Kraton Performance Polymers Inc. (KRA) 2022年CSR報告「NYSE」.pdf

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1、About this Report 3Message from Our CEOs 4Sustainability FastFacts 2022 6Message from Our Chief Sustainability Officer 8Our Approach to Sustainability 10Kraton at a Glance 10Our Vision&Values 12Stakeholder Engagement 14Materiality&Material Topics 16Our Commitments 18Governance 20Advancing the Biobas

2、ed&Circular Economy 22Innovation Stories 26Climate Action 34Management Approach 34Energy Consumption 37GHG Emissions 39Environmental Impact&Resource Efficiency 40Management Approach 40Water,Local&Accidental Pollution 42Hazardous Materials,Chemicals&Waste Management 44Product Regulatory&Customer Heal

3、th&Safety 46Biodiversity 47Our People&Communities 48Management Approach 48Employee Health&Safety 50Working Conditions 53Social Dialogue 54Career Management&Training 54Diversity,Equality&Inclusion 56Anti-corruption 58Collaborating for Responsible Business Practice 62Management Approach 62Child Labor,

4、Forced Labor&Human Trafficking 64External Stakeholder Human Rights&Supplier Social Practices 65Supplier Environmental Practices 66Appendix 68ESG Scorecard 70About this Report 72UN Global Compact Commitment 73GRI Content Index 74SASB Chemical Industry Disclosures 80Alignment with the TCFD Recommendat

5、ions 82CONTENTS22022 SUSTAINABILITY REPORT|KRATONAbout this ReportThis Sustainability Report covers the period of January 1,2022 to December 31,2022,and is part of Kratons corporate story,allowing us to show progress year-on-year.In connection with our sustainability policies,the Annual Sustainabili

6、ty Report,and our website helps showcase Kratons efforts to integrate sustainability throughout our company,our processes,and the products we produce.This report has been prepared in accordance with the GRI Standards and the Sustainability Accounting Standards Board(SASB).The report also contains a

7、Taskforce on Climate-related Financial Disclosures(TCFD)table.Furthermore,Kratons sustainability management and reporting are guided by our commitment to the ten principles of the United Nations Global Compact(UNGC)and the Sustainable Development Goals(SDG).We invite stakeholders to learn more about

8、 Kratons approach to sustainability by visiting our website:.3Holger JungCo-Chief Executive OfficerAs we navigate an ever-changing global landscape,one thing remains clear:sustainability is a necessity for building a resilient and prosperous future.At Kraton,we recognize our businesss impact on the

9、environment and are committed to managing that impact responsibly and transparently.In 2022,we made significant strides in reducing our carbon footprint,improving our utilization of renewable resources,and fostering circularity in our supply chain.Our dedication to enhancing our sustainability manag

10、ement system earned us the globally recognized EcoVadis Platinum rating in 2022,placing Kraton in the top 1%of over 90,000 companies evaluated by EcoVadis.Further,we are proud to have achieved several sustainability targets ahead of schedule and continually strive to improve our performance.Developi

11、ng a sustainable business model creates long-term value for all stakeholders,including our employees,customers,and communities.In this report,we are happy to share our progress and achievements and look forward to driving continuous improvement and positive change across our business and beyond.The

12、Sustainability Pillars Guiding Our Strategy:Climate Action&Environmental Impact We see climate change as one of the worlds most urgent problems and are committed to action.This is why weve set ambitious targets for 2030,including a 20%cut in Scope 1 and 2 GHG emissions and a 10%cut in water and wast

13、e intensity.Marcello BoldriniCo-Chief Executive OfficerMESSAGE FROM OUR CEOSWe are proud to share that in 2022,we achieved a 5.8%reduction in our GHG Intensity compared to our 2020 baseline year,demonstrating the continued success of our efforts to lessen our negative effect on the environment.42022

14、 SUSTAINABILITY REPORT|KRATONIn addition to reducing our GHG emissions,we have made significant progress in modernizing our technology and machinery to improve efficiency and reduce our overall carbon footprint.For instance,at our Belpre,Ohio facility,our new heat and power system has enabled us to

15、cut carbon dioxide emissions by almost 50,000 MTCO2 annually,a significant achievement that underscores our dedication to sustainability.Being a Responsible Business A responsible business recognizes its broader responsibility beyond maximizing profits.Kraton is committed to empowering our organizat

16、ion and suppliers to make a positive impact through responsible business practices.This means ensuring our Responsible Procurement Program aligns with Together for Sustainability(TfS)and advances our goal to reduce our environmental footprint,uphold human rights,and promote sustainable development i

17、n our communities.It also means conducting business with reliable suppliers aligned with our environmental,social,and ethical standards.We are proud to share that Kraton had zero human rights incidents during 2022.Enhancing Bio&Circular Economies We recognize innovations crucial role in advancing a

18、biobased and circular economy and addressing environmental concerns.For example,our SBC technology has enabled Playmobil,Germanys largest toy manufacturer,to enhance the durability and recyclability of their products,reducing waste and promoting a more sustainable toy industry.Moreover,our latest pr

19、oduct brand,SYLVASOLV,features 100%biobased oils that deliver superior performance and sustainability benefits across diverse industries,from cleaning solvents and coatings to defoamers.By leveraging biobased materials,SYLVASOLV offers a more sustainable alternative to non-renewable fossil-based mat

20、erials in various applications.By leveraging our expertise and innovation,we will continue developing sustainable solutions that benefit customers and the environment.People&Communities Kratons mission is to make a positive difference in our business and the world.We take great pride in celebrating

21、the unique qualities of each of our employees and are dedicated to providing a safe and inclusive environment for all.Our dedication to the safety of our employees was rewarded with a record-breaking year in 2022 when there were no process safety incidents.We understand that our impact extends well

22、beyond our operations.Kraton is pleased to have contributed over$400,000 in 2022 to causes,including bettering education,helping the disadvantaged,and creating a more sustainable world.Through our partnership with Tree Nation,we planted over 25,000 trees across North America and Europe,offsetting ov

23、er 4,700 tons of CO2 from our tree planting initiative alone.Additionally,Kraton sponsors scholarships and provides mentorship through the Future of Stem Scholars Initiative(FOSSI),a program to support students pursuing STEM disciplines at Historically Black Colleges and Universities(HBCUs).In 2023,

24、we are excited to expand our reforestation efforts and further execute our corporate social responsibility(CSR)strategy.Looking Ahead As we embark on 2023,we understand sustainability is not a destination but an ongoing journey.We are firmly committed to leading the way in innovation,transparency,an

25、d accountability at Kraton.Our dedication to the United Nations Global Compacts Human Rights,Labor,Environment,and Anti-Corruption principles and Sustainable Development Goals(SDGs)that are relevant to our business model remains steadfast.We will continue adapting our business strategy to meet futur

26、e sustainability needs,with data excellence being a critical focus area in 2023.Additionally,we will analyze and refine our governance structure to further optimize our impact.Together with our suppliers,customers,and employees,we will keep working to lessen our negative effects on the environment,p

27、romote social responsibility,and advance a sustainable,circular,and bio-based economy.We sincerely thank our stakeholders for their support as we strive to create a better world for future generations.*compared to the 2020 baseline year.52022SUSTAINABILITY FASTFACTS KRATONS SUSTAINABILITY REPORTING

28、ALIGNS WITH THE UNGC PRINCIPLES&SDGSECOVADIS PLATINUMSUSTAINABILITYRATINGGOVERNANCE&RISK MANAGMENTTO MANAGE CLIMATE&SUSTAINABILITY2030 STRATEGICTARGETS SET FOR CLIMATE ACTIONAND ENVIRONMENTAL IMPACTISCC EU CERTIFIED SITES IN:Dover|Oulu|Sandarne|SavannahISCC PLUS CERTIFIED SITES IN:Berre|Sandarne6TIE

29、R 1 PROCESS SAFETYINCIDENTS DURING 2022,MAKING IT OUR BEST SAFETY PERFORMANCE HISTORICALLYOF NEW HIRES ARE DIVERSE*55%*Our diversity tracking is based on race in the U.S.and based on gender outside the U.S.zero2022 SUSTAINABILITY REPORT|KRATON13ALL MANUFACTURING SITESISO 14001/RC 14001CERTIFIED157US

30、DA BIOPREFERREDCERTIFIED PRODUCTS50%BIOBASEDBUSINESS BUILT ONRAW MATERIALS25K60+ACRESWE PLANTEDTREESONDRIVINGSUSTAINABILITYIN PROCUREMENTIMPLEMENTINGRECOMMENDATIONSTASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURESTCFD7MESSAGE FROM OUR CHIEFSUSTAINABILITY OFFICERSustainability is an integral part o

31、f our long-term success at Kraton.It is not simply about reducing waste or improving operational efficiency;it is an opportunity to foster innovation and create incremental value for all stakeholders.Companies must have a firm grasp on the environmental,social,and governance(ESG)concerns affecting b

32、usinesses to succeed.In 2022,Three Forces Shaped an Ever-Changing ESG Landscape:Regulatory&Mandatory Reporting:Highlighting requirements to comply with emerging key ESG reporting laws such as the Corporate Sustainability Reporting Directive(CSRD)and the Task Force on Climate-related Financial Disclo

33、sures(TCDF).We are currently performing a Double Materiality Assessment,which will assess the financial materiality(economic value creation)and the impact materiality(external impacts including communities and environment).A fraction of our success depends on ESG evaluation,and our disclosures conve

34、y our dedication to openness and accountability as crucial to Kratons success.Market&Customers:We believe that the true currency of Sustainability is data.As customers become more aware of sustainability challenges down the value chain,they want proof of circular and sustainable products and service

35、s.Understanding the industrys wants and needs is the core underpinning of our customer engagement and collaboration in driving sustainability initiatives.Technologies Enablement:Technology is crucial in enabling companies to achieve sustainability goals.In addition to sustainable,innovative products

36、,advanced analytics,artificial intelligence,and digital platforms can help companies track,analyze,and improve ESG performance.To advance our sustainability strategy,we focus on bolstering our data management systems to enhance our organizations accuracy,uniformity,and comprehensiveness.Focusing on

37、these goals will bring Kraton to the forefront regarding supply chain effectiveness,carbon footprint,and resource efficiency tracking.82022 SUSTAINABILITY REPORT|KRATONmatter your role at Kraton.Further,we seek to make a positive difference in the lives of people around us.That means fostering an en

38、vironment where all employees are valued,respected,and given the support and resources needed to realize their full potential and enhance their well-being.We continue to work together and give back to our communities through initiatives that go beyond monetary investment and give back our most valua

39、ble resource,our time,toward bettering our planet and communities.This includes projects like our partnership with American Rivers to help protect vital habitats and reduce river pollution.Kraton remains committed to advancing a more sustainable world.This requires collaboration and a shared sense o

40、f purpose across the entire value chain,working closely with partners and customers,and mobilizing our employees.Our core values of ownership,relationship,and integrity guide us in everything we do and are fundamental to our long-term success.As we face ongoing challenges and uncertainties in todays

41、 rapidly evolving world,we remain steadfast in our dedication to sustainability.Together,we can create positive change and make a meaningful difference.We take inventory of Scope 3 emissions before setting targets and are preparing for our first Carbon Disclosure Project(CDP)submission in 2023.Scope

42、 3 emissions refer to the Corporate Value Chain Accounting and Reporting Standard,allowing companies to assess their entire value chain emissions impact and identify where to focus reduction activities.Kraton maintains its focus on EcoVadis,Life Cycle Assessment(LCA),and International Sustainability

43、 and Carbon Certification(ISCC)programs and portfolio certifications.Considering these forces,were concentrating on three key areas:Planet,Performance&Partnerships,and People to achieve our goals effectively.PLANET To be environmentally responsible,a company must consider how its actions and decisio

44、ns may affect the globe.We have set goals for 2030,with 2020 serving as a benchmark.Already we have accomplished much;in 2021,we achieved a 26%GHG emissions reduction(vs.the 2014 baseline).In addition,we recognize the industrys shift towards Science-based targets and are considering this as we plan

45、for 2023.PERFORMANCE&PARTNERSHIPS Achieving sustainable development is crucial to the organizations long-term health and growth.An organization must have beneficial partnerships and generate sufficient profit longevity.Kraton believes it is our responsibility to decrease our environmental impact and

46、 support our customers to do the same.Reaching value chain ESG targets requires trust-based collaborations,which benefits everyone.Kraton can reach sustainable goals by partnering with suppliers,customers,and other stakeholders.PEOPLE Our efforts to advance our people and communities include making

47、complex topics tangible for our stakeholders.It also means carrying others along in our journey and ensuring we build a culture where driving sustainability is everyones responsibility,no We have ambitious goals to reduce our impact on the environment and the climate.Pedro Lopes Chief Sustainability

48、 Officer9OUR APPROACH TOSUSTAINABILITYKraton at a GlanceKraton Corporation develops,manufactures,and markets biobased chemicals and specialty polymers that deliver exceptional value and enhance peoples lives globally.As a leading global producer of styrenic block copolymers(SBC)and pine chemicals,we

49、 manufacture high-performance materials that differentiate our customers products and meet multiple market needs.Our global footprint,extensive expertise,and integrated portfolio of high-quality products help push the boundaries of performance to power the future of innovation.102022 SUSTAINABILITY

50、REPORT|KRATON100+700+1000+Combined Years of Pioneering InnovationsCustomersPatent&Patent Applications6RegionalHeadquarters13Manufacturing Sites8Innovation Centers 1854Employees GloballyUSDA BioPreferred Certified Products70+Countries Served15711Enhancing peoples lives and contributing to a sustainab

51、le society is essential at Kraton.We are committed to being part of the solution to the global challenges we collectively face.This requires us to align our corporate strategy with sustainability to ensure we meet the expectations of our stakeholders.By focusing on our team and supplier relationship

52、s,we can help our customers improve their sustainability performance and provide the solutions necessary to address global challenges as an industry.Furthermore,having a strategic focus on profitable growth,operational excellence,value creation,and a sustainable business model is pivotal to achievin

53、g and excelling in our vision.Our Vision&ValuesVision StatementOur vision fuels our aspiration to be an industry leader in the specialty chemical industry.Through our unique chemistry and commitment to sustainable innovation,we address market needs,including the increasing demand for higher performa

54、nce,differentiation,and addressing environmental concerns.We remain dedicated to delivering compelling and innovative solutions that support our customers needs,create value for our shareholders,and enrich the lives of our employees all of which are essential to our companys continued growth.Kratons

55、 vision is to be a world-leading specialty polymer&biobased chemical solutions supplier,delivering sustainable growth by leveraging our innovation and diverse culture.122022 SUSTAINABILITY REPORT|KRATONCore ValuesAt Kraton,our core values are the pillars that drive us to make a Positive Difference i

56、n the world and remain the standard for how we operate.By living out these six principles,we create sustainable products and solutions that produce exceptional value for our customers and,in turn,for our global society.OWNERSHIPSAFETYINTEGRITYCREATIVITYVERVEWe value the health of our people and our

57、environment.We are compliant,respectful,and ethical.We value talent and passion.We innovate in everything we do.We listen,communicate,and collaborate.RELATIONSHIPSWe listen,communicate,and collaborate.13Stakeholder Engagement As a global enterprise,Kraton interacts and partners with many stakeholder

58、s,including customers,communities,employees,governments,industry associations,and suppliers.Our focus on sustainability adds significant value for both Kraton and our stakeholders by promoting environmentally responsible practices that allow us to reduce our carbon footprint,increase productivity,an

59、d better manage risks.It requires that we remain sensitive to the needs and expectations of our stakeholders when designing sustainability initiatives that address,mitigate,or avoid risks and create long-term value.Customers seek sustainable solutions that enable them to improve their production pro

60、cesses and end products.They also expect transparency on how our organization is governed,how we manage Environmental,Climate,and Social risks in our operations,and how these risks and opportunities factor into our strategy and approach to managing risk.Regulators and communities expect reduced envi

61、ronmental and social impacts,more ambitious climate mitigation measures,and increased transparency in sustainability management systems.Their expectations for contributing to global challenges are substantially increasing with the tightening of the policy and regulatory environment.Employees expect

62、their employers to be ambitious and develop practical sustainability programs illustrating the companys efforts,goals,and evolution toward sustainability.Our Stakeholder Expectations142022 SUSTAINABILITY REPORT|KRATON15These topics inform the baseline of this report.We reached these topics through i

63、nternal consultations,peer benchmarking,and working with experts in the field.Besides the focus on these key material topics,we also align our reporting with the United Nations Sustainable Development Goals(SDGs),which define the global ambition for sustainable development.Kraton has identified six

64、SDGs relevant to our business,for which we can play a prominent role today and in the future.This report will link our sustainability ambitions,business practices,activities,and products to these SDGs.We recognize the significant opportunity sustainability offers our business and are dedicated to cr

65、eating exceptional value for our stakeholders.We continue to include sustainability in our strategy and tactics to define our ambitions and develop sustainability practices.Kraton is committed to collaborating with customers to deliver innovative solutions that make a positive difference.We are equa

66、lly committed to employees and governments worldwide to meet their needs for sustainability management,safe and inclusive working environments,transparency,and reporting of our companys Environmental,Social,and Governance(ESG)risks.MATERIALITY&MATERIAL TOPICS Regarding our material topics,we have id

67、entified the following pillars with their respective topics.162022 SUSTAINABILITY REPORT|KRATONClimate ActionEnergy Consumption GHG EmissionsOur People&CommunitiesEmployee Health&Safety Working Conditions Social Dialogue Career Management&Training Information Security Diversity,Equality&Inclusion An

68、ti-CorruptionCollaborating for Responsible Business PracticeChild Labor,Forced Labor&Human Trafficking External Stakeholder Human Rights&Supplier Social Practices Supplier Environmental PracticesEnvironmental Impact&Resource EfficiencyWater,Local&Accidental Pollution Hazardous Materials,Chemicals&Wa

69、ste Management Product Regulatory and Customer Health&Safety Biodiversity 17Our Commitments 18SDG 12SDG 13SDG 6,9,12SDG 3,9,12Innovate&Manufacture Products that Advance and Enable the Biobased&Circular Economy.Reduce our scope 1 and 2 Greenhouse Gas(GHG)emissions intensity (per ton of product)by 20%

70、by 2030(against a 2020 baseline).Reduce Waste and Water intensity by 10%by 2030,(against a 2020 baseline).Empower and ensure our team and partners make a positive impact through ethical and responsible business practices.Advancing the Biobased Economy&Enabling Circular EconomySDG 3,8 American Chemis

71、try Council(ACC)top quartile performance for Recordable Injury Rates and achieving zero Fatalities and zero serious injuries.Achieving Process Safety performance of 1 Tier 1 event,and 10 combined Tier 1 and 2 Events.Collaborating for Responsible Business PracticeClimate ActionEnvironmental Impact&Re

72、source EfficiencyOur People&CommunitiesUNGC Principles 7,8,9UNGC Principles 1,2,3,4,5,6,10UNGC Principles 7,8,9UNGC Principle 9UNGC Principles 1,219Kratons Board of Directors(Board)is at the top of Kratons Governance structure and consists of nine Directors.The Boards Strategy,Sustainability&Investm

73、ents(SSI)Committee,specifically,oversees Kratons sustainability initiatives on behalf of the Board.Assessing and managing climate-related risks and opportunities as well as broader ESG concerns is a top priority for the SSI Committee,which is also charged with reviewing the companys sustainability p

74、olicies and efforts on a regular basis.The Committee reports at least twice a year to the Board on the Companys environmental and social sustainability-related matters and ensures that climate-and sustainability-related risks and opportunities,including those pertaining to emerging climate legislati

75、on and regulation,are integrated into the Company strategy and investment decisions.Simultaneously,the Audit&Compliance Committee ensures that climate-related risks are integrated into the group-wide risk management framework,and annually assesses whether the group-wide risk management framework rem

76、ains effective.This committee also ensures appropriate risk management actions are identified and undertaken to manage climate-related risks.See the chapter“Climate Disclosure”for further details on Kratons work in this area.Governance,Compliance&Business Ethics Strategy Operations&Commercial Organi

77、zational Management&Innovation Sustainability&Climate Change Finance&CompensationDiversity&InclusionKratons Board of Directors brings diverse skills and professional experiences,including:Co-CEOsKraton Leadership TeamBoard of Directors Strategy,Sustainability&Investments Committee Audit&Compliance C

78、ommittee Functional LeadersDrive functional implementation of sustainability programs,goals and KPI by key functionsFunctional ImplementationWorking groups,local teamsChief Sustainability OfcerSustainability Council(Chair:Sustainability Director)Functional Leaders+Sustainability Team:Sustainability,

79、Legal,Operations,Procurement,Commercial,Innovation,Human Resources,Finance,Communications Sustainability program management&implementation coordination(Goals,KPI definition)Performance and issue monitoring Sustainability reporting Sustainability capacity building Stakeholder engagement Kraton Sustai

80、nability TeamVision&OversightStrategic Plan:Leadership&ControlCoordination of Sustainability Program&Implementation202022 SUSTAINABILITY REPORT|KRATONPedro Lopes was appointed Chief Sustainability Officer in 2022 to oversee the organizations global sustainability strategy and initiatives.As CSO,Pedr

81、o leads Kratons Sustainability Council,which includes members from the companys Commercial,Operations,Finance,Procurement&Supply Chain,Human Resources,and other departments.The purpose of the Council is to oversee and facilitate the development and implementation of Kratons corporate global sustaina

82、bility strategy and ESG plans by:Providing strategic oversight Enabling cross-functional executive leadership decision-making Tracking the progress of sustainability and ESG initiatives Prioritizing initiatives in alignment with the Polymers and Pine Chemicals business critical success factors.From

83、left to right:Dan Phelan,J.H.Kim,Holger Jung,Karen Twitchell,Yong Nam,Dominique Fournier,Marcello Boldrini and Bob Frei.Jin Wook Lee not pictured.64Average Age45%IndependentFemale External Board Members33%Directors are Ethnically Diverse33%Committees Chaired by Women78%Non-Executive Members45%Based

84、Outside the U.S.1 of 421We are committed to developing sustainable solutions that help our customers integrate their products and processes into the biobased and circular economy and improve their products sustainability.Enhancing a biobased and circular economy is essential for achieving sustainabl

85、e development and addressing global challenges such as climate change,depletion of natural resources,and biodiversity loss.We create value while contributing to a more sustainable future by collaborating with our customers to understand their sustainability goals and by developing customized solutio

86、ns that enhance the sustainability of their products and processes.Kraton takes great pride in creating innovative technology and solutions for customers in over 70 countries.Our company offers its customers two distinct products and services:polymers and(biobased)chemicals.Our polymers are used in

87、many applications,including adhesives,coatings,consumer and personal care products,sealants,medical,packaging,automotive,paving,roofing,and footwear.Kratons pine-based specialty products are used in adhesives,coatings,road markings,tires and a wide array of other markets.ADVANCING THE BIOBASED AND C

88、IRCULAR ECONOMYMarianne RosVP,R&D,Pine Chemicals222022 SUSTAINABILITY REPORT|KRATON23Innovate&Manufacture Products that Advance andEnable the Biobased&Circular EconomyOUR COMMITMENTENERGY RECOVERY/LANDFILLPROCESSINGDISTRIBUTIONDISTRIBUTIONUSEEND OF LIFEMANUFACTURING/COMPOUNDINGProductLife CycleFigur

89、e LCA Program To further understand our customers sustainability needs,Kraton takes a holistic approach to identify opportunities for sustainable market-driven innovations.We review the complete product life cycle with our customers to determine how our sustainable solutions can reduce environmental

90、 impacts from cradle to the products end of life.Conducting Life Cycle Assessments(LCAs)enables informed decision-making regarding product development and production processes.The solutions we develop enable our customers to lower carbon emissions,extend product life,shift to renewable materials,imp

91、rove product performance,and increase the use of recycled plastics.LCAs are an essential tool to foster closer engagement with suppliers,supply chain partners,and customers around their products and move towards improved sustainability in the value chain and society overall.24Our biobased pine chemi

92、stry enables numerous industries to replace non-renewable resources with high-performance,sustainable alternatives.CTOCSTTOFADTOTORPITCHTerpene FractionsTOFADimer AcidsPolyamide ResinsAMSAMS ResinsTORRosin Resins-DispersionsUpgraded RosinsInsoluble MaleicsTerpene FractionsTerpene ResinsBIO-REFINING

93、FRACTIONSUPGRADES/DERIVATIVESOur SBC polymers are a class of thermoplastic elastomers,which is a plastic material that behaves like rubber,delivering both strength and elasticity.StyreneButadieneIsopreneStyreneCopolymerization of Styrenic Block CopolymersHydrogenation of Styrenic Block CopolymersBut

94、adieneIsopreneSTRATEGIC RAW MATERIALSCHEMISTRY PROCESSCRUDE OIL&REFININGCHEMICAL GROUPPOLYMER GROUP2022 SUSTAINABILITY REPORT|KRATONMarketsAdhesivesAutomotiveBiofuelsCoatingsConsumer DurablesCosmeticsFuel AdditivesLubricantsMedicalOil GelsOilfield ChemicalsPavingPersonal CarePlastics RecyclingProtec

95、tive FilmRoadmarkingsRoofingSealantsTiresWire&Cable25Enabling Sustainable Toy Design with Kraton SBCA Case Study Featuring PlaymobilSustainable toy design is critical to the toy industrys efforts to make environmentally responsible toys and preserve a healthy planet for future generations;this inclu

96、des ensuring childrens toys are safe and dont harm the environment on which their future depends.As a result,toy manufacturers are adopting more sustainable practices to lessen their environmental impact and promote ecological design.Playmobil,Germanys largest toy manufacturer under the Horst Brands

97、ttter Group,has been a producer and distributor of childrens toys since 1974.Playmobil toys are known for their plastic figurines and themed playsets designed to encourage imaginative play.Once Playmobil sought to develop Wiltopia,its first eco-friendly product line,they trusted Kraton polymers to h

98、elp improve the lines end-of-life recyclability and durability.The Wiltopia playsets teach children exciting knowledge about animals,nature,and the importance of sustainability in a fun and engaging way.It is also Playmobils first product range made from an average of over 80%sustainable material.Pl

99、aymobil partnered with Coolrec to produce the toys with recycled ABS plastic from refrigerator waste to achieve this.Coolrec,part of Renewi,is a leading e-waste-to-product company focusing on high-quality raw materials like(non-ferrous)metals and plastics.To meet Playmobils performance and quality n

100、eeds,Kraton SBC was utilized as an additive to increase the impact strength of the recycled ABS material and help maintain good product stiffness.Collaborating with our customers enables us to develop innovative solutions that create value for our stakeholders.By partnering with Playmobil,Kraton pla

101、yed a pivotal role in enhancing the end-of-life recyclability and durability of Wiltopia,Playmobils first eco-friendly product line.INNOVATION STORIES262022 SUSTAINABILITY REPORT|KRATONIn combination with the recycled waste,Kratons high-performance polymers enabled enhanced durability,crack resistan

102、ce,and extended product life for the new toy line.Kraton is proud to enable sustainable toy design and help Playmobil continue to create high-quality,safe,and environmentally friendly toys.As a result,Playmobil successfully launched its eco-friendly Wiltopia line while still providing its customers

103、with the same product quality and longevity they have come to know and love.The product line has won numerous global awards,including the 2022 Toy of the Year in Belgium and Sweden by the Swedish Baby and Toy Association,Lek&Baby.It is also the recipient of U.S.-based magazine Good Housekeepings 202

104、2 Best Toy Awards and the 2022 National Parenting Product Award(NAPPA).27Advancing Tire Sustainabilitywith SYLVATRAXX 2097The tire industrys drive to reduce emissions and develop innovations targeted toward safety and sustainability is ongoing.Tire manufacturers continue to reduce their environmenta

105、l footprint by using more sustainable materials,improving manufacturing processes,and finding ways to recycle and reuse waste materials.For over 65 years,Kraton has served the rubber and tire industry with renewable and sustainable products to enable best-in-class tire performance and safer driving

106、experiences.With millions of drivers worldwide,tire reliability is vital to ensuring effective vehicle safety and performance.Kratons SYLVATRAXX 2097 is a new sustainable tread enhancement additive that helps improve driver safety by offering better tire grip on wet roads.By improving tire tread per

107、formance,SYLVATRAXX 2097 provides tire manufacturers with a unique solution to optimize the balance between wet grip and rolling resistance.Further,the improved wet traction helps reduce the braking distance on wet surfaces,providing additional protection when driving in inclement weather conditions

108、.Enhanced rolling resistance has also been shown to reduce car fuel consumption and enable extended range in electric vehicles.Improving wet grip,tread wear,and rolling resistance continues to be the standard for tire performance.However,the industry has recently acknowledged sustainability as a cri

109、tical factor of equal importance.For over 65 years,Kraton has served the rubber and tire industry with renewable and sustainable products to enable best-in-class tire performance and safer driving experiences.INNOVATION STORIES282022 SUSTAINABILITY REPORT|KRATONIn addition to being sourced from resp

110、onsibly managed forests,our solutions do not impact any food chain,require no land-use change,and sourced from responsibly managed pine forests and waste reduction due to an 18-month shelf-life.The SYLVATRAXX product family is part of Kratons pine chemistry portfolio.Using the Kraton TEA technology,

111、Kraton continues to develop the SYLVATRAXX portfolio of natural,synthetic,and hybrid products which satisfies the tire industrys need for environmentally responsible materials without compromising safety,efficiency,or performance.As a 97%USDA BioPreferred certified biobased product,SYLVATRAXX 2097 i

112、s a suitable alternative to fossil-based hydrocarbon products,helping customers increase the biobased content of their products while potentially lowering their carbon footprint.29Superior product quality is critical to ensure the medical industry meets the highest patient safety and effectiveness s

113、tandards.In addition,healthcare manufacturers must seek regulatory compliance,better performance,and sustainable product design to remain competitive.For over 30 years,the medical industry has relied on Kraton to deliver high-quality solutions to advance patient safety and sustainability while meeti

114、ng strict performance requirements.Kratons enhanced rubber segment(ERS)polymer technology offers improved processability and compatibility with polypropylene(PP).The ERS and PP blends can withstand most sterilization methods,significantly enhancing performance and transparency in medical bags,tubes,

115、and flexible films.Kraton G1646,the latest product based on ERS midblock technology,delivers excellent optical properties,flexibility,and kink resistance in medical tubing while being plasticizer-free*.Our polymers can replace polyvinyl chloride(PVC)in medical equipment applications and are free of

116、phthalates and plasticizers*.Plasticizers are chemicals commonly used in PVC for medical applications such as IV bags and tubing to make plastics more flexible and durable.However,according to the National Institute of Environmental Health Sciences,using plasticizers in medical devices can negativel

117、y affect patient health.Enhancing Healthcare Safety&Sustainabilitywith Kraton Enhanced Rubber Segment (“ERS”)Technology For over 30 years,the medical industry has relied on Kraton to deliver high-quality solutions to advance patient safety and sustainability while meeting strict performance requirem

118、ents.INNOVATION STORIES302022 SUSTAINABILITY REPORT|KRATONCertain plasticizers,such as phthalates,are known to be toxic and interfere with the bodys mechanism for hormone production.Plasticizers can leach out of medical devices and contaminate IV fluids or medications.Patients may be allergic to pla

119、sticizers used in medical devices,which can cause skin irritation and rashes.PVC-based medical equipment is often incinerated,which can cause the release of dioxins from the incineration of PVC-based materials.Toxicity:Leaching:Allergic Reactions:Environmental Impact:Known Health Effects Include:Kra

120、tons products enable medical manufacturers to lower leachable profiles,improve drug compatibility,and resolve Type I allergies caused by plasticizers.Our recyclable products offer a path to sustainable design due to more efficient end-of-life waste management.By switching to Kratons ERS-based soluti

121、ons,the healthcare industry can eliminate plasticizer-related health concerns,comply with stringent regulations,and advance sustainability within medical equipment and devices.*No plasticizers or phthalates intentionally added.31At Kraton,we are committed to developing innovative solutions that adva

122、nce the sustainability of our customers products.SYLVASOLV oils are a unique new Kraton product line that enables safe handling and provides unparalleled performance and sustainability benefits across diverse industries.Utilizing unique pine chemistry,these 100%biobased*oils offer high solvency powe

123、r and good lubrication properties while providing superior cold temperature properties in product formulations.In addition to their outstanding performance,SYLVASOLV oils enable formulators to switch to renewable materials and reduce their carbon footprint*.Sourced from responsibly managed pine fore

124、sts and derived from the Kraft pulp industry,they do not require land-use change,are non-food sourced,and are non-GMO.SYLVASOLVs biobased design makes it a more sustainable alternative to fossil-based materials in various applications.Additionally,SYLVASOLV oils are non-flammable with minimal VOC*,o

125、ffering safer handling.SYLVASOLV oils have many applications,including cleaning solvents,coatings,fertilizer coatings,defoamers,and lubricants.Their high solvency power makes them highly effective in cleaning complex hydrophobic materials,like grease,tar,and other tough soils.SYLVASOLV can optimize

126、elasticity,hardness,adhesion,and dry-film appearance when used as a plasticizer in epoxy and polyurethane-based protective coatings.Further,as a carrier for active ingredients in oil-based defoamers,they prevent and SYLVASOLV OilsAligning Sustainability with High-Performance InnovationINNOVATION STO

127、RIES SYLVASOLV oils are a unique new Kraton product line that provides unparalleled performance and sustainability benefits across diverse industries.Their biobased design reduces fossil-fuel use and carbon emissions,providing the industry with a sustainable alternative enabling a cleaner future.32m

128、inimize foaming in various industrial processes.In addition,the low pour point of SYLVASOLV oils allows it to flow at lower temperatures,enabling easier handling,storage,and transport.Their low pour point also provides outstanding cold temperature qualities essential for minimizing energy consumptio

129、n and expenses by reducing the heating required.SYLVASOLV oils were first sampled to market in 2020 with bulk production and some commercial trial sales in 2022.Full commercial production will begin in May 2023.*Provisional biobased carbon content based on radiocarbon C14 test by USDA certified lab,

130、according to USDA BioPreferred program.*The actual life cycle performance improvement that is achieved by using SYLVASOLV oils can only be concluded through an ISO certified process.*The boiling point distribution of the product was assessed by SIM-Dist analysis performed according to EN-15199-2 and

131、 ASTM D2887 to classify low VOC based on EU Directive 2004/42/EC and CARB LVP-VOC.Property Benefits Highlight:2022 SUSTAINABILITY REPORT|KRATONSOLVTMNon-Flammability Its high flash point renders it non-flammable,enabling its usage in a broad range of applications requiring higher temperatures.Its no

132、n-flammability also facilitates safer handling and storage.Low VOCs Volatile organic compounds(VOC)are a class of chemicals that vaporize at indoor temperatures and pressures,releasing toxic vapors into the air.The low VOC content of SYLVASOLV oils reduces the negative impact on air quality,thereby

133、mitigating the harmful effects associated with VOCs.With a high boiling point,99.4%of SYLVASOLV components are classified as low vapor pressure VOCs by the California Air Resources Board(CARB).High Solvency SYLVASOLV oils are 100%biobased oils with high solubility vital for a wide range of cleaning

134、applications.These oils also allow for excellent compatibility with various additives in diverse applications including lubricants,engine oils,and coatings.Lubricity SYLVASOLV oils provide improved lubricity performance in fuels and lubricants.In addition,SYLVASOLV oils are compatible with several h

135、ard to solubilize lubricant additives in engine oil formulations.These oils are also compatible with metal working soluble oil additives enhancing lubricity performance.33Management Approach We recognize that stakeholders expect greater transparency concerning climate disclosures.Now that weve reach

136、ed the next stage of our sustainable journey,weve ramped up our efforts in 2022 to better adhere to the guidelines established by the Task Force on Climate-Related Financial Disclosures(TCFD).We are evaluating the risks and opportunities brought on by climate change and the shift to a low-carbon eco

137、nomy in accordance with external frameworks like the TCFD.This project helps us gain insight into the potential effects of climate change on our business and the steps we should take to adapt.Creating more value from the same amount of input resources is key to being accountable to our stakeholders

138、and thriving in the future.Kraton has mapped physical and transition risks against multiple climate scenarios,the primary accomplishment in 2022 towards implementing our TCFD strategy.We utilize the Representative Concentration Pathway scenarios(RCP2.6,RCP4.5,and RCP8.5)set out by the Intergovernmen

139、tal Panel on Climate Change(IPCC)with projections running to 2050 and 2070,respectively.These scenarios have helped us to understand the potential future risk.CLIMATEACTION342022 SUSTAINABILITY REPORT|KRATON35Some of our manufacturing plants are in areas susceptible to extreme weather events.Physica

140、l climate impacts may also be felt along our value chain and supply lines of raw materials,including upstream in the pine forests from which the raw materials in our Pine Chemicals business are derived.Our initial assessments indicate that the majority of physical climate risks to Kratons operations

141、 and suppliers(including raw materials)are relatively low in most locations.Worldwide the regulatory and policy environment is evolving to align with the Paris Agreement on climate change.Kraton is an active member of industry associations like the American Chemistry Council(ACC),The European Chemic

142、al Industry Council(Cefic),and others to ensure that we collectively anticipate,shape,and adapt to our changing futures.Additionally,the transition to a low-carbon economy accelerates change in the policy,legal,technology,and market contexts.Kraton has Governance and Risk Management systems and proc

143、esses to identify,assess,manage,and oversee our response to climate change.Kratons Strategy,Sustainability&Investments(SSI)Committee of the Board oversees Kratons sustainability efforts,including climate change.The Board oversees major plans,investments,annual budgets,and setting performance objecti

144、ves relating to climate change.Kratons Enterprise Risk Management(ERM)process identifies,evaluates,and monitors risks to our business.Existing enterprise risks,including climate risks and new or emerging risks and legislation,are reviewed quarterly.The Internal Audit department facilitates our ERM p

145、rocess and reports to the Audit&Compliance Committee of our Board of Directors.Quarterly updates on Enterprise Risk topics,such as climate change,are provided to the Board by the Internal Audit Department.Kratons Sustainability Council guides the companys global approach to climate change,serving as

146、 a decision-making body,defining resource requirements,and overseeing the implementation and progress of our climate change initiatives.The Sustainability Council comprises eight Functional Senior Executive Leaders and Directors from Commercial,Operations,Legal,Finance,R&D,Procurement and Supply Cha

147、in,Communications and Human Resources,and the Global Sustainability Team members.The Council was chaired by the Global Sustainability Director,transitioning responsibilities to the newly appointed Chief Sustainability Officer,who provides a quarterly progress report to the Kraton Leadership team.A c

148、ore responsibility of the Council is to measure,monitor,and publish the Sustainability Dashboard.The Council monitors the progress of the global sustainability strategy and policies on a Sustainability Balanced Scorecard,which includes Climate Change.Metrics measured and input into the scorecard inc

149、lude energy savings,energy intensity,and Scope 1 and 2 GHG emissions.Kraton has actively measured and reported Scope 1 and Scope 2 emissions since 2014.In 2022 we initiated a new greenhouse gas intensity target.Our new target is:Reduce Scope 1 and 2 GHG emissions Intensity(per ton of product)by 20%b

150、y 2030 compared to the 2020 baseline year.We are pleased to have accomplished our prior goal 10 years early.By 2020,we had cut the intensity of our greenhouse gas emissions by 26%compared to 2014.The Environment chapter of this report contains additional information and more performance reporting on

151、 Environmental topics.36Energy Consumption By maintaining open lines of communication and setting collective targets,we could foster an environment where energy efficiency was prioritized.Our facilities also use information screens,dashboards,and operator views to create energy visualizations.Additi

152、onally,we implemented steam trap maintenance and leak elimination programs and generated engagement among the plants through bi-monthly energy network meetings.Kraton consumed 10,058(TJ)of Energy during 2022,approximately a 6%decrease compared to 2020.11.3%of our energy consumption was renewable,a s

153、light increase compared to 2021.A component of this was using our biobased byproducts,such as pitch,as fuel.Energy Intensity was 7.6 MMBTU/Ton,constituting a 3%reduction compared to 2021.The change in energy intensity is mainly attributable to three plantsSavannah,Berre,and Wesseling.Energy intensit

154、y is calculated based on the total energy consumed within the organization divided by tons of product produced.In 2022 we delivered phase 2 of the Belpre Strategic Energy Project(BSEP).The impact of BSEP feeds into our 20%emissions intensity reduction target.Natural Gas63.52%Byproducts10.05%Purchase

155、d Steam15.17%Electricity11.21%Fuel Oils0.5%Direct Non-Renewable65%Indirect Renewable2.7%Indirect Non-Renewable23.7%Direct Renewable8.6%Energy Source Type 2022Energy Source Breakdown 2022Total Energy 10,058 TJTotal Energy 10,058 TJOur fundamental policies detail our commitment to climate action,expan

156、d beyond regulatory compliance,and center around these topics:Energy,GHG emissions,and Air Emissions2022 SUSTAINABILITY REPORT|KRATON3738Kraton is actively working to lower its carbon footprint and energy use.After meeting our goal of a 26%reduction in GHG intensity by 2030 ten years early,we set ou

157、rselves the challenge in 2021 of coming up with a new,even more ambitious goal.Our goal of a 20%decrease in GHG emissions intensity from 2020 levels by 2030(against a 2020 baseline)remains unchanged.We have made consistent progress over the past three years,a historical pattern reflected positively

158、in our continuing efforts to improve operational efficiency.Kraton continued its 2022 efforts to modernize its technology and machinery to lower its overall CO2 output.The projects objective was to install a combustion turbine generator with a heat recovery boiler to reduce purchased electricity cos

159、ts and provide a new larger efficient boiler to improve reliability.Carbon dioxide emissions were cut by almost 50,000 MTCO2 per year due to the new combined heat and power system.Since 2014,Kraton has steadily reduced our total absolute emissions(Scope 1 and Scope 2).In 2022 our total absolute emis

160、sions decreased by approximately 7.4%compared to 2021.However,we also experienced a production volume decrease of approximately 6%.Kratons production decreased by approximately 6%in 2022,which is vital in achieving further reductions in Energy Intensity and GHG Intensity.Our GHG intensity decreased

161、by 5.8%compared to the 2020 baseline year.GHG intensity is calculated based on total absolute GHG emissions(Scope 1 and Scope 2)divided by tons of product produced.We are proud to have achieved a further reduction during 2022 and will continue working towards our new long-term GHG Intensity reductio

162、n target.GHG Intensity(MTCO2E/Ton)Energy Intensity(MMBTU/Ton)67891000.10.20.30.40.50.60.70.82014201520162017201820192020202120220200,000400,000600,000800,0001,000,000201420152016201720182019202020212022Scope 2Scope 1GHG Emissions Intensity vs Energy IntensityGHG Emissions(MTCO2E)2022 SUSTAINABILITY

163、REPORT|KRATONEmissions39Our global HSES network develops guidelines to help employees maintain safe and healthy working conditions at all sites,and we continuously refine our standards and procedures based on industry best practices.Management ApproachKraton operates by the highest standards in the

164、conduct of its business.Our environmental management systems are designed to achieve zero harm:no harm to our employees,communities,or the environment.Our suite of policies highlights environmental aspects and risks,which expand beyond regulatory compliance.These include:Water,Local&Accidental Pollu

165、tion Hazardous Materials and Waste Management Product Regulatory and Customer Health&SafetyWe have a variety of policies in place that reference our environmental commitments:HSES Policy Conflict Minerals Policy Chemical Control Policy Waste Management PolicyENVIRONMENTALIMPACT&RESOURCE EFFICIENCYEd

166、gar BaenaVP,Global Operations,Pine Chemicals402022 SUSTAINABILITY REPORT|KRATON41Kraton is a member of the American Chemistry Council Responsible Care initiative and its associated management system requirements.Our manufacturing plants and Florida corporate office are certified to RC14001,and RCMS

167、standards,respectively.Our global manufacturing sites are also certified to ISO 14001,and all sites have ISO 9001 certification.Additionally,our Sandarne,Oulu,Dover,and Savannah locations are ISCC EU certified.Sandarne is also ISCC PLUS certified,as is our manufacturing site in Berre.Our global Heal

168、th,Safety,Environment,and Security(HSES)network develops guidelines to help employees maintain safe and healthy working conditions at all sites,and we continuously refine our standards and procedures based on key learnings from our continuous improvement processes and industry best practices.We are

169、committed to environmental stewardship through sustainable operations and invest in projects that continuously improve environmental performance.Kraton has begun implementing three new 2030 targets for GHG emissions,waste,and water withdrawal/consumption,which we set in 2021.You can find further det

170、ails in the subsections below.Water,Local&Accidental Pollution Water is critical to life on Earth and one of our planets most valuable resources,which should be used carefully.Global water stress is an evolving challenge.Kraton recognizes the intrinsic link between climate change and water and takes

171、 a holistic view of protecting and preserving our natural resources.Shifting patterns of water availability and incidences of flooding driven by climate change are causing global water concerns.While we operate most plants on the edges of water bodies,we currently do not operate in water-stressed ar

172、eas.However,we recognize that water availability is a critical issue for certain parts of the world and will likely become more severe over time.Water is a basic requirement for our manufacturing operations.The chemical industry uses water for materials processing,washing,cooling,and more.We also tr

173、ansport our products via waterways.Hence water stewardship(and climate action)is particularly important to Kraton.Focusing on the future,we have conducted a climate-related risk assessment on physical risks to our sites,including potential water availability or flooding impacts.Following our assessm

174、ents against Verisk Maplecrofts Water Stress Index and WRI Aqueduct,Gassert et al.2013,we determined that Kraton does not source water from High or Extremely High Baseline Water Stress regions.Kraton engaged a third-party expert to conduct these assessments to enhance the quality of our water stress

175、 assessments.Regarding strategic suppliers,only one supplier out of 57 assessed fell into the high-risk category.While water management is conducted locally at each plant,Kraton has Governance and Risk Management systems and processes to identify,assess,manage,and oversee water-related issues.At the

176、 highest level,Kratons Strategy,Sustainability&Investments(SSI)Committee of the Board oversees Kratons sustainability efforts,including water management.Our approach is to manage risks and promote long-term water security for all.Kratons Enterprise Risk Management(ERM)process identifies,evaluates,an

177、d monitors risks to our business.Existing enterprise risks include water-related risks.We have assessed acute and chronic water risks(coastal and fluvial flooding,sea-level rise,and changing precipitation patterns).We also monitor and review evolving regulations in this space quarterly.Kraton is com

178、mitted to protecting our water resources.This includes focusing on ways to reduce water consumption in our operations.We improve water use efficiency through innovative equipment,methods,and technologies,such as installing new cooling towers and replacing once-through cooling water heat exchanger lo

179、ops with a recirculation design.Kraton has also begun 42a pilot to test rainwater for potential fire hazards and emergencies at our Niort,France site.Kraton continues to contribute to our long-term target for water:Reduce Water Intensity by 10%by 2030,compared to the 2020 baseline year.Water withdra

180、wn is the total amount of water our sites take in every year from every source regardless of the end-use on site.Water consumed is the amount of water actually used on site.This does not include any water extracted from a source,i.e.,river,circulated on site as non-contact cooling water,for example,

181、and then returned to its original source,whether directly or via an onsite wastewater treatment plant(WWTP).All water supplied by a utility provider is classified as water consumed.In 2022,Kraton reported 41,020 Megaliters of water withdrawna 4.4%decrease compared to 2021.Furthermore,Kraton reports

182、3,284 Megaliters of water consumed.Kratons water withdrawn intensity figures for 2022 are 32.9 m3/ton of product produced,representing a 3.5%decrease compared to the 2020 baseline year.Regarding water withdrawn by source,we can report that 31.9%comes from utility water,62.23%from surface water,and 5

183、.87%from groundwater.In 2022,Kraton implemented systems and sensors to detect and eliminate the potential for accidental waterbody contamination.To this end,we maintain water-monitoring systems and comply with federal,state,and local requirements at all our sites.In 2022,there were no incidents of n

184、on-compliance associated with water quality permits,standards,and regulations.In the unfortunate event of a local uncontainable release,we have emergency preparedness and response procedures to help limit the impact.Kraton invested in additional process control instrumentation and introduced better

185、tank sealing and control improvements to control or minimize odor generated and material releases from our operations.We installed filters and vacuum equipment to control or minimize emissions of dust or particles.We also undertook soil testing for heavy metal contamination as part of the ongoing le

186、gacy remediation program;no contamination was detected at our perimeter sampling points.As part of permit requirements and/or regulations,we also monitor the concentration of several pollutants in gas emissions(e.g.,VOCs,NOx,SOx).We continued our efforts to reduce our air emissions,such as reducing

187、leaks and losses from mechanical equipment.Utility Water31.90%Surface Water62.23%Groundwater5.87%20.00025.00030.00035.00040.00045.000201420152016201720182019202020212022Water Withdrawn by Source 2022Water Withdrawn Intensity(Megaliters/Ton)2022 SUSTAINABILITY REPORT|KRATON4305,00010,00015,00020,0002

188、5,00030,000201420152016201720182019202020212022Solid waste Non-HazardousHazardous Waste DisposalThe changes are attributable to more extensive and improved monitoring of boiler performance.We replaced two coal and one natural gas boiler in Belpre with two new natural gas boilers(BSEP I and BSEP II p

189、rojects)since 2015.That brought us a substantial,immediate reduction in emissions,including NOx.Hazardous Materials,Chemicals&Waste Management We continue to improve our processes and reduce the generation of process residuals.Wherever possible,we seek to minimize waste by recycling or reusing proce

190、ss residuals such as catalysts,maintaining proper oversight of non-conforming products,and using our byproducts for fuel or other commercial applications.Our new waste management policy was introduced in 2022,which underlines our core approach to waste management.Additionally,weve introduced hazardo

191、us material transportation training aimed at pre-mitigating any potential risk resulting from transporting hazardous materials.Our non-hazardous solid waste disposal decreased by approximately 17%compared to 2021,generating 17,900 tons.In 2021,we experienced issues with the wastewater treatment plan

192、t(WWTP),resulting in high amounts of sludge waste.We have since rectified the issue and,as a result,reduced the sludge waste in 2022.Additionally,we have made strides in managing prewash from vessels by handling it on our site instead of disposing of it as waste,which has led to improvements.We sepa

193、rate oil from water,returning the former to production while releasing the latter to the WWTP.Our hazardous waste generation increased by 1%compared to 2021,reaching 6422 tons.Air Emission TypeYear:2022Compared to 2021Volatile Organic Compounds(VOC)425 Tons3%decreaseSulphur Oxide(SOx)70 Tons10%incre

194、aseNitrogen Oxide(NOx)332 Tons14%decreaseRegarding the breakdown of the disposal methods for this waste,recover energy from 40%,incinerate 34%,and recycle 25%.In 2022 we reported:Solid and Hazardous Waste Disposal(tons)We continue to be committed to reducing Waste Intensity by 10%by 2030,compared to

195、 the 2020 baseline.Torsten SchmidtVP,Commercial,Pine Chemicals44Incineration34%Energy Recovery40%Recycling25%Landfill0%Other1%Type of WasteKg/Ton of Product ProducedCompared to 2020 baselineSolid Waste Intensity15.81 Kg1%decreaseHazardous Waste Intensity 5.67 Kg39%increaseIn terms of waste intensity

196、 figures reported for 2022:0.005.0010.0015.0020.0025.00201420152016201720182019202020212022Solid Waste Disposal Intensity(kgs/ton production)Hazardous Waste Disposal Intensity(kgs/ton production)Waste Disposal IntensityHazardous Waste Disposal Breakdown by Method-2022Total Hazardous Waste 6,422 Tons

197、1%2%14%IncinerationEnergy RecoveryRecycling/ReuseLandfill83%Composting0%Other0%Global Solid Waste Disposal Breakdown by Method-2022Total Solid Waste 17,900 Tons2022 SUSTAINABILITY REPORT|KRATON45There were no incidents of non-compliance with regulations and/or voluntary codes concerning the health a

198、nd safety impacts of our products.Kraton received no fines,penalties,or warnings from jurisdictional authorities.of our highest priority product categories were assessed for Health and Safety impact improvement of self-serve inquiries in 2022 averaged a turn-around time within three business daysPro

199、duct Regulatory and Customer Health&Safety Kratons Product Stewardship&Regulatory Affairs(PSRA)team manages our raw materials and products health,safety,and environmental aspects throughout their lifecycle and the value chain to mitigate risks to customers,stakeholders,and the environment.PSRA condu

200、cts raw material reviews,product reviews,product testing,SDS/labeling,product hazard,risk assessments;product prioritization;and regulatory tracking(new regulations and changes to existing regulations)for both pine chemicals and polymer portfolios.The PSRA team collaborates with R&D,Operations,Comme

201、rcial,and Legal on research projects intended to monitor or improve our products overall environmental and human health impact.The PSRA team collaborates with consortia and consultants to ensure our products are tested for safety and comply with international chemical regulations.In addition,the PSR

202、A team actively participates in industry groups that monitor regulatory changes and trends in relevant topics such as microplastics to assess their impact on Kratons product portfolio and the environment.Notable Projects:Microplastics proposed regulatory amendment in the EU and monitoring potential

203、impacts Nanomaterial trends and impact on industries Replacement of chemicals of concern such as Bisphenol A and Talc PSRA collaborated with a cross-functional project team and third-party software provider to develop a new repository and workflows for raw materials data collection.In 2022,we launch

204、ed a project to implement a new raw materials database and supplier portal designed to securely collect sensitive regulatory and quality data from our suppliers to maintain a more accurate and up-to-date hazard profile for the manufacturing and development of our products.The expected go-live date i

205、s Q3 2023.PSRA conducted hazard assessments of 100%of our pine chemicals and polymers as part of the Product Safety Codes of ACC Responsible Care.Through this process,we have identified the top 10 highest-priority chemical families based on human health and environmental risk,and we reviewed these f

206、or potential areas of risk mitigation.We reassess Kraton products whenever product changes,processes,or regulations occur and communicate the impact and necessary actions with stakeholders.100%90%2022 Facts 2022 Facts 46Kraton is dedicated to preserving biodiversity and the ecosystems in which we op

207、erate.Biodiversity is essential to the health and resilience of ecosystems and people,and we understand how business operations can significantly impact it locally.Kraton is committed to identifying and managing its biodiversity risks and promoting sustainable land use practices.Our facilities are i

208、n cities or towns that are not considered critical habitats or recognized for high biodiversity value or High Conservation Value(HCV).Additionally,we have not built any new facilities in green fields that would threaten biodiversity.BiodiversitySafety should be transparent.Kratons Safety Data Sheets

209、(SDS)are available on Kratons webpage for our active products.2022 SUSTAINABILITY REPORT|KRATON47We take great pride in celebrating each of our employees diverse and unique qualities and strive to ensure an inclusive environment for all.Management Approach Kratons mission is to create a better tomor

210、row for its people and communities.By tapping into the strengths of individuals,we cultivate a culture that values and embraces people from all walks of life.We commit to providing a workplace that upholds human rights and prioritizes our employees safety,security,and well-being,while creating profe

211、ssional growth and development opportunities.Our core values guide our actions and guarantee everyone is treated with dignity and respect.Our Labor and Human Rights Policies include:Code of Ethics and Business Conduct Human Rights Policy Health Safety Environmental and Security(HSES)Policy(Responsib

212、le Care)Contractor Qualification Policy Management of Change(MOC)Policy Slavery and Human Trafficking Statement Supplier Code of Conduct Responsible Procurement PolicyOUR PEOPLE&COMMUNITIESShane Broomall VP,Chief Human Resources Officer 482022 SUSTAINABILITY REPORT|KRATON49Kraton sets high standards

213、 for the way we conduct business.We have implemented policies,processes,and concrete actions to address and mitigate the most pressing social issues and critical risks.Our Employment and HSES Policies are reviewed regularly and updated to reflect regulatory changes,internal requirements,and industry

214、 best practices.Important Topics include:Human Rights,Child,and Forced Labor Discrimination&Harassment Diversity&Inclusion Working Conditions Social Dialogue Career Management Health&Safety We expect the same ethical behavior,business standards,and respect for human rights from our vendors,contracto

215、rs,and collaborators as we do from ourselves.Employee Health&Safety At Kraton,we consider the reporting and tracking of all incidents,including near misses,a fundamental element of our health and safety program.This approach allows us to implement effective measures to prevent similar occurrences in

216、 the future.We firmly believe that by employing the PDCA(Plan,Do,Check,Act)cycle approach and prioritizing culture,operational discipline,defined management systems&processes,appropriate tools&equipment,worker commitment,and regular risk assessments,we can continually advance towards HSES Excellence

217、.We are committed to achieving American Chemistry Council(ACC)top quartile performance for Recordable Injury Rates and achieving zero Fatalities and zero serious injuries.Achieving Process Safety performance of 1 Tier 1 event,and 10 combined Tier 1 and 2 Events.Kraton is a proud participant in the A

218、merican Chemistry Council Responsible Care initiative.All our manufacturing plants in North America currently hold RC14001 certification.Moreover,our plants in Oulu(Finland),Sandarne(Sweden),Gersthofen(Germany),Niort and Berre(France),Wesseling(Germany),and Kashima(Japan)are certified to ISO14001.Fu

219、rther,our Jacksonville(Florida)site has obtained Responsible Care Management Systems(RCMS)certification.The American Chemistry Councils website provides a list of standards associated with both RC14001 and RCMS.These management systems comprehensively cover all Kraton employees and contractor activi

220、ties at those locations.Rogier Roelen General CounselOur Supplier Code of Conduct,Code of Ethics and Business Conduct,Human Rights Policy,and Responsible Procurement Policy all spell out our business partners expectations.We require our suppliers to continually enhance their performance regarding la

221、bor and human rights.To assess and improve supplier performance,we use EcoVadis rating system and participate in the TfS chemical industry initiative.50Process Safety Management We remain committed to Process Safety Management(PSM)principles at all our facilities and go above and beyond by including

222、 areas not covered by the PSM and Seveso regulations.Challenging our sites to operate to this higher standard has helped us continue to improve our performance and move us closer to achieving our aspiration of operational excellence and zero harm.As part of our management systems,we conduct internal

223、 audits on health and safety issues at our locations and maintain Hazard and Operability studies and Risk Mitigation and Compliance plans.In addition,we conduct HSES risk assessments,pre-startup safety reviews,personal safety,and pre-job risk assessments,and provide protective equipment to all impac

224、ted employees.We also maintain a Management of Change policy and procedures.All risk assessments,incidents,and investigation findings are reviewed and rated based on a standard risk matrix.This ensures the highest risks are prioritized and addressed,reducing the companys overall risk profile.Further

225、,applying the hierarchy of controls ensures that the most effective guidelines are adopted.HSES Committees At Kraton,we place a high priority on health and safety across all our global sites.To achieve our goal of eliminating accidents and injuries,we have established Kraton Safety Committees that b

226、ring together representatives from management and operating teams.These committees serve as a platform for employee participation and involvement,providing cross-functional department representation and a mechanism for addressing safety concerns and issues.Operating under the guidance of the Chairma

227、n,the committees offer valuable advice and insights that help to improve our environmental,health,and safety programs.Our employees and contractors are active members of various health and safety committees and are involved in multiple programs that leverage their collective knowledge and input.This

228、 includes participating in shift meetings,root-cause-analysis(RCA)events,hazard risk assessments,process hazards reviews,job safety analyses,housekeeping rounds,5s efforts(sort,set in order,shine,standardize,and sustain),and other initiatives.Through these programs and our open and inclusive culture

229、,we strive to continually improve our health and safety practices and create a safe work environment.Training At Kraton,we prioritize employee safety and well-being,and training plays a crucial role in our management systems.Our commitment to safety is reflected in our Health and Safety policies and

230、 procedures,which define our targeted training programs for employees and contractors.We provide comprehensive training on health and safety risks and best working practices covering topics such as Chemical,General and Personal Safety.In addition to our standard training modules,we also offer specia

231、lized training tailored to the specific activities at our chemical plants.Our training programs include:Working from Heights Preparation of Equipment for Maintenance Hazardous Materials Transportation Emergency Response Respiratory Protection We employ a Learning Management System(LMS)to manage trai

232、ning completion and identify training needs to ensure our employees have the necessary knowledge and skills to perform their work safely.Further,we provide our employees and contractors with Protective Personal Equipment(PPE)and conduct workplace hazard assessments,permitting,and standard operating

233、procedures to determine the appropriate type of PPE necessary.Our employees are trained in maintaining their PPE and issued with a variety of PPE that has been evaluated and upgraded with the best available protection.We also inspect contractor PPE against Kraton standards to ensure alignment with o

234、ur site expectations and that our contractors operate safely.At Kraton,safety is everyones responsibility,and we are committed to providing the necessary training and resources to maintain a safe work environment for all.All Kraton employees and contractors received training on Health&Safety topics

235、during the reporting period.2022 SUSTAINABILITY REPORT|KRATON512022 results for TIR and PSIR were Kratons historical best performance.A total of 53 injuries were reported worldwide during the year.Of these,5 met the OSHA(United States Occupational Safety and Health Administration)recordable classifi

236、cation,1 of which were lost time incidents.The injuries amounted to a Total Injury Rate(TIR)of 0.19.Hand injuries accounted for most injuries 16,followed by 10 Head/Neck,7 Leg,7 Foot,6 Eye,5 Back,4 Shoulder,and 1 Chest/Abdomen.This trend is similar to the rest of the chemical industry at large,and w

237、e continue to focus on this with increased awareness campaigns,machine guarding,and personal protective equipment(PPE).Total Work HoursTRIR(200,000 man-hour basis)Recordable InjuriesLost Work InjuriesFatalitiesEmployees3,754,8970.21310Contractors1,516,6140.26100Total5,236,9430.234102022 Safety Data:

238、2022 Performance vs Targets2022 Target2022 Performance2023 TargetDefinition as Zero HarmPersonal SafetyTIR 0.28TIR =0.26TIR 0.26 Achieve recordable injury rate-TIR 0.28(ACC Top Quartile Performance)Personal Safety0 Tier 1 PSELWIR=0.040 Tier 1 PSEAchieve Zero Fatalities and Zero Serious Injuries In 2

239、022,there were zero Tier 1 Process Safety Incidents during the year,making it our best safety performance historically.Safety Data David SchofieldVP,Operations,Polymers52of those assigned a Compliance training module on Appropriate Workplace Behavior completed the training.All full-time employees ar

240、e covered by a healthcare package,applicable in their country.All full-time employees have access to paid annual leave and company-paid holidays,based on the country in which they live.83.3%Process Safety was a key area of focus for 2022.Kraton includes all releases in its tracking,including those c

241、aptured and,therefore,never released to the environment.There were zero Tier 1 Process Safety Incidents during the year for a Process Safety Incident Rate(PSIR)of 0.0.This is considered best-in-class performance in our industry and Kratons historical best safety performance.It also represents the 5t

242、h year of sequential performance improvement.Third parties handle all transportation within Kraton.In general,transportation incidents are not reported to us unless there is product damage.Hence,we do not have comprehensive data on worldwide transportation incidents.In the United States,our ACC memb

243、ership provides access to Chemtrec reports,and in 2022,19 incidents were recorded,none of which required Regulatory Inspection.Kraton will investigate the feasibility of collecting data from third parties to obtain a more comprehensive overview of transportation incidents worldwide.We have implement

244、ed training regarding the transportation of hazardous materials throughout our sites.Kraton maintains contracts with Chemtrec and other international emergency service providers to receive urgent product safety and transportation emergency calls,accessible 24 hours a day,365 days a year.This process

245、 is linked to Kratons Crisis Management Plan.Working Conditions Kraton firmly believes in providing fair compensation to all our employees,including living wages and compensation for extra or atypical working hours.We understand that work-life balance is essential.We provide additional leave beyond

246、typical vacation days and flexible working arrangements,such as remote work and flextime,when appropriate for each employees role and business conditions.Moreover,we offer comprehensive healthcare coverage for all employees throughout our organization.To further support our employees,we have expande

247、d our bonus compensation program to include more eligible employees than ever before.Additionally,in 2022,we implemented Kratons Corporate Care Solutions program,which offers a range of benefits,including elderly care,childcare,and tutoring services for children.During the COVID-19 pandemic,we trans

248、itioned to a virtual work setting to ensure the health and well-being of our employees,which has continued into 2022.To formalize these changes,we introduced a work-from-home policy that allows office workers and relevant job roles to have a 23-day flexible working schedule.For those colleagues who

249、are physically present in our offices,we have an ergonomics policy to promote healthy working habits and reduce employee stress and noise levels.At Kraton,we are committed to providing employees with a safe,healthy,and inclusive work environment.Despite the pandemic,we implemented changes seamlessly

250、 without causing any disruptions to our customers.We maintained virtual checkpoints with all our employees and updated protocols to focus on the health and safety of our organization,both on-site and remote.Furthermore,we are proud of our collaboration with third-party provider Health Advocate,which

251、 provides employees with free stress and health management resources.Teladoc is another service we offer to improve employee mental health.We also successfully transformed our employee development program into a virtual environment to ensure continued employee growth.inflation bonus paid to 57%of ou

252、r employees.$2,0002022 Facts 2022 SUSTAINABILITY REPORT|KRATON53Social Dialogue Kraton acknowledges and upholds the fundamental rights of all employees to form,join,or support associations to represent their interests and negotiate collectively or individually.We have established collective agreemen

253、ts in various Kraton locations across the USA and Europe and set up employee representative bodies,such as works councils,at our facilities worldwide.However,we believe that collaborating directly with our employees is the most effective way to explore possibilities and changes together,rather than

254、relying on a third-party representative.We conduct quarterly town hall meetings allowing our employees to voice their opinions and concerns and discuss health and safety,well-being,and working conditions.These meetings are integral to our culture and ensure an open dialogue with our employees.To fur

255、ther improve our employee engagement,we conducted an employee engagement survey in October 2022.This survey allows us to gather valuable feedback from our employees.We use the results to identify improvement areas and develop action plans that address our employees needs and concerns.We had an 88%re

256、sponse rate to our engagement survey,which exceeded the comparative global norm response rate of 76%.Our overall engagement score was on par with our 2019 engagement score,and our Leadership,Vision,and Management Effectiveness scores increased by 2%since 2019.These results underscore our leaders str

257、ength and ability to energize our employees during times of uncertainty and change when most organizations experienced declining employee engagement.We have made the following changes in response to the engagement survey feedback:Updated the Vision&Strategy for Pine Chemicals and Polymers and commun

258、icated with the organization in Town Hall meetings Broadened the eligibility for our employee incentive compensation plan Provided a one-time lump sum payment to employees not eligible for our incentive plan,to recognize performance and address inflation concerns We will continue addressing addition

259、al focus areas with specific engagement survey actions during 2023.Career Management&Training Through Kratons Leadership Essentials program,we advocate the personal relationship in establishing trust and mutual respect while encouraging open dialogues between leaders and employees throughout the org

260、anization.Kratons Career Development Framework enables leaders and team members to identify career paths and opportunities.The Individual Development Plan is the first step in this framework.Employees take ownership of their career development in consultation with their leaders and create a plan cov

261、ering the upcoming three years.We conduct an annual assessment of individual performance and provide skills and leadership development training in a comprehensive blended format.of Kratons employees(all non-operator employees)have an active Individual Development Plan in the system of Kratons employ

262、ees(all non-operator employees)receive an annual performance review49%100%2022 Facts of Kratons employees in Europe are part of collective agreementsof Kratons employees in the USA are unionized64.7%23.2%2022 Facts 54breaches of customer privacy and losses of customer data were reported during the r

263、eporting periodof non-operator employees complete two e-learnings every quarter on business ethics topics(including IT security and data privacy)zeroInformation Security Kraton is dedicated to ensuring the confidentiality and security of all sensitive information through our Information Security Pro

264、gram.Our comprehensive approach includes administrative,technical,and physical safeguards that external security service providers regularly evaluate.We use the NIST Cyber Security Framework(CSF)to assess our current cyber capabilities and maturity levels.Our full-service Security Information and Ev

265、ents Monitoring(SIEM)system,which has been in place since 2019,is monitored by a third-party provider,Security Scorecard.In 2022,we received an 88 rating(out of 100)from the third-party provider.We have implemented various enhancements to strengthen our security measures,including updating our email

266、 filtering system to detect spoofing and malware attachments,increasing our password policy to 12 characters,and implementing Plant IT segmentation to restrict access to plant and lab assets.Kraton also recognizes the importance of data privacy and has implemented a data privacy program to protect s

267、ensitive data belonging to our employees,customers,and suppliers.We conduct regular information management and security risk assessments to mitigate risks and have a robust information management response procedure to address data privacy concerns.Furthermore,to ensure that all employees remain vigi

268、lant about data privacy and other security issues,we provide quarterly eLearning courses covering topics such as social media use,social engineering red flags,and password trivia games.Our commitment to data privacy and security is unwavering,and we continually strive to improve our processes and pr

269、ocedures to maintain the highest level of protection for all sensitive information.We also conducted multiple awareness campaigns throughout 2022,including:Email and Cyber Security Awareness Events Email Awareness including Business Email compromise,7 signs of Phishing emails,and Urgency and Fear ta

270、ctics Cyber Security Awareness including at work,at home,when traveling,and on social media Scam of the Week,Weekly Tips/Tricks,and Yammer Posts Awareness Champion Recognition Program (Individual/by Site)promoting positive behavior Data Privacy 2022 Performance Data:99%2022 SUSTAINABILITY REPORT|KRA

271、TON5556North America64%Europe29%6%AsiaSouth America1%78%22%73%27%57%43%60%40%Total Employees25%Female75%Male1,854Diversity,Equality&Inclusion Kraton is committed to fostering a diverse and inclusive workplace where all employees are treated with dignity and respect.Every employee should have a voice

272、 and the freedom to express their opinions and thoughts respectfully,which is why we have established various channels for them to do so.Our policies reflect our commitment to inclusivity and equal opportunity for all employees.In 2022,we continued our efforts to address unconscious bias by providin

273、g training to all employees.We are proud to report that 97%of those in scope completed this training.To further deepen their understanding of unconscious bias,we developed tools for people leaders to facilitate discussions with their teams.Diversity and inclusion are critical to our success,and we r

274、emain committed to creating a workplace where everyone feels valued and respected.new hires during 2022employees as of Dec 31,2022355of new hires are diverse*Infrastructure for employees with disabilities available in all corporate offices1,854executive leadership positions are female(15.8%)external

275、 BOD(excluding CEO)are female(14.3%)3 of 191 of 7of total global workforce are female24.7%55%2022 Facts*Our diversity tracking is based on race in the U.S.and based on gender outside the U.S.Diversity,equity,and inclusion are essential to our values and business strategy.We understand that a diverse

276、 and inclusive workforce drives innovation,promotes employee engagement,and achieves our business objectives.Thats why we have established a comprehensive diversity and inclusion(D&I)program that goes beyond policies and programs to ensure that every employee is treated with respect and dignity.Our

277、efforts in 2022 have been focused on raising cultural awareness and promoting diversity through various initiatives,including presentations highlighting the unique cultures of the countries we operate,podcasts,panel discussions with employees,internal news articles,and a dedicated internal website w

278、ith resources for employees.We have also taken concrete steps to enhance our recruiting and hiring processes,expanding our networks,joining diverse professional groups and job boards,and strengthening our university relations with Historically Black Colleges and Universities(HBCUs)to provide an incr

279、eased slate of diverse candidates.As a result,we are proud to have expanded our minority hires,with 55%of our total hires in 2022 being diverse.At Kraton,we are committed to fostering a workplace culture free from harassment,discrimination,and retaliation.We have strict procedures for reporting,inve

280、stigating,and addressing incidents related to discrimination and harassment.We provide awareness training on business ethics,discrimination,harassment,and associated topics to all employees,including new hires.We regularly review and update our Code of Ethics and Business Conduct to ensure we mainta

281、in the highest standards of ethics and integrity.Our commitment to diversity and inclusion is not just the right thing to do but also a business imperative that enables us to attract,retain,and develop the best talent and build a culture of innovation and excellence.We are proud of our progress and

282、remain committed to continuous improvement in our D&I efforts.Our commitment to D&I enables us to attract,retain,and develop the best talent and build a culture of innovation and excellence.of those assigned a Compliance training module on Appropriate Workplace Behavior completed the training of all

283、 new employees in scope were trained on fairness,anti-harassment,and anti-discrimination100%There were no substantiated cases of discrimination or harassment100%zero2022 Facts 2022 SUSTAINABILITY REPORT|KRATONGarry Oosthuizen VP,Human Resources57Anti-corruption We require our administrative workforc

284、e(approximately 1,200 employees)to complete two quarterly online compliance training modules.Employees susceptible to increased compliance risks due to interactions with certain businesses and people outside of Kraton also receive virtual or in-person training.In 2022,we continued to increase our fo

285、cus on the global compliance training offered to the Commercial,Research and Development(R&D),Human Resources,Manufacturing,Procurement,Supply Chain,and Financial business functions.We also communicated compliance information related to Gifts and Entertainment through the Kraton intranet site,which

286、is available to all employees.Further,Kratons external website houses policies and codes of conduct currently available to third parties.In 2022,Kraton updated the screening process that monitors violations for third parties and enhanced our screening procedures to include Ukraine and Russia sanctio

287、ns information.Kraton has ethics reporting procedures with a zero-tolerance,non-retaliation provision communicated to the entire organization and during the Compliance Orientation Training for new hires to further support our compliance efforts.To support and encourage violation reporting,we also ha

288、ve an anonymous reporting system(where permitted by law).We conduct audits of control procedures designed to prevent corruption and specific approval procedures for sensitive transactions.In addition to having a vigorous complianceðics program,we also have an extensive third-party anti-corruption

289、 compliance due diligence program in place.Compliance training is conducted with our distributors,marketing representatives,and other third-party representatives annually.Distributors and marketing representatives must also certify they comply with all applicable laws and regulations annually.Furthe

290、r,we provided new distributors and marketing representatives with compliance training sessions and conducted a designated session for distributors in Asia.The transition to the online certification process has proven to be a reliable tool with enhanced efficiency and adequate audibility.In addition,

291、we updated the compliance due diligence procedures to increase the visibility and awareness for monitoring third-party commercial representatives.We strengthened the monitoring of due diligence performed on these groups.All employees involved with the designated third parties received additional tra

292、ining on the revised procedures and are aware of their responsibility to report any violations or suspected incidents of wrongdoing.In 2022,we continued enhancing our Compliance&Ethics program by realigning our Compliance Committee,updating the compliance metrics,and reevaluating our core compliance

293、 risks.Throughout the years,Kraton has maintained zero reported incidents regarding corruption and anti-competitive practices.This is primarily due to the robust Compliance procedures,policies,and practices currently in place to help protect and prevent Kraton from becoming involved in any illegal a

294、ctivity or suspected wrongdoing.Kraton also continues enhancing in-house systems for reporting and monitoring compliance-related violations.In 2022,we also updated our online compliance training courses to include more engaging and interactive content.We are commited to upholding the highest standar

295、ds of compliance and take great pride in our reputation as an ethical company.Kristen Boyd VP,Communications5899.9%8,827zerozeroof non-operator employees completed two eLearnings every quarter on business ethics topics(including anti-corruption and anti-competitive practices)person-hours of online c

296、ompliance awareness trainingincidents of corruption violations related to Kraton were reported during the reporting periodincidents of anti-competitive practices related to Kraton were reported during the reporting period2022 SUSTAINABILITY REPORT|KRATONFACTS 202259Provide educational institutions a

297、nd students with resources,knowledge,and financial support to improve their skills and enable a successful future.Seek leadership positions within local organizations to ensure we create impactful change inthe neighborhoods andcommunities we serve.Help people and communities thrive through volunteer

298、ing,providing for the needy,and supporting environmental sustainability.Community Impact&Giving Kraton seeks to increase economic well-being,educational development,and support underrepresented and underserved communities worldwide.We dedicate volunteer time,resources,expertise,and funding to organi

299、zations&institutions that build strong&vibrant communities.With the help of our employees and strategic partnerships,we create a positive difference in the communities where we live,work,and do business.Kraton Focuses on Three Key Themes to Accelerate its CSR Strategy:In 2022,Kraton donated over$400

300、,000+to people and communities in need worldwide.In addition,our employees contributed over 2,200+hours of their time to volunteer across seven countries.We continue to impact our local communities by executing our corporate social responsibility(CSR)strategy.Leaders in Our Communities:Partners in E

301、ducation:Giving Back to Our Communities:60Enabling Tomorrows Leaders By helping the next generation succeed academically,were creating a brighter future.We aim to actively support students development and learning by providing them with tools,knowledge,and resources to ensure they have equal opportu

302、nities to reach their academic goals and succeed in the future.Through various global partnerships,weve helped students discover STEM careers,provided scholarships for underrepresented college students,and raised funds to offer necessary supplies to schools in need.FOSSI Partnership Kraton is dedica

303、ted to supporting diversity,equity,and inclusion in the STEM workforce and is honored to partner with the Future of STEM Scholars Initiative(FOSSI).FOSSI is an industry-wide program that aims to increase the representation of underrepresented groups in STEM fields by providing scholarships to studen

304、ts pursuing STEM degrees at Historically Black Colleges and Universities(HBCUs).Kraton is proud to have awarded two students with$10,000 yearly scholarships in 2022 and offered co-op and internship opportunities to provide them with hands-on experience in the industry.As part of the program,students

305、 are also matched with mentors at Kraton to receive valuable career coaching and guidance throughout their academic journey.Kraton is committed to creating a more diverse and inclusive STEM workforce for a brighter future.Society of Women Engineers Kraton is a proud sponsor of the Society of Women E

306、ngineers(SWE)collegiate chapter at Ohio State University.SWE is a non-profit professional organization that promotes the development of women in STEM fields at the undergraduate,graduate,and professional levels.As part of our sponsorship,weve donated to the chapters Discovering Engineering Program,w

307、hich provides an interactive learning experience for elementary to high school girls interested in engineering and ignites their passion for pursuing a STEM career in the future.Providing Aid to Those in Need Were dedicated to providing basic needs such as food and clothing to those in need includin

308、g women and children,the elderly,and the food insecure so they can live thriving lives.Promoting Food Security In 2022,Kraton gave back by volunteering,collecting goods,and providing financial support to promote consistent access to food for families and households worldwide.In one example,volunteer

309、s in our Florida locations volunteered and donated towards packing meals for children and the elderly,totaling over 11,000 meals served to those in need in the areas where we live and work.Enabling Economic Stability We partnered with United Way raising over$150,000 providing support for community p

310、rograms related to the development of long-term housing solutions to prevent homelessness,support of re-employment and job training initiatives,and help for families recovering financially post-pandemic.By caring for our environment,we can live healthier lives and leave our planet a better place tha

311、n we found.At Kraton,we understand our responsibility to advance sustainability within our business and communities.Tree-Nation Partnership In 2022,Kraton pledged$75,000 to Tree-Nation,whose mission is to reforest the world.Planting trees has been proven to be one of the most efficient solutions to

312、fight climate change.With deforestation responsible for about 17%of all climate emissions,tree replanting helps offset the CO2 released into the atmosphere.By supporting Tree-Nations global reforestation projects,Kraton has planted over 25,000 trees on 60+acres across North America and Europe.This e

313、qualed over 4,700 tons of CO2 offset from our tree planting initiative in 2022.We look forward to keeping sustainability and conservation at the forefront of our business as we seek to expand our reforestation efforts in 2023.Supporting a Greener Planet 2022 SUSTAINABILITY REPORT|KRATON61Our commitm

314、ent is to empower and ensure our team and partners make a positive impact through ethical and responsible business practices.Management ApproachAt Kraton,we recognize that responsible business practices are not limited to our operations but extend into our supply chain.Our supplier relationships sig

315、nificantly impact the environment,society,and the economy.Therefore,we value collaborating with suppliers who share our commitment to responsible business practices.Our goal is to reduce our environmental footprint,uphold human rights,and promote sustainable development in the communities where we o

316、perate.By prioritizing responsible business practices throughout our supply chain,we build strong relationships with our suppliers,foster innovation,and create long-term value for all stakeholders.To achieve this,we have created our Responsible Procurement Program based on the following policies:Res

317、ponsible Procurement Policy Supplier Code of Conduct Conflict Minerals Policy Human Rights Policy Slavery and Human Trafficking StatementCOLLABORATING FOR RESPONSIBLE BUSINESS PRACTICEMichael FrenzlVP,Procurement&Supply Chain,Polymers622022 SUSTAINABILITY REPORT|KRATON63We are committed to conductin

318、g business with reliable suppliers aligned with Kratons environmental,social,and ethical standards.The policies mentioned above guide our suppliers in our expectations.We insist that all our suppliers:Conduct business ethically,with integrity,and in compliance with the law Be dedicated to responsibl

319、e sourcing Respect their employees and treat them fairly in accordance with all applicable laws Be committed to Responsible Care or similar assurances to continuously improve their environmental,health,and safety performanceAt Kraton,we collaborate with a diverse group of suppliers.In addition to co

320、mplying with our high standards,we strongly emphasize partnering with key suppliers who share our commitment to improving sustainability performance and advancing our supply chain sustainability goals.Closely aligned with our participation with Together for Sustainability(TfS),our Responsible Procur

321、ement Program is designed to achieve five primary objectives:Deliver a robust due diligence procedure in our supply chain Evaluate suppliers against CSR principles Conduct assessments and audits Increase supply security and reduce reputational,regulatory,and other risks Foster continuous improvement

322、 and capability buildingTo evaluate supplier performance,we assess their management practices,environmental impact,health and safety record,labor and human rights practices,and ethical corporate governance.Identified improvements are tracked via corrective action planning,and reviewed through reasse

323、ssments or audits.Monitoring and supplier management are the responsibility of the individual member company.We can collectively drive positive change and progress toward our shared sustainability objectives through ongoing engagement and collaboration with suppliers.Child Labor,Forced Labor&Human T

324、rafficking Kraton prohibits using any form of forced labor,including prison-,indentured-,bonded-,and military labor,as well as modern forms of slavery and any form of human trafficking.We expect our suppliers to uphold the same standards as described here.We prohibit child labor,and our sites and op

325、erations verify our employees age at the time of hire.We regularly review and update our Code of Conduct.Kraton has established procedures for reporting related to human rights,child labor,or forced labor incidents.We also implemented awareness training across business ethics,discrimination,harassme

326、nt,and associated topics through designated quarterly compliance training and specific statutory requirements and other training.Minco van BreevoortVP,Procurement&Supply Chain,Pine Chemicalshuman rights incidents during the reporting periodAge admission checks performed at all sites during the hirin

327、g processzero2022 Facts We partner with key suppliers who share our commitment to improving sustainability performance and advancing our supply chain sustainability goals.64External Stakeholder Human Rights&Supplier Social Practices Respect for human rights and ethical business conduct is fundamenta

328、l to Kratons purpose of making a positive difference in our jobs,customers,and the world.We believe societies,economies,and businesses thrive when human rights are protected and respected.This is no different for our supply chains.Our Human Rights Policy states our commitment and approach to human r

329、ights.We are committed to treating people with dignity and respect within our company and supply chain.Our core values of Integrity and Safety exemplify this commitment in our everyday work.As part of our commitment to respect human rights,we have established mechanisms to help identify,address,and

330、mitigate potential adverse human rights impacts our actions may cause.We have established global policies and processes to demonstrate our respect for human rights,including our global Code of Ethics and Business Conduct(“Ethics Code”),our Supplier Code of Conduct(“Supplier Code”),and the various pr

331、actices described in our Slavery and Human Trafficking Statement,each of which re-affirms our commitment to our core values of Integrity and Safety.Because of this,we explicitly screen for Uyghur forced labor In China.A core part of our approach to human rights in our supply chain is also related to

332、 our Conflict Minerals policy.This policy is a commitment to compliance and the core value of Integrity;this is fundamental to the philosophy of Kraton.Our policy is to responsibly source minerals and work with its global supply chain partners to ensure compliance with appropriate diligence and disc

333、losure requirements relating to Conflict Minerals.Further,our policy is to support the observance of the Organization for Economic Cooperation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and adhere to internal supply chain due diligence measures and internal controls concerning Conflict Minerals.Should our products con