Sustainability Report 2023

Global Reporting Initiative Index

CPChem’s 2023 Sustainability Report, Stepping Up, was prepared in accordance with the 2021 GRI Standards. The GRI Content Index is intended to supplement the information provided throughout the report.

Universal Standards

GRI 1: Foundation 2021

GRI 2: General Disclosures 2021

The organization and its reporting practices

Indicator Description Links

2-1

Organizational details

About this Report

Global Solutions. Responsible Practices.

Company History

Locations

2-2

Entities included in the organization’s sustainability reporting

The 2023 Sustainability Report includes information on CPChem’s wholly owned operations and joint venture operations where CPChem employees participate in the corporate governance and/or operations of the facilities.
See
Global Solutions. Responsible Practices. for a list of facilities.

CPChem is a privately held company and does not make its financial statements available to the general public. However, the following entities are material to CPChem’s consolidated financial statements as of December 31, 2023:

  • Americas Styrenics LLC (AmSty)
  • Chevron Phillips Chemical Company LP
  • Chevron Phillips Chemicals Int’l N.V.
  • Chevron Phillips Singapore Chemicals (Private) Limited
  • Golden Triangle Polymers Company
  • Gulf Polymers Distribution Company FZCO
  • Jubail Chevron Phillips Company
  • Qatar Chemical Company Ltd.
  • Qatar Chemical Company II Ltd.
  • Ras Laffan Olefins Company (RLOC)
  • Ras Laffan Petrochemicals (RLP)
  • Saudi Chevron Phillips Company
  • Saudi Polymers Company
  • Six Pines Investments LLC (“Six Pines”)
  • SouthTex 66 Pipeline Co, Ltd.

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Reporting period, frequency, and contact point

CPChem’s 2023 Sustainability Report, Stepping Up, was published on July 18, 2024. CPChem is a private company and does not have a dedicated financial report. Learn more about the report at About this Report or contact sustainability@cpchem.com.

2-4

Restatements of information

Restatements of information will be specified in each section as appropriate. Restatements on data will be noted in the Performance Data Tables.

2-5

External assurance

View our Limited Assurance Statement and learn more about seeking external assurance at About this Report.

Activities and workers

Indicator Description Links

2-6

Activities, value chain, and other business relationships

Global Solutions. Responsible Practices.

Markets Served

Sustaining Global Growth and Expansion

Financial Performance Data Tables

2-7

Employees

Information on full-time and represented CPChem employees is provided in the Social Performance Data Tables of the 2023 Sustainability Report. The percentage of part-time, temporary, and non-guaranteed hours employees is less than one percent.

2-8

Workers who are not employees

CPChem engages contractors to assist with non-core business functions. There were no significant variations in the total number of employees during 2023. We do not have access to or publish the gender data of represented employees outside of the U.S. due to the confidential nature of this information.

See Shaping the Future to learn more about the pivotal role contractors play for CPChem.

Social Performance Data Tables

Governance

Indicator Description Links

2-9

Governance structure and composition

Leadership and Key Governance Systems

2-10

Nomination and selection of the highest governance body

Leadership and Key Governance Systems

CPChem’s Sustainability Executive Steering Team (EST) is made up of Executive Leadership Team members who meet regularly. CPChem is a private company, and its senior leaders make up its highest governing body.

2-11

Chair of the highest governance body

Leadership and Key Governance Systems

2-12

Role of the highest governance body in overseeing the management of impacts

Leadership and Key Governance Systems

2-13

Delegation of responsibility for managing impacts

Leadership and Key Governance Systems

2-14

Role of the highest governance body in sustainability reporting

Leadership and Key Governance Systems

2-15

Conflicts of interest

Leadership and Key Governance Systems

Stakeholders can find information on these policies in our Code of Conduct or in Leadership and Key Governance Systems.

2-16

Communication of critical concerns

CPChem is a private company and does not disclose the number or nature of critical concerns to protect sensitive and confidential information.

Leadership and Key Governance Systems

2-17

Collective knowledge of the highest governance body

Leadership and Key Governance Systems

2-18

Evaluation of the performance of the highest governance body

Senior leaders and all employees receive performance evaluations which include sustainability objectives.

2-19

Remuneration policies

CPChem is a privately held company and does not disclose this information.

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Process to determine remuneration

Compensation is tied to company progress of enterprise-wide objectives, as well as measurement in annual performance evaluations, completed by all employees at all levels. With guidance and input from the Compensation Committee, CPChem conducts global annual pay reviews to support that pay practices are assessed, analyzed and adjusted as needed. CPChem leverages a third-party to perform pay analyses on a regular cadence to identify gaps in compensation practices including remuneration.

2-21

Annual total compensation ratio

CPChem is a privately held company and does not disclose this information.

Strategy, policies and practices

Indicator Description Links

2-22

Statement on sustainable development strategy

A Letter from the CEO

2-23

Policy commitments

Leadership and Key Governance Systems

Statement of Principles

2-24

Embedding policy commitments

Leadership and Key Governance Systems

2-25

Processes to remediate negative impacts

See our Code of Conduct for details on how reported concerns are processed.

Ethics and Compliance

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Mechanisms for seeking advice and raising concerns

Ethics and Compliance

2-27

Compliance with laws and regulations

We operate in accordance with relevant laws and regulations applicable to us, including but not limited to, those concerning labor, employment, the environment, health and safety. Our OE System includes expectations and requirements to ensure compliance with environmental, health, safety and security laws, regulations and internal policies. Facilities, corporate groups, product lines and administrative offices are required to complete annual self-audits and are subject to regular corporate and third-party audits to ensure compliance with the standards outlined in our OE System.

Environmental Performance Data Tables

2-28

Membership associations

We participate in many initiatives that promote sustainable operations and tackling global issues like plastic waste, including:

  • Advanced Recycling Alliance for Plastics (ARAP)
  • Alliance to End Plastic Waste (Alliance)
  • Circular Plastics Alliance (CPA)
  • Circulate Capital Ocean Fund (CCOF)
  • Closed Loop Partners – Circular Plastics Fund
  • Infinity Recycling – Circular Plastics Fund
  • Operation Clean Sweep® (OCS®) and OCS® Blue
  • Responsible Care®
  • Voluntary Protection Program (VPP)
  • Wrap Recycling Action Program (WRAP)

The associations with which we have significant involvement include:

  • American Chemistry Council (ACC)
  • American Fuel & Petrochemical Manufacturers (AFPM)
  • European Chemical Industry Council (Cefic)
  • Plastics Europe
  • Plastics Industry Association
  • Texas Chemistry Council (TCC)
  • World Business Council for Sustainable Development (WBCSD)
  • World Plastics Council (WPC)

Stakeholder engagement

Indicator Description Links

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Approach to stakeholder engagement

Materiality

Sustainability Overview

Learn how CPChem engages its stakeholders

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Collective bargaining agreements

Social Performance Data Tables

GRI 3: Material Topics 2021

Indicator Description Links

3-1

Process to determine material topics

Materiality

Sustainability Overview

Learn how CPChem engages its stakeholders

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List of material topics

About this Report

Materiality

Sustainability Overview

3-3

Management of material topics

Materiality

Sustainability Overview

Topic-Specific Standards

Economic standards

GRI 201: Economic Performance 2016

Indicator Description Links

3-3

Management of material topics

CPChem is a privately held company and does not produce a Form 10-K.

201-1

Direct economic value generated and distributed

Due to confidentiality constraints, CPChem does not publish financial statements, although select financial information is provided in the Financial Performance Data Tables and available publicly on its webpage, Financials.

201-2

Financial implications and other risks and opportunities due to climate change

Climate Action

See our Climate Risk Report

GRI 203: Indirect Economic Impacts 2016

Indicator Description Links

3-3

Management of material topics

Community Centered

Enterprise Contributions Policy that outlines governance of charitable contributions globally. Annual amounts are subject to Board approval and allocations are subject to CEO approval.

203-1

Infrastructure investments and services supported

Community Centered

No negative impacts in infrastructure investments and services supported as defined.

203-2

Significant indirect economic impacts

Community Centered

No negative impacts in infrastructure investments and services supported as defined.

GRI 205: Anti-corruption 2016

Indicator Description Links

3-3

Management of material topics

Ethics and Compliance

Code of Conduct

205-1

Operations assessed for risks related to corruption

Ethics and Compliance

Code of Conduct

205-2

Communication and training about anti-corruption policies and procedures

Ethics and Compliance

Code of Conduct

Environmental standards

GRI 301: Materials 2016

Indicator Description Links

3-3

Management of material topics

Stepping Up for Circularity

Advanced Recycling and Feedstocks of the Future

301-2

Recycled input materials used

Stepping Up for Circularity

Advanced Recycling and Feedstocks of the Future

CPChem is working toward its published annual production goal of 1 billion pounds of circular polyethylene by 2030, expected to represent up to 9.5% of the company’s North American polyethylene production and divert approximately 1.4 billion pounds of plastic waste from landfills.

GRI 302: Energy 2016

Indicator Description Links

3-3

Management of material topics

Energy

302-1

Energy consumption within the organization

Energy

Environmental Performance Data Tables

302-3

Energy intensity

Energy

Environmental Performance Data Tables

302-4

Reduction of energy consumption

Energy

Environmental Performance Data Tables

GRI 303: Water and Effluents 2018

Indicator Description Links

3-3

Management of material topics

Water

303-1

Interactions with water as a shared resource

Water

303-2

Management of water discharge-related impacts

Water

303-3

Water withdrawal

Water

Environmental Performance Data Tables

303-4

Water discharge

Water

Environmental Performance Data Tables

303-5

Water consumption

Water

Environmental Performance Data Tables

GRI 305: Emissions 2016

Indicator Description Links

3-3

Management of material topics

Climate Action

305-1

Direct (Scope 1) GHG emissions

Emissions

Environmental Performance Data Tables

305-2

Energy indirect (Scope 2) GHG emissions

Emissions

Environmental Performance Data Tables

305-3

Other indirect (Scope 3) GHG emissions

Emissions

Information not available.

We are evaluating the organization’s Scope 3 emissions in alignment with the GHG Protocol and working to measure GHG emissions emitted throughout our value chain. Our goal is to assemble a comprehensive GHG emissions inventory of Scope 1, Scope 2 and Scope 3 emissions for reporting in the future. CPChem also plans to utilize this inventory data to identify and direct strategic GHG emissions reduction opportunities across the company.

305-4

GHG emissions intensity

Emissions

Environmental Performance Data Tables

305-5

Reduction of GHG emissions

Climate Action

Emissions

Environmental Performance Data Tables

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

Emissions

Environmental Performance Data Tables

GRI 306: Waste 2020

Indicator Description Links

3-3

Management of material topics

Waste

306-1

Waste generation and significant waste-related impacts

Waste

306-2

Management of significant waste-related impacts

Stepping Up for Circularity

Advanced Recycling and Feedstocks of the Future

306-3

Waste generated

Waste

Environmental Performance Data Tables

306-4

Waste diverted from disposal

Waste

Environmental Performance Data Tables

306-5

Waste directed to disposal

Waste

Environmental Performance Data Tables

GRI 308: Supplier Environmental Assessment 2016

Indicator Description Links

3-3

Management of material topics

Responsible Sourcing

308-1

New suppliers that were screened using environmental criteria

Responsible Sourcing

Social Performance Data Tables

Social standards

GRI 401: Employment 2016

Indicator Description Links

3-3

Management of material topics

Powered by People

Making Wellness a Priority

DE&I

401-1

New employee hires and employee turnover

Powered by People

Social Performance Data Tables

Due to confidentiality constraints to protect employee privacy, we do not disclose gender, age and location information related to turnover or new hires. We will reevaluate this disclosure when planning future reports.

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Total Rewards Program

401-3

Parental leave

More family time

Social Performance Data Tables

GRI 403: Occupational Health and Safety 2018

Indicator Description Links

3-3

Management of material topics

Health, Safety & Well-being

403-1

Occupational health and safety management system

Health, Safety & Well-being

403-2

Hazard identification, risk assessment, and incident investigation

Health, Safety & Well-being

403-3

Occupational health services

Health, Safety & Well-being

403-4

Worker participation, consultation, and communication on occupational health and safety

Leadership and Key Governance Systems

Health, Safety & Well-being

403-5

Worker training on occupational health and safety

Health, Safety & Well-being

403-6

Promotion of worker health

Making Wellness a Priority

Health, Safety & Well-being

403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Health, Safety & Well-being

403-8

Workers covered by an occupational health and safety management system

Health, Safety & Well-being

100% of employees and contractors are covered by the Occupational Health and Safety Management System.

403-9

Work-related injuries

Health, Safety & Well-being

Social Performance Data Tables

403-10

Work-related ill health

Health, Safety & Well-being

Social Performance Data Tables

GRI 404: Training and Education 2016

Indicator Description Links

3-3

Management of material topics

Learning and Development

404-1

Average hours of training per year per employee

Learning and Development

Social Performance Data Tables

This disclosure does not include hours for any external training taken by employees and paid for by the company. Training is assigned based on job category. Training opportunities are required and made available to all employees regardless of gender. Training is not currently tracked by gender and employee category.

404-3

Percentage of employees receiving regular performance and career development reviews

All employees are required to receive regular performance reviews regardless of gender or job category.

GRI 405: Diversity and Equal Opportunity 2016

Indicator Description Links

3-3

Management of material topics

DE&I

405-1

Diversity of governance bodies and employees

DE&I

Powered by People

Social Performance Data Tables

Metrics disclosed on the diversity of employees encompasses all direct employees of CPChem for all job categories, including all management levels, but excludes CPChem’s Board of Directors.

GRI 413: Local Communities 2016

Indicator Description Links

3-3

Management of material topics

Community Centered

413-1

Operations with local community engagement, impact assessments, and development programs

Community Centered

Social Performance Data Tables

100% CPChem facilities participate in community engagement through activities such as volunteering, financial donations, community focused events and others.

GRI 414: Supplier Social Assessment 2016

Indicator Description Links

3-3

Management of material topics

Community Centered

414-1

New suppliers that were screened using social criteria

Community Centered

GRI 416: Customer Health and Safety 2016

Indicator Description Links

3-3

Management of material topics

Product Stewardship

416-1

Assessment of the health and safety impacts of product and service categories

Product Stewardship

A collage of two pictures. One shows a male employee standing on a facility site wearing a helmet and protective glasses and the other a bird standing in water

Our Approach to Sustainability

Our Approach to Sustainability
A collage of two pictures. One shows an employee in a communication center with a walkie-talkie. The other one shows the top view of a container ship in a loading area

Transforming our Performance

Transforming our Performance

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