Vinyl For A Purpose-Driven Sustainable Development

- A U.S. Perspective-

PVC AUS 2018Sydney, NSW

March 13-15, 2018

The Vinyl Institute…

is a trade organization founded in 1982

represents leading manufacturers of vinyl resin, vinyl chloride monomer, vinyl additives, and modifiers in the US.

U.S. PVC Industry Statisticswww.vinylinfo.org/resources/fact-sheets

2,900Processors

350,000Employees

$54 BillionEconomic

Contribution

Source: Tarnell Company Research

PVC Resin Production (Billion Pounds)U.S. and Canada Up 5% Compared to 2015

12

13

14

15

16

17

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

YearSource: American Chemistry Council

U.S. Vinyl Markets – Up 3.7% for 2016Domestic Resin Consumption: 10.4 Billion Pounds

Source: American Chemistry Council Resin Report 2017

Calendared Flooring1%

Wire & Cable4%

Film & Sheet (Pkg. & Non- Pkg.)

11%

Siding9%

Pipe46%

Windows and Doors5%

Fence & Deck3%

Custom Compounders 14%

Molding & Other Uses7%

U.S. Industry Growth Highlights

• Vinyl Windows and Doors:• Set New Record

• 71% of Residential Window and • 52% of Patio Door Market

• Vinyl Siding• 22 Years as Leading Exterior Cladding for Single

Family Homes

• Vinyl Decking• Growing 7% Annually

• Vinyl Flooring:• Luxury Vinyl Tile Volume Grown 35% Since 2014

• Safe

• Durable

• Adaptable

• Natural resources friendly

• Recyclable

• Economical

• Resilient

Vinyl: The World’s Most Versatile Plastic

Environmental• Land Management• Bio-diversity• Emissions (Air ,

Land, Water)• Water use • Waste• Natural Resources

Social• Respect for the

Individual• Equality Opportunity• Diversity• Outreach Programs• Human and Labor

Rights

Economic• Consistent,

Profitable Growth• Risk Management• Total Shareholder

Return• Business ethics• Transparency

Eco-Economy• Resource Efficiency• Energy Efficiency• Global Energy Issues

Socio-Economic• Employment• Training & Development• Local Economies & Enterprise• Social & Community• Sponsorships

Socio-Environmental• Health & Safety• Legislation & Regulation• Climate Change• Crisis Management

SustainabilityAn integrated approach to Environment, Social & Economic impact issues (both internal and external) leads to long terms, sustainable profit growth

Sustainability Requires a Balanced Approach

Past Decades Vinyl Industry Advocacy Focus

Advocacy Issues – All Sustainability Related

Environmental Social

Economic

Leadership Response

• Smarter resin manufacturing• Backward integration into chlorine• Elimination of mercury-cell technology for

chlorine manufacturing

• Elimination of heavy metal stabilizers• Lead• Cadmium

• Over 1 billion pounds recycled annually• Takeback program for roofing

• 90% VCM emissions reduction since 1983• 28% dioxins emission reduction since 2008

If we change nothing...we will need 3 planets of natural resources

Unprecedented Challenge: 2050 - 9.7 Billion People (United Nations report October 2015)

• is about meeting people’s needs

• balancing environmental stewardship with economic sense and social responsibility

• continuous improvement

• “doing MORE with LESS”

Purpose Driven Sustainability …

A Formalized Approach to Deal with Sustainability Issues

Objective 4:Champion continuous performance improvement throughout the vinyl industry

3Objective 3:Engage companies and organizations that Impact the selection of Vinyl Products

“Position the Vinyl Industry to be a Sustainability Champion and a Leading Materials Supplier in meeting society’s growing needs and expectations.”

Our Mission

We Need to Do This Together:Vinyl Business and Sustainability Council

Purpose-Driven Sustainability Strategy

Environmental

Economic

Branded Performance

Continuous Improvement

Sustainability –based

Innovation

Industry–wide collaboration

Recognized success

Common positioning

Top Materiality Hotspots and Improvement Categories

Landfill Diversion Health & Safety Emissions

Waste Management & Recycling

Community Health & Safety

User Health & Safety

Emissions to Air

Biodiversity & Emissions to Soil

Emissions to Water

Continuous Improvement Categories

Top Materiality Analysis Hotspots

Note: Branded Performance voluntary participants to show quantified contribution in all Categories (in at least one hotspot per Category)

- Industry Goals- Goals contribution channels (KPIs)

- Industry Goals- Goals contribution channels (KPIs)

- Industry Goals- Goals contribution channels (KPIs)

Making a Substantial Contribution to the United Nations Sustainable Development Goals

Source: http://www.globalgoals.org

• Name and Service Mark

• Voluntary participation annual requirements

• Verification scheme

• Periodic reporting

• Measured contribution to United Nations Sustainable Development Goals

• Awards

• “Go Beyond”

• Innovation

Vinyl Industry Branded Performance Framework

2018

1) Designated Sustainability Officer

2) VBSC Primary Stakeholder membership in good standing

3) Executive Signature on Sustainability Guiding Principles:

• Sustainability Purpose and Positioning

• Environmental Stewardship

• Social Diligence

• Economic Soundness

• Product Stewardship Policy (VI members only)

• Collaboration Commitment

• Transparency and Open Communication

4) Showing measurable and verifiable contribution to at least one goal/one KPI in each Continuous Improvement Category:

• Landfill Diversion

• Health & Safety

• Emissions

Vinyl Industry Branded Performance

Voluntary Participation Annual Requirements (Company or Business Unit)

• Name and Service Mark – Q2 2018

• Verification scheme and NGO partnership/endorsement –Q4 2018

• Test pilot with retailer – starting Q1 2019

• Official launch – Vinyl360 and GreenBuild, Nov 2018

Planned Milestones

2018 - 2019

“We do not inherit the Earth from our parents, we borrow it from our children.” Antoine De Saint-Exupery