2020 CINER RESOURCES SUSTAINABILITY REPORT - YEAR 2 - WE Soda
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INTRODUCTION Sustainability Priorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35-36 Message from the Glass & Chemical Group Head. . . . . . . . . . . . . 3 Sustainability Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Message from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 About the Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Initiatives and Memberships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 ABOUT CINER Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 About Ciner Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ETHICAL VALUES & EMPLOYEE DEVELOPMENT Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-10 Ethical Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 CONTENTS Ciner Resources Organizational Structure. . . . . . . . . . . . . . . . 11-12 Wage Policy, Our Values. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Mission and Strategies of Ciner Resources. . . . . . . . . . . . . . . . . 13 Employee Development and Communication. . . . . . . . . . . . . 44-47 Management System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Health and Safety Policy (MSHA) . . . . . . . . . . . . . . . . . . . . . . . . 48-52 Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ENVIRONMENTAL RESPONSIBILITY NATURAL SODA PRODUCTION Environment Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Mining and Production Technique . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Environment Friendly Production. . . . . . . . . . . . . . . . . . . . . . . . . . . 55 World Trona Reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Water Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56-57 Ciner Group Trona Reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 World Water Stress Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 PRODUCTS & AREAS OF USE Natural Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Sodium Carbonate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Waste Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 SALES, MARKETING, EXPORT AND CUSTOMER RELATIONS Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Sales & Marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Climate Change and Energy Efficiency. . . . . . . . . . . . . . . . . . . . . . 62 Sales Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Continuous Improvement & Energy Efficiency . . . . . . . . . . . . . . 63 Sales and Export Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 SOCIAL RESPONSIBILITY Customer Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-27 Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 SUSTAINABILITY INSIGHT PERFORMANCE DATA Sustainability Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-31 Financial Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 STAKEHOLDERS Social Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 OHS and Environmental Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Communication with Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . 34 GRI CONTENT INDEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70-72 2
MESSAGE FROM THE GLASS CINER SUSTAINABILITY REPORT GRI 102-14; AND CHEMICAL GROUP HEAD Dear Stakeholders, We are pleased to introduce you to the second sustainability report just published in line with our transparency and accountability principles. At Ciner Group, we have completed another year in which we focused on sustainable growth and value, creating awareness of our responsibilities towards society and the environment. The corona virus pandemic, which affected the whole world in a very short period, reminded us that the protection of our environment, ecosystem, biodiversity, and natural resources are our crucial responsibilities. Thanks to our sustainable business model, we continue to use these resources efficiently and develop circular economy solutions. As our innovative business approach moves forward, our focus is on maintaining a respectful approach to people and the environment. We appreciate all our employees and foster an environment that values diversity and rejects all forms of discrimination. Since our inception, we have been committed to our stakeholders and devoted to being transparent, participatory, ever-growing, and people-oriented. We plan to advance sustainability as a strategic basis to provide the highest possible benefit to our wide range of stakeholders. In this way, we will leave a more livable world for our future generations. At Ciner Group, our primary goal is to make continuous, robust gains based on the environmental, social, and economic value we have created through our journey while leaving behind another period in which we have implemented pioneering and innovative practices in the field sustainability. Our aspirations are bold, but we are dedicated to taking the necessary actions to succeed. I want to thank all our stakeholders, especially our employees, suppliers, and business partners, who supported us through our sustainability journey and contributed to our goals. Glass and Chemicals Group Head Gürsel Usta 3 3
MESSAGE FROM OUR CINER SUSTAINABILITY REPORT GRI 102-14; CHIEF EXECUTIVE OFFICER This past year is one for the record books. 2020 brought many new challenges, the greatest of which was the coronavirus pandemic, which brought many industries to a halt. At Ciner, we worked tirelessly to protect our workforce and maintain operations on an even keel. Our commitment to safety, growth, and sustainability allowed us to meet the soda ash needs of our domestic and international clients who utilize this resource to produce essential consumer and industrial products used in day-to-day life. During this dynamic time, our employees’ resilience, and dedication to Ciner’s safety, integrity, and leadership values, have inspired and moved us forward, proving that people are and have always been the cornerstone of our organization. From administrative operations to surface crews and miners, our workforce has been steadfast in its commitment to supply our customers’ needs while protecting workers’ safety and well-being. For Ciner, 2020 was a year of Sustainability in action. Here are just a few highlights demonstrating our responsibility to society and the environment. Ciner: • Earned a Silver Medal from EcoVadis in November of 2020 and currently in a pre-audit status with Sedex, two European rating organizations, underscoring our commitment to global best practices in principled trade strategies, environmental compliance, sustainable procurement, ethical labor, and human rights. • Reduced NOx emissions by 50% over the past nine years, primarily achieved by switching from coal to natural gas. • Helped lower greenhouse gas emissions and reduce the need for virgin ore produced by smelting and processing operations, while generating more than one-quarter million dollars through our recycled metals program. • Exceeded the required emission standards set forth by state and federal regulatory agencies during our plant expansion program, by implementing Best Available Control Technology. • Saved the lives of 1400 migratory birds in 2020, because of our Waterfowl Rescue Program, earning a recovery rate of 98.9%. We believe, by continuing our focus on driving change through ethical practices and sound processes, we can continue to positively impact our community, our state, and our planet. We are serious about contributing to an environmentally sustainable future and will do our part as a committed global citizen. Ciner Resources CEO Oguz Erkan 4 4
ABOUT THE REPORT CINER SUSTAINABILITY REPORT GRI 102-45; 102-46; 102-47; 102-50; 102-51; 102-52; 102-53; 102-54; 102-56 We are publishing our second sustainability report, covering the period between January 1, 2020, and December 31, 2020, which outlines in clear and transparent form the activities and capabilities of Ciner Resources. This report has been prepared in accordance with the GRI Standards: Core option. All financial data included has been independently audited, verified and certified as such. For any inquiries or questions please contact sustainability@ciner.us.com. 5 5
ABOUT CINER RESOURCES CINER SUSTAINABILITY REPORT GRI 102-1; 102-2; 102-3; 102-4; 102-5; 102-6; 102-45; A Global Leader in Natural Soda Ash Production Founded in 2015, Ciner Resources Corporation is one of the leading low- Our success as a company is a direct result of our people and the values cost suppliers of natural soda ash. Our facility in Green River, Wyoming has in which our company has been built. Leadership, Integrity, Respect and been producing and distributing high-quality, environmentally-friendly soda Commitment. They are not just words to us; they define who we are as a ash around the world since 1962. company and how we operate every day. We are very proud of the fact that not only is our soda ash produced in a world class facility that has the Soda ash, known chemically as sodium carbonate (Na2CO3), has been in use fewest emissions per ton, but our employees take a lot of pride in nurturing for thousands of years. Soda ash occurs in many kinds of mineral waters and a culture where safety is a value, not just a priority. It’s how we do business; in mineral deposits of certain springs and lake brines. The richest and most it’s who we are. At Ciner we truly believe the most important thing to come common source of soda ash is trona, a mix of sodium carbonate, sodium out of the mine are the miners. bicarbonate, and water. Although trona can be found in many places, the world’s purest, largest, and most accessible deposits are in Wyoming’s Together with our colleagues in Turkey, we are the world’s largest Green River Basin. producer of low-cost natural soda ash. At Ciner Wyoming’s facility, trona is mined using the “Room and Pillar Method” and conveyed to the surface to be refined into dense soda ash. Quality control is maintained through detailed instrumentation, laboratory testing, and rigid supervision. Our extensive industry experience, knowledgeable staff, modern laboratories, ISO 9001 certification, and highly efficient processing facilities combine to supply Ciner customers with superior service and support. 7 7
DEVELOPMENT PROCESS History of Ciner Group Group founded Park Glass was Began investing in Established a under the name established and the “Energy and presence within the “Park Holding” opened its first Soda Businesses Mining” sector and shipping industry with Acquired OCI engaged in the production line restructured under UK won tenders to the aim of providing Resources manufacture, sale and (currently two furnaces HoldCo: We Soda UK operate a number expert navigation and import of automotive with ~1,000ton/day of coal enrichment agency services spare parts capacity) facilities Entered the media/ Started investing in broadcasting sector Started the textile manufacturing with an innovative Soda ash production Acquired Kazan Soda development of Kazan Soda began and mineral extraction approach designed to started in Eti Soda from Rio Tinto Kazan Soda; ~$1.0bn production in Q3 2017 add a new sound and investment finance competitive spirit to from China Turkish media 8 8
DEVELOPMENT PROCESS History of Ciner Soda Investments Eti Soda Kazan Soda Eti Soda Kazan Soda We Soda Kazan completed full ramp up Production Started with Capacity Increase of 0.75m Construction Works Incorporated in with c. 7,700 ton daily production 1.1m ton Production Completed and Reached Started 3Q 2016 and reached full capacity Capacity 1.85m ton Production Capacity We Soda Acquired mineral leases for 5,095 acres in Wyoming 2004 2009 2015 2017 2018 2020 2007 2013/2014 2016 2019 Kazan Soda We Soda Ciner Resources Eti Soda Eti Soda Ciner Wyoming Production started in 3Q 2017 • Acquisition of Kazan Soda Annouced exit from Pilot Plant Plant Construction Acquired OCI Resources We Soda and Ciner Enterprises Inc. ANSAC to have direct Works Started Commenced Acquisition of Eti Soda in in 1Q 2018 control over global exports 4Q 2017 • Acquired mineral leases for 5,715 acres in Wyoming. 9 9
DEVELOPMENT PROCESS USA Operations 1962 1984 1984 Stauffer Chemical opens Big Island Mine Conversion from conventional “drill and Chesebrough Ponds acquires and Refinery in Green River, Wyoming and blast” mining to continuous mining Stauffer Chemical. produces soda ash from mined trona. begins. 1986 1987 1996 Imperial Chemical Industries (ICI) buys ICI sells Stauffer’s industrial Rhone-Poulenc sells its interest Stauffer Chemical from Chesebrough chemicals section (soda ash business) in soda ash business to OCI Ponds, which had been taken over by to Rhone-Poulenc. Company, LTD. The new North American Unilever. subsidiary is named OCI Chemical Corporation. 1998 2009 2013 The first automated unit, Decahydrate (DECA) plant begins OCI Initial Public Offering of the soda Unit 6, began producing close recovering soda ash from the tailing ash business as a Master Limited to 1,000,000 tons per year. ponds, increasing overall plant efficiency. Partnership on NYSE under ticker symbol OCIR. 2015 2016 2018 Ciner Group’s subsidiary, 2,000,000 Safe Man Hours without a East coast port developed in Ciner Enterprises Inc., acquires Lost Time Accident Award. Norfolk, Virginia enhancing Ciner OCI Chemical corporation Resources supply chain capabilities by (later renamed Ciner providing access to soda ash produced Resources Corporation). outside of the US. 2020 Announced plans to exit ANSAC January 2021. 10 10
CINER RESOURCES CINER SUSTAINABILITY REPORT GRI 102-18; ORGANIZATIONAL STRUCTURE President and Chief CEO Financial Officer VP Chief VP Commercial VP Business VP VP Human VP General VP Regulatory Supply Chain Accounting & Corporate Development & Manufacturing Resources Counsel & Legal Affairs & Finance Officer Strategy Initiatives Human Resources Project Government Safety FP&A Accounting Marketing Legal Development Affairs (Atlanta) Surface Human Maintenance Treasury Tax Sales Resources & Production (Green River) Corporate Financial Customer Mine Development Reporting Service Technical Investor Information Engineering Relations Technology Purchasing Supply & Chain Warehouse Environmental 11 11
CINER RESOURCES ORGANIZATIONAL CINER SUSTAINABILITY REPORT GRI 102-18; STRUCTURE & MANAGEMENT Oguz Erkan President & CEO Ed Freydel Ahmet Tohma Ray Katekovich Chris DeBerry VP Supply Chain and Finance Chief Financial Officer VP Commercial and Corporate Strategy Chief Accounting Officer Supply Chain, Finance, Investor Relations, Corporate Strategy Sales & Marketing Accounting and Corporate Development and Information Technology Guray Eken Marla Nicholson Scott Hale Michael McGrady VP Manufacturing VP General Counsel VP Business Development & Initiatives VP Regulatory & Legal Affairs Production Legal Project Development Government Affairs 12 12
MISSION & STRATEGIES CINER SUSTAINABILITY REPORT GRI 102-16; 102-26 OF CINER RESOURCES Our Mission To achieve our growth plans by challenging the status quo, developing our people and establishing a performance culture. Our Strategy To maintain and extend our leadership position in the global soda ash industry by: • Executing our capacity expansion plans on time and on budget • Creating cost optimization through flawless project execution • Leveraging technology to automate to the fullest extent • Developing an “ownership culture” amongst our employees – who will act with urgency, creativity and as a family • Empowering our employees through accountability, engagement and career development • Raising the benchmark of safety in our industry • Protecting the environment in which we operate • Caring for the communities in which we operate 13 13
MANAGEMENT SYSTEM At Ciner Resources, our goal is to be the preferred soda ash supplier in the United States and abroad based on our product and service quality. Aligned with this are certifications in ISO9001, NSF/ANSI 60, Halal Food and Kosher. Our next project is to become ISO14001 certified, building on our commitment to manage environmental impact. While determining our sustainability priorities, we embrace strategic approaches that consider stakeholder expectations. As such, we have developed and adopted customized solutions, stemming from our ethical values, to ensure product quality, brand reliability and protect our natural soda production technique. By means of this strategic approach we have embraced an Environmentally-Friendly Sustainable Production mindset being deployed across the entire field of operations. Ciner Wyoming, along with our UK and Turkish counterparts, are embarking upon international standards for social responsibility and sustainable procurement via our membership in Ecovadis and Sedex. In November 2020 we received a Silver Medal rating from Ecovadis, recognizing Ciner Wyoming’s social and sustainability practices. 14 14
GOVERNANCE CINER SUSTAINABILITY REPORT GRI 102-5; 102-18; 102-22; 102-23; Ciner Resources maintains its relationship with all its stakeholders pursuant WE Soda Ltd. (100.0% Ownership) to the principles of equality, transparency, accountability and responsibility. Executive Board 14.551 million Ciner Wyoming Oguz Erkan – Chairman & CEO common units Holding Co. (72% LP Interest) Atilla Ciner Gürsel Usta Ahmet Tohma 0.399 million units Ciner Resource Partners LLC Michael E. Ducey (2% GP Interest & IDRs) Thomas W. Jasper Alec G. Dreyer Ciner Resources LP [Former Governor] Matthew H. Mead Public (~26% LP Interest) (51% Member Interest) NRP (49% Member Interest) Shareholder structure: ~5.2 million common units Ciner Wyoming LLC is a joint venture, controlled and owned 51% by Ciner Ciner Wyoming LLC Resources LP (NYSE:CINR) and 49% by Natural Resource Partners LP (NYSE:NRP). Ciner Resources, as a publicly traded partnership, is governed by its general partner, Ciner Resource Partners LLC. The remaining limited Ciner Wyoming Ownership Breakdown partner interest is held by public unitholders and holding companies Ownership in Full Control of Shareholder Interest Type ultimately owned 100% by WE Soda Ltd., the UK holdco that also owns Wyoming Wyoming and controls Eti Soda and Kazan Soda. Ciner Resources LP Controlling 51% Ciner Resource Partners LLC General Partner 1% X Ciner Wyoming HoldCo Limited Partner 37% Public Limited Partner 13% Public Natural Resource Partners LP Minority 49% 15 15
NATURAL SODA PRODUCTION 16 16
MINING AND PRODUCTION AT CINER WYOMING Mining Process Flow Continuous Mining Haulage Crushing Surge Storage Hoisting Ciner’s Unique Process Refining Process Flow Screening & Crushing Calcining Dissolving Filtering Deca Rehydration Shipping Storage Drying Evaporation 17 17
WORLD TRONA RESERVE The world’s largest trona deposit is in the Green River basin in Southwest Wyoming in the USA, which represents 95% of the world reserve. The second largest trona deposit is located in Kazan/Ankara, and the third largest sup- ply is located in Beypazari/Ankara. 18 18
CINER GROUP TRONA RESERVES CINER SUSTAINABILITY REPORT GRI 102-3; 102-4; Ciner Group performs natural soda manufacturing at three different locations in the world — Eti Soda in Ankara, Kazan Soda in Ankara, and Ciner Resources located in Wyoming, USA. TURKEY USA ANKARA ETI SODA KAZAN SODA CINER RESOURCES Location Location Location Beypazari/Ankara Kazan - Sincan/Ankara Green River, Wyoming Total Known Reserve Total Known Reserve Total Known Reserve c. 245 Mt trona c. 1,600 Mt trona c. 246 Mt trona Estimated Production Estimated Production Estimated Production 30 years 40 years 60 years 19 19
PRODUCTS & AREAS OF USE 20 20
SODIUM CARBONATE CINER SUSTAINABILITY REPORT GRI 102-2; Also called Disodium Carbonate, Sodium Carbonate is a white basic salt with the chemical formula Na2CO3. The main branch of industry where Dense Soda Ash is used is the glass industry. Soda ash is the second main raw material after silica. The Chemical industry takes second place in soda consumption, and it is used in many sectors such as detergent, paper and aluminum manufacturing. We send more than 50% of Sodium Carbonate we derive from trona ore to glass manufacturing industries. • Glass AREAS OF USE • Chemical industry • Soap and detergent industry • Textile industry • Water softening • Flue gas desulphurization • Cellulose and paper industry • Water and wastewater treatment • Mining - Lithium and Gold 21 21
SALES, MARKETING, EXPORT AND CUSTOMER RELATIONS 22 22
SALES & MARKETING CINER SUSTAINABILITY REPORT GRI 102-43; 102-44 At Ciner Resources, we manage every step of our sales and marketing processes based on the customer-oriented approach. Understanding and defining customer needs and expectations better, and taking suitable actions are among our priorities. The sales and marketing strategy created in this direction is based on the following: • Maintain sales at the right time and under the right conditions for current and potential customer requests. • Generate pricing strategies to obtain maximum revenue and profitability. • Identify the elements that may pose a problem regarding customer satisfaction and ensure taking required precautions. • Build coordination between units before and after the orders. • Identify profitable markets, and take action to penetrate these markets. • Participate in the growth and success of our customers, while building mutually beneficial long-term relationships. 23 23
SALES NETWORK CINER SUSTAINABILITY REPORT GRI 102-4; 102-6; WE SOLD TO 28 COUNTRIES IN 2020 Argentina, Australia, Brazil, Canada, Chile, China, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, India, Indonesia, Japan, South Korea, Malaysia, Mexico, Nigeria, Peru, Philippines, Saudi Arabia, Taiwan, Thailand, Tunisia, United Arab Emirates, United States, Venezuela, Vietnam 24 24
SALES & EXPORT DATA CINER SUSTAINABILITY REPORT GRI 102-7; GOAL 8 2.50M 2.42M 2.37M 2.07M 2020 58% 2.50M 2.45M 2.37M 42% 2.02M 2020 2020 25 25
CUSTOMER RELATIONS CINER SUSTAINABILITY REPORT GRI 102-43; 102-44; 103-1; 103-2; 103-3; 418-1 Ciner Resources has adopted the policy that customer satisfaction and Our commercial, logistics and customer service teams also visit our cus- customer-oriented working principles is embraced by all employees. To en- tomers at their facilities to better understand their needs, expectations, sure this, we have developed relevant, action-driven business processes. recommendations and issues. Sustainable customer satisfaction is maintained by means of effective, transparent, and two-way communication with customers. Our Customer Visits to Customer Facilities Relationship Management strategy focuses on before- and after-sales touch points—identifying customer needs and expectations, defining 2018 2019 2020 customer conditions, reviewing customer recommendations, and swiftly addressing concerns. The success of our program is closely related to top 143 152 25 ratings in customer satisfaction, factors which have positively impacted our sustainability. We respond to customer requests via phone and email, using an effective process management approach. Each request is reviewed by our team not Both current and potential customers are offered the opportunity of only to provide better service to our customers, but also to enhance our plant tours, where they can observe our process and ask questions about internal processes. production management, product quality and quality management systems. In 2019, there were 70 visits to our facility. The number of visits were limited in 2020 due to COVID-19 to protect our employees and our visitors. Requests* Received from Customers 2018 2019 2020 108 113 123 *Feedback and complaints 26 26
CUSTOMER RELATIONS CINER SUSTAINABILITY REPORT GRI 102-43; 102-44; 103-1; 103-2; 103-3; 418-1 Ciner engages in positive, face-to-face interaction with customers and manufacturers on a day-to-day basis. Our sales, marketing, and customer service teams work closely with logistics and production to develop a holistic strategy for each client to ensure a seamless supply chain operation. If, and when issues arise, our team of solution experts respond quickly to isolate and remedy the situation. In an area where the customer experience is critical to sustainability, we are serious in our commitment to ensure customer satisfaction. We listen to what clients say and act on it. That’s why we have a solid, repeat customer base. 27 27
SUSTAINABILITY INSIGHT 28 28
SUSTAINABILITY CINER SUSTAINABILITY REPORT GRI 102-30; 102-32; MANAGEMENT Ciner Wyoming has consistently been the most efficient (Tons produced/employee) and least environmentally impactful soda ash producer in the Green River basin*. We have continuously upgraded plant equipment and in doing so have opened ourselves up to strenuous air permitting regulations that have helped us remain as the lowest emitter. While most of our peers still use coal, we are using 100% natural gas for our soda ash production in Wyoming. Our EHS (Environmental Health and Safety) committee consists of a Board Member, the Vice President of Manufacturing/Operations Excellence, and the Vice President/General Legal Counsel from our corporate office. The group meets quarterly to provide updates on current and ongoing EHS issues. Our goal is to maintain compliance in all areas including air, water and land quality regulations with all concerned entities and regulatory bodies (local, state and federal). (*) Based on the number of publicly available notice of violations (NOV) that producers in Green River basin have received as well as the publicly available annual emissions inventory data that is submitted to the WY state. 29 29
SUSTAINABILITY CINER SUSTAINABILITY REPORT GRI 102-30; 102-32; MANAGEMENT Because we acknowledge the value of sustainable corporate behavior, we strategize and devote resources towards corporate sustainability in line with our mission and vision. We infuse environmental values and practices throughout the organization to shape and promote sustainable activities pulling on internal talent, sector experts and academicians on subjects of climate change, effective resource use and water management. At Ciner Resources, we are actively involved in local, regional and global environmental issues and take action to mitigate risks. 30 30
SUSTAINABILITY CINER SUSTAINABILITY REPORT GRI 102-30; 102-32; MANAGEMENT FOR A SUSTAINABLE FUTURE, IT IS NECESSARY TO TAKE ACTION NOW… Trends supporting the development of low emission technologies are rapidly growing around the world and the expectations of our stakeholders are accordingly progressing in this direction. With the awareness of global warming and climate change being increased, companies embracing low emission technologies are being preferred. Through Ciner Wyoming’s continued permitting efforts, we strive for the cleanest production in the basin. Through constant efforts we also ensure that the majority of our equipment meets State and Federal regulations such as BACT (Best Available Control Technology) requirements. Our natural mining process requires less energy and produces less waste than synthetic soda ash production methods. 31 31
STAKEHOLDERS 32 32
STAKEHOLDERS CINER SUSTAINABILITY REPORT GRI 102-40; 102-42; 102-43; 102-44 As Ciner Resources, we value the social license to operate, understanding Stakeholders Related Issues public perception and inclusive stakeholder concern are necessary for Employees Code of conduct businesses to function. We are respectful and aware of the importance Training and development of all our stakeholders being valued, heard and included. We are honest Health and safety Regular communication in our dealings with each other and all our stakeholders, and we embrace a common sense approach to management. We base all our decisions on Customers Product quality, meeting specification Customer complaints our values and do not deviate. Customer expectations and recommendations Service Our candor and constant dialogue with each stakeholder contributes to Suppliers Supplier encouragement Supplier agreements our strong relationships. We value the voice of every stakeholder and Supplier Code of Conduct Human Dignity and Labor ensure we have the right communication plans in place to capture all ideas. Investors Transparency in reporting and communication Access to current data Fiduciary responsibility to all stakeholders We establish systems and processes such as surveys, focus groups, open Community Public health and safety door policies and formal meetings in order to ensure we are communicating Environmental stewardship Support and donations to civic, youth and non-profit organizations and listening effectively. Thus, our stakeholders may easily reach out Employee volunteer involvement to various committees formed within Ciner, and express their opinions Constant outreach, active partnership, commitment to health and safety through any preferred channel, including in-person meetings. Environmental Environmental stewardship Groups Efficient usage of energy and water Develop more energy efficient and environmental-friendly processes Minimize footprint, adherence to all laws 33 33
COMMUNICATION CINER SUSTAINABILITY REPORT GRI 102-40; 102-42; 102-43; 102-44 WITH STAKEHOLDERS EMPLOYEES CUSTOMER INVESTORS ENVIRONMENTAL GROUPS • Employee surveys • Customer satisfaction surveys • Investor relations website • Daily, weekly, monthly, yearly • Daily interaction with frontline • Focus on building relationships • Investor presentation updated reporting to various supervisors at all levels of the organization quarterly environmental regulators • Feedback sessions with senior (corporate and plant level) • Industry conferences • Site inspections by leaders • Dedicated customer service • Direct communication with environmental regulators • Monthly newsletter reps for each account current and prospective • Membership in conservation • Website • Automated updates for shipping investors organizations with site • Ciner TV and billing information • Strong operational relationship participation • Website with NRP (Natural Resource • Regular updates to state • Multiple face-to-face customer Partners LP) agencies engagements including: confer- • Publicly reported financials ences, group events and direct • Press releases supplier/customer engagements SUPPLIERS PUBLIC RELATIONS LOCALS • Supplier surveys • Membership in local and state • Employee involvement in local • Meetings at certain intervals civic organizations with regular volunteer organizations – Fire • Inspections and visits updates Department, EMS • Maintain partnership and • Career fairs with local high • Ciner Rescue teams provide alliances with key suppliers schools and area Universities demonstrations at local events • Attend supplier events and • Strong partnership with Western • Employee participation in United workshops Wyoming Community College for Way Helping Hands Day career development • Support for local non-profit • Employee involvement in organizations by providing radio conferences and committees airtime for advertisements • Regular updates to state and • Donations and participation to local government social events 34 34
SUSTAINABILITY CINER SUSTAINABILITY REPORT GRI 102-30; 102-32; PRIORITIES We have adopted a transparent, accountable method of determining environmental and social sustainability priorities which reinforces corporate trust. Health, Safety and Environmental Committee, together with management, leads the evaluation and determination of all subjects which may have considerable impact on strategic initiatives as well as economic, social and environmental performance of the company. We seek out internal stakeholders and process owners to evaluate identified subjects because their involvement is critical to our success rate in achieving long-term strategic targets. Our goal is focused on the safe and economical production of a quality product that’s com- pliant with applicable standards with minimal environmental impact. We take pride in the fact that all our products are made from naturally occurring ingredients. It is pure and safe enough to be added to consumable food products. Overall, Ciner soda ash is more environ- mentally friendly than other products that could be used in its place. We are committed to producing innovative, reliable and safe products for today and tomorrow. 35 35
SUSTAINABILITY CINER SUSTAINABILITY REPORT GRI 102-11; 102-47 PRIORITIES Based on our continuous interaction with our stakeholders, we identified some critical topics to consider as we set our priorities: From our stakeholders: Customer Focus Emissions Climate Change Sustainability Energy Efficiency Environmental Protection From our employees: Health and Safety Employee Rights and Development Economic Performance Energy Efficiency Water Use 36 36
SUSTAINABILITY CINER SUSTAINABILITY REPORT GRI 102-26; 303-2 TARGETS ENERGY EFFICIENCY QUALITY AND ENVIRONMENT Energy Consumption (mmBtu / metric ton) < 4.4 Soda ash product 99.9% conformance Water Used (metric tons / metric ton soda ash)
SUPPLY CHAIN CINER SUSTAINABILITY REPORT GRI 102-9 We embrace ethically sound supply chain management and regularly review our strategies, standards, processes and performance to ensure long-term business relationships at every stage of the operation. Based on Ciner’s evaluation it was decided that it was in the best interest of the company to exit ANSAC effective January 1, 2021. Meeting the expectations of our customers is at the forefront of our value chain. With our fleet of more than 2,200 railcars combined with a highly experienced and dedicated logistics team, we can reach even the most remote locations in North America. Through our export terminals and partners, we can ship around the world in a very efficient manner, allowing our customers the comfort and security of a reliable supply of soda ash. More than 90% of our products are shipped by rail. We have made continuous improvements to how we manage our distribution and the type of cars added to our fleet. Within the last couple of years, we enhanced our fleet with cars that can hold 8% more volume and now we are planning to add cars with even larger capacity. All these improvements enabled us to transport more tonnage with fewer trips and less fuel consumption, reducing environmental impact in terms of greenhouse gas emissions overall. 38 38
INITIATIVES AND CINER SUSTAINABILITY REPORT GRI 102-12; 102-13 MEMBERSHIPS Wyoming Business Alliance Board Membership Wyoming Taxpayers Association Board Membership Wyoming Economic Development Association Membership Sweetwater County Economic Development Association Membership Wyoming Mining Association (WMA) Membership & Chairman of their Safety Committee Industrial Minerals Association of North America (IMA-NA) Membership Southwest Wyoming Mutual Aid Association (SWMA) Safety Membership National Safety Council (NSC) Safety Membership American Society of Safety Engineers (ASSE) Safety Membership Board of Certified Safety Professionals (BCSP) Safety Membership/Professional Certifications Wyoming Mining Natural Resource Foundation (WMNRF) Board Membership, Treasurer Memorial Hospital of Sweetwater County Board Membership Wyoming BLM Resource Advisory Council Council Member Sedex Supplier Ethic Data Exchange (SEDEX) Membership 39 39
RISK MANAGEMENT CINER SUSTAINABILITY REPORT GRI 102-11; 102-15; We take a holistic approach when addressing risk management, con- Some of the key components of our program are as follows: sidering stakeholder interests and expectations, the overall business environment, legal and regulatory requirements as well as other pertinent • Production/Growth: Having a vested interest in maintaining its factors that may affect our business. Risk management is front of mind and status as being the global leader in natural soda ash, the compa- intentionally embedded in our daily processes and championed at both the ny is continuously looking for ways to not only sustain but grow management and board of directors levels. As part of the Enterprise Risk its market share. Management (ERM) process, the ERM committee, led by Ciner Resources’ CEO, meets quarterly to review the progress of each identified risk topic • People/Human Capital: Recognizing that people are our greatest and updates risk levels accordingly. Likewise, ERM documents are reviewed asset, the company operates in a fashion that fosters employee quarterly with the board of directors to discuss action items to mitigate retention and satisfaction. the risks. • Pricing: Focusing on mitigating negative financial impact due to Management routinely analyzes and assesses potential impediments to product pricing is a central component of the company’s strategy the company reaching its strategic objectives. They identify material risks and risk management program. that could impact our business, create and execute on a road map to miti- gate and eliminate those risks. • Innovation/Continuous Improvement: Looking for ways to refine and improve our processes and business is an essential part of Being that safety is a value and not our strategy to maintain market share and favorable financial just an organizational priority, it is performance. an integral aspect of our ongoing risk management program and at the forefront in everything we do. 40 40
ETHICAL VALUES & EMPLOYEE DEVELOPMENT 41 41
ETHICAL VALUES CINER SUSTAINABILITY REPORT GRI 102-16; 102-17; 103-1; 103-2; 103-3; 403-3 ; 406-1 Code of Conduct Our success as a company is a direct result of our people and the values on which our company has been built. Leadership, Integrity, Respect and Commitment are not just words to us, they define who we are and how we act every day. Great performance does not matter if it is achieved by making decisions that are inconsistent with our values. It is critical that nothing gets in the way of our mission to maintain the highest level of conduct. As we look forward to even higher levels of performance, we recognize that this performance can only come if we conduct ourselves consistently with our values and at the high- est level of integrity. Working together, Ciner will remain a well-respected company and a great place to work. All employees take a Code of Conduct training course within their first month at Ciner. This course details the ethics and values that we support and by which we live. Additionally, every employee participates in annual Code of Conduct retraining. We also encourage our employees to report any concerns of possible Code of Conduct violations anonymously to our ethics violations hotline or a dedicated website. These ensure we remain aligned in our values and our ethics as we lead our world-renowned business. Ciner Resources provides equal employment opportunities (EEO) to all employees and applicants for employment without regard to race, color, religion, gender, sexual orientation, gender identity or expression, national origin, age, disability, genetic information, marital status, amnesty, sta- tus as a covered veteran, or any other class protected by applicable federal, sate, and local laws. Ciner Resources complies with applicable state and local laws governing non-discrimination in employment in every location in which the company has facilities. 42 42
WAGE POLICY OUR VALUES CINER SUSTAINABILITY REPORT GRI 102-16; 102-17; 103-1; 103-2; 103-3; 102-35; 102-36; Pay equality is one of the foundation principles of our commitment Leadership to building an inclusive and high-performance culture at Ciner. As we • Setting direction and inspiring others to get there advance our efforts, we strive to embrace practices designed to ensure • Empowering others to get the most from themselves our workforce receives equal pay for equal work. • Showing humility and vulnerability To support this commitment, each year we examine our pay practices Integrity with the support of third-party independent analysis. We: • Doing the right thing, even if it’s not easy • Review and benchmark every role • Saying what we mean • Compare our position pay vs the external marketplace • Inspiring trust • Ensure compliance with Federal, State and local laws • Being honest • Conduct disparate impact analysis Respect Through Total Rewards initiatives, we strive to enrich our employees • Treating others as we would want to be treated experience through a mix of fixed and variable pay that includes base • Being genuine and courteous pay, overtime pay, annual bonus rewards and long-term financial • Valuing each other’s thoughts and contributions retirement investments. Our compensation program is designed to • Listening to others openly support our strategic growth objectives and to attract, motivate and retain a highly skilled workforce. Commitment • Keeping our promises Our Total Rewards philosophy goals are: • Being passionate about our work • Align long-term interests/growth with our Stockholder interests • Holding ourselves accountable • Ensure market-competitive pay • Challenging ourselves past our comfort zones • Design and implement pay packages that encourage both short- and long-term performance • Provide employees attractive and generous additional benefits including Health, Vision, Dental and Supplemental insurances. 43 43
EMPLOYEE DEVELOPMENT CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 404-1; 404-2; 404-3; AND COMMUNICATION The success of our company is a direct result of our people, our values, and our culture. We believe in the potential of each individual, and we grow our potential into results through training and development. Ciner’s Learning, Training, and Development strategy is founded upon the pillars of Safety, Leadership, and Skills Development. Each of these pillars has its own objectives, strategy, and measurements for success. Safety: “Safety is a value, not just a priority. It’s how we do business, it’s who we are.” We believe this, we live it, and our cul- ture of safety training is founded on it. Every new employee participates in safety training that is specific to their work environment. Wyoming employees also participate in annual safety refresher training. Training is the vehicle we use to align our safety expectations and practices with our vision for a Zero Incident Mindset. Leadership: Our leaders play a critical role in building our culture. Our commitment to employee development raises employee engagement, buy-in and advances our performance. Leadership is not an assignment, a job, or a title. Leadership is a choice and we equip our leaders with tools and skills to effectively lead our employees and grow our business. These skills and tools are taught and practiced in a series of formal leadership courses that address the unique needs and challenges of our business. Skills Development: Skills development has 3 subcategories: • Career Progression • Maintenance Apprenticeships • Education Assistance 44 44
EMPLOYEE DEVELOPMENT CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 404-1; 404-2; 404-3; AND COMMUNICATION Career Progression matches each hourly employee with a Training Ciner pays the enrollment, course, and book fees for qualified employees. Coordinator who guides the employee training and skills acquisition process. Employee work schedules are adjusted to accommodate class and Employees regularly meet with their Training Coordinator to establish career coursework requirements. goals, set training plans, and review progress toward goal completion. Education Assistance is aligned with Ciner’s talent strategy to build and The Maintenance Apprentice program enrolls new hourly maintenance maintain a culture of development. Assistance is specifically provided employees in certificate earning courses through Western Wyoming for the purpose of driving development actions that match individual Community College. The maintenance certificate programs are designed performance and potential, providing assignments that enhance skill to teach new maintenance employees the skills and knowledge that are sets, and create succession planning. Employees who request Education required to be successful early within their career. Classes are loaded with Assistance for a bachelor’s degree must gain approval from their lecture and labs to ensure effective learning and application. direct manager, the site Human Resources Manager, and Learning and Development. Individuals who request a master’s degree must gain approval from the Vice President of Human Resources and the Chief Executive Officer. Ciner is working on sponsoring an international student exchange program between the University of Wyoming and METU & ITU in Safety Training (man-hours) Environmental Training - Surface Employees Turkey to provide an opportunity for younger generations to gain global (man-hours) experience and knowledge sharing as COVID-19 allows. 300 276 10000 275 7,993 8,116 8000 7,793 250 215 200 6000 4000 150 2000 100 0 0 2020 2020 45 45
EMPLOYEE DEVELOPMENT CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 404-1; 404-2; 404-3; 403-5; AND COMMUNICATION Ciner University 1500 0 Overall manhours of training by year (man-hour) Ciner University is an online collection of over 14,000 training courses. These 12,270 11,798 courses range in topics that include safety, customer service, compliance, 12000 personal finance, and leadership. Content is provided by Ciner and by vendors who specialize in on line learning. All Ciner employees are assigned quarterly 9000 compliance training courses through Ciner University. Assigned topics can include Safety, Code of Conduct, Workplace Harassment, and Discrimination/ 6000 5,737 Diversity. These courses align our actions with our responsibility to our customers, our investors, and each other. 3000 Ciner’s success is based on a culture of engagement and development. 0 We have a holistic employee development process called Collaborative 2020 Development Process (CDP) which includes goal setting, capturing results, ongoing performance discussions, evaluation and development planning. We 30 also conduct annual talent reviews and succession planning exercises that 25.9 25.1 span the organization. Through this process, we have been able to maintain 25 Average Training Hours per year retention rates about 95.3% as well as internal promotion rates for all open 20 roles higher than 50%. We constantly refine our CDP process to make it simpler, easy to use and ensure that it is an organic part of our day-to-day work. 15 12.02 10 5 0 2020 46 46
EMPLOYEE DEVELOPMENT CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 404-1; 404-2; 404-3; AND COMMUNICATION At Ciner, employee recognition, community involvement, and special events • Ciner organizes Winter Celebration in January for all employees, retirees have become major drivers that help every employee with their development, and a guest. The event includes dinner, photo booth, casino gam- communication and engagement. ing, raffle prizes and a DJ Service for dancing. Here are a couple of examples of employee programs in place: • Ciner recognizes employees who help driving the Safety culture through a Safe Year Program. One of the recognitions is based • Each year Ciner organizes a 5-year Service Anniversary Banquet to on the number of Safe Years employee worked at Ciner. For each recognize employees’ years of service. Employees who have 5 to 40 years Safe Year, a sticker representing that number of years is given to of service are invited to attend the banquet, where we have a dinner, the employee. Employees can display these stickers on their hard recognize each employee, offer some form of entertainment and raffle hats, lunch boxes or some save them. The second recognition is prizes. around number of consecutive safe years employee worked. At 25 consecutive safe years, employees are awarded with a silver • Every year Ciner conducts an Internal United Way Campaign drive. Ciner hard hat, at 35 consecutive years with a gold one and finally matches employee contributions up to $30,000. United Way aims to at 40 years, employee can choose their own hat. Colored hard advance the common good by focusing on children, families, independence hats are worn proudly by these employees as they are recognized by all and safety benefiting our great community. teammates throughout the facility. • Ciner hosts an annual Summer Picnic for employees, their families and • Ciner has a long-standing commitment to the health and wellbeing retirees. This is a great opportunity for employees to get acquainted with of our employees and their families. The yearly Health & Wellness their co-workers in a relaxed atmosphere. Reimbursement program is in place to help support personal physical activity, weight management, and mental wellbeing goals. The program • Ciner Santa Team delivers toys to employees’ homes the second week of provides incentives that are earned according to a point allocation system December for children ages 0-10. Ciner employees volunteer to be on the during each plan year. Ciner employees are given the opportunity to Santa Teams. participate in biometric screenings, blood drives, flu shots, and exercise challenges throughout the year. Preventative care is also offered at no cost to employees. 47 47
HEALTH AND SAFETY CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 403-1; 403-2; 403-4; 403-7; 403-8; POLICY (MSHA) We maintain a safe and healthy work environment for ment as well as preventive health and safety services, 2 our employees using work safety precautions that a Safety and Health Department has been estab- address general and specific risks for ensuring work lished. The department consists of 5 individuals (A VPID (Violations per Inspection Day) safety of the employees and minimizing the accidents. Safety Manager, two Safety Specialists, an Industrial 1.5 We ensure that work safety rules are exercised Hygienist, and a Nurse) 1.30 by all employees of Ciner Resources, including its Ciner Wyoming also has a Safety Committee com- 1 employers, employer representatives, contractors prised of 25 employees from all areas of the facility National and interns, regardless of their areas of activities. Average including both hourly and salaried. The committee is Work performed on mine properties is governed by 0.5 0.45 chaired and co-chaired by hourly employees. There is the Mine Safety and Health Administration (MSHA). an ambulance on site to be used for transporting to Ciner The governing regulatory agency MSHA has local emergency care if needed. In case Advanced Life 0 2020 requirements for training under part 48 of 30CFR the Support (ALS) is required, life flight and local ambu- Code of Federal Regulations. 30CFR Part 48 requires lance services can also be called. 35 Employees have all individuals who are working on a mine site to have been trained to Emergency Responder Level (EMR) 2.36 the appropriate training. The training plan must be and they are distributed throughout shifts and crews 2.0 approved by MSHA and the instructors who facilitate so that there are always trained employees available the training oversight, must be approved by MSHA to aid in case of any injury. NFDL (Non-Fatal Days Lost) as well. The standard also requires visitors to the 1.5 Ciner Wyoming has Two Mine Rescue Teams trained site to have undergone Site Hazard training before National in Mine Exploration, Mine Fire, ventilation, wearing Average entering the facility. Ciner Wyoming LLC maintains 1.0 of a BG-4 apparatus, EMR and evaluation of mine 0.69 a 100 percent compliance with this requirement. atmosphere in case of an emergency underground. .05 Ciner For the purpose of determining required MSHA mea- In addition, there is a Surface Rescue Team who are sures and monitoring the implementation thereof trained in Fire, High Angle rescue, confined space 0 preventing work accidents and occupational dis- rescue, wearing of an SCBA, EMR and mass trauma to 2020 eases, of conducting first aid and emergency treat- aid on the surface for any emergency incidents. 48 48
HEALTH AND SAFETY CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 403-7 POLICY (MSHA) The safety groups in the area (Basin Safety groups) have a couple of associations and committees where we can come together and discuss issues and share resources and knowledge. The first is the Southwest Wyoming Mutual Aid Association. This association was started in the early 1970’s. The association meets monthly with all the mines in the basin represented. In recent years, the association has expanded to include associate members which are comprised of local contractors who work at the various facilities. The main purpose of the association is to provide a resource in the event of a catastrophic emergency. The members share Mine Maps, provide tours of facilities and host annual rescue competitions as well as skill building days. The competitions and skill building days alternate between Mine Rescue and Surface Rescue events. All these events are geared towards familiarity among the groups and working knowledge so they may assist in any emergency. Ciner is active in the association with members filling roles on the board over the years and currently filling the role of President of the Association. The basin also has a Safety Committee through the Wyoming Mining Council. This was developed to provide the basin Safety Managers an umbrella to meet under and discuss issues and share best practices on a quarterly basis. The Safety Committee also expands to a larger group within WMA and puts on an annual Safety Conference and Trade Show. The Safety Committee since its inception has been chaired by an individual from Ciner. Ciner Wyoming also runs a Hazard Observation Program which aims to engage employees in a leading indicator for workplace injuries. One area in the Safety Triangle that one can control over is unsafe conditions or hazards. Ciner developed a program where quarterly employees are asked to make three observations. These observations can range from identifying and mitigating hazards, observing a fellow teammate, family member doing something right and giving positive feedback, or stopping an unsafe behavior. Supervisors are tasked with the responsibility of tracking their groups’ observations and making sure their teams are engaged around this program. At the end of the quarter, if the employee has completed all three of their observations, they are awarded with a gift certificate. 49 49
HEALTH AND SAFETY CINER SUSTAINABILITY REPORT GRI 103-1; 103-2; 103-3; 403-7; POLICY (MSHA) At Ciner, safety is central to everything we do. Each of our employees live this message every day. Every employee at Ciner Wyoming is empowered to use the Work Stop Authority Cards. They have the right and responsibility to stop any behavior or task they deem unsafe to themselves or their fellow teammates. These cards are nothing more than a reminder and tool employees can carry around with them in their pockets. If they view an unsafe condition or act, then they pull the card out and all work activity stops. The issues are then discussed, and proper steps are taken to mitigate the unsafe condition. Ciner Wyoming also has a program, called 20/20. In this program, employees are asked every 20 minutes to stop the task for at least 20 seconds, look around and see what has changed. Or if the task changes or any variables of the task change then to stop the job and take time to re-evaluate the task. Many incidents occur because an employee loses the situational awareness of the current environment or the task has changed with some variables. The objective is to maintain situational awareness. 50 50
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