SUSTAINABILITY 2020 - INEOS Group

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SUSTAINABILITY 2020 - INEOS Group
2020
SUSTAINABILITY
REPORT
SUSTAINABILITY 2020 - INEOS Group
CONTENTS                                                1.0 GENERAL OVERVIEW            2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS           3.0 GRI INDEX

CONTENTS                                                                                                                        About this report

                                                                                                                                This report describes our 2019
                                                                                                                                performance and approach for our
1.0   General overview                             3         2.0   Improving the                                                operations worldwide. A second
                                                                                                                                report covering our 2020 sustainability
        1.1. Tackling global challenges            4
                                                                   sustainability of our                                        performance will be published in the
                                                                   business and operations                   20                 second half of 2021.
        1.2. Views from our CEOs                   5
                                                                   2.1. Excellence in safety, health
                                                                                                                                This report is aligned with the Global
        1.3. Our commitment to sustainability      6                    and the environment                  24
                                                                                                                                Reporting Initiative (GRI) framework
        1.4. INEOS at a glance                     7               2.2. Climate: helping to deliver                             (Core option) and was prepared with the
                                                                        a net zero emission economy                             support of Quantis, a global sustainability
        1.5. Our structure                         8                    by 2050                              35                 consulting group. It focuses on the issues
                                                                                                                                most material to our company and our
        1.6. Significant changes to                                2.3. Circular economy: maximising                            stakeholders. The data collected provides
             the organisation                      10                   the reuse and recycling of                              information for 2019 across all INEOS
                                                                        our products                         48                 businesses worldwide.
        1.7. Our approach, goals and key values    11
                                                                   2.4. Valuing our people                   53                 The 2021 report will cover our 2020
        1.8. Our products and markets              12
                                                                                                                                data highlight and our roadmaps towards
                                                                   2.5. In our communities                    59
        1.9. Determining what is material          14                                                                           staying ahead of the curve and net
                                                                   2.6. Governance: sustaining                                  zero 2050.
        1.10. Contributing to the United Nations
                                                                        the highest standards of ethics
              Sustainable Development Goals        15                                                                           Any questions and/or feedback
                                                                        and compliance                       63
                                                                                                                                regarding this report should be directed
        1.11. Sustainability highlights 2020       18
                                                                                                                                to ineos.sustainability@ineos.com.
                                                             3.0   GRI Index                                 66

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1.0
         GENERAL OVERVIEW
 INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                        3
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CONTENTS                                        1.0 GENERAL OVERVIEW            2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS          3.0 GRI INDEX

1.1
      TACKLING GLOBAL CHALLENGES
                                             "INEOS commits to achieving net zero emissions by 2050"
                                             Following the Paris Climate                 As part of this effort, we are also        • lighter energy-saving materials
                                             Agreement of 2015, most nation              investing in new products and                for transport and mobility,
                                             states have set the goal of achieving       technologies to drive the industry         • affordable clothing and apparel,
                                             a net zero emission economy by              to a circular economy in which             • construction and transmission
                                             2050, and are adopting regulations          materials are re-used to the maximum         of water and gases,
                                             and legislation to support this.            extent, and no products, once used,
                                                                                                                                    • electrical insulation,
                                                                                         enter the natural environment.
                                             In response, INEOS businesses have          We have outlined many of the               • household and electrical goods.
                                             put in place roadmaps to lead the           actions already being taken in the         Our products are essential because,
                                             transition to a net zero economy in         accompanying website pages.                based on performance, affordability, and
                                             our industry by no later than 2050,                                                    environmental footprint, they are the best
                                             whilst remaining profitable, and            The products we make are essential         available materials for the applications
                                             staying ahead of evolving regulations       for a myriad of applications upon          concerned. In some cases, especially
                                             and legislation. Based on these             which society relies. That is why          in the medical sphere, they are the only
                                             roadmaps, we are setting ambitious          governments worldwide regard               available materials. INEOS is part of the
                                             but achievable targets for 2030 which       the industry as a critical sector,         solution to the challenges the world faces,
                                             are in line with our 2050 commitment.       as we have seen during the                 and we look forward to achieving a net
                                             We expect to publish these shortly.         recent pandemic. The range of              zero economy whilst continuing to deliver
                                                                                         applications includes the following:       products which are essential to society.
                                             Actions and improvements are already
                                                                                         •   health and medical devices,
                                             in hand. We will reduce like-for-like
                                                                                         •   clean water,
                                             emissions by 10% by no later than
                                             2025, and we are investing over three       •   food conservation and preservation,
                                             billion euros over the next five years      •   renewable energy technologies,
                                             to reduce our footprint further.                                                       Sir Jim Ratcliffe

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1.2
      VIEWS FROM OUR CEOs

             Since the dawn of time,                   We are committed to staying                  Most people used to look                  The hydrogen economy will play
             chemistry has played a key role           ahead of EU climate and energy               at recycled materials as an               a crucial role in helping our
      in society. Our products enhance            targets in the drive towards net zero       inferior and cheaper alternative           planet achieve climate and resource
      almost every aspect of modern               greenhouse gas emissions. Across            to virgin material, but now they’re        neutrality. INEOS is aiming to
      life. Our industry is the cradle of         Europe and worldwide, our sites are         seeing them as an integral part of         contribute not only by decarbonising
      industrialisation, prosperity and           preparing roadmaps to tackle the            the solution. Plastics are a valuable      energy for its existing operations, but
      innovation, valuing the triple bottom       grand challenges we face today, as the      resource. They should not end up           also by providing hydrogen that will
      line: people, planet, profit - and adding   chemical industry transitions towards       in a landfill or in the ocean.             help other businesses and sectors do
      passion! INEOS aims to be the bridge        climate and resource neutrality.                                                       the same. INEOS is uniquely placed
      that enables society to keep running                                                    KEVIN MCQUADE                              to play a leading role in developing
      today, while creating innovations           HANS CASIER                                 Chairman                                   these new opportunities, driven by
      needed for the future.                      CEO                                         INEOS Styrolution                          emerging demand for affordable,
                                                  INEOS Phenol & INEOS Nitriles                                                          low carbon energy sources, combined
      TOM CROTTY                                                                                                                         with our existing capabilities in
      Director Corporate Affairs                                                                                                         operating large-scale electrolysis.
      INEOS Group
                                                                                                                                         GEIR TUFT
                                                                                                                                         CEO
                                                                                                                                         INOVYN

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1.3
      OUR COMMITMENT TO SUSTAINABILITY
      For INEOS, sustainability is
      fundamental to how we do business.
      It is a key driver of innovation in
      meeting the challenges associated
      with evolving societal needs.
      Our approach to sustainability
      encompasses 6 key areas around
                                             Safety, health and                           Climate                                Circular economy
      which our report is organised.
                                             the environment                              Help to deliver a net-zero emission    Maximise the reuse and recycling
                                                                                          economy by 2050.                       of our products.
      Our sustainability strategy is to      Excellence in health, safety
                                             and the environment.
      develop and safely manufacture
      the products needed to address         READ MORE >                                  READ MORE >                            READ MORE >

      the evolving challenges of climate
      change, public health, resource
      scarcity, urbanisation and waste in
      a way which drives us all towards
      a net zero emission economy by
      2050. We will do so whilst reducing
      the impact of our operations.
      INEOS businesses have put in place     People                                       Communities and the                    Governance
      the plans and actions needed to        Ensure an equal opportunity environment      natural environment                    Sustain the highest standards of
      ensure that they transition to a       in which a diverse team of people can                                               ethics and compliance.
                                                                                          Enhance the communities in
      net zero economy by no later than      develop and flourish and help deliver the
                                                                                          which we operate.
                                             innovations we need.
      2050, whilst remaining profitable,
                                             READ MORE >                                  READ MORE >                            READ MORE >
      and staying ahead of evolving
      regulations and legislation.

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                                                                                                                                                                       Köln

      INEOS AT A GLANCE
                                                                                                                             Lavéra
1.4
                                                                         Chocolate Bayou

      INEOS is a global manufacturer of              Global reach
      petrochemicals, speciality chemicals
      and oil products. Comprising 36                     Manufacturing sites (93)
      individual businesses, we operate                   JV sites (85)
                                                          Oil & Gas sites (16)                                                                    Grangemouth
      194 facilities in 29 countries. In
      recent years our scope of operations
      has diversified with the launch
      of INEOS Automotive and INEOS
      Hygienics, the acquisition of iconic
      British brand Belstaff and an ever-                                                                                                                       Köln
      expanding sports portfolio. We offer
      a blend of opportunism, belief that
      we can add value, pursuit of our core
      values and passion for adventure.
      INEOS’ headquarters are located
      in London, UK.

                                                                                                                            Lavéra

                                                                                 Chocolate Bayou

                                                                  Manufacturing sites (93)
                                                                  JV sites (85)
                                                                  Oil & Gas sites (16)

         Turnover                             Employees                                            Production                                Sites                        Countries

      $61bn                                  26,000                                          54m tonnes                                    194                                29
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1.5
      OUR STRUCTURE
      INEOS is led by its founder and                                                                                                                                               INEOS

      chairman Sir Jim Ratcliffe and co-
                                                                                                                                                                                   Partners

      owners Andy Currie and John Reece.
      We operate a federal structure based
                                                                                                                                                                     INEOS                     PETROINEOS
                                                                                                                                                                       AG                          JV

      on clear reporting lines and direct
      accountability. Each INEOS business                                                      INEOS               INEOS O&P                 INEOS                       INEOS Group
                                                                                                                                                                                                               INEOS
                                                                                                                                                                                                                                                           INEOS
                                                                                                                                                                                                                                    Belstaff
      has its own executive board (CEO, CFO,
                                                                                                                                                                                                              Football
                                                                                             Industries           Europe South                ETB                         Holdings SA                                                                    Enterprises
                                                                                                                                                                                                              Holdings

      operations, business, purchasing and
      HR directors) which is responsible          INEOS
                                                 Oil & Gas
                                                                      INEOS
                                                                  Energy Trading
                                                                                   INEOS
                                                                                   Quattro
                                                                                                     INEOS O&P
                                                                                                      Europe UK
                                                                                                                      INEOS
                                                                                                                    Automotive
                                                                                                                                        INEOS
                                                                                                                                        Sports
                                                                                                                                                                                INEOS
                                                                                                                                                                              Europe AG
                                                                                                                                                                                                                   INEOS
                                                                                                                                                                                                                 Composites
                                                                                                                                                                                                                                   INEOS
                                                                                                                                                                                                                                  Solvents
                                                                                                                                                                                                                                                  INEOS
                                                                                                                                                                                                                                                 Hygienics
                                                                                                                                                                                                                                                                    INEOS
                                                                                                                                                                                                                                                                Intermediates
                                                                                                                                                                                                                                                                                       INEOS
                                                                                                                                                                                                                                                                                      Pigments
      for all functions. These include
      business management, operations,                                                                                                                                                                    INEOS Polymers       INEOS
      procurement, IT, HR, communications,
                                                             INEOS O&G                                                INEOS O&P         INEOS O&P               INEOS C2               INEOS C3                                                                                   INEOS
                                                             Scandinavia
                                                                                                INOVYN               Europe North          USA                  Derivatives            Derivatives         Engineering &      Polyolefin
                                                                                                                                                                                                                                                                                Compounds
                                                                                                                                                                                                            Tech Support      Catalysts

      banking, legal and tax. INEOS business                 INEOS O&G                           INEOS                                                                                                                                                                            INEOS
      executive boards are fully accountable                    UK                             Styrolution                   INEOS Trading
                                                                                                                               & Shipping
                                                                                                                                                       WL
                                                                                                                                                     Plastics
                                                                                                                                                                              INEOS
                                                                                                                                                                               Oxide
                                                                                                                                                                                                     INEOS
                                                                                                                                                                                                     Phenol
                                                                                                                                                                                                                                                                                   Joliet

      for the management of their business                   INEOS O&G                           INEOS                                                                                                                                                                           INEOS

      and strategy in its entirety. INEOS                       FPS                              Acetyls                                                                    INEOS                    INEOS                                                                      Calabrian
                                                                                                                                                                          Oligomers                  Nitriles

      shareholders chair the executive                                                            INEOS
                                                                                                Aromatics
                                                                                                                                                                                                                                                                                  INEOS
                                                                                                                                                                                                                                                                                 Sulphur
      committee meetings for each                                                                                         top company            joint venture          holding company                 INEOS business        consumer businesses and sports                    Chemicals

      business regularly throughout the
      year, providing crucial oversight of     in organisations of comparable
      the operation of each business.          size. The federated structure and
                                               minimal hierarchy encourages an
      The INEOS central office function is     agile organisation in which internal
      extremely lean, with around 40 people    communications and decision-
      compared with typically hundreds         making happen quickly.

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1.5 Our structure | continued

Strategies such as safety, health and                               Each business determines its own                                 business opportunities and innovation.                              the half-yearly meetings bringing
environment (SHE) and IT security                                   sustainability strategy. Group-wide,                             The network covers greenhouse gas                                   together all business CEOs. Every
are governed at a group level and                                   this is coordinated through the climate                          (GHG) emissions, heat and power,                                    year, the CEO of each INEOS business
implemented by each business. Safety,                               and energy network (CEN). The CEN                                sustainability, innovation, policy,                                 ensures the compliance of each of
health and environmental performance                                works with all INEOS businesses on                               advocacy and more.                                                  their manufacturing sites with INEOS’
are our highest priorities and are                                  climate and energy matters. CEN ‘issue                                                                                               highest operational and financial
reported upon at the beginning of                                   teams’ work at the policy and advocacy                           Updates from the CEN and SHE                                        standards.
each executive committee meeting.                                   level, sharing best practice, new                                performance are both shared at

Climate and Energy Network (CEN) 2021

                                                                                                                                                         governance
                                                                                                                                                         CEOs, directors
                                                                                                                                                                                                                               associations, governments,
                                                                                                                                                                                                                                  value chain, media...
                                                                                                          steering group

                           policy                    carbon                  energy               resources               petchem              sustainability              innovation               advocacy
                           industrial            greenhouse gases           heat & power          new feedstocks             oil & gas               corporate             strategic funding        positioning &
                            strategy                                                                                                               responsibility                                  representation

                                                                                                      issue & topic briefs
                       industrial strategy       ETS trading/hedging       site studies/audits    feedstock switch      upstream markets       CSR/ESG, SDG, RC, BAT          R&D projects         communication &
                      neutrality, circularity    net-zero roadmaps        process optimisation    4Rs, by-proudcts       natgas, shale, oil    footprints & roadmaps         green financing         representation
                        digitalisation (4.0)     carbon price/tax/aid     CHPs, electrification     H2, bio, CCU       CO2 transport/storage    circularity, symbiosis      investment plans      briefing, positioning
                         REACH, IGGNs           CO2 capture/treatment   renewables/PPAs/GoOs      plastic recycling          refining,...         charters/pledges       support mechs (CCIDs)    endorsing, pledging           core themes
                             Brexit,...              offsetting,...                 ...               water,...                                    accreditations,...      forward strategy,...    reporting (GRI),...
                                                                                                                                                                                                                                matrix issues

                                                         country leads                                         young CEN                                        business leads
                                                    country-specific challenges                          future grand challenges                            business-specific challenges
                                                        “monitor & share”                                   “inform & catalyse”                                     “check & act”
                                                         regional policies                                 2030/2050 ambitions                                 sustainability agendas
                                                           local actions                                 future chemical industry                                  site roadmaps
                                                          (12+ countries)                                                                                         (19 businesses)

                                                                                                                                                                                                                          stakeholders

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1.6
      SIGNIFICANT CHANGES TO THE ORGANISATION
      Business acquisitions and
      divestments 2020:
      1 INEOS builds hand sanitiser plants in the UK,
        US, France and Germany. Each was assembled                  1
        in 10 days to make 1 million bottles per month,
        to be delivered free of charge to hospitals
        and front-line medical staff in the battle
        against COVID-19.

      2 INEOS launches global consumer healthcare
        business under the name INEOS Hygienics.                                                             3
      3 INEOS launches a new clean hydrogen business to
        accelerate the drive to net zero carbon emissions

      4 INEOS O&P USA to acquire Sasol’s ownership
        of Gemini HDPE LLC                                                                             2

      5 INEOS Automotive confirms acquisition of
        Hambach production site from Mercedes-Benz                                                                                          5

      6 INEOS completes the acquisition of BP’s global
                                                                                                                                     4
        Aromatics & Acetyls business

                                                                                                                                                           6

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1.7
      OUR APPROACH, GOALS AND KEY VALUES
      INEOS is committed to helping to           Our culture is entrepreneurial,
      find the scientific and engineering        defined by a lack of bureaucracy.
      solutions to the climate challenge         Being privately owned offers the
      facing the world. We use our ability       freedom to take a long-term view,                              Excellence
      to solve problems and move quickly         while a simple and decentralised                            in safety, health            Empowerment
      to achieve change.                         organisational structure enables                           and environmental              of employees
                                                 quick and efficient decision-making.
                                                                                                               performance
      Our products make an indispensable         Sports and fitness are integral
      contribution to society, often providing   to the INEOS culture, as are
      the most sustainable options for a         grit, rigour, humility and a real
      wide range of societal needs.              team ethos.
                                                                                                Continuous
                                                                                              improvement to
                                                                                           become a cost-effective
                                                                                                                         Our key                            Equality,
                                                                                                                                                          diversity and
      We are committed to delivering continuous improvement
      across all activities in all locations, and to working with
                                                                                                producer of
                                                                                                high-quality             values                             inclusion

      local communities and stakeholders to be a responsible                                      products
      neighbour.
                                                                                                                  Focus                  Encouragement
                                                                                                              on customer                 of innovation,
                                                                                                            satisfaction, total         entrepreneurship
                                                                                                               quality and               and reward for
                                                                                                                reliability               achievement

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1.8
      OUR PRODUCTS AND MARKETS
      INEOS has a diversified product portfolio with a wide range of end market applications.
      Our chemical intermediates businesses, with leading global positions and differing industry
      cycles, provide earnings strength worldwide.

                       Adhesives                Agriculture                   Automotive                       Chemicals                            Coatings

                     Construction               Cosmetics                     Film & sheet                        Food                       Home & electronics

                     Manufacture             Medical & pharma                  Packaging                       Paint & ink                           Pipes

                     Pulp & paper             Rubber & tyre                     Textiles                      Wire & cable

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1.8 Our products and markets | continued

Our products make an indispensable
contribution to society.

For example:
• preservation of food and
  clean water,
                                                                                                        Wind turbines
• construction of wind turbines,
  solar panels and other renewable
  technologies,

                                            Impact on the planet
• production of lighter and more
  fuel-efficient vehicles and aircraft,                                                                              Lighter vehicles and aircraft
• development of medical devices
  and applications,
• production of clothing and apparel,
• enabling telecommunication,
  insulation and other industrial                                                                                            Insulation of housing
  and home applications.

If polymers and plastics were to
be replaced to the maximum extent
in applications where they can be
substituted, overall lifecycle GHG                                                                                                          Solar panels
emissions in Europe would increase
by more than 50% (ref. denkstatt
Vienna 2010, updated 2020).

                                                                   Essential chemicals positively
INEOS businesses have put in place                                 impact carbon efficiency.
the plans and actions needed to                                    For every tonne of CO2 emitted
ensure that they lead the transition to a                          during production, our products                                              Net zero by 2050
net zero emission economy by 2050, in                              help save significant CO2
line with the Paris Climate Agreement,                             emissions via the applications
whilst remaining profitable, and                                   in which they are used.
staying ahead of evolving regulations                                                                                                                         Future
and legislation.

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1.9
      DETERMINING WHAT IS MATERIAL
      Selecting and assessing what is material for INEOS helps us to understand
      threats and opportunities that could affect our businesses.
                                                                                                                                                                           Stakeholders
      By listing the material topics and      Views from these groups are

                                                                                                                                                                                                          scientific institutions
      assessing their impact, we can          incorporated into the matrix,
      inform our strategy and prioritise      which shows the position of all

                                                                                                                                                                                                                                    Shareholders &
                                                                                                                                                                                                          Universities &

                                                                                                                                                                                                                                                                     Communities
                                                                                                                  Environment

                                                                                                                                                                                           associations
      our reporting.                          19 material topics relative to the

                                                                                                                                                                                                                                                     Regulators
                                                                                                                                                                               Employees
                                                                                                                                                       Customers

                                                                                                                                                                   Suppliers

                                                                                                                                                                                                                                    investors
                                                                                                                                Economy
                                              degree of stakeholder interest.

                                                                                                                                                                                           Industry
                                                                                                                                             Society

                                                                                                                                                                                                                                                                                   NGOs
      INEOS engages with key stakeholders     The results of this assessment       Materiality topics
      to understand sustainability topics     will be reviewed periodically with   Climate change
      relating to our businesses that         key stakeholders to maintain         Circular economy
      are important to them. In 2020 we       relevance.                           Hydrogen economy
      performed a formal materiality                                               Economic performance
      assessment aligned with the GRI         The matrix shows climate             SHE & REACH
                                                                                   Management standards
      reporting framework. Nineteen           and resource neutrality as
                                                                                   IT security
      topics were assessed across nine        material topics for INEOS.
                                                                                   Carbon neutrality
      stakeholder groups. Stakeholders        Where relevant and practicable,      GHG emissions management
      were identified based on their          INEOS is committed to setting        Energy management
      importance to our business operations   quantitative targets for these       Waste management
      and their knowledge of our business     priorities to help measure and       Water management
      activities. They represent a wide       report upon future performance.      Sustainable procurement
                                                                                   Working conditions
      variety of functions, regions and       This report includes a description
                                                                                   Labour unions
      business segments.                      of our management approach           Training & career management
                                              addressing the relevant topics       Diversity & equality
                                              based on this matrix.                Ethics
                                                                                   Community engagement

                                                                                                                                          Impact:      Very High               High               Medium                                  Low                     Very Low

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1.10
       CONTRIBUTING TO THE UNITED NATIONS
       SUSTAINABLE DEVELOPMENT GOALS
       INEOS contributes positively to ten of the United
       Nations Sustainable Development Goals (UN SDGs).

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1.10 Contributing to the United Nations Sustainable Development Goals | continued

Our efforts are aligned with the United Nations Sustainable Development Goals,
with particular emphasis on the following areas:

                       INEOS' contribution to the SDGs                                               Read more
                       INEOS produces chemicals that are used to produce retro/antivirals,           2.1 Excellence in safety, health and the environment
                       antibiotics, steroids, anti-inflammatories, paracetamol/aspirin and the       2.1.1 INEOS' health and safety performance
                       reagent chemicals used in virus testing kits. It also produces the plastics
                       necessary for medical equipment, face masks, ventilators, sterile gloves,
                       eye visors, and respiratory care tubing.

                       INEOS businesses provide products essential for sanitation pipes and          1.8 Our products and markets
                       industrial systems as well as chemicals needed to ensure water is safe        2.1.4 Water management and use
                       for drinking and to treat sewage.

                       INEOS materials provide the building blocks for innovation in renewable       1.8 Our products and markets
                       energy technologies; our composites make it possible to produce
                       100m long wind turbine blades and our oligomer based synthetic oils to
                       extend the service life of wind turbine gearboxes to ensure more
                       energy-efficient products.

                       We promote strong economic growth and provide work opportunities to           2.4 Valuing our people
                       communities through our practice of investing in businesses that are no
                       longer strategic to their owners, supporting and enhancing their
                       sustainable success.

                       INEOS is actively involved in several cross-sector initiatives to address     2.2.4 Clean energy sources to run our operations
                       environmental and resource concerns, reduce raw material and waste            2.2.5 Development of clean hydrogen as a fuel
                       disposal costs and support circular business models.                          2.2.6 Capture, utilisation or storage of carbon dioxide (CO2)
                                                                                                     2.2.7 Use of recycled and bio-based feedstocks instead
                                                                                                     of fossil-based feedstocks
                                                                                                     2.2.8 Reducing emissions through our supply chain
                                                                                                     2.3 Circular economy: maximising the reuse and recycling of our products
                                                                                                     2.3.1 Mechanical recycling
                                                                                                     2.3.2 Advanced recycling

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CONTENTS                                                      1.0 GENERAL OVERVIEW        2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS         3.0 GRI INDEX

1.10 Contributing to the United Nations Sustainable Development Goals | continued

                       INEOS' contribution to the SDGs                                              Read more
                       INEOS products are essential in the provision of efficient housing,          1.8 Our products and markets
                       providing basic infrastructure for the provision of water and energy         2.2.4 Clean energy sources to run our operations
                       networks, sustainable transport systems, sustainable urbanisation,           2.2.5 Development of clean hydrogen as a fuel
                       and sustainable buildings.                                                   2.2.6 Capture, utilisation or storage of carbon dioxide (CO2)
                                                                                                    2.2.7 Use of recycled and bio-based feedstocks instead
                                                                                                    of fossil-based feedstocks
                                                                                                    2.2.8 Reducing emissions through our supply chain
                                                                                                    2.3 Circular economy: maximising the reuse and recycling of our products
                                                                                                    2.3.1 Mechanical recycling
                                                                                                    2.3.2 Advanced recycling
                       INEOS is a signatory of the Responsible Care Global Charter and              2.1.3 Compliance with REACH
                       committed to safely managing chemicals throughout their lifecycle. We        2.3 Circular economy: maximising the reuse and recycling of our products
                       invest in recycling technologies to promote a circular economy.              2.3.1 Mechanical recycling
                                                                                                    2.3.2 Advanced recycling

                       Many INEOS products, such as carbon fibre, contribute to a lower-carbon      1.5 Our structure (CEN)
                       society, while others are needed to capture renewable energy such as         1.8 Our products and markets
                       wind and solar power. We are actively involved in carbon capture and         2.0 Improving the sustainability of our business and operations
                       storage. In addition, we are working to reduce our own climate impact
                       across our businesses through energy efficiency projects and our climate
                       and energy network (CEN). As Europe’s largest producer of hydrogen,
                       our expertise in the technology to produce, store and transport this
                       important carbon-neutral fuel puts us in a unique position to enable
                       energy transition away from fossil fuels.
                       We are actively working to address marine litter and pellet loss                2.1.4 Water management and use
                       (Operation Clean Sweep) across our facilities and value chain. And, through
                       our work to create a more circular economy we hope to give waste plastic
                       a value to ensure it is recycled at the end of its life rather than disposed of
                       in landfill sites where it can escape into the natural environment.

                       To accelerate the achievement of the SDGs, we work on many                   1.10 Contributing to the UNSDGs
                       multi-stakeholder initiatives, collaborating with other chemical             2.0 Improving the sustainability of our business and operations
                       companies, communities, universities, and partners all along                 2.2.8 Reducing emissions through our supply chain
                       the value chain.                                                             2.5 In our communities

In addition to the United Nations SDGs, INEOS also supports the 10 principles of the United Nations Global Compact [UNGC].

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1.11
       SUSTAINABILITY HIGHLIGHTS 2020
       INEOS continues to improve its safety performance year after year.
       INEOS achieves best OSHA Recordable Rate of 0.17 per 200,000 hours worked by employees and
       contractors combined. This is getting close to the world class benchmark of 0.15.

       FEBRUARY 2020                                              APRIL 2020                                               JULY 2020

       INEOS and UPM Biofuels announce supply                     AmSty, INEOS Styrolution and Trinseo sign Joint          INEOS Styrolution awarded Platinum rating
       agreement for renewable raw materials to make              Development Agreement (JDA) to advance the               by EcoVadis for its advanced sustainability
       plastic. The world’s first commercially available          circularity of polystyrene. The joint 100-tonne-         performance. The Platinum rating, awarded to
       bio-attributed PVC is to use residue from wood pulp        per-day facility constructed in Channahon, Illinois,     the top 1% of companies, is based on the
       manufacture. Read more...                                  utilises Agilyx advanced recycling technology to         implementation of INEOS Styrolution’s sustainability
                                                                  recycle post-use polystyrene products back into          programme and its sustainability report published
       FEBRUARY 2020                                              virgin-equivalent styrene monomer. Read more...          in 2019. Read more...
       INEOS partners with Forever Plast to recycle
                                                                  MAY 2020                                                 SEPTEMBER 2020
       over 6.5 billion bottle caps back into high quality
       caps. INEOS launches the world’s first high-quality        INOVYN to play vital role in ambitious ‘power to         INEOS Olefins & Polymers Europe announces the
       polymer for caps made with 50% recycled bottle caps        methanol’ project to produce sustainable methanol        expansion of the Recycl-IN range of products to
       diverted from waste. Read more...                          and reduce CO2 in Antwerp. The new project at            include flexible packaging solutions with over 60%
                                                                  Antwerp produces methanol from captured CO2,             recycled content. The long-term agreement will
       APRIL 2020                                                 combined with hydrogen generated from renewable          help INEOS serve the growing demand for increased
       INEOS and PLASTIC ENERGY to collaborate on new             electricity. Read more...                                levels of recycled product in sustainable, virgin
       advanced plastic recycling facility. INEOS will use                                                                 quality flexible packaging. Read more...
       PLASTIC ENERGY’s recycled raw material produced
       in the advanced plastic recycling facility, which
       diverts waste plastic from landfill, incineration and
       the environment. Read more...

       INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                    18
CONTENTS                                             1.0 GENERAL OVERVIEW   2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS   3.0 GRI INDEX

1.11 Sustainability highlights 2020 | continued

SEPTEMBER 2020

INEOS agrees to the largest ever industrial wind
power purchase contract in Belgium with ENGIE.
The 10-year deal, through which ENGIE will supply
renewable energy to INEOS from the Norther
offshore windfarm, will reduce INEOS’ carbon
footprint by 1,150,000 tonnes of CO2. Read more...

NOVEMBER 2020

INEOS launches a new clean hydrogen
business to accelerate the drive to net zero
carbon emissions. INEOS is aiming to contribute
not only by decarbonising energy for its existing
operations, but also by providing hydrogen that
will help other businesses and sectors to do the
same. Read more...

NOVEMBER 2020

INEOS and Hyundai Motor Company cooperate
on driving the hydrogen economy forward.
Opportunities explored by Hyundai and INEOS
include production and supply of hydrogen as well
as new hydrogen applications, technologies and
business models. Read more...

DECEMBER 2020

INEOS receives Gold sustainability rating
from EcoVadis. The INEOS overall sustainability
score puts us in the top 4% of companies in the
sector; particular recognition was given to our
environmental performance. Read more...

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2.0
         IMPROVING THE
         SUSTAINABILITY OF OUR
         BUSINESS AND OPERATIONS
 INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                       20
CONTENTS                                        1.0 GENERAL OVERVIEW          2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS       3.0 GRI INDEX

OUR APPROACH
This report displays our commitment to sustainability.
                                                                                                                                 We have a clear,
It highlights our activities and data.                                                                                        achievable roadmap
Publishing 2019 data from across       the future. We will publish a second      prepare consistent emission reduction        to effectively contribute
all our sites on GHG emissions,        report later in 2021 with 2020 data.      roadmaps. The INEOS science base             to a reduction of emissions
energy, water and waste provides a                                               is a robust method for emissions
                                                                                                                              from our sites in
baseline against which to measure      INEOS has developed a science base        accounting in carbon dioxide-
our performance and progress in        to calculate carbon footprints and        equivalent (CO2 -eq) terms aligned with      Antwerp. This includes
                                                                                 the Greenhouse Gas Protocol. The             changing to green power
                                                                                 data collection is managed centrally
                                                                                 through the climate and energy               and clean heat, reusing
                                                                                 network (CEN), using a shared online         hydrogen and CO2,
                                                                                 platform. Our report is in line with
                                                                                 the Global Reporting Initiative (GRI)
                                                                                                                              further investment in
                                                                                 guidelines. Furthermore, we have             electrification and, where
                                                                                 completed the CDP climate change             appropriate, switching to
                                                                                 survey in order to gain external
                                                                                 validation for our initiatives.              recycled or bio-feedstock.

                                                                                                                              HANS CASIER
                                                                                                                               CEO, INEOS Belgium

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CONTENTS                                        1.0 GENERAL OVERVIEW              2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS           3.0 GRI INDEX

Our approach | continued

                                       As we enter what may be the most significant period ever for the
                                       chemical industry in terms of sustainability, INEOS is determined
                                       to play its role in building a more sustainable future.

                                       An energy transition is underway,             We have ambitious targets and a strategy
                                       calling for a joined-up, holistic
                                       approach in how to move away from             based on six key pillars:
                                       fossil fuels such as oil and gas towards
                                       alternative energy sources such               1. Excellence in safety, health and the environment
                                       as solar, wind, nuclear, hydrogen
                                                                                     2. Climate neutrality: helping to minimise our own carbon intensity
                                       and biomass.
                                                                                        and deliver a net zero emission economy by 2050
                                       This transition is going to take time         3. Circular economy: maximising the reuse and recycling of our products
                                       and will need a sustainable platform.
                                                                                     4. Valuing our people: ensuring an equal opportunity environment in
                                       • Chemistry is our business, and our             which a diverse team of people can develop, flourish, and help deliver
                                         chemical products and processes                the innovations we need
                                         will play an essential part in this
                                         transition.                                 5. Working with our communities: enhancing the communities
                                                                                        in which we operate
                                       • Climate change and the circular
                                         economy is the cornerstone of our           6. Governance: sustaining the highest standards of
                                         strategy and we remain focused on              ethics and compliance
                                         an innovative approach to recycling
                                         and renewables.

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CONTENTS                                                       1.0 GENERAL OVERVIEW          2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS   3.0 GRI INDEX

Our approach | continued

INEOS subscribes to Corporate Social Responsibility (CSR) assessments by
EcoVadis, a trusted provider of business sustainability ratings. In 2020 INEOS
received a Gold EcoVadis score for our Europe AG businesses, demonstrating
an advanced management system for environmental issues; ethics, labour
and human rights; and sustainable procurement. INEOS Styrolution and INEOS
INOVYN obtained a Platinum and Gold medal respectively.

Read more...
INEOS Europe:                          INEOS Styrolution:              INEOS INOVYN:
INEOS receives gold                    INEOS Styrolution awarded       EcoVadis ‘Gold Merit’
sustainability rating                  Platinum rating by              award for Corporate Social
from EcoVadis                          EcoVadis for its advanced       Responsibility | INEOS
                                       sustainability performance      INOVYN

To reach its ambitions, INEOS also joins forces with numerous European and
international associations and partnerships as corporate, chairing or active member.
We are signatory to several sector commitments and abide by a wide range of charters,
pledges, and voluntary agreements through our active participation.

Corporate memberships:                                              Industry charters, such as:
• Cefic: ExCom, Board, programme councils,                          • Cefic sustainability charter
  forums, issue teams and sector groups                             • PlasticEurope voluntary agreements
• PlasticsEurope: ExCom, Board, working groups                      • SCS - Styrenics Circular Solutions: led by INEOS Styrolution
• Petrochemicals Europe: ExCom, Board, working                      • VinylPlus: leading role by INOVYN
  groups
                                                                    • PCEP - Polyolefins Circular Economy Platform:
• Eurochlor: Board, task forces                                       INEOS O&P member
• EPCA: Board                                                         - PCEP voluntary commitments
• SusChem: co-chair SusChem Switzerland,                              - PCEP recycled PO pledge
  member SusChem Europe                                             • CPA - Circular Plastics Alliance
• SPIRE: corporate member                                           • ECHA - European Chemicals Agency charter on REACH - Registration,
• RSB: corporate member                                               Evaluation, Authorisation and Restriction of Chemicals
                                                                    • Cefic product charters, e.g.
                                                                      -	OSPA - Oxygenated Solvents Producers Association, glycol ethers charter
                                                                    • Operation Clean Sweep

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CONTENTS                                             1.0 GENERAL OVERVIEW             2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS              3.0 GRI INDEX

2.1
      EXCELLENCE IN SAFETY,
      HEALTH AND THE ENVIRONMENT
                       At INEOS, safety,           gain commercial advantage,
                       health and the              reduce production costs or for               Material topics covered:                       Safety is the conscious
                       environment are the         any other reason.
                       top priority for everyone                                                • SHE & REACH                               management of risk.
                       who works for the           Our drive to continuously improve
                                                                                                • Management standards                      Anything else relies on
                       company, whether            our SHE performance includes a
                                                                                                                                            luck and we don’t rely
      employees or contractors, as well            relentless focus on monitoring and            • Waste management
      as for site visitors. Collectively and       reducing emissions to water, air and                                                     on luck.
      individually, we are committed to            soil, optimising resource, energy and        • Water management
      ensuring the highest levels of safety,       water usage; and improving waste
      health and environmental care                disposal practices.
                                                                                                                                            SIMON LAKER
                                                                                                                                             Group Operations Director
      across our operations, and through                                                                                                     INEOS Group
      our product stewardship we ensure            Each business unit reviews                  Additionally, the shareholders
      product safety to protect people and         its health and safety performance           of INEOS are updated on SHE
      the environment from harm.                   monthly at board level, and the             performance monthly at business
                                                   chief executive of each of INEOS’           executive committee (Exco) meetings,
      We promise we will never compromise          businesses has ultimate accountability      quarterly at functional Exco meetings
      our SHE standards to increase profit,        for performance.                            and annually through our letters
                                                                                               of assurance, which require each
                                                                                               business to provide an annual report
      Our goal is zero injuries and product spillages, to be achieved                          of the operational and financial status
      through rigorous application of best practices and a positive                            of each site.

      safety culture in which we believe all accidents are preventable.

      INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                          24
CONTENTS                                                           1.0 GENERAL OVERVIEW         2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS          3.0 GRI INDEX

2.1 Excellence in safety, health and the environment | continued

                                                        1                                        2                                         3
Our approach to SHE meets and                           In our approach to SHE, we apply three broad principles:
exceeds legislation. Safety targets
are reflected across all businesses                              We believe excellence                    We have rigorous principles               We review our safety,
through our Code of Conduct and                                  in safety, health and                    and procedures in place                   health and environmental
applied through our executive teams.                             environmental performance                which everyone who                        performance at every
SHE is an area that cuts across all                     can only be achieved if we are expert     works on our sites must follow.           business team and monthly board
INEOS businesses.                                       in what we do. We give our people         We back this up with audits and           meeting. It is the top priority for
                                                        and teams the training, development       checks, and make it clear that each       everyone in the company,
Although our safety record                              and support they need to become           INEOS employee is accountable for         from our owners to our technicians.
already ranks among the best in                         experts. On a yearly basis, this          following these best practices.           Bonus pay is conditional on achieving
the industry, we believe there is                       amounts to an average of 30 hours                                                   our safety performance targets.
always room for improvement.                            of training per employee. We
Our aim is to prevent all accidents                     share best practices and maintain
and product spillages.                                  understanding and knowledge so
                                                        our employees remain at the top of
                                                        their game.

As a responsible manufacturer of chemicals, INEOS works hard to anticipate risks and to prevent
and mitigate threats to safety, health and the environment. Our focus on long-term sustainability
drives our SHE committees and networks, which implement robust operating procedures under
INEOS Group Guidance Notes. The precautionary principle is a key part of our management
approach to ensure that we avoid harm towards human health and the natural environment
and aim to continuously reduce our levels of emissions to soil, air, and water.

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2.1 Excellence in safety, health and the environment | continued

To make our approach clear, we have summarised our safety philosophy into what we call the
INEOS 20 Principles, which address the safety of both people and plant operations.

                           Behavioural Safety Principles                                                           Process Safety Principles

  1           We believe all incidents and injuries can
              be prevented.                                                                    1      The asset operating manager is responsible for
                                                                                                      its overall integrity.

  2           Everyone’s first responsibility is to ensure
              they work safely.                                                                2      The asset engineers are responsible for maintaining the asset
                                                                                                      and protective systems integrity.

  3           Everyone has the duty to stop work if they feel the
              situation is unsafe.                                                             3      The responsibilities in the organisation for defining and maintaining
                                                                                                      the correct operating envelopes must be clear.

  4           The expectations and standards are the same for
              everyone on the site.                                                            4      Operating procedures and envelopes must be observed.
                                                                                                      Deviations must be reported and investigated.

  5           Rules and procedures must be observed
              and respected.                                                                   5      Any changes must be properly risk assessed and subjected
                                                                                                      to MOC procedures.

  6           We should look out for each other’s safety and
              unsafe situations.                                                               6      Process hazards are systematically identified, risk assessed,
                                                                                                      reviewed and managed.

  7           All injuries and incidents / near misses must be reported
              and investigated.                                                                7      All assets must be subject to periodic inspection designed to ensure
                                                                                                      their integrity and the reliability of their protective systems.

  8           Risk assessment must be carried out prior to, during and
              on completion of work.                                                           8      Operations must always place the safe operation or shutdown
                                                                                                      of the asset ahead of production.

  9           All team leaders have a special responsibility for promoting
              and upholding these principles.                                                  9      When in doubt the asset must always be taken
                                                                                                      to its safest state.

 10           We must always work within the limit of our
              competency and training.                                                        10      We have emergency plans based on assessed risks
                                                                                                      which are regularly tested.

Performance against these principles is audited regularly on every INEOS site.
Opportunities for improvement are logged and actioned in short-term and longer-term plans.

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2.1 Excellence in safety, health and the environment | continued

These principles are supplemented by          immediately suspended from INEOS
our Life Saving Rules, set out in one         property pending an investigation.
of the INEOS Group Guidance Notes             If the person is found to have
(IGGNs). These are mandatory rules            intentionally acted with negligence,
and must never be broken.                     they are automatically dismissed
                                                           from INEOS employment,
                                                           whether they are an
            Life Saving Rules                              employee or a third-
                                                           party worker.
1   No consumption or being under the influence
    of alcohol or drugs on company property.               We also have a 'near miss'

2
                                                           reporting system, which
    No smoking outside dedicated
                                                           is actively encouraged
    smoking areas.
                                                           across all businesses,

3   No work on live equipment/machines to
    commence without authorisation.
                                                           sites and employees,
                                                           designed to identify, report
                                                           and learn from issues or                cover, for example, rules for permits
4   Safety critical devices/interlocks must not be
    disabled or overridden without authorisation.
                                                           circumstances that could
                                                           lead to unsafe conditions.
                                                                                                   to work, equipment inspection, and
                                                                                                   change management.
                                                                                                                                                   Huge improvements
                                                                                                                                                have been made over
5   Persons working at height must use proper
    fall protection.                                                  Across all our sites,
                                                                      we invest in continuous
                                                                                                   All employees have access to
                                                                                                   the IGGNs through company
                                                                                                                                                the years, as can be
                                                                                                                                                seen by the safety
6   No entry to confined space without
    authorisation and gas test.
                                                                      improvement of
                                                                      infrastructure and the
                                                                                                   intranets. Learning from any
                                                                                                   incident is communicated across              performance, but there
                                                                                                   the company through a system
7
                                                                      working environment
    Lifting/hoisting: no unauthorised person
                                                                      and we audit standards       of alerts. Businesses apply
                                                                                                                                                are a few critical
    to enter the defined danger zone where                                                                                                      activities that are so
                                                                      periodically.                the guidelines in line with their
    objects can fall.
                                                                                                   operational needs and configuration.         important that any
                                                                  Although individual              Each year, site managers and
These seven simple but crucial life-                 businesses take full responsibility for       operations directors sign off the            breach will result in
saving rules were put in place to                    their own overall operation, INEOS            Letters of Assurance for each of             instant dismissal.
make every effort to avoid safety and                applies common standards and                  their manufacturing sites.
health incidents.                                    practices across safety, health and
                                                                                                                                                These are the life
                                                     environmental performance. These              IGGNs meet and exceed ISO                    saving rules.
Anyone found to be breaking any                      are set out in more than 30 INEOS             health and safety standards
of these INEOS Group rules is                        Group Guidance Notes (IGGNs), which           across the company.                          JEFF SEED
                                                                                                                                                 Group SHE Director
                                                                                                                                                 INEOS Group

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2.1 Excellence in safety, health and the environment | continued

2.1.1 INEOS' health and safety performance
Over the past decade, the INEOS                                       industries. Nevertheless, we                          designed to secure containment of
approach to safety has resulted in a                                  are constantly striving to better this.               all products and raw materials. The
fivefold decrease in the injury rate                                  Our target is to achieve a zero injury                loss of containment of any materials
among employees and contractors.                                      rate and make every working day                       is extremely rare but each has a
When it comes to safety, health and                                   injury free.                                          level that is legally reportable to
environment, we treat employees and                                                                                         the authorities. We closely monitor
contractors alike, which is why we                                    Safe handling and containment of                      all systems and we have internal
report on their combined performance                                  our chemicals and products is of                      reporting systems that trigger
when working on our sites. In 2020 our                                critical importance to us. To monitor                 full internal investigation and
OSHA (Occupational Safety and Health                                  our performance, we have developed                    reporting where there is any loss
Administration) recordable injury                                     a measure to give us early warning                    of containment that is 10% of the
rate of 0.17 injuries per 200,000 hours                               of any risks and opportunities to                     reportable level. We call these
worked for employees and contractors                                  improve. Each of the materials we                     LOC 10’s.
combined is “best in class” in our                                    use has a maximum legally permitted
industry.                                                             level at which its leakage   into the
                                                                                               1.2 1.13
                                                                                                              By sustained focus and continuous
                                                                      environment is tolerated. However,      improvement, over the last     eight
                                                                                                                                          World Class
According to OSHA data in the US, this
is five times lower than the industry
average and over 10 times lower
                                                                      leakage of materials to 1.0
                                                                      extremely rare.
                                                                                               that level
                                                                                               0.8
                                                                                                             is
                                                                                                          0.91years we have reduced the frequency
                                                                                                                0.79
                                                                                                              of these minor losses by over a
                                                                                                          0.66 0.66
                                                                                                              factor of four. Additionally, in 2020,
                                                                                                                                                               0.15
                                                                                             0.6                    0.52
than the average seen in the utilities,                               Our processes, operating procedures     zero fatalities were reported across
                                                                                                                         0.40 0.42
                                                                                                              all INEOS sites. 0.32 0.23
                                                                                             0.4
construction and other manufacturing                                  and working practices are all
                                                                                                                                                                 0.20 0.16 0.17
                                                                                                  0.2

INEOS Safety Performance                                                                          INEOS
                                                                                                   0.0
                                                                                                       2008 Environmental
                                                                                                            2009 2010 2011 2012   Measure
                                                                                                                                2013 2014 2015   2016     2017   2018   2019   2020
OSHA Recordable Rate per 200,000 hrs                                                              LOC 10
Employees + Contractors                                                                           OSHA Recordable Rate per 200,000 hrs

1.2   1.13                                                                                        200
                                                                                                        179
                                                                         World Class

                                                                        0.15
                                                                                                  180
1.0
              0.91                                                                                160            153
                     0.79                                                                         140
                                                                                                                               137
0.8
                            0.66 0.66                                                             120
0.6                                       0.52                                                    100
                                                                                                                                                        87
                                                 0.40 0.42                                         80                                    77
0.4                                                            0.32                                60                                                                   54
                                                                      0.23 0.20
0.2                                                                             0.16 0.17          40
                                                                                                   20
0.0                                                                                                0
      2008    2009   2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020         2015      2016         2017      2018           2019            2020

INEOS
200     | 2020 SUSTAINABILITY REPORT                                                                                                                                                                  28
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2.1 Excellence in safety, health and the environment | continued

2.1.2 Responsible care and product stewardship                                                        2.1.3 Compliance with REACH
Over and above our own SHE rules                         safeguarding people and the                  In line with its SHE culture, INEOS        • Hazard identification systems
and guidelines, INEOS is a signatory to                  environment, and working towards             is committed to fulfilling the               that take advantage of available
the International Council of Chemical                    sustainable solutions through our            REACH (Registration, Evaluation,             information.
Associations’ (ICCA) Responsible Care                    value chain.                                 Authorisation and Restriction of
Global Charter.                                                                                       Chemicals) obligations. They ensure        • Risk-based process for identifying,
                                                         By following the guidelines and                                  that companies           understanding and prioritising
Signing the charter is part of our                       measures of Responsible Care®                                    manage the risks         concerns and managing chemicals
commitment to strengthening                              we commit to safely conducting                                   associated with          in commerce.
chemicals management systems,                            our business in an ethical and                                   their products and
                                                                                                                                                 • Risk reduction measures, including
                                                                environmentally responsible                               provide customers
                                                                                                                                                   limitations on use or even phase-
                                                                manner and providing the                                  with the information
                                                                                                                                                   outs of specific uses of chemicals
                                                                foundation for development and                            they need to handle
                                                                                                                                                   where unacceptable risks are not
                                                                capital investments.                                      them in a safe and
                                                                                                                                                   otherwise manageable in a manner
                                                                                                                          sustainable way.
                                                                                                                                                   that is appropriate for the risks
                                                               INEOS also adopts a
                                                                                                                                                   and mindful of the benefits of a
                                                               comprehensive approach to              INEOS often goes beyond REACH
                                                                                                                                                   particular chemical in the context
                                                               product stewardship, so that           in the stewardship we apply to
                                                                                                                                                   of its use.
                                                               our products enter and move            our products across all markets.
                                                               along the supply chain to the          The INEOS approach to product              • Transparent flow of information
                                                               customer in a safe and ethical         stewardship is managed by a                  throughout the value chain
                                                               manner. We work with our               company-wide REACH network and               (e.g. suppliers, manufacturers,
                                                               customers to ensure they have          includes the following:                      customers, waste vendors, etc.), so
                                                               the information, procedures and                                                     that manufacturers and users can
                                                               facilities to receive, store, and      • A global management system
                                                                                                                                                   understand and manage risk and
                                                               use products safely.                     to deliver excellence in product
                                                                                                                                                   provide meaningful and relevant
                                                                                                        stewardship and meet required
                                                                                                                                                   information to their respective
                                                               We are also working towards              local, regional and business-
                                                                                                                                                   stakeholders.
                                                               implementing our very own                specific standards.
                                                               INEOS Supplier Code of Conduct                                                    • Public availability of hazard,
                             INEOS
                                                                                                      • Continual improvement of products
                                                               (SCoC). A procurement team                                                          exposure and risk information.
                                                                                                        to avoid potential problems
                                       12TH MARCH 2015
                                                               has been pulled together across
                                                                                                        before they become human or
                                                               all businesses to ensure global
                                                                                                        environmental hazards.
                                                               coverage. Our SCoC will be
                                                               discussed in detail in the
                                                               next sustainability report.

INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                                  29
CONTENTS                                                           1.0 GENERAL OVERVIEW       2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS          3.0 GRI INDEX

2.1 Excellence in safety, health and the environment | continued

Case study: Product stewardship efforts pay off
INEOS Nitriles is a good example                     together to be sure deliveries can be       must use approved logistics service        developments in safety. These
of the way INEOS approaches product                  safely received, stored and handled.        providers. We also audit safety            conferences are held at the
stewardship across the Group.                                                                    standards at all the major transport       request of sales representatives
The business carries out a                           Our safe handling guides and training       hubs that our products pass                from any country.
comprehensive technical and safety                   videos help customers maintain the          through, such as ports, terminals
audit of each potential customer                     highest safety standards and our            and warehouses.                            During such events, customers
before deliveries commence.                          specialist technical teams are on hand                                                 can be invited to take a tour of the
                                                     to offer advice and support.                INEOS Nitriles also holds product          nearby INEOS facility to see safety
This check ensures that equipment,                                                               stewardship conferences in the US          work in action, therefore adding
safety protocols and procedures meet                 To ensure safe transport of our             and in Europe, bringing customers          real value to our ongoing partnership
our stringent standards, and we work                 products, all Nitriles customers            together to review the latest              with them.

INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                                30
CONTENTS                                                           1.0 GENERAL OVERVIEW   2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS           3.0 GRI INDEX

2.1 Excellence in safety, health and the environment | continued

                                                                                             INEOS is a signatory of Operation          The 6 commitments
                                                                                             Clean Sweep (OCS) a voluntary              of OCS in Europe
                                                                                             stewardship programme of the
                                                                                             Plastics Industry Association              By signing the European OCS
                                                                                             (PLASTICS) and the American                pledges, each pellet-handling
                                                                                             Chemistry Council.                         company recognises the importance
                                                                                                                                        of preventing spillages into the
                                                                                                                                        environment and commits to the
                                                                                             INEOS applies this commitment
                                                                                                                                        following six actions:
                                                                                             to achieve zero pellet, flake and
                                                                                             powder loss across its sites and           1. improve worksite set-up to
                                                                                             supply chain. INEOS is committed              prevent and address spills,
                                                                                             to keeping this material out of the
                                                                                             marine environment.                        2. create and publish internal
                                                                                                                                           procedures to achieve zero
                                                                                                                                           industrial plastic material loss,
                                                                                             Actions are taken across our
                                                                                             polymer plants to prevent pellet           3. provide employee training
                                                                                             loss on all our sites, especially in          and accountability for spill
                                                                                             wastewater streams.                           prevention, containment,
                                                                                                                                           clean-up and disposal,
                                                                                             INEOS continuously improves its            4. audit performance regularly,
                                                                                             performance by installing pellet
                                                                                             containment measures such as filters,      5. comply with all applicable state
                                                                                             water separators, extractors, air             and local regulations governing
                                                                                             blowers, and rumble strips. It also           industrial plastics containment,
                                                                                             demands training of truck drivers          6. encourage partners (contractors,
                                                                                             and hauliers and includes clauses in          transporters, distributors, etc.)
                                                                                             supply chain contracts to commit to           to pursue the same goals.
                                                                                             the Clean Sweep principles.

INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                           31
CONTENTS                                                           1.0 GENERAL OVERVIEW           2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS             3.0 GRI INDEX

2.1 Excellence in safety, health and the environment | continued

2.1.4 Water management and use
INEOS ensures that water sourcing,
treatment and discharge complies
with international and local regulations                                                              Total water withdrawal: 968 million m3
and has extensive measures in place
to monitor, manage and minimise                                       surface water                     groundwater                   seawater                      3rd party water
water use. This protects the natural                                  357 Mm3 (37%)                     98 Mm3 (10%)                405 Mm3 (42%)                   108 Mm3 (11%)
environment and helps secure
the safety, health and wellbeing
of our employees and people who
live and work close to our sites.

We report on process and cooling
water. By definition, process water
                                                                  reuse, consumption & losses:
comes into contact with our product                                          176 Mm3
and can be either reused or sent to an                         (total withdrawal – total discharge)
on-site or off-site wastewater treatment
facility. Cooling water does not come
into direct contact with the product;
therefore, no organic contamination
occurs. If a separate discharge point
exists, it can be released directly
into a river or sea, without further
treatment by a wastewater facility.                                  surface drainage                 ground reservoirs                 to sea                      to 3rd parties
Regardless of regional differences,                                   326 Mm3 (41%)                      7 Mm3 (1%)                 430 Mm3 (54%)                    29 Mm3 (4%)
the use and discharge of process
and cooling water are strictly
monitored by quantity and quality.
                                                                                                      Total water discharge: 792 million m3

Water withdrawal and discharge are
heavily regulated, and it is anticipated             • We track our water footprint and                • We investigate and implement           Several measures, such as closed-
that requirements will become even                     implement best practice, such as                  opportunities to treat and             loop water systems and procedures to
stricter as policymakers seek to                       recycling water in closed cooling                 reuse wastewater on-site.              reuse process water or condensates
address chemicals in the environment                   systems, harvesting rainwater,                    Where this is not possible, we         onsite or at neighbouring production
as well as global water scarcity. We                   using seawater, and recovering                    send wastewater to an external         plants, are standard practice at
closely monitor data from all INEOS                    solvents from wastewater.                         wastewater treatment facility or       INEOS sites.
production sites to optimise our                                                                         seek industrial symbiosis.
water strategy.

INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                                     32
CONTENTS                                                           1.0 GENERAL OVERVIEW          2.0 IMPROVING THE SUSTAINABILITY OF OUR BUSINESS AND OPERATIONS   3.0 GRI INDEX

2.1 Excellence in safety, health and the environment | continued

Monitoring and preventing                            To prevent groundwater                         • other water reduction examples
groundwater contamination                            contamination, strict measures                   include the use of reverse osmosis
Local and national regulations on                    are in place at all INEOS sites.                 for make-up water in cooling
groundwater contamination are strictly                                                                water systems (Doel, Belgium),
                                                     For example:                                     reduction of cooling water by
followed across all INEOS sites.
                                                     • installing storage tanks and                   optimising the osmosis plant
For example:                                           loading/unloading facilities                   (Rosignano, Italy) and substituting
                                                       in bunds,                                      water jets (Marl, Germany).
• at our sites in Germany an initial
  state report (AZB) has to be                       • using impervious floors, kerbing             Wastewater reuse
  prepared in accordance with the                      and bunding,
  European Industrial Emissions                                                                     INEOS is working to reduce its water
                                                     • building process units on concrete           footprint, contributing to responsible
  Directive (IED), to define the
                                                       with dedicated sewage facilities.            water care. One of the most efficient
  reference state of the groundwater
  and assess the current state of                                                                   ways of doing so is reusing process
                                                     In case of leaks, we have direct               water. Due to the nature of chemical
  specific substances,
                                                     actions and procedures in place.               processes, wastewater is nearly
• legislation to handle hazardous                    Remediation is according to the rules          always contaminated, but the INEOS
  substances in water is in place                    stipulated by the authorities and in           sites are optimised to cascade
  to outline the actions in case of                  the INEOS IGGNs.                               wastewater streams until no further
  contamination,                                                                                    use is possible.
• our sites in Belgium follow the                    Equipment and technology upgrades
  Flemish legislation which requires                                                                For example:
                                                     Reducing water consumption is one of
  the monitoring of groundwater on                   INEOS' targets as an essential element         • purifying process water in
  a regular basis,                                   in the design and retrofit of our plants.        the ethanol recovery and recycling
• our US sites, groundwater                                                                           back into other processes
  monitoring is performed to detect                  For example:                                     (Hull, UK),
  any potential contamination issue                  • in Hull (UK), one major water                • minimising wastewater treatment
  if a site has a permitted disposal                   consumer is the cooling tower.                 by recycling process water
  facility on-site.                                    An online system has been put in               (Doel, Belgium),
                                                       place to analyse the composition
                                                                                                    • caustic soda dilution using
                                                       of the product and minimise the
                                                                                                      wastewater (Gladbeck, Germany),
                                                       blowdown in the cooling tower,
                                                                                                    • feeding process purge water into
                                                                                                      cooling towers (Feluy, Belgium).

INEOS   | 2020 SUSTAINABILITY REPORT                                                                                                                                          33
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