SUSTAINABILITY REPORT 2019/2020 · 2020-06-22 · Employees Operations Customers Environment...

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You expect more. And Formosa delivers. ® SUSTAINABILITY REPORT 2019/2020

Transcript of SUSTAINABILITY REPORT 2019/2020 · 2020-06-22 · Employees Operations Customers Environment...

Page 1: SUSTAINABILITY REPORT 2019/2020 · 2020-06-22 · Employees Operations Customers Environment Community I’m pleased to share with you Formosa’s 2019/2020 Sustainability Report.

You expect more. And Formosa delivers.®

SUSTAINABILITYREPORT2019/2020

Page 2: SUSTAINABILITY REPORT 2019/2020 · 2020-06-22 · Employees Operations Customers Environment Community I’m pleased to share with you Formosa’s 2019/2020 Sustainability Report.

Employees Operations

Customers

Environment

Community

I’m pleased to share with you Formosa’s 2019/2020 Sustainability Report.

Our values shape everything we do in business. Our strong performance in 2019 was due in large part to our successful implementation of strategic investments and being a good corporate citizen.

Formosa’s continued commitment to safety and social responsibility benefits our customers and the community by reducing risk, improving em-ployee productivity, reducing operating costs and lost production time, while enhancing our reputation. We seek to engage interested parties with different opinions, listen to their concerns and work to find common solutions to the numer-ous problems that confront our society.

In 2019 we joined with over forty major corpo-rations to fight the problem of plastic waste and marine debris through the Alliance to End Plastic Waste. In the communities where we operate, we routinely dialogue with local officials responsible

for emergency response, health, safety and envi-ronmental protection.

Our commitment to communities extends well beyond health and safety. We work to enhance economic development by training and hir-ing qualified local workers and making local investments. At Formosa, we are committed to creating long-term customer partnerships by making a positive contribution to society. We must all also realize that we are stewards of the environment, not its master. Respect for na-ture should be guided by a desire to use these resources to the best advantage as they pro-vide sustenance and nourishment to the human family.

I hope you find this report helpful in under- standing our approach.

Ken Mounger Executive Vice President Formosa Plastics Corporation, U.S.A.

Message from the Executive Vice PresidentCONTENTS

pg 5-6 pg 7-8

pg 9-10 pg 11-12

pg 15-16 pg 17-18 pg 19-20

pg 21-22 pg 23-24

Formosa achieves ISO 14001 Environ-mental Management Systems registration for all sites

Sustainability agree-ment with Technical Review Commission

Lavaca Bay Monitor-ing Program initiated

Formosa EVP endors-es Sustainable Devel-opment Goals

Formosa-Tejano Wet-lands established

Formosa achieves revised ISO 14001 standards

Formosa establishes Training and Devel-opment Center

Founding member of the Alliance to End Plastic Waste

Receive Green Circle Certification in the +Vantage Vinyl Pro-gram

Formosa signs zero discharge agree-ment

pg 13-14

FORMOSA’S SUSTAINABILITY MILESTONES

pg 25-26

LONG TERM STRATEGIES

pg 3-4

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Affordable and Clean EnergyThe solar power project at Formosa’s head-quarters in Livingston, New Jersey has already produced 145MWh of power in 2019 after only a few months in operation and 480MWh in the first half of 2020. Formosa is also aggressively evaluating 200MWh solar and 150MWh wind turbine projects in South Texas with a major

renewable power developer. While still in the developmental phase, the project would be one of the largest renewable energy efforts in that region, with the potential to replace 30% of Formosa’s power needs and provide sup-plemental power to the Texas grid.

Our solar canopy charging stations are available for use by all employees to charge their electric or hybrid plug-in vehicles.

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“…the Monitoring Program, to date, indicates that there are no adverse impacts to the health or structure of the biological community, including the quality, benthic structure, plank-tonic structure, and higher trophic levels in Lavaca Bay”.

Life Below WaterProtecting the marine environment is a core value for Formosa. Formosa has financially supported independant, third party water quality and biological community monitoring of Upper Lavaca Bay for over 25 years and the annual findings are published and made avail-able to the public. The 2018-19 report includes the following statement: “…the Monitoring Program, to date, indicates that there are no adverse impacts to the health or structure of the biological community, including the qual-ity, benthic structure, planktonic structure, and higher trophic levels in Lavaca Bay”.

Despite the many benefits plastics bring to people and communities around the world, plastic waste in the environment, particularly

the ocean, is a serious global challenge that calls for swift action and strong leadership. The company has also made a substantial com-mitment to engage in the problem of plastic waste and marine pollution through a newly formed organization, the Alliance to End Plastic Waste (AEPW). This CEO-driven non-profit was established to directly deal with the leakage of plastic waste into the world’s oceans through four pillars of action, Infrastructure Develop-ment, Cleanup, Education & Engagement and Innovation. Please follow our progress at www.endplasticwaste.org.

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“185 species were tallied during the count-down din-ner sponsored by Formosa. The Formosa-Tejano Wet-lands section of the count led the way with 10 bird spe-cies exclusive to that site.”

Life On LandThe Formosa-Tejano Wetlands was established in 1997 and set aside to provide habitat for migratory and neotropical species as well as endemic shore and wading birds. Secondari-ly, the wetlands were designed as a location to do meaningful outdoor education for pub-lic school children and for the general public to enjoy. Most recently, Formosa’s Texas plant supported the Jackson-Calhoun County Christ-mas Bird Count by providing access to Formo-sa’s property and facilities. Birding experts sur-veyed the Formosa-Tejano Wetland site. Bob Friedrichs - local Audubon Society compiler reported: “185 species were tallied during the count-down dinner sponsored by Formosa. The Formosa-Tejano Wetlands section of the count led the way with 10 bird species exclu-sive to that site.”

Hurricane Harvey left a path of destruction in the local community of Port Lavaca, including structural damage to the Formosa Wetlands Walkway. With help from the Federal Emer-gency Management Agency and a generous donation of $200,000 from Formosa, the walk-way was repaired to its former glory. Now lo-cal residents and visitors can walk out to the birding tower and look into the marsh that borders the walkway for the Seaside Sparrow, Nelson’s Sharp-tailed Sparrow, and Clapper Rail. The bay may also be viewed from the birding tower, where a wide variety of Texas mid-coast resident and migratory bird species come into easy view.

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Quality EducationFormosa provides tuition reimbursement for all employees to further their education. In ad-dition, the company actively supports a Merit Scholarship Program for the children of em-ployees, summer internships and a full training center in Point Comfort, Texas to help develop talent for work in the petrochemical industry. Over the past few years, Formosa’s Training & Development Center has graduated over 250 candidates to successful positions in the industry.

Our company partners with local school districts by providing field trips to our plant. We seek to encourage students to consider a career in STEM-related fields.We also provide funding to the Calhoun County Independent School District to con- duct environmental education classes at the Formosa-Tejano Wetlands outdoor classroom.

Formosa’s Training & Devel-opment Center has gradu-ated over 250 candidates to successful positions in the industry.

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Good Health and Well-BeingCOVID-19 ResponseWhen the pandemic hit the United States, many critical supplies were rapidly depleted. The Chlor-Alkali team at Formosa Plastics, Texas did not hesitate to act. They quickly realized their unit could supply bleach to the 2,500 employ-ees within the Formosa TX complex and tens of thousands of people in the local commu-nities. The unit quickly assembled a team and worked with partners Petroleum Service Cor-poration and Klean Corporation International to load and transport the 275 gallon totes of 6% bleach. Formosa donated more than 5,200 gallons of this critical material to more than 17 local counties. The bleach was critically needed

for general disinfection, sanitation of public areas, hospitals and detention areas.In addi-tion to supporting our local communities with bleach donations, PVC products are essential to protecting public health. PVC medical prod-ucts, including tubing, masks, isolation units, gloves, IV bags, and more, are used to protect healthcare workers and patients. PVC prod-ucts, including wallcoverings, flooring, and upholstery are used inside medical treatment facilities and can withstand repeated doses of disinfectants better than other materials.

While offering a selection of various Heath Care Plan options to our employees, continu-ing to maintain a medical plan option with no contribution from employees is our goal, and places Formosa in the top 1% of companies for medical benefits.

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Formosa’s Sustainability Milestones

1978 1991 1993 1996 20001997 2015 2016 2018 2019 2020

Formosa achieves ISO 14001 Environ-mental Management Systems registration for all sites

Formosa purchases Point Comfort site to develop a greenfield VCM/PVC facility

Creation of the $1M Formosa Environ-mental and Commu-nity Trust funds

1997

Sustainability agree-ment with Technical Review Commission

Lavaca Bay Monitor-ing Program initiated

Formosa EVP endors-es Sustainable Devel-opment Goals

Formosa-Tejano Wet-lands established

Formosa achieves revised ISO 14001 standards

Formosa establishes Training and Devel-opment Center

Founding member of the Alliance to End Plastic Waste

Receive Green Circle Certification in the +Vantage Vinyl Pro-gram

Facility improvements initiated for zero stormwater discharge

1992 1994

Formosa signs agree-ment to establish Technical Review Commission and con-duct 3rd part audits

Formosa signs zero discharge agree-ment

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Responsible Consumption and ProductionThe company is engaged in a business that is resource intensive and very competitive, only the most efficient producers prevail. Toward that end, Formosa seeks to reduce the impact of our operations by constantly improving and reducing water use, energy, emissions and waste. Goals are set every year and all facili-ties track their progress in detail. Independent organizations like BSI audit our facilities to the ISO 14001 Environmental Management Sys-tem Standard every six months and conduct a full recertification every two years. We must all work to assess our impacts on the environment and strive to become a circular economy.

Circular EconomyFormosa’s long-term goals include the de-velopment of PCR (post consumer recycling) blended resin grades and more advanced operating units that recover recycled plastic and convert the material back into virgin resin. Formosa is currently developing a line of sus-tainable polyethylene products marketed as Formolene ECOTM . In addition, Formosa, through the Flexible Packaging Association, supports the Materials Recovery for the Future (MRFF) research pro-gram, a pilot single-stream curbside recycling

of flexible plastic packaging (FPP). This is the first pilot program to demonstrate the tech-nical and economic feasibility of recycling household FPP from municipal residential sin-gle-stream recycling programs.

Product StewardshipNothing is more important to Formosa than the quality and safety of our products and the well-being of our consumers who use them. We have rigorous safety and quality require-ments and we are proud of our long track record of producing safe products. Formo-sa closely monitors and carefully considers new information published by the scientific community and regulatory agencies. New information regarding additives and other in-gredients, including public perception of in-gredients is taken into consideration. Research is reviewed by our Product Stewardship team which ensures that our products, including ad-ditives, are safe for their intended use. During the past year TNPP (tris(nonylphenyl) phos-phite) has been phased out of our products as well as Animal Derived Materials (ADM) to the greatest extent possible. Always consult the product declaration statements on our company website for full information.

FormoleneECO

FormoleneECO

Formosa is currently develop- ing a line of sustainable poly- ethylene products marketed as Formolene ECOTM.

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During the past five years alone, the company has do-nated over $5 million dol-lars to various charities and non-profit organizations.

No PovertyOver the past forty years, Formosa has worked with local organizations to improve education, health, civic growth, spiritual development, and environmental protection. During the past five years alone, the company has donated over $5 million dollars to various charities. A few rep-resentative examples of our corporate citizen-ship activities are highlighted below,

Point Comfort, Texas

• Provided environmental trust funds to the community.

• Helped rebuild the Formosa Wetland Walk- way after Hurricane Harvey.

• Set aside wetlands to protect areas for mi- gratory water fowl and for educational purposes.

• Formosa TX employees volunteered their time to serve more than 75 different organi- zations in the community.

• Sponsored events and raised money for The United Way of Calhoun and Victoria counties.

• Held quarterly blood drives to help save lives.

• Since 2015, the site has managed a monarch butterfly migratory “way-station”, propaga- tion habitat and milkweed research pro- gram. Several types of milkweed are grown and planted, providing an abundant source of milkweed for both Monarch and Queen Butterflies.

Baton Rouge, Louisiana

• Louisiana Earth Day

• Keep Baton Rouge Beautiful

• Junior Achievement of Baton Rouge

• United Way

• March of Dimes Walk-a-Thon

• Greater Baton Rouge Food Bank

• Scotlandville Magnet School – High School

• Engineering Professions

• Annual Charity Golf Tournament

• The Baton Rouge General Hospital Critical Care

• Burn Treatment Center

• Baton Rouge Community College Founda- tion

• Baton Rouge Community College Process Technology Program (PTEC)

• Baton Rouge Area Foundation

Livingston, New Jersey

• Alliance to End Plastic Waste (AEPW) https://endplasticwaste.org/

• Provided renewable annual stipends for up to 4 years of full-time undergraduate study through the National Merit Scholar- ship Program.

• Held annual food drive, resulting in dona- tions of nearly 15-20 tons of food and al- most 500 turkeys yearly to the Community- FoodBank of New Jersey.

• Held annual blood drives to help save lives.

• Received an award for encouraging and supporting employees’ participation in Reserves, National Guard and related country readiness organizations.17 18

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Sustainable Cities and CommunitiesAffordable & Sustainable Housing

The lack of affordable housing around the Point Comfort, Texas area was a hindrance for the lo-cal school system in recruiting new teachers to the district. When Formosa became aware of this housing issue, the company recognized an opportunity to help solve a problem that impacts the future of the entire community. Formosa met with officials from the local school district and proposed donations of ten compa-ny owned houses located in Point Comfort. The housing donation was completed in June, 2020 and all ten houses are already either current-ly occupied or committed to incoming school district teachers and staff.

Vinyl, or PVC is often referred to as the “in-frastructure plastic,” and with good reason. Approximately 70 percent of all PVC is used in building and construction applications includ-ing siding, flooring, windows, roofing, decking and wallcoverings. Vinyl is used so widely in the construction industry because of its dura-bility, easy installation and cost-effectiveness. Formosa is a member of the Vinyl Sustainabil-ity Council (VSC) and one of the first compa-nies to be certified to the +Vantage Vinyl sus-tainability program through Green Circle, an independent third party registrar. Making a great product that lasts for decades, if not lon-ger, reduces the burden on the environment.

Vinyl is used so widely in the construction industry because of its durability, easy installa-tion and cost-effectiveness.

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Decent Work and Economic GrowthYou Expect More and Formosa deliversFormosa continues to be financially strong with over $4 billion dollars in revenue in 2019. We’re moving forward with our business plans and nearing startup of our major expansion project in the coming months. In short, we are committed to doing what it takes to improve all aspects of our operations – personnel, equip-ment, procedures and our process safety cul-ture. Our management team will accept noth-ing less than “world class” performance. The plastics industry currently represents the 8th largest manufacturing sector in the U.S., em-

ploying 993,000 workers in 2018. There will be thousands of job openings in the U.S. plas-tics industry in the coming years with average wages that routinely outpace national averag-es. To help meet that demand, Formosa has created a Training and Development Center to assist local community members and new graduates learn and practice new craft skills. The Center has produced over 250 graduates who have gone on to work in high paying jobs at the Point Comfort, Texas site.

ENGINEERS

71,500

MACHINISTS

40,900

PRODUCTION WORKERS

99,300

MACHINE OPERATORS

14,500

MECHANICS

33,100

Opportunities in the U.S. Plastics Industries AVERAGE ANNUAL JOB OPENINGS*

“Over the past five years Formosa has reduced injuries by 43%. The petrochemical industry is one of the safest manufacturing sectors in the United States.”

*Source U.S. Bureau of Labor Statistics, Plastics Size & Impact Report 2019

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Zero HungerAt times during the year, over 14 million households in the United States were uncertain of having, or unable to acquire, enough food to meet the needs of all their members, because they had insufficient money or other resourc-es for food. Within that group, over 5 million were hungry to the extent that normal eating patterns of one or more household members were significantly disrupted sometime during the year. Fighting hunger is a mission where we all can win.

Formosa’s NJ headquaters holds an Annual Food Drive, resulting in donations of nearly 20 tons of food and almost 500 turkeys yearly to the Community FoodBank of New Jersey (CFB-NJ). The FoodBank fights hunger and poverty in New Jersey by assisting those in need and seeking long-term solutions. CFBNJ engages,

educates and empowers all sectors of soci-ety in the battle. Working together with vol-unteers, donors and other partners, Formosa works to fill the emptiness caused by hunger with food, help and hope.

The VP of our Vinyl Division also presented a check in the amount of $5,000 paid to the Market Street Mission in Morristown. The Mission provides over 200 meals and 90 shelter stays each day for those in immediate need. The Market Street Mission provides both basic needs and life changing services to those in our community who have fallen on difficult times by helping them find a renewed faith in God and through the spirit and sup-port of the volunteers and educators at the mission. Many, but unfortunately not all , cases have resurfaced with a renewed faith, life and purpose in our community.

NJ HQ holds an Annual Food Drive, resulting in donations of nearly 20 tons of food and almost 500 turkeys yearly to the Community FoodBank of New Jersey.

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Long Term Strategies: UN Sustainability Goals

Continue to find ways to offset carbon dioxide emissions through wind and solar opportunities in Texas and other areas where Formosa operates.

Work with our community partners to exchange meaningful ideas and find common ground to repair environmental damage. Work globally to combat the problem of plastic waste in the ocean by actively supporting the Alliance to End Plastic Waste.

Formosa will look to modify property contracts for leased farm-land to require AMP grazing techniques which capture CO2 in the soil. Expand educational opportunities at the Formosa-Tejano Wetlands for local students.

Formosa will continue the long-standing practice of supporting regional and state colleges and universities through grants and student scholarships. Most rural school districts in Texas struggle with recruiting both new and experienced teachers because ho- using is scarce and often expensive relative to earnings. For- mosa will assist the local school system through the donation of housing to new teachers to improve recruiting. We will continue this program to ensure all children receive a quality education and look for new opportunities to help our schools and community.

Formosa will strive to ensure that our health care and wellness programs for our employees are in the top tier for our industry. While offering a selection of various Heath Care Plan options to our employees, continuing to maintain one medical plan op-tion with no contribution from employees is our goal, and places Formosa in the top 1% of companies for medical benefits.

Postconsumer recycling is a critical step in the process to “close the loop” on plastic manufacturing. Formosa’s long-term goals in-clude the development of PCR (post consumer recycling) brand-ed resin grades and more advanced operating units that recover recycled plastic and convert the material back into virgin resin. We will also identify partners who can help achieve the goal of a circu-lar economy through the responsible reuse and recycling of plas-tic resins. Support innovative technologies that can convert single use plastics into virgin resin or other products like diesel fuel.

Support innovation in products that provide tangible and long-term environmental, social and economic benefits to our commu-nities. Study and engage in responsible scientific evaluation on the impacts of plastics in the environment.

Charity and the spirit of giving back to society is a fundamental value at Formosa. We will continue to reach out and support ever expanding network of programs and organizations that assist fam-ilies through direct aid, job development, education, medical as-sistance and emotional support.

Formosa has a long history of economic growth in the commu-nities where we work and we fully expect that trend to continue. Providing good-paying jobs, career advancement and generous benefits is part of our corporate culture. With our $5 billion dollar expansion in Point Comfort, TX nearing completion, new projects are already in development

Millions of Americans deal with chronic hunger every day, volun-teers and corporate donations are a critical component in getting safe, healthy meals to families and households facing hunger. For-mosa will always engage with the local communities to fight hun-ger through donations, food collections and employee time.

Track our EHS performance statistics on our website www.fpcusa.com un- der “News and Other Resources” 25 26

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You expect more. And Formosa delivers.®

SUSTAINABILITYREPORT2019/2020

9 Peach Tree Hill Road, Livingston, NJ 07039 • www.fpcusa.com

©2020 Formosa Plastics Corporation, U.S.A.

The information in this publication is, to the best of our knowledge, accurate and reliable. FORMOSA PLASTICS CORPORATION, U.S.A. MAKES NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, WITH REGARD TO THE INFORMATION CONTAINED HEREIN.

Social ResponsibilityEmbrace the principles of sustainability and circular economy.

Protect our environment: implement strat- egies and projects to ensure that no oil, water, condensate, materials, or plastic resins touch the ground.

Join and support organizations which advo-cate sustainability such as +Vantage Vinyl, the Alliance to End Plastic Waste and Operation Clean Sweep.

Strive, in everything we do, to have a posi-tive impact on society and the planet through vigilant stewardship.