Better Future Better Whitford - Whitford Worldwide · moulds, oil and gas, reprographics, and water...

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SUSTAINABILITY REPORT 2017 Better Future Better Whitford

Transcript of Better Future Better Whitford - Whitford Worldwide · moulds, oil and gas, reprographics, and water...

Page 1: Better Future Better Whitford - Whitford Worldwide · moulds, oil and gas, reprographics, and water and wastewater markets. resistance, conductivity, corrosion resistance, dry-film

SUSTAINABILITY REPORT 2017

Better FutureBetter Whitford

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About This Report 1

Sustainability Performance Highlights 3

A Message from the CEO 4

Affiliated Whitford Companies 7

Our Stakeholders 10

Sustainability Strategy 13

Better Products 18

Better Planet 25

Better People 31

Better Communities 36

GRI Content Index 38

Contents

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About This ReportWe are pleased to present the Whitford inaugural Sustainability Report. This report, published on a voluntary basis, is intended to provide our stakeholders with information on our environmental, social and economic performance, and our approach to sustainability strategy.

Reporting Framework

We have written this report using the latest GRI Standards, the internationally recognized framework for sustainability reporting. This report has been prepared in accordance with the GRI standards: Core option. It includes a GRI Content Index toward the end of the report to indicate the location of relevant disclosures.

We have used the GHG Protocol Corporate Accounting and Reporting Standard for measuring and reporting Whitford’s carbon emissions.

We have also aligned the report content with the United Nations Sustainable Development Goals (SDGs) as we start our sustainability reporting journey.

Report Boundary

This report provides our Environmental, Social and Economic performance for the period 1st January 2015 to 31st December 2017. The report covers Whitford’s sustainability performance for the coatings business. Sustainability data included in the report mainly relates to the manufacturing facilities in the USA, UK, Singapore, Brazil, Italy, China and India and in addition to the Head Office in Pennsylvania, Regional Office in Singapore, and Sales Offices in Hong Kong SAR, Germany and Turkey unless specified otherwise.

We intend to publish sustainability report on an annual basis.

Reporting Process

Whitford’s Sustainability Management Committee provides strategic direction for developing the Company’s sustainability strategy and reporting.

The Committee, chaired by the Chief Executive Officer, determines the sustainability context and prioritises the environmental, social and economic issues based on materiality assessment and stakeholder expectations. The Committee also decides the report content and the scope of the boundary for sustainability reporting.

A sustainability reporting project team has the responsibility to collect, verify and provide sustainability performance data for preparing the sustainability report.

Report Content and Quality

A careful assessment of Whitford’s most significant environmental, social and economic impacts, stakeholder concerns, sustainability trends in the coatings industry and global issues relating to sustainable development form the basis for determining the content for this report.

We have also considered the potential risks and opportunities for our business resulting from the growing awareness about sustainable production and consumption.

We have applied the GRI principles of accuracy, balance, clarity, comparability, reliability and timeliness to ensure the quality of data and information provided in this report. Data contained in this report has been mainly extracted from internal systems and records to ensure accuracy and consistency. We have used commonly used international measurement units for presenting the information. Financial figures are in US dollars unless specified otherwise.

We faced challenges in retrieving some of the data for prior years and had to rely on estimates where data was partially available. We are taking the necessary measures to improve data collection for our future reports.

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Restatements

As this is our first sustainability report, restatements do not apply.

Assurance

We have not obtained external assurance for this sustainability report. Internal verification mechanisms have been used to ensure the reasonable accuracy of reported information. Our sustainability performance data is reported in good faith and to the best of our knowledge.

Availability

This report is available in the printed version as well as in PDF form for download on our website at www.whitfordww.com

Feedback

We welcome stakeholders’ comments and questions regarding this report. Contact us at [email protected]

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Environmental, Social and Governance PerformanceMATERIAL ESG FACTORS 2015 2016 2017

ENVIRONMENTAL

Electricity used (kWh) 9,266,916 9,603,408 9,550,770

Total energy consumption (GJ) 56,815 57,770 61,423

Energy intensity (GJ/tonne of coatings produced) 3.8 3.7 3.9

CO2 emissions (tonne) 6,369 6,710 6,948

CO2 emissions intensity (tCO2/tonne of coatings produced)

0.42 0.42 0.44

Water consumption (m3) 21,975 19,629 25,020

Wastewater (m3) 2,440 2,730 2,762

Non-hazardous waste (tonne) 1,038 978 1,013

Hazardous waste (tonne) 900 982 1,174

SOCIAL

Employees

Full-time employees 556 576 613

New hires 89 80 85

Female employees - % 29 29 30

Female supervisors and managers - % 27 24 26

Female Heads of Department (HODs) - % 33 37 38

Average training hours per employee 12 16 21

Employee attrition rate - % 12 11 9

Fatal accidents 0 0 0

Sustainability Performance Highlights

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A Message from the CEO

Dear Stakeholders,

It is my pleasure to present our inaugural sustainability report that illustrates how Whitford is creating better products, developing better people and aiming to contribute toward a better planet through constant innovation.

This report reaffirms our commitment to sustainably growing our business by focusing on making superior products, serving our customers better, driving innovation through ongoing research, creating a motivating workplace, and adhering to the highest standards of ethics and corporate responsibility. Our strategy is to drive operational excellence to deliver higher value for our customers, our people, our shareholders and our stakeholders.

We have a long history of developing innovative coating solutions that solve the problems our customers face. We are paying increasing attention to producing coatings which are more durable with an extended life cycle. We have directed our research to develop coatings which also extend the life of the products they are applied on by providing superior protection.

Managing and minimizing emissions and toxins in our products and adopting cleaner and safer manufacturing methods are our top priorities. In particular, limiting Volatile Organic Compounds

(VOCs) in coatings without compromising product performance remains an important objective for us. Exploring renewable materials for formulating coatings is an exciting new area that remains our ultimate goal.

We owe our success to the passion and hard work of our dedicated people around the world. Our global team possesses a very high level of expertise and rich experience to drive sustainable growth. Our workplace focus is on maintaining our ability to attract, develop and retain the best talent. Inducting and growing young minds is a major area for us to ensure a competitive talent pipeline. Capability development is also at the core of our succession planning process.

As presented in this report, we have aligned our sustainability strategies and priorities with the UN Sustainable Development Goals to underscore our role as a responsible corporate citizen.

We have adopted the Global Reporting Initiative’s GRI Standards, the most widely accepted framework, for preparing our sustainability report. In line with the GRI Standards, we have reported our policies, performance, plans and goals relating to the most significant sustainability topics. The report also includes information about the carbon emissions from our manufacturing activities. The performance data provided in the report will act as the baseline for how we move forward on key metrics.

Finally, I would like to thank our customers, suppliers, coaters, partners, employees and other stakeholders for your continued support. I hope you enjoy reading this report.

Best regards,Anne S. WillisChief Executive OfficerWhitford Worldwide

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Founded in 1969, Whitford Corporation is one of the world’s largest manufacturers of fluoropolymer and sol-gel coatings. Based in Elverson, Pennsylvania, Whitford has manufacturing facilities and offices worldwide.

Whitford offers fluoropolymer and sol-gel coatings for a broad range of applications including chemical

Whitford Overview

MARKETS SERVED

HOUSEWARES

• Bakeware• Cookware• Decorative• Gadgets• Small Electrics• Personal Care

INDUSTRIAL

• ACE• Automotive• Chemical Processing• Commercial Bakeware• Corrosion• Energy• Fasteners• Garden Tools• Medical• Molds• Reprographics• Water / Wastewater

FLEXIBLE SUBSTRATES

• “O” Rings• Sealing Systems

TEXTILES

• Belts• Fabric• Filtration• Rope & Cordage

Housewares

We offer a wide range of non-stick coatings for cookware, bakeware, small electrics, specialty products such as cutlery, gadgets, personal care items and barbeque accessories, decorative finishes, colors and effects.

Industrial

Our industrial coatings cover a comprehensive spectrum of industrial applications that include Agricultural, Construction and Earthmoving (ACE) equipment, automotive, chemical processing, commercial bakeware, corrosion, energy, renewables (wind and tidal), fasteners, garden tools, medical, moulds, oil and gas, reprographics, and water and wastewater markets.

resistance, conductivity, corrosion resistance, dry-film lubrication, freeze release, high temperature, low friction, noise reduction, release/nonstick, torque control, UV resistance, and abrasion resistance.

The company’s coatings solutions serve four main markets which include housewares, industrial, flexible substrates and textiles.

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We believe in making superior products. Our products must be better than those of the competition in some way: properties, price, or both. This makes it easier for the customer to choose Whitford.

We believe in serving our customers better. While we sell products, we are in the business of people: people whose jobs may depend on the support they receive from their suppliers. In times of diminishing product differences, service can set us apart. We must place our customers’ interests above our own.

We believe in leading the way. We must commit a higher percentage of our sales, interest and talent to research and development than our competitors do. We must blaze new trails.

We believe in high personal ethics. We embrace equal opportunity: Everyone must have the same right to succeed.

We believe in being happy. We spend a lot of time at our jobs. It should be happy time.

We believe in divine discontent. Self-satisfaction is the first step toward failure. Remember: “Good enough is not good enough”.

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The Whitford Ethos

Flexible Substrates

We offer coatings for flexible finish applications such as O rings and sealing systems in marine, automotive, commercial bakeware, reprographics, fasteners, energy, mold release, water and wastewater applications.

Textiles

We manufacture a variety of coatings, treatments, and finishes for yarns and threads used in the apparel, rope and cordage, belting, and netting industries. Our textile solutions help improve wear resistance, resist discoloration, water shedding and corrosion. Customized for specific applications and markets, our products bring an assortment of performance enhancements including improved comfort, extended life expectancy, reduced energy consumption, and other characteristics depending on the needs of the application.

Market Presence

Whitford has grown into a worldwide organization with 11 manufacturing facilities in 8 countries, Whitford sales offices in an additional 11, and agents in another 25. Together, we have more than 750 employees worldwide speaking some 30 different languages and dialects.

Our manufacturing facilities are located in the USA, Canada, Brazil, UK, Italy, China, India, and Singapore.

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These companies are not considered in the generation of this sustainability report.

Alpha Coatings

Whitford acquired Alpha Coatings in 2006. Alpha Coatings provides applications of low friction coatings for automotive and aftermarket components. Alpha offers “Low Noise” coatings for automotive sealing systems which include the rubber and plastic parts on vehicles that isolate the outside elements from the passenger cabin.

Alpha Coatings’ custom coating services are especially suitable for many types of sealing systems, including those found on any vehicle, such as cars, trucks and trailers, and on appliances, windows, doors and boats. Our flexible substrate coatings also extend into other areas - we can apply coatings to any flexible substrate, including but not limited to silicone and EPDM rubbers, and all types of thermoplastics and PVC.

Alpha’s Resilon® brand of coatings is marketed and sold worldwide.

For more information on Alpha Coatings, visit www.alpha-coatings.com

Affiliated Whitford Companies

Polymeric Systems

Whitford purchased Polymeric Systems, Inc. (PSI) in mid-2004, a leader in the development and manufacture of high-performance sealants, caulks and epoxy adhesives. Since its founding in 1969, PSI has focused on supplying custom products, and its formulations are found in a wide range of industrial, commercial and Do-It-Yourself (DIY) applications. Its business is principally private labelling and tolling of products for others.

PSI’s adhesive and sealant product line includes epoxy putties and gels specifically designed for superior bonding strength to a myriad of different substrates, and high-performance joint sealants with excellent adhesion to various building materials.

PSI’s family of epoxy putty sticks and tapes has thousands of uses. Their ability to repair, rebuild and restore nearly everything makes them the ultimate repair products for small or emergency repairs.

For more information on Polymeric Systems, visit www.polymericsystems.com HP Polymers

HP Polymers is a custom manufacturer of polymers for use in the coating, ink, plastic & textile industries. Located in Guelph, Ontario, Canada, HP manufactures many of the specialty high-temperature polymers that coating manufacturers use around the world. In addition, HP supplies resins for the manufacture of inks and other coatings.

For more information on HP Polymers, visit www.hppolymers.com

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Global Management Team 2017

Dave began with LNP as a salesman (the only one) early in 1960. This employment ended with his firing on December 22, 1964. Dave and Ted Rehmeyer became the principals of Whitford Chemical Corporation, which they owned and operated until selling it to Pennwalt in 1969. From 1969 to 2015, Dave has been the President of the Whitford companies. In April of 2016, he became the Chairman of the Board for Whitford Worldwide Company.

David P. Willis, Jr.Chairman of the Board, Whitford Worldwide

Leonard joined Whitford as Worldwide Technical Manager in 2002. University College Cardiff first class honors graduate in Chemistry 1977, achieved PhD Polymer Science 1981, PhD Chemistry Colloquium Prize 1980 from University of Liverpool. His experience includes five years at British Nuclear Fuels advising on Fire/Explosion, Radiolysis and Gas Dynamics; one year at Assoc Octel on Hazard Analysis and Risk Assessment; three years at ICI UK followed by seven years at ICI Americas as Technical Manager for PTFE products; one year at State Chemical as VP R&D in Ohio; and five years at Dyneon as PTFE Technology Manager.

Dr Leonard HarveyDirector of Technology, Whitford Worldwide

Anne S. WillisCEO of Whitford Worldwide

Anne joined Whitford Plastics in June 1992. Before joining Whitford, she spent eight years trading the US and European equities in the stock markets both in New York and London. Fluent in German, Anne was deputed to Whitford GmbH for two years to reorganize the offices and the plant site where she managed six offices as Managing Director, Europe. In April 2016, she was appointed CEO of Whitford Worldwide.

Michael joined as Managing Director of Whitford Plastics in 2003. He has acquired a broad base of international leadership, marketing, manufacturing, and technical skills in the fluoropolymer industry, and had been associated with Whitford for nearly thirty years. Initially, he held the position of Worldwide Marketing Director created for more effective product management and market expansion working from the US headquarters. However, in 2012 Michael assumed the position of Worldwide Business Manager, including overseeing the IT department, Alpha Coatings and Laurel Products and became the NA Managing Director in 2015.

Dr Michael CoatesManaging Director, North America

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Asia Pacific

Steve joined Whitford in June 2012 as Sales and Marketing Director for Asia. He has a degree in Management and has worked in Asia since 1997. His previous stints included working for DyStar, BASF and ICI primarily in Selling and Marketing roles in the textile dyes and effect chemicals business with experience in Europe, North and South America and Asia. Immediately before joining Whitford, he was the Global Group CEO of DyStar.

Steve BarronManaging Director,Asia Pacific

Martin joined Whitford as Managing Director of Whitford Plastics in 2005. Martin has 30 years of extensive international textile sector experience and speaks several languages. Previously he was Managing Director at Paxar Systems, Runcorn, a global leader in labelling solutions for brands and retailers offering electronic printing machines, software and consumables such as fabrics, tickets, and thermal inks.

Martin GarnettManaging Director, UK

Europe/Africa

Andrew joined Whitford Plastics Ltd. in the Technical Department in August 1986. After graduating from Liverpool University with an Honors Degree in Organic Chemistry, Andrew spent two years with a multinational company working on the heavy-duty industrial coatings. After a career introducing Whitford’s new products to the Automotive and then Textile Industries, Andrew is now MD of our Brazilian facility.

Andrew MelvilleManaging Director, Brazil

Latin America

Giuseppe was a student in 1981 when he took over Becherplast upon the death of his father. He retains the title and responsibilities of Managing Director of the combined Whitford and Becherplast companies which we purchased in fall of 1998. Giuseppe has almost 35 years’ of extensive experiences in manufacturing and marketing coatings for the heavy – duty, automotive and fluoropolymer industries. The Italian manufacturing site has expanded over the years.

Giuseppe VallapertaManaging Director, Italy

Chris was brought into Whitford in November 2011 to oversee the selection and implementation of a new ERP system. The top 8 medium sized ERP vendors tendered for the project with the top 3 going through to a selection panel consisting of 14 key users from around the world. IFS was selected as the winner and is now running at all but 2 of our sites. These will come on board as we move to the latest version of the system later in 2018. Chris has also overseen the creation of the new Whitford website which is to be launched this summer.

Chris Knightley HillERP Implementation Manager, Whitford Worldwide

Steve has almost 30 years’ experience in the Speciality Coatings Market, with the past 16 years at Whitford. His expertise includes Lubricating, Release and Conductive Coatings/Inks. Progressed through the company holding positions of Sales Manager, European Automotive Business Manager, Global Automotive Business Manager and now Global Business Director. Vistage Executive Coaching and Leadership Development Member for seven years.

Stephen Anthony ButlerGlobal Business Director

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Our Stakeholders

We are committed to constructive engagement with our stakeholders to build trusted relationships and create value for all.

In the course of our business, we engage with a wide range of stakeholders worldwide. Listening to our stakeholders is part of our daily work. Understanding our stakeholders’ expectations or concerns helps us make better decisions, allows us to offer the right products and enables us to grow our business sustainably. We believe stakeholder involvement is crucial for understanding evolving market demands, business trends, risks and opportunities.

We pay particular attention to those stakeholder groups whom our business operations impact or who have the potential to affect our business through their opinions and actions. Our approach is to engage in a constructive manner to build trusted relationships with our stakeholders.

We actively promote dialogue with our stakeholders, including our customers, brands and end-users, employees, suppliers, regulatory agencies, industry associations, NGOs and communities as our primary stakeholder groups.

We have described our interactions with stakeholders throughout this report. Presented below is a summary of our stakeholders, their expectations and concerns and how we engage with them.

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Stakeholders Stakeholder Expectations and Concerns How We Engage

Customers (Coaters and Brands)

• Meet customer specifications• Technical support• Product quality and safety• Sustainable products and solutions• Product innovation• Cost-effectiveness• Timely delivery

• Sales and marketing• Trade shows and seminars• Surveys• Sustainability report

End-users• Product quality and safety• Concise product use instructions• Product innovation

• Sales and marketing• Trade shows and seminars• Sustainability report

Employees

• Fair treatment• Open communication• Career growth and personal development• Workplace diversity• Work-life balance• Occupational safety and health• Respect for human rights

• Internal communication channels• Regular dialogues• Safety briefings• Training• Performance appraisal

Suppliers• Mutual growth• Explicit specifications• Payment as per contractual terms

• Request for proposals• Meetings• Quality audits

Regulatory agencies

• Compliance with laws and regulations• Product safety• Environmental impacts• Worker health and safety

• Meetings with officials• Regulatory filings

Industry associations

• Collaboration• Adhering to industry standards• Mutual sharing of experience• Innovation

• Meetings• Workgroups and Committees• Industry forums and conferences• Universities

Non-governmental Organizations (NGOs)

• Product safety• Environmental impacts• Sustainable products

• Meetings and conferences• Sustainability reports• Company website

Community

• Good corporate citizen• Local employment• Prevention of environmental or safety disasters

• Charity efforts• Community initiatives

Shareholders• Sustainable growth of business• Reasonable return on investment• Brand and reputation

• Board meetings• Quarterly management updates

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Industry Associations Whitford’s Contribution

Plastics Industry of America Fluoropolymers subcommittee member

Cookware Manufacturers of AmericaWhitford Corp.’s Senior Technical Manager Kurt Mecray is an office bearer

Society of Chemical Hazard Communication, USA Member

Union of Non-Ferrous Metal Artifacts Industries of São Paulo Member

The Industrial Association of Brescia, Italy Member

Jiangmen Jianghai District Federation of Trade Unions, China Member

Jiangmen Jianghai District Safety Production Management Association Member

China Association of Fluorine and Silicone Industry Member

Singapore Business Federation Member

Singapore National Employers Federation Member

Controlled Release and Encapsulation Network (CoRE-Net) Member

Singapore Precision Engineering and Technology Association Member

Singapore Chinese Chambers of Commerce & Industry Member

Singapore Plastic Industry Association Member

NACE, USA Member

British Coatings Federation, UK Member

FEC, Europe Member

Associations and Industry Initiatives

We engage with several national and international industry associations through membership, participating in work committees and attending discussions and dialogues. We actively participate in industry dialogue on a range of issues including

sustainable development through collaboration and mutual sharing of experience.

Some of the trade organizations we actively engage with are listed below.

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Sustainability Strategy

Better Future, Better Whitford

Our sustainability strategy focuses on producing better products, nurturing a motivating workplace, minimizing our impacts on the environment and contributing toward community development. We aim to create a better future and a better Whitford through creating value for stakeholders as well as shareholders.

Our long-term sustainability strategy is driven by the most significant environmental, social and economic impacts and risks relating to our manufacturing and products and our stakeholders’ concerns and expectations.

Our business is to solve problems for our customers. Coatings are essential to protect various substrates such as steel or concrete, to provide safety, to prevent corrosion, to keep surfaces clean and to ensure equipment remains functioning. Non-stick coating on cookware makes utensils easy to use and clean and allows healthier cooking by requiring less oil. Almost every manufactured product requires protective, performance or decorative coating. Coating adds value to products, equipment and infrastructure and enhances performance.

The coatings sector is a significant contributor to economies around the world and is instrumental in protecting the infrastructure. Also, the coatings industry creates jobs throughout the value chain.

However, the benefits of coating come with potential environmental and health impacts which require attention by the industry as well as the regulators. High-performance coatings are made with solvents, a crucial ingredient in achieving the performance of such coatings. Solvents are Volatile Organic Compounds (VOCs) which pollute the environment. For example, spray coating operations release air emissions with potential health hazards. Limiting the VOC content in coatings can minimize the air emissions during manufacturing or applications. But maintaining the

desired product performance with low-VOC coatings remains a scientific challenge. This challenge also presents an opportunity to the coatings sector for environmental stewardship through research and innovation.

The Greening of Whitford

Our strategy is to make continuous improvements in our processes and products through dedicated research and development to reduce hazardous air pollutants (HAPs) and VOC emissions. We are committed to managing and minimizing emissions and toxins in our products and to adopt cleaner and safer manufacturing methods.

Today, we make environmentally acceptable analogues for most of our product lines, with hundreds of ‘green’ formulae available to our customers. The VOCs of these coatings are less than (and, in some cases, significantly less than) the l imits permitted by the most str ingent environmental legislation found in any of the markets in which we sell.

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Materiality Assessment

Material Topics (GRI Standards) Organization’s Involvement Where the Impact is Material

Environment Energy Direct Manufacturing

Water Direct Manufacturing

GHG Emissions Direct Manufacturing

Volatile Organic Compound (VOC) Emissions

Direct and Indirect ManufacturingApplication by Coaters

Effluents and Waste Direct ManufacturingApplication by Coaters

Environmental Compliance Direct Manufacturing Sales and Marketing

People Employment Direct Whitford Worldwide

Training and Education Direct Whitford Worldwide

Diversity and Equal Opportunity Direct Whitford Worldwide

Occupational Health and Safety Direct Manufacturing Application by Coaters

Marketplace Customer Health and Safety Direct and Indirect Manufacturing

Application by Coaters

Marketing and Labelling Direct and Indirect ManufacturingSales and Marketing

Regulatory Compliance Direct Manufacturing

Anti-corruption Direct Whitford Worldwide

Community Local Communities Direct and Indirect Whitford Worldwide

EconomicIndirect Economic Impacts Direct and Indirect Whitford Worldwide

Material Issues

For developing this report, we have assessed the material environmental, social and economic impacts associated with our manufacturing operations. We have considered the general concerns of our stakeholders such as customers, coaters, end-users, employees, regulators, and communities.

Our senior executives from various departments attended a materiality workshop facilitated by an external sustainability expert to examine the most sustainability significant impacts and risks and to identify and prioritize material topics for reporting.

An account of Whitford’s material environmental, social and economic impacts is presented below.

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Building a Better Future

Material issues sit at the core of our sustainability strategy which strives to create a better future by developing actionable plans and policies for better products, better planet, better workplace, and better communities.

Better FutureBetter

Whitford

BetterProducts

BetterPlanet

BetterCommunities

BetterWorkplace

• Raw Material• Product Functionalities• Energy• Climate Change• GHG emissions• VOCs• Water / Wastewater • Waste

• Healthy & Safety• Diversity

• Talent Engagement• Training

• Community Development• Health & Safety

• Customer Engagement • R&D• Supply Chain

• Raw Material • Functionalities

Whitford Sustainability Strategy

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Strategic Area Goals and Targets Link to SDG

Energy • Reduce energy consumption in own operations • Aim for energy efficiency

GHG Emissions • Minimize greenhouse gas emissions in own operations

VOC Emissions• Ensure compliance with VOC emission regulations• Limit VOC emissions during manufacturing of coatings• Develop products with low-VOC substitutes

Water• Minimize use of water• Recycle and reuse water whenever possible and practical• Increase our focus on the water industry to learn how we can contribute

Effluents and Waste

• Ensure compliance with wastewater regulations• Minimize process wastewater• Recycle and reuse treated water

Environmental Compliance

• Ensure compliance with applicable environmental regulations• Apply the most stringent environmental regulation to all locations of manufacturing and sale

Employment • Promote a fair, just and high-performance organization

The UN Sustainable Development Goals (SDGs) provide a roadmap for businesses to contribute to the creation of a better world. We have aligned our sustainability priorities and strategies against the SDGs to support international efforts to achieve the SDGs by 2030.

Sustainability Strategy and SDGs

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Strategic Area Goals and Targets Link to SDG

Training and Education

• Provide ongoing training to develop the needed skills and knowledge• Provide opportunities to people for learning and personal development• Succession planning

Diversity and Equal Opportunity

• Nurture an inclusive organization where diversity is considered a strength• Encourage gender diversity

Occupational Health and Safety

Ensure safety and health at the workplace by taking preventive measures and implementing emergency response programs

Customer Health and Safety

• Educate customers on the safe use of cookware• Develop low-VOC products for industrial coatings

Regulatory Compliance

Ensure compliance with socio-economic regulations in all markets where we produce or sell

Anti-corruption Ensure responsible business practices by maintaining high standards of ethics and integrity

Local Communities

Take preventive measures to protect communities near our plants from potential health impacts or industrial accidents

Indirect Economic Impacts

Invest in Research & Development to develop innovative industrial coatings that help protect infrastructure and add to the local economy

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Whitford formulates and manufactures high-performance coatings for countless applications, including food contact, high-temperature use, decorative, industrial, aerospace, automotive, chemical processing, textiles, reprographics and many more.

Our coating products solve problems. Coatings provide the essential protective layer to almost all manufactured products. Coatings are needed to ensure safety and to prevent corrosion. In several instances, coating improves the performance of products and equipment. Decorative coatings give products aesthetic appeal. Non-stick coating on cookware makes utensils easy to use and clean and allows healthier cooking by requiring less oil. Coating adds value to products, equipment and infrastructure.

Better Products

We are committed to continually innovating to offer high-quality coatings in an environmentally responsible manner.

Investing in R&D

We are at the forefront of research and technology. We invest about 5% of our sales on research and development. Our firm commitment to solving new and challenging problems demands an investment in research and development (R&D). Whitford commits one of the highest percentages of company sales to R&D in the coatings industry.

We maintain full-scale R&D centers in the US, UK, Italy, Brazil, Singapore and China. Our laboratories are equipped with research-grade instrumentation. Due to the complex nature of coatings and our growing needs, we continuously upgrade laboratory equipment and enhance our services.

The prime responsibility of our skilled chemists and technicians is to solve our customers’ problems, frequently by designing tailor-made products.

Our R&D includes chemical testing and analysis for a wide variety of industries, using a unique combination of analytical capabilities, instrumentation, technical expertise and quality systems. Robust R&D capability has given us a competitive edge in the market. It also includes precise coatings characterization and failure-analysis capabilities that enable researchers to solve a variety of coating problems.

The Whitford Analytical Laboratory’s also provides a broad range of services, including problem-solving, failure analysis, formulation, chemical analysis, troubleshooting, consulting, experimental design and analysis, and independent laboratory studies.

Low-VOC Coatings

Volatile organic compounds (VOCs) emissions negatively affect the environment as well as the

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health of people. There is increasing demand for low-VOC coatings from environmentally conscious customers. Regulators around the world have also tightened rules governing the VOC limits in various products including coatings and paints. At Whitford, we are committed to offering products that meet the most stringent VOC compliance criteria.

Solvents and thinners are the most common sources of VOCs in coatings used in the formulation itself or during product application. We have been investing in research for years to develop safer alternatives to our solvent-borne products.

We make environmentally acceptable analogues for most of our product lines, with hundreds of ‘green’ formulae available to our customers. The VOCs of these coatings are less than and, in some cases, significantly less than the limits permitted by the most rigorous environmental legislation found in any of the markets in which we sell.

We have eight manufacturing plants in different countries where the VOC regulations may vary. However, our policy is to apply the most stringent rule to all our plants.

Made without NMP, PFOA and BPA Coatings

N-Methyl-2-pyrrolidone (NMP), an organic compound, is used to dissolve polymers due to its excellent solvency properties. Due to potential health concerns, there is growing demand for made without NMP products.

Whitford does not make, buy or use PFOA in any of our products or processes worldwide. We also offer formulations without NMP and BPA.

Solving Customers’ Problems

We run training programs for our customers around the world. Whitford frequently formulates special coatings to solve an individual customer’s specific problems. Moreover, we provide unrivalled technical support for our products worldwide.

We have developed efficient processes to solve coating problems our customers bring to us promptly. Other than dispatching a technician to the customer’s facility, we replicate the problem in our laboratories by reproducing the underlying conditions of the customer’s plant on our equipment.

Whitford maintains a variety of processing equipment: metal-treatment lines, etching lines, standard air spray, HVLP, electrostatic spray, powder-coating facilities, roller coating, curtain coating, dip/spin, and ovens to name a few. This capability permits us to replicate the entire application process and pinpoint precisely where the problem may be occurring — quickly and efficiently. It includes precise coatings characterization and failure-analysis capabilities that enable researchers to solve a variety of coating problems.

While solving problems for customers helps us build trusted relationships, it also gives us the opportunity to enhance our ability to develop new, better, more efficient and environmentally friendly coatings.

Whitford University

Whitford maintains more active formulae for fluoropolymer coatings than any of our competitors. Working with so many customers in so many countries with so many products for so many years has led to an abundant accumulation of knowledge concentrated within the worldwide organization.

In 1990, we decided to share what we have learned with our customers — and founded Whitford University to run an intensely practical training program of several days held in many of our offices on an annual basis.

With turnover and growth, our customers are often hiring new people, many of whom are beginners in the somewhat complicated business of handling and applying high-performance coatings. Further, there is little formal training available related to the specialized technology.

The objective of Whitford University is to share our knowledge with customers. Our goals include helping our customers become more skilled in the application of fluoropolymer coatings and to help them familiarize with the proper handling of the various products we manufacture. Each program lasts several days and combines classroom lectures with hands-on, practical exercises in the laboratory.

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Lectures cover such subjects as product testing, quality-control procedures, surface preparation, environmental regulations, basic “paint math” (coverage calculations) as well as other topics specific to the particular audience. Laboratory work includes familiarization with all types of application equipment and techniques, color matching, troubleshooting typical problems, and demonstrations of testing equipment.

Since the inception of Whitford University, we have graduated several thousand individuals from more than 40 countries.

Adding Value to Industrial Products

Our high-performance coatings add significant value to a wide range of industrial products. Our coatings ensure industrial products have the essential properties for the intended performance. Some of the properties that coatings make possible include low friction, outstanding release, wear/abrasion resistance, corrosion and chemical resistance, weather resistance such as against salt water, road chemicals and acid rain, wide operating temperature range, flexible curing schedule, and UV light resistance. Coatings enable materials’ pliability such as bending freely and frequently without cracking. Coatings also enhance machinability and excellent adhesion to most metals, plastics, ceramics and wood, and a wide range of colors.

Our coatings are used in countless applications including marine and wind energy, chemical processing, petrochemical, offshore oil and gas, industrial, high-temperature, decorative, aerospace, automotive, and reprographics.

Making Automotive Components Perform

Whitford makes the world’s largest line of fluoropolymer coatings for automotive components. These coatings solve problems of abrasion, corrosion, noise (itch and squeak), friction, release, sealing, weathering and decoration.

Automotive manufacturers who have specified Whitford coatings include Arvin Meritor, Audi, BMW, Citroën, Chrysler, Ford, General Motors, Honda, Jaguar, Karmann, Land Rover, Mercedes-Benz, Nissan, Peugeot, Porsche, Rover, SEAT, Suzuki, Telco, Toyota, Volkswagen and Webasto.

Helping Off-shore Oil Industry Endure Severe Conditions

Our Xylan range of coatings offers many benefits for offshore service. These include resistance to corrosion and chemical attack, superb subsea visibility, lower maintenance costs and less downtime.

Xylan coatings have been the first choice of many engineers in the offshore industry for more than 30 years. Xylan can be found hard at work above and below the sea in the Hibernian Peninsula, Gulf of Mexico, Arabian Sea, South China Sea, North Sea, West Africa’s deepwater frontier — wherever the offshore industry faces severe conditions that demand the finest performance from protective coatings.

Giving an Edge to Commercial Bakeware

We offer a broad range of high-release coatings that make commercial bakeware efficient and effective. Typical applications include bread straps, baguettes, waffles, croissants, cookies, cakes, pies, buns, biscuits, pizzas, tortillas and burger buns.

Our coating solutions for commercial bakeware help reduce residue build-up, ensures outstanding resistance to abrasion and wear, withstand a wide range of temperatures, speeds up production, reduces downtime for maintenance, minimizes imperfections in finished baked goods and makes bakeware easier to clean.

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Offshore Wind Farms

Offshore wind farms have the advantage of more frequent and powerful winds than those found in land-based installations, and of course, have a less adverse visual impact on the landscape. However, there are considerably higher construction costs. Furthermore, offshore sites pose problems regarding accessibility for routine maintenance issues.

Xylan coatings, used in many areas of the structure, help drive down the “life-operating” costs by reducing maintenance over the 25-year lifespan typically demanded.

Tidal Energy

Xylan coatings are an integral part of many renewable energy structures, from turbines to test sites. Among sources of renewable energy, tidal power has traditionally suffered from relatively high costs and limited availability of sites with sufficiently high tidal ranges or flow velocities.

Corrosion, both galvanic and red-rust, is a crucial concern with spiral, single or multi-blade devices on floating, surface or sub-surface piled foundation components. Xylan inhibits this corrosion. In addition, the stresses placed on turbine blades on a root fastener connection are significant. Xylan delivers benefits in terms of torque-tension certainty and limits “backing off”.

Wave Energy

Offshore wave converters are designed for deep sites, while shoreline and nearshore systems are modified for shallower water. Power-generating devices are usually floating, and the splash zone is where the most demanding corrosive conditions are experienced. Xylan provides excellent corrosion resistance for metallic components in these hostile environments. In addition, Xylan is a dry lubricant, ideal for fail-safe applications such as storm valves.

Coatings for Renewable Energy Sector

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A rice-cooker nonstick coating that lasts six times longer

Our dedication to making our products better helped us produce our Tetran range of coatings that make a rice-cooker nonstick coating last six times longer compared with conventional coatings. Moreover, Tetran coating is environmentally safer and healthier as it is made without using the NMP solvent and without perfluorooctanoic acid (PFOA).

Ensuring Quality Control

Our quality control begins with the specification process, testing raw materials to eliminate any potential weak links before we start assembling the polymer chain. We test ingredients and their combinations every step along the way to the finished product until it is packed and ready to ship. Whitford operates a Quality Management System which complies with the requirements of ISO 9001:2015. Currently, our operations in the US, UK, India, Singapore, China, Italy, Germany and Brazil are certified to ISO 9001 reflecting our commitment to ensuring high standards of quality in our processes.

Whitford Quality Cooperative Program

Whitford publishes strict specifications for all our coatings. Adherence to these is crucial to achieving and maintaining maximum quality. Therefore, it is critical to maintain the highest quality in the application of coatings to meet the expectations of the cookware, bakeware and appliance manufacturers, coaters, importers, retailers — and the ultimate consumer. It is also in our best interest that users of our coatings in the value chain can ensure the high standards of quality that our products offer. That is why we offer Whitford Quality Cooperative Program (QCP).

The QCP helps maintain the highest quality in the application of coatings. The QCP is open to coaters and manufacturers, exporters and importers of houseware, and retailers of housewares.

Participants in the QCP have access to our quality testing service on the finished product based on a three-point verification that involves verification of proper surface preparation to assure excellent coating adhesion, verification of film thickness to assure the durability of the coating, and verification of adequate cure which ensures adhesion and performance of the coating.

As evidence of strict compliance to standards, only housewares protected by the QCP may carry one of the eight Whitford logotypes depending on the specific coating used.

Engaging Customers

Ensuring customer satisfaction is our topmost priority. We actively engage with customers through all stages of the transaction to understand and exceed their expectations. We also conduct periodic customer satisfaction survey to gather feedback and to identify improvement areas.

In the most recently conducted customer survey in 2016, the response rate was 55%, higher than the figure of 33% in the prior year. Nearly 90% of responding customers said they were happy with our sales service. The survey results indicated that 83% customers were satisfied with the overall value and quality of our product.

Engaging Suppliers

Our purchases include raw material, packaging material, logistics services and office supplies.

We work closely with our suppliers to continuously improve timeliness, quality and completeness of all orders. We have developed a supplier scorecard system to reflect a supplier’s performance and effectiveness in meeting our expectations.

Ensuring Compliance

We have implemented stringent processes to ensure compliance with an array of regulations governing coatings around the word including FDA, USDA, REACH, China National Standards (GB), Japanese Industrial Standards (JIS), Commission Regulation (EC) and California’s Prop 65.

We are committed to establishing and maintaining the highest ethical standards in all aspects of the business and our relationship with customers, suppliers, employees, and advisors. The Whitford Code of Conduct (the “Code”) is grounded in and reflects the principles of the Company. The Code guides Whitford’s serious commitment to compliance with rules and regulations that govern its business throughout the world. All employees must conform to the highest ethical and legal standards and must abide by the law to preserve the Company’s integrity and reputation. All employees are required to read and comply with the Code.

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Our Products

Whitford owns and uses more than 40 brands and registered trademarks around the world. Some of our best-known brands include the following:

Whitford Brands and Products

ECLIPSE®: a three-coat, internally reinforced nonstick system that extends the wear resistance of multicoat systems by order of magnitude.

ETERNA®: introduced in February 2009 as the world’s long-lasting nonstick coating. Eterna is a waterborne, multicoat system with a reinforced basecoat and a special fluoropolymer topcoat. It is used on high-end, gourmet and upper-moderate cookware and bakeware.

FUSION®: a coating system based on sol-gel technology, a hybrid of organic and inorganic chemistry common to ceramic engineering. Fusion is made without PFOA and PTFE and can withstand high temperatures. It is an alternative to conventional nonsticks.

HALO®: contains a unique formula of special additives that preferentially absorb heat from the stove top more quickly and distribute it across the surface of the pot or pan more evenly.

QUANTANIUM®: reinforced with titanium and capable of withstanding the toughest top-of-stove applications, it allows for the use of metal cooking utensils. The titanium used is harder than the metal used in cooking utensils.

QUANTUM2®: Whitford’s internally-reinforced, multi-coat fluoropolymer finishes. Quantum2 is a breakthrough multi-coat system using technology that permits the primer coat, containing polymerically bonded metallic or ceramic filaments, to dedicate itself entirely to adhering to the substrate.

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SKANDIA®: an economical line of one-coat developed for the direct application methods of Coil and Roller coating, optimized for release.

TETRAN®: The rice-cooker coating that outlasts the competition by a factor of 6.

XYLAC®: Whitford’s high-temperature decorative materials. This line of tough engineered polymer alloys is less expensive and easier to apply than porcelain enamel. Xylac is widely used on bakeware, top-of-stove cookware and many electric appliances.

XYLAN®: the Xylan brand is also used to describe a family of nonstick coatings designed to suit a wide range of consumer applications (cookware, bakeware, small electrics, etc.), offering one-, two-, and three-coat options, with a coating option for virtually every price and performance level.

RESILON®: a line of waterborne coatings for use on flexible substrates in the automotive industry. Resilon helps to reduce friction, suppress noise, avoid sticking and protect against weathering for automotive sealing systems, i.e., trunk/boot surrounds, rubber door seals, etc.

XYLAN®: our earliest and most widely used trademark, Xylan brands our low-friction, wear-resistant composites of fluoropolymers and reinforcing binder resins. Xylan is found today on such products as saw blades, fasteners, air-conditioning pistons, carburetor parts, valve seats and stems, commercial bakeware, paper guides, bearings for jet engines, etc.

XYLAR®: Whitford’s line of inorganic coating materials capable of operating at extremely high temperatures. Stable to 1200°F (650°C), Xylar is frequently chosen for parts used in jet engines or high-temperature exhaust systems.

Whitford Brands and Products

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At Whitford, our strategy is to make continuous improvement in our processes and products through dedicated research and development to reduce hazardous air pollutants (HAPs) and VOC emissions. We ensure compliance with relevant regulations in all markets where we produce or sell. We are committed to managing and minimizing emissions and toxins in our products and to adopt cleaner and safer manufacturing methods. Our policy is to apply the most stringent environmental regulations to all of our locations even if the local rules in a jurisdiction are less demanding.

Recognizing the damage to the environment caused by pollutants, we began to look for safer alternatives to our solvent-borne products many years ago. We committed a significant spend, 5% of sales, on Research & Development to manufacture greener and safer coatings. Our strategy has given us an edge in the marketplace.

Today, we make environmentally acceptable analogues for most of our product lines, with hundreds of ‘green’ formulae available to our customers. The VOCs of these coatings are less than and, in some cases, significantly less than the limits permitted by the most stringent environmental legislation found in any of the markets in which we sell.

Our focus is on the efficient use of materials, energy and water, and on reducing greenhouse gas emissions, VOC emissions, wastewater and waste. This report provides our performance on these important environmental topics.

Better Planet

We are committed to manufacturing high-quality coatings in an environmentally responsible manner.

Environmental Management System

We have implemented comprehensive environmental management system (EMS) across our manufacturing plants to reduce our environmental impacts and improve operational efficiency continuously. Each plant has established environmental goals, and the plant management regularly reviews the performance.

Our plants in the UK, Singapore and India have obtained ISO 14001 certification for their environmental management systems. The certification process for other facilities is underway.

Materials

We are focused on using materials efficiently to reduce waste and to remove toxins from our products. Developing more sustainable substitute raw materials to manufacture effective coatings remains a challenging area and requires ongoing research and innovation.

We have several initiatives across our manufacturing plants aimed at reducing the environmental impact of materials. These initiatives include using materials already in stock, reworking obsolete products instead of disposing of as waste, and recycling solvents.

We are investing in ongoing research to develop coatings that make the host material durable and long lasting. Our goal is to offer coatings for extended lifecycle and durability. To this end, we have developed anti-corrosive primer coatings. Our plans include launching high built coatings which have better abrasion resistance.

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Mitigating VOCs

The VOC emissions in our manufacturing plants are mainly caused by the use of solvents. Our goal is to reduce solvent usage and transition to low-VOC substitutes where feasible.

Local authorities regulate VOC emissions to the air in most countries. Our approach is to limit VOC emissions from our manufacturing process within the permissible threshold limits through regular monitoring and mitigation plans.

Our manufacturing facilities are equipped with ventilation and extraction system to remove VOCs to improve indoor air quality. Activated carbon filters in dust collector units, are used where required, at our manufacturing facilities for removal of VOCs from the air.

Energy

Our approach is to minimize energy use throughout our operations and help our users to reduce their energy consumption. Currently, improving energy efficiency is our primary goal. Our efforts include switching off lights and air-conditioning in meeting rooms when not in use and keeping the air-con temperature at 250C where applicable to save energy.

We use electricity to run manufacturing equipment and for lighting, natural gas for heating and diesel and petrol in our vehicles and forklift trucks. We have started monitoring the consumption patterns to identify areas for improvement.

Our energy efficiency program includes replacing conventional lights with LED lights. We have installed auto power shut-off timers in facilities that turn-off lights, air-conditioning and other equipment after the set duration of idle time.

Our plant maintenance staff regularly check and adjust air compressor pressure to the optimum pressure to save energy. Our rigorous maintenance schedule for manufacturing equipment and utilities ensures efficiency and reduces energy consumption.

We have installed Variable Frequency Drives in our plant equipment which save energy by consuming power only when needed.

We monitor energy usage on a monthly basis to identify opportunities for reductions. We also have ongoing programs to raise employee awareness for energy conservation.

GHG Emissions

Our approach is to reduce the greenhouse gas (GHG) emissions throughout our manufacturing operations. The GHG emissions emanate from the use of electricity and fuel in our plants and offices. Our efforts are focused on minimizing energy consumption to reduce our emissions.

We measure, monitor and report our carbon dioxide (CO2) emissions using the GHG Protocol standards.

A summary of our carbon footprint is presented below.

CO2 Emissions 2015 2016 2017

Scope-1 (Direct Emissions)

Stationary 1,275 1,259 1,493

Mobile 187 195 196

Total Scope-1 Emissions 1,463 1,454 1,689

Scope-2 (Indirect Emissions)

Purchased Electricity 4,906 5,256 5,259

Total Emissions 6,369 6,710 6,948

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Water

Water is increasingly becoming a precious resource with many parts of the world coming under water stress. Our approach is to conserve water through optimizing the use and reusing or recycling water where possible. Water is mainly used in our plants for washing the equipment. All our water is from public utilities. Some of our facilities also collect rainwater for use. We closely monitor our use of water.

Wastewater

Our approach is to minimize wastewater and treat the wastewater before discharge or dispose of wastewater only through licensed contractors in accordance with local regulations. Wastewater is generated at our manufacturing plants mostly by the washing of the equipment. Our programs and plans include recycling wastewater and automation for washing equipment which reduces the output of wastewater.

Where applicable, our facilities measure and monitor various contaminants such as Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD) and Total Suspended Solids (TSS) to ensure compliance with local regulations.

Waste

Our approach is to reduce, reuse or recycle waste as much as possible. Our plants segregate waste by type such as hazardous and non-hazardous waste. Our facilities in India and Brazil recycle or reuse some of the waste. In the past three years, the two facilities have recycled a combined total of 36.1 tonnes of waste. Our other sites are exploring opportunities for waste recycling.

Hazardous waste in our manufacturing facilities includes used oils, solvent residues, contaminated plastic and metal packaging, sludge, chemical drums, acids, corrosives, waste activated carbon, contaminated gloves and cotton rags, paper and brooms, used personal protective equipment (PPE), and e-waste. Non-hazardous waste from our operations includes plastic bags, woven bags, paper, cardboard boxes, wooden pallets, glass, metal, and food packaging.

We dispose of waste through licensed waste management contractors.

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Energy Consumption by Region (GJ)

Energy Consumption by Source (GJ)

America Europe Asia

2015

12,854

14,996

28,965

2016

14,056

14,812

28,901

2017

14,101

16,857

30,465

2015 2016 2017

20,515 20,288 24,123

33,361 34,572 34,383

Electricty Natural Gas Fuel

Environmental Charts

Fuel Consumption (Liters) Energy Consumption (GJ)

2015 2016 2017

4,808 6,020 10,062

71,740 69,996 66,630

PetrolDiesel

2015 2016 2017

56,815 57,770 61,423

Electricty Consumption (kWh)

2015 2016 2017

9,266,916 9,603,408 9,550,770

Electricty Consumption by Region (kWh)

America Europe Asia

2015 2016 2017

3,377,234 3,756,717 3,777,990

1,890,889 1,876,128 2,179,182

3,998,793 3,970,563 3,593,598

2,9182,9092,939

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Carbon Dioxide Emissions (tCO2)

2015 2016 2017 2015 2016 2017

3.8 3.7 3.9 6,369 6,710 6,948

Carbon Dioxide Emissions by Region (tCO2)

Emissions Intensity (tCO2/tonne of coatings produced)

2015 2016 2017

0.42 0.42 0.44

America Europe Asia

2015 2016 2017

2,791 2,777 2,787

1,238 1,230 1,403

2,339 2,702 2,758

Energy Intensity(GJ/tonne of coatings produced)

Environmental Charts

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Wastewater (m3)Water Consumption (m3)

2015

2,440

2016

2,730

2017

2,762

2015

21,975

2016

19,629

2017

25,020

Waste per Tonne of ProductionWaste (Tonne)

Non-hazardous Waste Hazardous Waste

2015

0.129

2016

0.124

2017

0.140

2015

1,038

900

2016

978

982

2017

1,013

1,174

Environmental Charts

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We actively promote a working environment based on mutual trust and respect. There was no confirmed violation of our discrimination policy in the reported period.

Child Labor

Our policies ban child labor across our business. There was no incident of child labor in our operations in the reported period.

Forced Labor

We prohibit forced or compulsory labor. There was no incident of forced labor in our operations in the reported period.

Engaging Employee

We believe better-engaged employees are more motivated and productive. We promote a culture of open communication and teamwork. Managers are encouraged to actively engage their team members to understand their concerns and expectations. Quarterly team briefings provide opportunities for employees to share their concerns, suggestions and views.

We also conduct annual employee engagement survey to collect feedback from our worldwide employees. The employee survey aims to assess employees’ satisfaction with the company policies and programs and a range of other issues concerning their jobs and aspirations. In 2017, the average survey rating was 1.8 on a scale of 5 where 1 is the best possible score, and 5 is the poorest possible score. The average rating in the prior two years was also 1.8.

Our approach is to hire, develop and retain the best talent. We believe in open communication and teamwork.

We employed 613 full-time employees worldwide as at the end of 2017. Out of the total, 43% of our employees are based in Asia followed by 29% in Europe. The USA and Brazil together account for 28% of Whitford employees. In addition, we had 14 part-time employees for the same period. Permanent employees constitute 95% of our workforce. We hired 85 new employees in 2017.

Celebrating Diversity

We believe that workplace diversity is a strength. Our employees reflect the diversity of the markets we serve worldwide. Our employees represent 23 nationalities and speak at least 28 languages.

The chemicals manufacturing industry faces a challenge in attracting women in the workforce. At Whitford, women accounted for 30% of the employee base as at the end of 2017. Women also held 26% of managerial jobs and 38% of the Head of Department (HOD) roles. Women had 31% share of the new hiring in 2017.

Our workforce also represents various age groups reflecting a balance of extensive experience and young talent.

Non-Discrimination

Whitford is an equal opportunity employer. We have a non-discrimination policy that prohibits discrimination in the workplace. Whitford employees must never discriminate on the basis of race, color, sex, religion, sexual orientation, age, national origin, disabilities or any other unlawful basis.

Better People

Whitford is committed to promoting a vibrant and inclusive workplace where our people can realize their full potential.

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Developing People

Our employees receive regular training. Regular training is at the core of our approach to maintain high standards of technical and management expertise. Employees have access to a wide suite of in-house as well as outside training courses. Topics include health and safety, environmental management, quality management, calibration systems, materials characterization, novel coating for addressing corrosion challenges, food contact regulations, US Export Controls, English language courses, and management and leadership skills.

We provided 12,992 hours of total training to our employees in 2017 as against 9,347 hours in the prior year. This translates into 21 hours of average training per employee in 2017, up from 16 hours per employee in the prior year.

We spent $257,929 on training in 2017, substantially higher from the sum of $147,893 in 2015.

Managing Performance

We are committed to promoting a fair and performance-driven organization. We have a transparent performance appraisal system in place. All full-time employees participate in the annual performance assessment.

Ensuring Safety and Health

Ensuring employee safety is our top priority. Our policy is to provide a safe working environment for all employees at our sites. We regularly assess potential safety and health risks in our workplace and take

preventive measures. Our employees receive regular safety briefings and are trained in safe work practices. We have implemented comprehensive occupational safety and health policies and procedures across our manufacturing sites. We adhere to local health and safety regulations and international standards. Our facilities in Singapore and India have obtained the OHSAS 18001 Certification for their occupational health and safety management systems. We are working toward getting the OHSAS 18001 certification for the remaining production sites as well.

Our ongoing safety training includes Occupational First Aid, Emergency Response, Forklift Operation, Lockout and Tagout Procedures, Safe Work Practice- Hot Work and Confined Space, Electrical Safety, Fire Safety and a range of other topics.

We focus on engineering hazards out of the workplace first, and when this is not possible or practical we utilize personal protective equipment (PPE) to protect workers. We have a strict policy for employees to use appropriate personal protective equipment (PPE) when attending to potentially hazardous tasks. We ensure that all required PPEs are available, easily accessible and well-maintained.

Our health and safety policy requires reporting all incidents, and each incident is thoroughly investigated.

We regularly monitor key performance indicators relating to safety and health at all production sites. There were no workplace fatalities or cases of severe injuries in the reported period.

A summary of our health and safety performance for the year 2017 is presented below.

Country Injury Rate Occupational Disease Rate Lost Day Rate Absentee Rate

USA zero zero zero zeroBrazil zero zero zero zeroChina 1 zero zero zeroSingapore 0.15 zero 0.05 zeroIndia zero zero zero zeroGermany zero zero zero zeroItaly 1 zero zero zeroUK zero zero zero zeroTurkey zero zero zero zero

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30%

70%

Male Female

Gender Diversity

Female Heads of Department (%)

33

2015

37

2016

38

2017

Age Diversity

58%

19%23%

Under 30 years old 30-50 years Over 50 years old

Full-Time Employees

556 576 613

2015 2016 2017

Full-Time Employees by Region

USA and Brazil Europe AsiaUSA and Brazil Asia

2015

27

2016

24

2017

26

Female Managers & Supervisors (%)

172

179

262

People Performance Charts

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> 50 years

27%

73%

30-50years

31%

69%

< 30 years

32%

68%

Male Female

Age and Gender Diversity

> 50 years

30%

70%

SeniorManagement

30%

70%

MiddleManagement 46%

54%

Executives

24%

76%

Non-excutive

Gender Diversity by Employment Category

New Employee Hiring by Gender 2017

Under 30 years old 30-50 years Over 50 years old

New Employee Hiring by Age 2017

2659 37

6

42

People Performance Charts

Male Female

Male Female

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Average Hours of Training per Employee

21

2015

2016

2017

16

12

Employee Turnover Rate (%)

9

11

122015

2016

2017

Training Expenditure ($)

2015 2016 2017

$147,893

$212,820

$257,929

70%

Employee Turnover Rate by Gender (%)

201710

12

12

10

12

8

20162015

Male Female

People Performance Charts

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Better Communities

Whitford is committed to being a responsible corporate citizen.

Our employees participate in volunteering programs to support a number of social causes worldwide. We organize fundraising events to support charities.

Indirect Economic Impacts

Whitford Corporation is a global business with manufacturing plants in eight countries. Our operations create a significant number of direct and indirect jobs worldwide. We support indirect jobs in our value chain that includes our suppliers, coaters and retailers. Worldwide sale of our products also generates various levels of tax contributions to respective governments.

Our innovation-driven coating solutions enable manufacturers of non-stick kitchenware to offer a wide range of bakeware and cookware that enhances cooking experience for their customers. Our coating products for industrial applications support the development of efficient infrastructure necessary for commercial viability and overall economic development.

Ethics and Integrity

Our policy is to adhere to the highest standards of ethics and integrity while conducting our business worldwide.

Whitford Code of Conduct provides an ethical and legal framework for business practices and conduct to which all Whitford employees, officers and directors must adhere. Whitford employees are required to abide by all of the Company’s compliance policies and training materials, including, but not limited to Whitford’s existing policies on compliance with export controls, economic sanctions, and ethics and anti-corruption.

Anti-Corruption

Whitford has zero tolerance of bribery and corruption in all forms. The offer, promise, payment, soliciting, requesting, agreeing to receive or accepting of bribes or kickbacks or other prohibited payments or activities, whether in cash or any other form of inducement (e.g. gifts, entertainment or hospitality) is strictly prohibited.

The U.S. Foreign Corrupt Practices Act prohibits giving anything of value, directly or indirectly, to officials of foreign governments or foreign political candidates to obtain or retain business. Likewise, the U.K. Bribery Act prohibits payments to foreign government officials, as well as to employees of private businesses, to influence the performance of their duties. Illegal payments to government officials of any country are strictly prohibited.

There were no confirmed incidents of corruption in the reported period.

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GRI Content Index ‘In accordance’ – Core

GRI Standard Disclosure Page Number(s) and/or URL(s)

GRI 101: Foundation 2016(GRI 101 does not include any standards)

General Disclosures

GRI 102: General Disclosures 2016

Organizational Profile

102-1 Name of the organization Whitford Worldwide

102-2 Activities, brands, products, and services 5-7, 23-24

102-3 Location of headquarters 5

102-4 Location of operations 2, 6

102-5 Ownership and legal form Privately-held company

102-6 Markets served 5-6

102-7 Scale of the organization 4, 6-7, 33-34

102-8 Information on employees and other workers 4, 33-34

102-9 Supply chain 11, 22

102-10 Significant changes to the organization and its supply chain

None

102-11 Precautionary principle or approach 14, 26

102-12 External initiatives 2, 16-17, 22, 36

102-13 Membership of associations 12

Strategy

102-14 Statement from senior decision-maker 4

Ethics and Integrity

102-16 Values, principles, standards, and norms of behavior 4, 7, 36

Governance

102-18 Governance structure 8-9

Stakeholder Engagement

102-40 List of stakeholder groups 10-11

102-41 Collective bargaining agreements None

102-42 Identifying and selecting stakeholders 10-11

102-43 Approach to stakeholder engagement 10-11

102-44 Key topics and concerns raised 10-11

Reporting Practice

102-45 Entities included in the consolidated financial statements

2

102-46 Defining report content and topic boundaries 2-3

102-47 List of material topics 14

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102-48 Restatements of information None

102-49 Changes in reporting None

102-50 Reporting period 1-2

102-51 Date of most recent report Not applicable

102-52 Reporting cycle 1-2

102-53 Contact point for questions regarding the report 2

102-54 Claims of reporting in accordance with the GRI Standards

2-3

102-55 GRI content index 38

102-56 External assurance 2-3

Indirect Economic Impacts

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 17, 36

103-2 The management approach and its components 17, 36

103-3 Evaluation of the management approach 36

GRI 203: Indirect economic impacts

203-2 Significant indirect economic impacts 36

Anti-corruption

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14,17, 36

103-2 The management approach and its components 17, 36

103-3 Evaluation of the management approach 36

GRI 205: Anti-corruption

205-3 Confirmed incidents of corruption and actions taken 36

Energy

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 16, 28-29

103-2 The management approach and its components 26, 28-29

103-3 Evaluation of the management approach 28-29

GRI 302: Energy 302-1 Energy consumption within the organization 3, 28

302-3 Energy intensity 3, 29

Water

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 16, 30

103-2 The management approach and its components 27, 30

103-3 Evaluation of the management approach 27, 30

GRI 303: Water 303-1 Water withdrawal by source 3, 27, 30

Emissions

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14

103-2 The management approach and its components 26, 29

103-3 Evaluation of the management approach 26, 29

GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 26, 29

305-2 Energy indirect (Scope 2) GHG emissions 26, 29

305-4 GHG emission intensity 3, 29

GRI Content Index ‘In accordance’ – Core

GRI Standard Disclosure Page Number(s) and/or URL(s)

GRI 101: Foundation 2016(GRI 101 does not include any standards)

General Disclosures

GRI 102: General Disclosures 2016

Organizational Profile

102-1 Name of the organization Whitford Worldwide

102-2 Activities, brands, products, and services 5-7, 23-24

102-3 Location of headquarters 5

102-4 Location of operations 2, 6

102-5 Ownership and legal form Privately-held company

102-6 Markets served 5-6

102-7 Scale of the organization 4, 6-7, 33-34

102-8 Information on employees and other workers 4, 33-34

102-9 Supply chain 11, 22

102-10 Significant changes to the organization and its supply chain

None

102-11 Precautionary principle or approach 14, 26

102-12 External initiatives 2, 16-17, 22, 36

102-13 Membership of associations 12

Strategy

102-14 Statement from senior decision-maker 4

Ethics and Integrity

102-16 Values, principles, standards, and norms of behavior 4, 7, 36

Governance

102-18 Governance structure 8-9

Stakeholder Engagement

102-40 List of stakeholder groups 10-11

102-41 Collective bargaining agreements None

102-42 Identifying and selecting stakeholders 10-11

102-43 Approach to stakeholder engagement 10-11

102-44 Key topics and concerns raised 10-11

Reporting Practice

102-45 Entities included in the consolidated financial statements

2

102-46 Defining report content and topic boundaries 2-3

102-47 List of material topics 14

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Waste

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 16

103-2 The management approach and its components 27, 30

103-3 Evaluation of the management approach 27, 30

GRI 306: Effluents and waste

306-2 Waste by type and disposal methods 3, 27, 30

Environmental Compliance

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 16

103-2 The management approach and its components 16, 25

103-3 Evaluation of the management approach 16, 25

GRI 307: Environmental compliance

307-1 Non-compliance with environmental laws and regulations.

16, 25

Employment

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 16

103-2 The management approach and its components 31-35

103-3 Evaluation of the management approach 31-35

GRI 401: Employment 401-1 New Employee hires and employee turnover 3, 33, 35

Occupational Health and Safety

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14

103-2 The management approach and its components 32

103-3 Evaluation of the management approach 32

GRI 403: Occupational health and safety

403-2 Types of injury and rate of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities.

3, 32

Training and Education

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 32

103-2 The management approach and its components 32

103-3 Evaluation of the management approach 32, 35

GRI 404: Training and education

404-1 Average hours of training per year per employee 32, 35

404-3 Percentage of employees receiving regular performance and career development reviews

32

Diversity and Equal Opportunities

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 31

103-2 The management approach and its components 31

103-3 Evaluation of the management approach 31

GRI 405: Diversity and equal opportunity

405-1 Diversity of governance bodies and employees 3, 31, 33-35

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Non-discrimination

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 31

103-2 The management approach and its components 31

103-3 Evaluation of the management approach 31

GRI 406: Non-Discrimination

406-1 Incidents of discrimination and corrective actions taken 31

Child Labor

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 31

103-2 The management approach and its components 31

103-3 Evaluation of the management approach 31

GRI 408: Child labor 408-1 Operations and supplier at significant risk for incidence of child labor

31

Forced, or Compulsory Labor

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 31

103-2 The management approach and its components 31

103-3 Evaluation of the management approach 31

GRI 409: Forced or compulsory labor

409-1 Operations and supplier at significant risk for incidence of forced or compulsory labor

31

Marketing and Labelling

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 18

103-2 The management approach and its components 18-22

103-3 Evaluation of the management approach 18-22

GRI 417: Marketing and labelling

417-1 Requirements for product and service information and labelling

18-22

417-2 Incidents of non-compliance concerning product and service information and labelling

22

Customer Health and Safety

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 17

103-2 The management approach and its components 13, 19, 22

103-3 Evaluation of the management approach 13, 19, 22

GRI 416: Socio-economic compliance

416-1 Assessment of the health and safety impacts of product and service categories

13, 18-22

Socio-economic Compliance

GRI 103: Management approach

103-1 Explanation of the material topic and its boundaries 14, 17, 22

103-2 The management approach and its components 17

103-3 Evaluation of the management approach 17

GRI 419: Socio-economic compliance

419-1 Non-compliance with laws and regulations in the social and economic area

22

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Sustainability Committee :

Management Team :Anne WillisSteve Barron

Project Team :Campbell WilsonChiara MarinelliHilda TanJanice NewtonJay ZhouKaren CowellKaren Spencer Mary MusettiMichele VallapertaMonica Istvan Nayara Frezarin da SilvaRaymond ChenShazana Ismail

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