Enterprise Sustainability

Hunter Harris (by Claudio Carrara)

Pine Chemical Association International Conference

September 17, 2018

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Sustainable Development vs. Enterprise Sustainability

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What is sustainable development?

“Meeting the needs of the present without compromising the ability of future generations to meet their own needs”

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Declining Natural Systems andConcern for the Human Condition

Increasing World Population and Consumption

World Population (billions)

0

2

4

6

8

10

1950 1970 1990 2010 2030 2050

Air Quality

Water

Arable Land

Fisheries

Biodiversity

Forests

Wetlands

Human Rights

Child Welfare

Healthcare

Education

Labor

Women

UN Sustainable Development Goals

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Sustainable Development in Industry

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Enterprise Sustainability

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▪ Sustainability-driven business opportunities

▪ License to operate and grow

▪ Transparency and disclosure expectations

Key Drivers

▪ Access to and cost of natural resources

▪ Changing client/customer buying habits

▪ Shareholder pressures

▪ New/changing regulations

World Population (billions)

0

2

4

6

8

10

1950 1970 1990 2010 2030 2050

Air Quality

Potable Water

Arable Land

Fisheries

Biodiversity

Forests

Wetlands

Sustainable Development - “Meeting the needs of the present without compromising the ability of future generations to meet their own needs”

Enterprise Sustainability - Definition

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Business approach that generates business value by controlling risks and capitalizing on opportunities associated with environmental and socioeconomic issues. [Adapted from Dow Jones]

Bain Consulting – American Chemistry Council Fall 2016

Enterprise Sustainability and Corporate Responses8

Enterprise Sustainability Creates Value

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• Stakeholder actions• License to operate and grow• Emerging issues• Resilience• Supply chain• Retaining talent

• Safety incidents• Environmental impacts• Community impacts• Value chain impacts

• Product/service innovation and responsibility

• Customer relationships and brand loyalty

• New markets• Access to capital• Attracting new talent

• Process efficiency• Technology/tools• Access to quality data for

decision-making• Employee productivity

Core Business Performance

Impacts

Risks

Growth

Cost

It’s more than reputation management!

Regulatory Compliance

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• EU Directive on disclosure of non-financial and diversity information• ~6,000 companies

• SEC’s Conflict Mineral filing requirement in 2014 (Dodd Frank)

• California Transparency in Supply Chains Act

Supply Chain

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Attracting and Retaining Talent

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“Losing and replacing a good employee costs companies between 70%–200% of an employee’s annual salary”

- National Environmental

Education Fund

Shifting Consumer and Customer Behaviors

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These data come from the Forum for Sustainable and Responsible Investment(SIF).

Investor Pressures

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Corporate attention to sustainability serves as a proxy for good governance.

How are companies responding?

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OperationsSupply ChainProducts

and Services

Stakeholder Relations and Communications

Governance

▪ Product and service innovation

▪ Product development process

▪ Life cycle management

▪ Customer partnerships

Asset Development

▪ Stakeholder engagement and partnerships

▪ Disclosures and public reporting

▪ Resource conservation

▪ Pollution prevention

▪ Safety

▪ Health and wellness

▪ Labor practices

▪ Incidents and emergencies

▪ Operational excellence

▪ Siting and permitting

▪ Community engagement

▪ Due diligence

▪ Green buildings

▪ Whole system eco-efficiency

▪ Risk mitigation

▪ Drive expectations upstream

▪ Structure, committees, roles

▪ Policies and standards

▪ Metrics, goals and reporting

▪ Risk management

▪ Auditing and oversight

So why Enterprise Sustainability?

▪ Sustainability = managing environmental and socioeconomic risks and opportunities

▪ Meet what are increasingly basic stakeholder expectations

▪ Creates value for the company and stakeholders

▪ Responding to drivers and sustainability initiatives that are becoming mainstream

▪ Pressures from customers, consumers, and investors

▪ Reduce effort/cost for responding to inquiries

▪ Build internal engagement and talent retention

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Sustainability Reporting Landscape

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Sustainability at Ingevity

At Ingevity, we integrate responsible economic, environmental and social principles into our global business strategy and decision making. Our objective is to create value for Ingevity and all of its stakeholders by purifying, protecting and enhancing the world around us, today and well into the future.

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Ingevity Pillars of Sustainability

PURIFY | PROTECT | ENHANCE

Protecting People and

Environment

Product Stewardship

Environmental Protection

Personal, Process and Public Safety

Driving Business

Excellence

Intellectual Property and Cyber Security

Strategic Execution

Financial Performance

Engaging Our People

Our Communities

Diversity and Inclusion

Employee Development

Creating Value For Customers

and Society

Innovative Solutions

Product Benefits

Customer Partnerships

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INTEGRITY | ETHICAL BEHAVIOR

Thank You

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