2021 Annual and Sustainable Performance Report

Continually evolving CSR Indicators

Based on specific indicators and targets, Arkema is striving for continuous progress in its CSR activities through three commitments:

to deliver sustainable solutions driven by innovation;
to act as a responsible manufacturer; and
to cultivate an open dialogue with internal and external stakeholders.

1. SUSTAINABLE PRODUCTS

PROPORTION OF SALES ImpACT+⁽¹⁾ (as a %)

2019 : 46%, 2020 : 50%, 2021 : 51%, target. 2030 : 65%

In order to strengthen its commitment to offering sustainable products, for several years the Group has been evaluating its portfolio of solutions against sustainability criteria.

In 2021, the share of sales making a significant contribution to the UN SDGs (ImpACT+) was 51%.

2030 TARGET: for 65% of our sales to make a significant contribution to the SDGs

(1)The proportion of sales making a significant contribution to the SDGs (ImpACT+) is based on an evaluation of 85% of sales in 2021, 72% in 2020 and 44% in 2018 and 2019.

PROPORTION OF SALES FROM RENEWABLE OR RECYCLED RAW MATERIALS

The proportion of sales from renewable or recycled raw materials includes sales based on a content of at least 25% renewable or recycled raw materials in 2021 and 20% in previous years (this threshold change has no impact on the value of the indicator).

2. RESPONSIBLE MANUFACTURING

Safety: two new targets for 2030

TRIR (Total recordable injury rateper million hours worked)

2018 : 1.3, 2019 : 1.4, 2020 : 1.0, 2021 : 1.0, target. 2030 : 0.8

The TRIR for 2021 (including accidents among Group personnel as well as workers from contracted firms) came to 1, which is stable compared with 2020. Arkema's TRIR performance is among the best in the chemical industry.

NEW TARGET: achieve a TRIR of 0.8 by 2030

PSER (Number of process safety events per million hours worked)

2018 : 4.4, 2019 : 3.7, 2020 : 4.0, 2021 : 3.1, target. 2030 : 2.0

The PSER (Process Safety Events Rate) vastly improved to 3.1 in 2021. A plan is currently being developed to define both technical and human actions to reduce the PSER.

NEW TARGET: achieve a PSER of 2 by 2030

Climate and environment: four environmental targets for 2030

The climate target is defined as an absolute value of GHG emissions compared with 2015. The three objectives (Energy, Water and Air) are defined on the basis of intensive indicators called EFPI (Environmental Footprint Performance Indicators), which incorporate changes in the Group's scope of activity and the production of the plants.

CLIMATE (Greenhouse gas emissions)

2015 : 1.0, 2018 : 0.90, 2019 : 0.87, 2020 : 0.77, 2021 : 0.66, target. 2030 : 0.62

In 2021, Arkema reduced its greenhouse gas (GHG) emissions by 34% compared with 2015.

2030 TARGET: reduce our GHGs by 38% compared with 2015.

This commitment is in line with the Paris Agreement. This translates into a reduction in absolute emissions of more than 1.7 million tons of CO₂ equivalent, compared with 2015, with the aim of achieving a figure of less than 3 million tons by 2030.

ENERGY (Net energy purchases EFPI)

2012 : 1.0, 2018 : 0.88, 2019 : 0.91, 2020 : 0.90, 2021 : 0.85, target. 2030 : 0.80

In 2021, energy performance improved significantly as a result of measures taken by the Arkema Energy program and the return to more favorable production conditions.

2030 TARGET: reduce net energy purchases by 20% in EFPI compared with 2012.