Eastman Chemical : Environmental, Social and Governance (ESG) Data Sheet

Published: 2024-10-24 14:23:06 ET EMN

Environmental, Social and Governance (ESG) Data Sheet

Eastman's ESG Data Sheet is a summary of our historical nonfinancial data and a signpost to significant policies and ESG reporting frameworks that matter to our investors and financial analysts. The data included in this document are also disclosed in the company's Sustainability Report, website, CDP disclosure and annual filings. Additional relevant details and context can be found in the locations linked throughout the data sheet, including key policies and disclosure framework documents such as Sustainability Accounting Standards Board (SASB) and Task Force on Climate- related Financial Disclosures (TCFD).

Eastman supports the UN Sustainable Development Goals (SDGs). Company goals and commitments are created in alignment with the SDGs. To learn more, click here. SDG logos are found at the top of each section on pages 2-8 to indicate correlation with specific goals.

About Eastman

We are a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability.

Headquarters

Total employees

Full-time employees

Business segments

Major end markets

Kingsport, Tennessee, USA

2023 sales

$9.2 billion

14,684

2022 sales

$10.6 billion

14,184

2021 sales

$10.8 billion

Additives & Functional Products, Advanced Materials,

Chemical Intermediates, and Fibers

Transportation; durables and electronics; building

and construction; consumables; food, feed and

agriculture; filter media; personal care and wellness;

medical and pharma; industrial chemicals; water

treatment and energy; other markets

Awards and recognitions

Climate, energy and water

We're going carbon neutral.

By 2030, 100% of electricity purchased in North America and Europe will be renewable. Eastman is committed to reducing Scope 1 and Scope 2 emissions by one-third by 2030 and to achieve carbon neutrality by 2050.

Metrics

2023

2022

2021

SASBa

GRIb

Greenhouse gas emissions

Total GHG emissions (MTCO2e) Scope 1 and Scope 2c

6,537,605

6,769,878

6,952,843

RT-CH-110a.1

305-1,305-2

Direct (Scope 1) GHG emissions MTCO2e

5,526,585

5,970,870

6,206,603

RT-CH-110a.1

305-1

Energy indirect (Scope 2) GHG emissions (MTCO2e)

1,011,020

799,008

746,240

305-2

(market based)

Carbon Scope 3 emissions (CO2e) - upstream

10,107,394

8,281,262

9,889,705

305-3

(metric tons)

GHG emissions intensity - metric tons CO2/

0.00070984

0.000639875

0.000664

305-4

unit total revenue

CDP climate change score

Energy

Energy intensity (MWh/million USD sales)

3,333.31

3,031.85

3,052.00

RT-CH-130a.1

302-3

Energy consumption from renewable sources (MWh)

162,710

137,545

55,222

RT-CH-130a.1

Energy consumption from nonrenewable sources (MWh)

30,503,697

32,000,087

32,906,444

RT-CH-130a.1

Percent of total energy consumed from the grid

17%

10%

RT-CH-130a.1

302-1

Total self-generated electricity (MWh)

4,082,505

9,695,087

9,636,451

RT-CH-130a.1

Total energy consumption

30,666,407

32,137,632

32,961,666

RT-CH-130a.1

302-1

Dedicated budget for energy efficiency

$5,000,000

Water

Water - total withdrawals (megaliters)

785,645

768,944.64

849,821

RT-CH-140a.1

303-3

Water - freshwater withdrawals (megaliters)

759,259

751,014.76

829,988

Percentage of total water withdrawn in regions

4.3%

RT-CH-140a.1

with high or extremely high baseline water stress

Water - total discharges (megaliters)

754,821

669,417.68

817,446

303-4

Water - total consumption (megaliters)

30,824

99,526.96d

32,374

RT-CH-140a.1

303-5

CDP water security score

bThis column includes references to standards issued by the Global Reporting Initiativesustainability reporting standards.

cWe have received review level assurance from PricewaterhouseCoopers LLP (PwC) in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA) over our Scope 1 and Scope 2 greenhouse gas emissions for the year that ended December 31, 2023.

Reports and relevant links

Policies and position statements

Sustainability reports

Climate policy

Water policy

Environment

Metrics

2023

2022

2021

SASBa

GRIb

Air

Nitrogen oxides (NOx) - tons

6,153

6,060

6,516

RT-CH-120a.1

305-7

NOx emissions intensity (tons/million USD sales)

0.67

0.57

0.60

Sulfur dioxides (SOx) - tons

3,895

3,188

3,802

RT-CH-120a.1

305-7

SOx emissions intensity (tons/million USD sales)

0.42

0.30

0.35

Volatile organic compounds (VOC) (tons)

5,360

6,441

6,267

RT-CH-120a.1

305-7

VOC emissions intensity (tons/million USD sales)

0.58

0.61

0.58

Reportable releases

Toxic release inventory (TRI) emissionsc

4.0

4.6

4.2

Other

Percentage manufacturing locations certified with

60%

environmental management systemsc

Reports and relevant links

Policies and position statements

Air quality and emissions

Environmental stewardship policy

HSES Management Systems - certifications

Responsible Care

Stakeholder engagement

Metrics

2023

2022

2021

SASBa

GRIb

Employees

Eastman Resource Groups

413-1

Government

EastmanPAC political contributions to state and

$83,500

$99,750

$88,088

415-1

federal candidates

Eastman corporate contributions to state

$10,500

$26,700

None

415-1

candidates

Trade associations lobbying expenditures

(amount of Eastman dues/contributions used

$424,409

$474,740

$269,664

for lobbying or political activity payments)

Customers and suppliers

Percentage of products that have undergone a

100%

RT-CH-410b.1

hazard assessment

Together for Sustainability member - Eastman

802

704

658

suppliers with valid EcoVadis assessments

Percentage of continuing direct spend covered by

59%

69%

valid EcoVadis assessmentsc

bThis column includes references to standards issued by the Global Reporting Initiativesustainability reporting standard.

Reports and relevant links

2023 Inclusion and Diversity Report Community Advisory Panels Memberships

Stakeholders and value chain Sustainable sourcing

Policies and position statements

Animal testing policy

Chemical management

Code of business conduct

Conflict minerals

Human rights policy

PAC contribution guidelines

Political activity policy

Slavery and human trafficking

Third-Party Code of Conduct

People

Metrics

2023

2022

2021

GRIa

Workforce

Total workforce

14,140

14,684

14,414

102-8

Full time

97.8%

97.9%

97.7%

102-8

Part time

2.2%

2.1%

2.3%

102-8

Total employee turnover rate

11.9%

10.4%

11.2%

401-1

Total employee voluntary turnover rate

4.9%

Employees by region

North America

73%

72%

71.0%

102-8

Europe, Middle East and Africa

14%

15%

16.0%

102-8

Asia Pacific

10%

10.0%

102-8

Latin America

3.0%

102-8

Attrition by gender (based on total population of respective category)

Male

11.6%

9.9%

11.3%

401-1

Female

14.3%

11.3%

11.1%

401-1

Attrition by age (based on total population of respective category)

< 30 years

15.1%

13.3%

12.7%

401-1

30-50 years

9.2%

9.4%

401-1

> 50 years

14.8%

10.3%

13.5%

401-1

Attrition by region (based on total population of respective category)

Asia Pacific

13.6%

14.1%

22.9%

401-1

Europe, Middle East and Africa

14.1%

10.1%

9.4%

401-1

Latin America

8.3%

9.6%

6.8%

401-1

North America

11.8%

9.8%

10.2%

401-1

Diversity of employeesb

Male

73.3%

72.4%

73.4%

405-1

Female

24.7%

27.6%

26.6%

405-1

< 30 years of age

17.1%

17.4%

15.5%

405-1

30-50 years of age

52.1%

51.1%

405-1

> 50 years

30.9%

31.5%

33.4%

405-1

Minority ethnic groupc

11%

13%

12.0%

405-1

White

88%

87%

88.0%

405-1

People

(continued)

Metrics

2023

2022

2021

GRIa

Hires by gender (based on total population of respective category)

Male

10.7%

16.5%

12.4%

401-1

Female

9.8%

18.8%

15.3%

401-1

Hires by age (based on total population of respective category)

< 30 years

27.6%

43.4%

37.6%

401-1

30-50 years

8.6%

16.2%

12.5%

401-1

> 50 years

4.1%

2.7%

401-1

Hires by region (based on total population of respective category)

Asia Pacific

12.7%

22.8%

20.1%

401-1

Europe, Middle East and Africa

6.3%

16.5%

12.9%

401-1

Latin America

17.8%

23.0%

401-1

North America

11.1%

16.4%

11.8%

401-1

Training: average hours of training per year per employee

Professional/management

404-1

Nonexempt (nonoperations)

Nonexempt (operations)

404-1

Technicians/technologists

404-1

Average hours of training per year per employee

404-1

Labor management

Percent of U.S. workforce covered by trade unions/

3.0%

5.0%

collective agreements

Reports and relevant links

2023 Annual report to stockholders

2023 Inclusion and Diversity Report

Governance

Metric

2023

2022

2021

GRIa

Board of directors composition

Number of directors

Male (%)

Female (%)

405-1

Racially and ethnically diverse (%)

Independent board members (%)

Independent board members in the audit committee (%)

100

Independent board members in the remuneration committee (%)

100

Independent board members in the nomination committee (%)

100

Independent board members in the sustainability committee (%)

100

Executive team diversity

Male (%)

Female (%)

Racially and ethnically diverse (%)

White (%)

Executive remuneration linked to sustainability performance?

Yes

Reports and relevant links

2024 Annual Meeting Proxy Statement Board of Directors

Board Stockholder Communication and Engagement Policy Executive Incentive Pay Clawback Policy

Executive team

Sustainability governance | Sustainability | Eastman

Policies and position statements

Corporate Governance Guidelines

Safety

Metrics

2023

2022

2021

SASBa

GRIb

Global fatalities

RT-CH-320a.1

403-9

Global injury and illness rates (OSHA recordable

equivalent to total recordable incident rate)

0.42

0.61

0.75

RT-CH-320a.1

403-9

(Annual incidents per 100 employees [200,000 work hours] involving

treatment beyond first aid in relation to actual work hours)

Contractor fatalities

Contractor injury and illness rates (OSHA

recordable equivalent to total recordable

0.31

0.44

0.40

incident rate)

(Annual incidents per 100 employees [200,000 work hours] involving

treatment beyond first aid in relation to actual work hours)

Global process safety events

RT-CH-540a.1

(Tier 1 following API RP 754)c

Process safety event rate (Tier 1 RP 754)d

0.04

0.10

0.12

Percentage of sites (including headquarters)

46%

with safety and health certification

bThis column includes references to standards issued by the Global Reporting Initiativesustainability reporting standards. cEastman applies American Chemistry Council's reporting criteria for process safety incidents globally.

dDefinition: count of Tier 1 process safety events per 200,000 work hours (employees and contractors)

Reports and relevant links

Health and safety | Sustainability | Eastman

Policies and position statements

Responsible Care

Safety policy

Goal

Progress details

Mainstreaming circularity

Recycle more than 500 million pounds of plastic waste annually by 2030 via molecular recycling technologies, with a commitment to recycle 250 million pounds annually by 2025

Eastman recycled 21.9 million pounds (9,934 MT) of plastic waste in 2023. Eastman started full operation and on-spec production in our methanolysis plant in Kingsport, Tenn., in early 2024. With a capacity of approximately 220 million pounds (110,000 MT) of plastics recycled annually, this plant strengthens our ability to accomplish this goal. The amount of plastic waste we recycled in 2023 was a 72% increase over our 2021 volume.

Mitigating climate change

2023

Reduce our Scope 1 and 2 greenhouse gas emissions (GHG) by one-third by 2030 to achieve carbon neutrality by 2050

100% of North American region and EU purchased electricity will be renewable by 2030

We have reduced our absolute Scope 1 and 2 greenhouse gas emissions by 21.8% against our 32% goal by 2030, measuring from our 2017 base year.

We have achieved 10% of our renewable energy goal.

goals report

Environment

95% reduction in SO2 by 2030

The 2023 SO2 value of 3,895 tons per year (tpy) represents a

64.3% reduction compared to the 2017 baseline of 10,900 tpy.

50% reduction in NOx by 2030

The 2023 NOx value of 6,153 tons per year (tpy) represents a

26.7% reduction compared to the 2017 baseline of 8,400 tpy.

In 2021, Eastman defined a process comparable to the API RP

754 tieredsystem - a formalized way of reducing process safety

incidents - to categorize key environmental incidents by levels

(Level 1 as most serious through Level 4 as least serious). We also

implemented a modern environmental management system,

Level 1 environmental performance indicator (EPI) -

which included performance dashboards to track progress

against environmental key performance indicators. The new

75% reduction by 2030

system enables more efficient data collection and visualization

to assist facilities and the organization in identification of

opportunities to improve both short- and long-term

operational metrics. Establishment of the baseline was

completed in 2022, and 2023 saw a 31% reduction in Level 1

environmental incidents compared to baseline.

2023

goals report

Goal

Progress details

Inclusion and diversity

Achieve gender parity in alignment with our commitment

In 2023, gender parity was 38%.

to Paradigm for Parity

Be a leader for racial equity within our industry sector

In 2023, we increased representation in our workforce to 15%.

Safety

Zero serious injury and fatality (SIF) events

Following a significant, positive shift in safety performance the second half of 2022, we set aggressive targets for 2023 toward our long-term 2030 goal of 80% reduction. For process safety performance, the 2023 targets were 50% of the 2022 actual events. In year-over-year performance compared to 2022, we reduced Tier 1 process safety events by 57% (0.04 rate) and Tier 2 events by 56% (0.11 rate), meeting our annual continuous improvement target.

under license. Non-Eastman brands referenced herein are trademarks of their respective owners.

EMN-ST-17981A 10/24

Disclaimer

Eastman Chemical Company published this content on October 24, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 24, 2024 at 18:22:09.107.