Responsible Sourcing

At CPChem, we aspire to drive inclusive, sustainable and socially responsible procurement practices and strategies throughout our global procurement, supply chain and feedstock organizations. Our objective is to create meaningful opportunities for suppliers to deliver high quality, innovative and cost-effective products and services while contributing to economic growth in the communities where we live and work. We believe that engaging qualified local and diverse suppliers strengthens our supply chain and drives continuous improvement in the communities where we operate. Our ambition to cultivate strong relationships across our value chain and our support of Responsible Sourcing, drives us to continuously enhance our procurement strategies and make efforts that seek to address sustainability challenges.

As a leading chemicals business, we expect our suppliers to comply with applicable laws and internationally recognized standards, conduct business ethically and share the principles set out in our Supplier Principles of Conduct. This policy articulates our expectations to support compliant practices, fair labor practices and human rights, health and safety, and ethics and compliance, and is acknowledged by 100% of CPChem’s core suppliers acknowledge CPChem’s Supplier Principles of Conduct. Our supplier diversity program facilitates growth of our network of potential suppliers. Our purchasing decisions comply with legal requirements and are based on valid, non-discriminatory business reasons.

2024 Achievements

• We participated in the 2024 National Minority Supplier Development Council Conference & Exchange in Atlanta, an event focused on strategic networking, breaking down barriers and expanding opportunities for small and minority-owned businesses.
• In the communities where we operate, the team attended five local events, educating local businesses on the goods and services CPChem procures and how to connect and engage with core suppliers.
• We have launched our first two Growing Our Business Together events, connecting 190 local businesses to CPChem and prime suppliers. The events were designed to facilitate meaningful networking by strategically pairing suppliers with procurement opportunities, reinforcing our commitment to being a valued neighbor in our operating communities. We received strong support from 14 key suppliers, as well as the Baytown Chamber of Commerce and ABC Texas Gulf Coast.

Advancing Responsible Sourcing:

In our 2024 risk assessment for core and principal suppliers, we assessed their practices and compliance with CPChem's SPOC.

In our latest assessment, we achieved a 71% participation rate, with 344 suppliers participating, up from 51% (277 suppliers) in 2022. This increase was made possible by the collaborative efforts of our feedstock, supply chain and procurement teams. In addition to the assessment, CPChem hopes to elevate its supplier network by leveraging targeted follow-up meetings to share best practices and enhance supplier operations.

To promote further alignment with our standards and enhance supply chain resilience, we have conducted regional virtual sustainability training for our core suppliers. Sixty-four percent of targeted suppliers participated in these sessions, a significant increase from 41% in 2022.

Through these efforts, CPChem seeks to continue to strengthen its responsible sourcing practices, benefitting our company, suppliers, customers and communities where we live and operate.