2014

2013

20175,555,697

5,495,357

4,775,447

6,246,673

5,344,999

2017 2016 2015 2014 2013

155,

185

128,

318

148,

803

144,

410

149,

347


2017 2016 2015 2014 2013

136

267

533

106

93


2017 2016 2015 2014 2013

209,

802

203,

547

206,

657

173,

917

194,

913


2017 2016 2015 2014 2013

1,77

9

1,05

6

1,06

4

1,151

1,33

0


2017 2016 2015 2014 201335

,570

25,7

22

37,0

44

23,4

36

32,4

05

Natural Gas88.27%

Biogas 0.52%

Electricity11.21%

EnergyConsumption

Portfolio 2017


2016

2015

2014

2013

20171,738,873

1,900,851

1,600,861

2,057,981

2,016,739

> Total fuel consumption from non-renewable sources (cont’d)

Energy Consumption Within The Organisation> Renewable sources energy consumption within organisation

• 2012 Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting• Methodology Paper for Emission Factors, Pg 25, Table 11 • www.iea.org/countries/stats/docs/statistics_manual.pdf• www.convert-me.com/en/convert/energy/cmsgas.html?u=cmsgas&v=144%2C409%2C731• www.epa.gov/cleanenergy/documents/egridzips/eGRID2012V1_0_year09_SummaryTables.pdf• www.umweltbundesamt.de/energie-e/politik.htm

Report Standards, Methodologies and Assumptions Used


Total Water Withdrawal By Source (‘000 M3)

6.03%Reduction in totalWater Withdrawal

between 2013 - 2017

> Total (‘000 m3)

> Ground Water ('000 m3)

Volume of recycled water Water used in our cooling towers are continuously recycled, contributing to more effective resource management in our

operation. Only treated wastewater is discharged, which has bolstered our progress in sustainability.

2017

3,506

2016

3,648

2015

4,407

2014

4,032

2013

3,731

2017

1,255

2016

1,025

2015

1,114

2014

1,437

2013

340

2017

3,506

2016

3,648

2015

4,407

2014

4,032

2013

3,731

2017

1,255

2016

1,025

2015

1,114

2014

1,437

2013

340



Emissions (‘000 TCO₂)

11%Reduction in total

Emissionsbetween 2013 - 2017

Direct Greenhouse Gas (Ghg) Emissions (Scope 1) (CO2, HFC, PFC, NOx) (’000 tCO2)

2016

2015

2014

2013

2017267

309

309

282

229

Total Ghg Emissions (’000 tCO2)

2016

2015

2014

2013

2017401

452

439

479

455

Energy Indirect Ghg Emissions (Scope 2) (’000 tCO2)

2016

2015

2014

2013

2017134

143

130

136

118

Amount of Ozone - Depleting Substances (kg)

2016

2015

2014

2013

20174,500

4,500

5,219

1,900

440

Use of renewable energy for boilers

Improved steam boiler combustion

and insulation e�ciency

Switching to cleaner

refrigerants

Motor power consumption optimisation


2016

2015

2014

2013

2017267

309

309

282

229


2016

2015

2014

2013

2017401

452

439

479

455


2016

2015

2014

2013

2017134

143

130

136

118


2016

2015

2014

2013

20174,500

4,500

5,219

1,900

440





refrigerants



2016

2015

2014

2013

2017267

309

309

282

229


2016

2015

2014

2013

2017401

452

439

479

455


2016

2015

2014

2013

2017134

143

130

136

118


2016

2015

2014

2013

20174,500

4,500

5,219

1,900

440





refrigerants



2016

2015

2014

2013

2017267

309

309

282

229


2016

2015

2014

2013

2017401

452

439

479

455


2016

2015

2014

2013

2017134

143

130

136

118


2016

2015

2014

2013

20174,500

4,500

5,219

1,900

440





refrigerants



2016

2015

2014

2013

2017267

309

309

282

229


2016

2015

2014

2013

2017401

452

439

479

455


2016

2015

2014

2013

2017134

143

130

136

118


2016

2015

2014

2013

20174,500

4,500

5,219

1,900

440





refrigerants


We Reduced Our Total Ghg Emissions ThroughConcentrated Efforts Including :


NOx, SOx and Other Significant Air Emissions

12.5%Reduction in

NOx Emissionsbetween 2013 - 2017

2016

2015

2017

NOx (mT)

100

97

2014

2013

109

104

91

2016

2015

2017

HFC/PFC (mT)

0.78

0.88

2014

2013

0

0.10

0.75

2016

2015

2017

SOx (mT)

0.93

1.00

2014

2013

0.97

0.90

0.87

2016

2015

2017

VOC (mT)

24

26

2014

2013

26

27

25

2016

2015

2017

Dust (mT)

12

14

2014

2013

15

8

13



Total Water Discharge By Quality and Destination

48.6%Increase in total

Treated Wastewaterbetween 2013 - 2017

Chemical Oxygen Demand (mT)

2017 2016 2015 2014 2013

4,18

0

5,07

3

14,5

59

7,46

4

5,29

2

Biological Oxygen Demand (mT)

2017 2016 2015 2014 2013

1,69

7

1,90

4

4,76

4

3,86

7

2,28

7

Treated Wastewater (’000 m3)

2017 2016 2015 2014 2013

1,80

5

1,63

4

1,04

4

1,149

1,70

8

Untreated Wastewater (’000 m3)

2017 2016 2015 2014 2013

14

0 0 00

Chemical Oxygen Demand (mT)

2017 2016 2015 2014 2013

4,18

0

5,07

3

14,5

59

7,46

4

5,29

2

Biological Oxygen Demand (mT)

2017 2016 2015 2014 2013

1,69

7

1,90

4

4,76

4

3,86

7

2,28

7

Treated Wastewater (’000 m3)

2017 2016 2015 2014 2013

1,80

5

1,63

4

1,04

4

1,149

1,70

8

Untreated Wastewater (’000 m3)

2017 2016 2015 2014 2013

14

0 0 00


Total Weight Of Waste By Type And Disposal Method

56.9%Increase in

Total General Waste Recycledbetween 2013 - 2017

Total General Waste Generated (mT)

2017 2016 2015 2014 2013

20,4

09

21,1

85

18,8

67

22,3

78

20,1

69

Total General Waste Recycled (mT)

2017 2016 2015 2014 2013

20,3

82

21,1

82

9,31

5

8,68

2

20,1

63

Total Hazardous Waste Recycled (mT)

2017 2016 2015 2014 2013

373

178

1,61

9

1,98

5

147

Non Hazardous Waste To Landfill (mT)

2017 2016 2015 2014 2013

5,19

4

5,27

1

3,24

1

1,92

9

Amount of Energy Produced from Biogas (kWh)

2017 2016 2015 2014 2013

6,02

8

9,88

0,55

6

7,145

,124

10,2

90,1

39

11,3

82,8

45

9,00

1,39

1

Total Hazardous Waste Disposed (mT)

2017 2016 2015 2014 2013

462

172

580

422

1,39

5


OUR SUSTAINABILITY DASHBOARD > Prosperity

Prosperity

Employee Attrition

We believe that the long-term success

of any company is dependent on its

employees, who form the building

blocks of the organisation. At Emery

Oleochemicals, employees are never

compromised in the running of our

business, their health and safety

therefore being our topmost priority.

Benefits they receive allow the

company to ensure their personal

wellbeing is considered, with work-

life balance facilitated by options

for flexible working hours. Team

members professional and personal

development needs are met through

a combination of formal and on-

the-job trainings, interdepartmental

placements, peer and mentor coaching

and self-empowerment. As part of our

best practices, all of our key employees

undergo anti-corruption training, and

we are proud that since such auditing

began, we have had no incidences of

corruption since 2013.

Total workforce attrition

10.0%10.3% 11.5%

15.5% 12.0%

9.0% 9.6% 9.9% 11.4%

15.9% 12.3%

2013 2014

10.9%

2015 2016

11.7%

2017

11.5%

2017

11.8%

2017

Women workforce attrition

2013 2014 2015 2016

Men workforce attrition

2013 2014 2015 2016


Training & Development

78% 84% 100% 92%

Percentage of Employees with Regular Performance and Development Plans

2013 2014 2015 2016

83%

2017

2016

2015

2017

14,438

11,234

2014

2013

16,019

21,969

11,764

Total Training Hours* Excluding EU except for 2016

2016

2015

2017

10,758

8,195

2014

2013

11,446

17,155

7,434

Total Training Hours for Sta� (Non-managers)* Excluding EU except for 2016

Total Training Hours for Managers

2016

2015

2017

3,680

2,339

2014

2013

3,927

2,911

1,565


OUR SUSTAINABILITY DASHBOARD > Prosperity

Health & Safety

Total Recordable Injury Rate (TRIR)Number of injuries per 100 employees

2017 2016 2015 2014 2013

1.98

1.87

2.47

0.41

0.98

Total Recordable Injury Frequency (TRIF)Number of injuries per 100 employees

2017 2016 2015 2014 2013

0.56

0.48

0.55

0.21

0.41

Injury Absence Frequency Number of days per 100 employees

2017 2016 2015 2014 2013

7.52

3.35

5.89

1.15

18.4

7

2017

0

2016

0

2015

0

2014

0

2013

0

2017

1.81

2016

2.15

2015

1.73

2014

3.02

2013

1.93

Work Related Fatal Accidents

Worked Hours (in millions)

3.2%

2017

3.2%

2016

6.8%

2015

3.1%

2014

3.1%

2013

Sickness Absence Frequency(% Average)


Emery Oleochemicals 2017 Total Revenue in USD’000:

Profitability

Global

$651,612

Asia Pacific

$214,190Europe

$135,035North America

$302,387


MORE INFORMATION

Ownership & Legal Form

Reporting Standard

Website

Emery Oleochemicals is jointly owned by Sime Darby

Plantation (SDP) and PTT Global Chemical Public Company

Limited (GC), 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 annual sustainability report is written in accordance with the GRI G4 Reporting Principles (core option) guidelines

and includes disclosure for our key manufacturing sites in Germany, Malaysia and the USA. Our objective is to provide an

accurate account of our actions, giving consideration and emphasis to all relevant issues, whether positive or negative. This

information and data mainly refer to the year ending 31 December 2017.

For more information about our company, our sustainability priorities, our policies and the awards we’ve received, please visit our corporate website at:

> www.emeryoleo.com

We also welcome any inquiries on this report or ourAct Sustainably journey through email at :

> [email protected]


This report is produced based on ‘in accordance’ - Core GRI G4 Reporting Principles, for the year 2017 and covers disclosure for the listed entities below:

GRI G4 INDEX TABLE

Code Description Page

G4-1 Provide a statement from the most senior decision-maker of the organisation about the relevance of sustainability to the 11 organisation and the organisations strategy for addressing sustainability.

G4-2 Provide a description of key impacts, risks & opportunities. 14, 15, 17, 20, 21, 22,24

G4-3 Report the name of the organisation. 7

G4-4 Report the primary brands, products & services. 9

G4-5 Report the location of the organisations HQ. 7

G4-6 Report the number of countries where the organisation operates and names of countries where either the organisation 7 has significant operations or that are specifically relevant to the sustainability topics covered in the report.

G4-7 Report the nature of ownership and legal form. 7

G4-8 Report the markets served (including geographic breakdown, sectors served and types of customers and beneficiaries). 9

G4-9 Report the scale of the organisation including : 8 • Total number of employees • Total number of operations • Net sales • Quantity of products or services provided

G4-10 • Report the total number of permanent employees by employment type and gender. 8 • Report the total workforce by region and gender.

G4-12 Describe the organisations supply chain. 15, 16

G4-14 Report whether and how the precautionary approach or principle is addressed by the organisation. 36

G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the 36 organisation subscribes or which it endorses.

G4-16 List memberships of associations in which the organisation : 36 • Participates in projects or committees • Views membership as strategic

G4-18 a) Explain the process for defining the report content and the Aspect Boundaries. 21, 22 b) Explain how the organisation has implemented the Reporting Principles for Defining Report Content.

G4-19 List all the material Aspects identified in the process for defining report content. 25

GG4-20 For each material Aspect, report the Aspect Boundary within the organisation as follows : 25 • Report whether the Aspect is material within the organisation • Report any specific limitation regarding the Aspect Boundary within the organisation

G4-21 For each material Aspect, report the Aspect Boundary outside the organisation as follows : 25 • Report whether the Aspect is material outside of the organisation • If the Aspect is material outside the organisation, identify the elements for which the Aspect is material

G4-24 Provide a list of stakeholder groups engaged by the organisation. 25

G4-25 Report the basis for identification and selection of stakeholders with whom to engage. 25 G4-26 Report the organisation’s approach to stakeholder engagement, including frequency of engagement by type and by 25 stakeholder group and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organisation has 25 responded to those key topics and concerns, including through its reporting.

G4-28 Reporting period for information provided. 64

G4-29 Date of the most recent previous report. 64

G4-30 Reporting cycle. 64

G4-31 Provide the contact point for questions regarding the report or its contents. 64

G4-32 a) Report the ‘in accordance’ option the organisation has chosen. 64


MORE INFORMATION


G4-34 Report the governance structure of the organisation, including committees of the highest governance body. 26 Identify any committees responsible for decision making on economic, environmental and social impacts.

G4-37 Report processes for consultation between stakeholders and the highest governance body on economic, environmental and 26 social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.

G4-38 Report the composition of the highest governance body and its committees. 26

G4-42 Report the highest governance body’s and senior executives roles in the development, approval, and updating of 26 organisations purpose, value or mission statements, strategies, policies and goals related to economic, environmental and social impacts.

G4-45 a) Report the highest governance body’s role in the identification and management of economic, environmental and 26 social impacts, risks and opportunities. b) Report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks and opportunities.

G4-46 Report the highest governance body’s role in reviewing the effectiveness of the organisation’s risk management processes 26 for economic, environmental and social topics.

G4-56 Describe the organisation’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. 5

EC6 a) Report the percentage of senior management at significant locations of operation that are hired from the local 8 community. b) Report the definition of ‘senior management’ used. c) Report the organisation’s geographical definition of ‘local’. d) Report the definition used for ‘significant locations of operation’.

EN1 a) Report the total weight or volume of materials that are used to produce and package the organisation’s primary 53 products and services during the reporting period, by : - Non-renewable materials used - Renewable materials used

EN3 a) Report total fuel consumption from non-renewable sources in joules or multiples, including fuel types used. 53, 54 b) Report total fuel consumption from renewable fuel sources in joules or multiples, including fuel types used. c) Report in joules, watt-hours or multiples, the total: - Electricity consumption - Steam consumption e) Report total energy consumption in joules or multiples. f) Report standards, methodologies, and assumptions used. g) Report the source of the conversion factors used.

EN8 a) Report the total volume of water withdrawn from the following sources : 55 - Ground water - Waste water from another organisation - Municipal water supplies or other water utilities b) Report standards, methodologies, and assumptions used.

EN9 a) Report the total number of water sources significantly affected by withdrawal by type : 55 - Size of water source - Whether or not the source is designated as a protected area (nationally or internationally) b) Report standards, methodologies, and assumptions used.

EN15 a) Report gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent, independent of any GHG trades, such 56 as purchases, sales, or transfers of offsets or allowances. b) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all). e) Report standards, methodologies, and assumptions used.

EN16 a) Report gross energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent, independent of any GHG 56 trades, such as purchases, sales, or transfers of offsets or allowances. b) Report gases included in the calculation, if available. d) Report standards, methodologies, and assumptions used.

EN19 a) Report the amount of GHG emissions reductions achieved as a direct result of initiatives to reduce emissions, 56 in metric tons of CO2 equivalent. b) Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all). d) Report standards, methodologies, and assumptions used.

EN20 a) Report production, imports, and exports of ODS in metric tons of CFC-11 equivalent. 57 c) Report standards, methodologies, and assumptions used.



EN21 a) Report the amount of significant air emissions, in kilograms or multiples for each of the following: 57 - NOX - SOX - Volatile organic compounds (VOC) - Other standard categories of air emissions identified in relevant regulations b) Report standards, methodologies, and assumptions used. EN22 a) Report the total volume of planned and unplanned water discharges by: 58 - Destination - Quality of the water including treatment method b) Report standards, methodologies, and assumptions used.

EN23 a) Report the total weight of hazardous and non-hazardous waste, by the following disposal methods: 59 - Recycling - Landfill b) Report how the waste disposal method has been determined: - Disposed of directly by the organisation or otherwise directly confirmed

EN25 a) Report the total weight for each of the following: 59 - Hazardous waste treated b) Report the percentage of hazardous waste shipped internationally.

EN27 a) Report quantitatively the extent to which environmental impacts of products and services have been mitigated during 22 the reporting period. LA1 b) Report the total number and rate of employee turnover during the reporting period, by age group, 60 gender and region.

LA6 a) Report types of injury, injury rate (IR), occupational diseases rate (ODR), lost day rate (LDR), absentee rate (AR) and 62 work-related fatalities, for the total workforce (that is, total employees plus supervised workers).

LA9 a) Report the average hours of training that the organisation’s employees have undertaken during the reporting period, by: 61 - Gender - Employee category

LA11 a) Report the percentage of total employees by gender and by employee category who received a regular performance 61 and career development review during the reporting period.

SO3 a) Report the total number and percentage of operations assessed for risks related to corruption. 60 b) Report the significant risks related to corruption identified through the risk assessment.


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