Eastman Sustainability Report 2016: Leadership. Innovation. Impact. Reporting our progress We’ve reported progress for several years through our Responsible Care® membership. However, in 2009, we published the company’s first sustainability review, aptly titled Our sustainability journey. In that publication, we established our first set of short-term sustainability goals at a corporate level, encompassing the three pillars of sustainability — economic growth, environmental stewardship, and social responsibility. With the publication of our first sustainability report and GRI supplement in 2011 and 2012, respectively, we expanded our goals into short-, mid- and long-term goals. As we have evolved on our journey, so have our goals. In our 2014 report, we streamlined our goals into a clear set of aspirational core commitments. We remain focused on making a measurable positive impact on our business, employees, customers, communities and planet. These next generation goals raised the bar, focused our efforts, and enabled us to keep our eyes on the “big picture” targets of our strategy. This year, we continue to report on these aspirational goals and targets, with a focus toward the year 2020. As we’ve achieved goals or shifted our strategic focus in line with our corporate strategy and portfolio transformation, we’ve added and refined the goals to reflect our priorities. Goals achieved during our previous reporting period have been removed. Progress toward stated goals Sustainable growth Goal Progress Deliver new business solutions from our world-class renewable technology platforms. Note: Replaces previously stated goal: Developing new business utilizing renewable feedstocks by 2020 New for 2016 Ensure all corporate innovation projects are assessed against sustainability macro trends New for 2016 Complete Life Cycle Assessments (LCAs) on all new product family launches by 2015 New Needs Improvement 12 Over the past few years, the company’s portfolio and increased focus on innovation have continued to evolve. As such, our commitments to deliver sustainable business solutions must also evolve. We’ve established this new goal to reflect the company’s business strategy to exploit our worldclass biobased technology platforms while recognizing the history of our renewable platforms. Work is currently underway to define measurable targets to support this goal going forward. As we move forward with an increased focus on sustainable innovation, we are driving early-stage consideration of macro trends and sustainability factors into the innovation and stage gate processes. Through collaboration between the Corporate Innovation and Corporate Sustainability teams, we are developing a framework to be used across innovation platforms to assess the potential sustainability impacts of a product at the earliest stage of identifying opportunities and applications. As we complete the development of the framework and better understand how the framework will shape our innovation efforts, we will look to establish clear goals for measuring success. By 2015, we completed representative LCAs for 54 product families that have been commercialized since 2010. There have been 78 product family launches since then for a 69% completion rate. X On Track Progress details Due to the increasing speed and number of product commercializations over the past few years, we did not meet our initial goal. However, we continue to prioritize completing LCAs for products where having an LCA is important to our customers. Met Not Met Contents | GRI Index | eastman.com Improved footprint Goal Progress Improve energy efficiency of operations by 20% by 2020 against the 2008 baseline Progress details Through 2015, we improved energy intensity by 8% compared to the 2008 baseline. While we continue to show good progress, performance was less than satisfactory in 2015. We continue to analyze the data and take corrective actions as needed. Reduce greenhouse gas (GHG) emissions per unit of production (GHG intensity) by 20% by 2020 against the 2008 baseline 2015 greenhouse gas intensity was 0.90, a decrease of 12% compared to the baseline. Reduce nitrogen oxide (NOx) by 20% and sulfur dioxide (SO2) by 40% by 2020 against the 2010 baseline* 2015 NOx emissions were 10,922 tons, a decrease of 1% compared to the baseline.* Over the last two years, we converted three boilers at our domestic sites from coal to natural gas combustion. We plan to convert more boilers over the next three years. The conversion from coal to natural gas will enhance our emission reduction efforts and help us attain our goals. 2015 SO2 emissions were 18,663 tons, a decrease of 18% compared to the baseline.* Over the last two years, we converted three boilers at our domestic sites from coal to natural gas combustion. We plan to convert more boilers over the next three years. The conversion from coal to natural gas will enhance our emission reduction efforts and help us attain our goals. Reduce Volatile Organic Compounds (VOC) by 15% by 2020 against the 2010 baseline 2015 VOC emissions were 7,865 tons, a decrease of 4% compared to the baseline. Reduce total number of reportable releases by 25% against the 2010 baseline In 2015, we had 49 reportable release events, a decrease of 20% compared to the baseline. Reduce Toxic Release Inventory (TRI) emissions to the air by 25% by 2020 against 2010 baseline 2014 TRI air emissions were 7.3 million pounds, an increase of 17% compared to the baseline. Reduce hazardous waste (indexed to production) by 15% by 2020 against the 2010 baseline 2015 hazardous waste indexed to production was 0.0083 kg waste/kg production, a significant increase compared to the baseline. Develop a water conservation strategy for manufacturing sites in water-stressed regions by 2015 After completing an initial assessment using the WBCSD Water Tool and Aqueduct Water Risk Atlas in 2014, a cross-functional team surveyed eight of our manufacturing sites considered to be in potentially water-stressed areas based on the results. Of the eight sites, we identified no significant gaps, with each site reporting either no scarcity, limited water use, or plans currently in place to reduce water use. Over the last two years, we converted three boilers at our domestic sites from coal to natural gas combustion. We plan to convert more boilers over the next three years. The conversion from coal to natural gas will enhance our emission reduction efforts and help us attain our goals. *Baselines have been adjusted to reflect available data following recent acquisitions, not including Taminco. New Needs Improvement On Track Met Not Met 13 Eastman Sustainability Report 2016: Leadership. Innovation. Impact. Progress toward goals (continued) Social investment Progress Goal Maintain our strong commitment to an incident and injury free workplace with continued goals and tracking: Progress details Since introducing the ALL IN FOR SAFETY initiative in 2012, we’ve changed how we discuss and approach safety at Eastman. While we are making progress, we recognize the need to continue efforts to meet our safety targets and accelerate our journey towards the ultimate goal of no one getting hurt. In 2015, we introduced a new vision statement to articulate the importance of why we choose to act safely and established five key elements: leadership, engagement, knowledge, processes, and communication. • Corporate Injury and Illness Recordable Rates target <0.54* • Days Away from Work Rates target <0.12* • Process Safety target <10* (incidents defined as per the American Chemistry Council) • 2015 Injury and Illness Rate — 0.64 • 2015 DAW Rate — 0.17 • Process Safety Incidents in 2015 — 23 incidents *We adjusted these targets in 2015 for acquisitions and previous performance. Measures reflect all sites, including Taminco sites acquired in 2014. Increase utilization of preventive services by employees and spouses in North America 15% by 2017 Through 2015, we increased utilization of preventive services in North America by 14% against our currently stated goal. Through Eastman Wellness, we remind employees to take advantage of the Eastman health plan benefits with preventive services being covered at 100%. We also encourage employees to engage their personal physicians and Cigna health plan coaches. Additionally, we collaborate with local health service providers in communities where Eastman has a presence, to offer on-site services and screenings for our employees. Engage globally in impactful partnerships that maximize collective value in the areas of education, environment, empowerment, and economic development. Education: Strategic partnerships between business and education help ensure we have a successful workforce in the future. We will continue to encourage innovative and productive thinking in real-world environments to enable students to excel. Additionally, we will engage strategic partnerships to create a sustainable model for educational initiatives in site communities. New for 2016 Environment: The Eastman team works hard to minimize our environmental footprint by conserving natural resources, inventing more efficient production methods, and developing chemistries that use renewable raw materials. We strengthen partnerships, obtain insights and deliver solutions that help reduce our footprint, support the Blue Economy and improve the quantity and quality of food sources for our growing population. Empowerment: We are committed to building an engaging and dynamic work environment with a mind-set of equality and inclusion that fosters creativity, innovation and camaraderie across our global company. With a focus on gender equity, we are developing plans for a signature program to promote equality and parity across our workforce. Economic Development: We take our work seriously and believe that investing in communities builds trust, goodwill and long-term success for all. Our goal is always to support innovative and impactful economic development partnerships that directly benefit residents and improve quality of life. New Needs Improvement 14 On Track Met Not Met
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