RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020

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RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Synthomer plc
Sustainability Report 2020

                             RESILIENT
                             SUSTAINABLE
                             GROWTH
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Our Environmental, Social
and Governance approach

This 2020 Sustainability Report is primarily                                                  Contents
                                                                                              1    Chief Executive Officer’s introduction
a report on our performance in 2020, as                                                       3    Synthomer at a glance
summarised in our 2020 Annual Report. At the                                                  5 	Corporate Development
                                                                                                   President’s introduction
same time, we wanted to take the opportunity                                                  6    Vision 2030 Roadmap
to share with our stakeholders our ambition                                                   8    Strategy and Business
for the next decade of our ESG strategy, Vision                                               11   Governance and Compliance
                                                                                              14   People
2030, and the short to medium-term milestones                                                 19   Health and Safety
we have set ourselves on the way, including                                                   22   Environment
                                                                                              27   Sustainable Value Chain
interim goals for 2022.                                                                       31	Progress against our six pillar 2020
                                                                                                   targets and objectives
The majority of the information in the report                                                 32   Short-term targets and objectives 2022
therefore relates to our progress up to 2020;                                                 33   Annex
future objectives are highlighted in boxes                                                    33		Disclaimer, scores,
                                                                                                       membership of associations
marked 2022 or 2030 where relevant.                                                           34 		Environmental
                                                                                                       Performance Summary
                                                                                              37 		 GRI content index
                                                                                              43 		 Glossary

                                                                                                                          Further information on
This report meets the requirements of the Global Reporting Initiative (GRI), and has been
prepared in accordance with the GRI Standards: Core option. GRI disclosure references are
                                                                                                                          the Group is available
indicated in the margin of the report, and the GRI content index can be found in the annex,                               through our website at
on pages 37-42. (GRI 102-54)                                                                                              www.synthomer.com
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Chief Executive Officer’s introduction

Building sustainability

                                                DELIVERING RESILIENT
                                                SUSTAINABLE GROWTH IN AN
                                                UNPRECEDENTED ENVIRONMENT

                                                Our business has transformed in 2020 – and so has the context in

Calum MacLean
Chief Executive Officer
                                                which we operate. This year, Synthomer acquired OMNOVA, significantly
                                                increasing our global reach and our ability to create innovative and
                                                sustainable polymer solutions for the benefit of customers and society.
                                                At the same time we, like all our stakeholders, have become even more
                                                aware of the Environmental, Social and Governance (ESG) issues that
                                                face the world, and that will influence the future success of our business.
                                                An integrated business with ESG at its core
                                                The integration of OMNOVA and Synthomer has given us an important
                                                opportunity to make sure that we reflect the needs and concerns of
                                                our stakeholders while creating a structure that can deliver resilient,
                                                sustainable growth – which means delivering on the ESG issues that
                                                underpin our future success.
                                                As a priority for the integration, we have embedded a common
                                                ESG structure across the entire Synthomer Group. We are building
                                                sustainability into all aspects of the business, including innovation,
                                                manufacturing and business management. We have developed a set of
                                                Group-wide core values, which align with our purpose and which support
                                                our sustainability agenda. And we have developed our new ‘Vision 2030
                                                Roadmap’ for sustainability, which sets our goals for the next decade on
                                                our route to meeting our long-term 2050 net zero emissions commitment.
                                                Vision 2030: our roadmap for the critical decade ahead
                                                Vision 2030 is the result of an extensive review process within our
                                                business. It sets targets for our key ESG issues, including in the areas
                                                of diversity and inclusion, carbon and climate change, and supply chain
                                                assurance, which are our three ESG priorities for 2021. It also commits
                                                us to delivering top quartile performance for personal and process safety,
                                                which is central to our culture and values.
                                                We believe that Vision 2030, which is designed to align with the UN
                                                Sustainable Development Goals, will help guide us through the next
                                                critical decade, supported by a series of shorter-term milestone targets.
                                                From next year, we will report our performance against our 2030 targets
                                                in our Sustainability and Annual Reports. This year’s Sustainability
                                                Report primarily reports our progress in the 2020 financial year,
                                                although we include some forward-looking references where we believe
                                                they will help stakeholders understand our future direction.

1    Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Chief Executive Officer’s introduction continued

Reflecting on 2020: staying focused on safety                              A foundation for responsible growth
Managing our business through the COVID-19 pandemic was                    I am confident that the ESG foundations we have laid in 2020 will serve
a significant challenge for all our stakeholders in 2020. We took early    us well as an integrated business, and will help build stakeholder trust
decisions to protect our employees and supply chains and to balance        and drive business performance. To deliver on them, we will all need
the needs of our stakeholders fairly. To maintain Synthomer’s strong       to work together and put our Synthomer values into action, so we can
liquidity, cash flow and financial position we reduced 2020 capital        deliver on our purpose: creating innovative and sustainable polymer
expenditure, did not pay a final dividend for 2019 and suspended           solutions for the benefit of customers and society. (GRI 102-14)
senior management/Board salary reviews. It was pleasing that due
to the resilience and performance of the business we were able to
reinstate a 2020 final dividend having earlier repaid UK Government        Calum MacLean
furlough support.                                                          Chief Executive Officer
For the most part we were able to operate our global network of
38 sites as normal. However, the integration of OMNOVA has had
a noticeable effect on our health and safety performance. The 2020
full year recordable injury rate resulting from the combination of both
companies was 0.36 per 100,000 hours worked, while the equivalent
legacy Synthomer performance was 0.20. Aligning our health and safety
processes was a key focus in 2020 and will continue in 2021. This will
help us towards our ultimate goal of zero accidents or incidents and
to have no adverse impact on the health of people who work in or live
near our operations, or on the health of those who use our products.

    THE TEN KEY GOALS OF OUR VISION 2030 ROADMAP
    TOP QUARTILE SAFETY PERFORMANCE                                        10% REDUCTION IN SCOPE 3 EMISSIONS
    While aiming for zero harm, we will deliver top quartile performance   We will reduce our upstream Scope 3 emissions intensity by 10%
    for personal and process safety:                                       by 2030 vs. 2019.
    • RCR = 0.20/100,000 hours for employees/contractors
    • PSER = 0.10/100,000 hours                                            80% RENEWABLE ELECTRICITY USE
                                                                           We will source 80% of our electricity from renewables by 2030.
    70% EMPLOYEE PARTICIPATION                                             We will also improve energy efficiency through technology
                                                                           benchmarking.
    IN ENGAGEMENT SURVEYS
    We will achieve a 70% participation rate in employee engagement        MANAGE AND MINIMISE WATER USE
    surveys, both globally and at country level, and continuously update   We will rigorously manage and minimise water consumption in
    leadership action plans.                                               all locations and, by 2030, put sustainable water management
                                                                           programmes in place in water-stressed areas and our highest
    50% GENDER DIVERSITY IN NEW HIRES                                      consumption sites.
    We will increase diversity and inclusion in our organisation with
    a target of 50% of new hires in leadership, management and             AT LEAST 60% OF NEW PRODUCTS
    professional roles being women.
                                                                           WITH ENHANCED SUSTAINABILITY BENEFITS
    SUPPORT COMMUNITIES                                                    By 2030, at least 60% of our new product launches will have
                                                                           enhanced sustainability benefits as measured by our Project
    We will provide volunteer support and financial contributions in
                                                                           Sustainability Impact Scorecard.
    excess of £1 million per year to advance education, public health,
    diversity and environmental stewardship.
                                                                           80% OF OUR PROCUREMENT SPEND
    40% REDUCTION IN                                                       TO HAVE A SUSTAINABILITY RATING
    SCOPE 1 AND 2 EMISSIONS                                                By 2030, 80% of our raw material procurement spend will
                                                                           be covered by a sustainability rating (50% by 2025).
    On the path to net zero by 2050, we will reduce our greenhouse gas
    emissions intensity by 40% (Scopes 1 and 2) by 2030 vs. 2019.

2       Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Synthomer at a glance
Who we are                                        Everything is driven by our purpose            We are resolutely focused on sustainability
Synthomer is a global differentiated              Our purpose is to create innovative            and making improvements to our approach to
chemicals company and one of the world’s          sustainable polymer solutions for              Environmental, Social and Governance (ESG)
leading suppliers of sustainable water-based      the benefit of customers and society.          issues, and we measure our progress against
polymer solutions. With strong geographic         Everything we do is driven by                  internationally recognised standards. While we
and end market diversity combined with            this purpose.                                  are proud of the progress we have made so
increasing product differentiation, Synthomer                                                    far, we recognise there is more to be done in
holds leadership positions in a wide range        Our purpose underpins how we                   this important area and are determined to
of markets including coatings, construction,      approach sustainability                        deliver on our targets and objectives.
textiles, paper, adhesives, healthcare and        Sustainability is an increasing priority
oil and gas.                                      for Synthomer, our stakeholders and the
Synthomer plc is a FTSE 250 company               whole of society. Our water-based polymers
listed on the UK Stock Exchange and has           allow markets to replace higher carbon
its operational headquarters in London, UK.       containing solvent-based products that
(GRI 102-1, 102-3)                                also contain high levels of volatile organic
                                                  compounds (VOCs). This substitution drives
     ead more Our main shareholder
    R                                             stronger growth in our business and helps
    structure is set out on page 119 of           our customers comply with stringent
    the 2020 Annual Report. (GRI 102-5)           sustainability regulations.

Key (GRI 102-4, 102-7)                            Employees                                      Countries
    Headquarters
    Sales
    Performance Elastomers
                                                  4,600                                          20
    Functional Solutions
    Industrial Specialities                       Production sites                               Technical centres

                                                  38                                             6
    Acrylate Monomers

                                                  Volume                                         Sales volume from products less than 5 years old

                                                  1,638ktes                                      22%
3      Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Synthomer at a glance continued
What we produce (GRI 102-2, 102-6, 102-7)

Performance Elastomers                              Functional Solutions                             Industrial Specialities
Our Performance Elastomers business focuses         Functional Solutions focuses on coatings,        Industrial Specialities focuses on speciality
on the healthcare, carpet and paper markets         construction, adhesives and technical textiles   chemical additives and non-water-based
through our water-based Nitrile Butadiene           markets through our acrylic and vinylic          chemistry for a broad range of applications,
Rubber (NBR) latex and Styrene Butadiene            water-based dispersions. Following the           from polymer additives and polymer
Rubber (SBR) latex products. In addition to its     acquisition, we have fully integrated the        manufacture to emerging materials.
existing portfolio, our acquisition of OMNOVA       OMNOVA CAST (Coatings, Adhesives and             Following the acquisition, we have integrated
has expanded the Division’s scope to include        Surface Treatment) and Oil and Gas               the OMNOVA Laminates and Films and
the Performance Materials and Elastomeric           businesses into Functional Solutions.            Coated Fabrics businesses into the Division.
Modifiers product lines.

Volume                                              Volume                                           Volume

896.0ktes
2019: 849.1ktes
                                                    591.2ktes
                                                    2019: 487.4ktes
                                                                                                     91.1ktes
                                                                                                     2019: 67.3ktes
Market position                                     Market position                                  Market position
No 2 producer globally in NBR latex.                Top five global water-based polymer producer,    Leading positions in selected niche
No 1 producer in European SBR latex.                with leadership positions in dispersions in      speciality chemical markets globally.
No 1 producer globally of High Solids SBR.          Europe, the Middle East and Asia.

Acrylate Monomers
We separated Acrylate Monomers out of Industrial Specialities in 2020 so we can apply greater management focus to this business. Based at
our site in Sokolov (Czech Republic), the Division is focused on the supply of acrylate monomers to our European Functional Solutions Division
and third-party customers. The Division produced 59.9ktes in 2020 (2019: 61.9ktes). While Synthomer has the internal global demand to
consume 100% of our output at Sokolov, the plant serves and is committed to meeting European external customer demand for logistical and
commercial reasons.

Strong geographic and end market diversity underpins our business model and resilient performance:

                       4       1                                           1                                              4   1
             3

                                                           3
                                                                                                          3

                      Volume
                       Volume                                      Geography
                                                                    Geography                                         End
                                                                                                                       End market
                                                                                                                           market
                      (ktes)                                       (by revenue)                                       (by revenue)

                  2                                               2                                                                  2

1. Performance Elastomers                  54.7%   1. EMEA                                56.0%    1. Performance Elastomers  41.8%
2. Functional Solutions                    36.1%   2. Asia                                27.5%    Healthcare22.8%
3. Industrial Specialities                  5.5%   3. North America                       16.5%    Carpet, Compounds and Foam  11.9%
4. Acrylate Monomers                        3.7%                                                    Paper7.1%
                                                                                                     2. Functional Solutions    38.8%
                                                                                                     Coatings14.8%
                                                                                                     Construction8.5%
                                                                                                     Textiles7.5%
                                                                                                     Adhesives6.6%
                                                                                                     Oil and Gas                  1.4%
                                                                                                     3. Industrial Specialities 16.2%
                                                                                                     Polymer Additives            9.1%
                                                                                                     Laminates and Films          5.7%
                                                                                                     Coated Fabrics               1.4%
                                                                                                     4. Acrylate Monomers        3.2%

4     Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Corporate Development President’s introduction

                                                                          Embedding world-class safety
                                                                          Alongside what we do, we are also focused on building ESG
                                                                          considerations into how we do it. Here, safety is paramount.
                                                                          Over the last six years we have been building towards world-class
                                                                          health and safety performance (see page 19). We have moved quickly
                                                                          to embed those standards across our integrated business since our
                                                                          acquisition of OMNOVA.
                                                                          Moving to renewable energy and addressing our carbon footprint
                                                                          At the same time, we are moving large parts of our network to renewable
                                                                          electricity (see page 23). In 2020 we have achieved a reduction of 8.5%
                                                                          in Scope 1 and 2 greenhouse gas emissions. We have taken the
                                                                          decision to end our use of coal-derived energy by 2021 with the closure
                                                                          of our Sokolov coal power station, and we have introduced management
                                                                          incentives to reduce our carbon and climate change impacts.
                                                                          An increasingly diverse business
                                                                          We have made clear progress across our global employee base and
                                                                          in graduate and young talent recruitment (see page 15), and the
                                                                          composition of our Board meets the recommendations of the
                                                                          Hampton‑Alexander and Parker reviews. Female representation on
                                                                          our Executive Committee and direct reports has improved from 8%
                                                                          to 17%, but clearly there remains much more to be done to meet
                                                                          our targets of 20% in 2021, 25% by 2022 and 33% by 2025.

Tim Hughes
President – Corporate Development
                                                                          Focus on sustainable sourcing
                                                                          Our new Sustainable Procurement Strategy, agreed in 2020, will see
                                                                          a drive towards supply chain assurance verification and increased
                                                                          use of sustainable products and services through our partnerships
                                                                          with suppliers.
                                                                          About this report
BUILDING ON A STRONG ESG PLATFORM                                         This report is primarily focused on our performance in 2020 – but it
                                                                          also reflects some progress in increasing the amount and transparency
AND SETTING OUR COURSE FOR 2030                                           of our disclosures. To make sure we have a solid foundation for future
                                                                          reporting, we have used Global Reporting Initiative (GRI) Standards,
This year has seen a significant step change in our approach to ESG.      and we have applied them to the whole Synthomer Group, including
The environmental challenges facing the world are increasingly urgent,    OMNOVA. Further, we are now able to include disclosure of Scope 3
and it has never been so important for business to play a full part in    greenhouse gas emissions data for the first time, which means we
addressing them. At the same time, our integration with OMNOVA has        can report all Scopes (1, 2 and 3) based on verified data. We are also
given us an opportunity to embed a single set of values and a unified     working towards further disclosures in line with the recommendations
ESG strategy across a truly global Synthomer business. As Calum           of the Task Force on Climate-related Financial Disclosures (TCFD),
describes in his statement on page 1, this has meant that 2020 has        which we support. We are conducting scenario assessments in 2021
seen us build on our previous ESG work to create a new platform for       which will help us evaluate moving to science-based targets in 2022.
ESG performance and reporting, which from next year will support our
                                                                          The way ahead for Synthomer
new Vision 2030 Roadmap.
                                                                          Our Vision 2030 Roadmap builds on the progress we have made in
Our platform for future ESG progress                                      2020 and the years leading up to it – and takes us much further. It is
We are a manufacturing business, and the things we make are at the        the most comprehensive strategy Synthomer has ever had for ESG
core of our ability to make a contribution on ESG issues. As a global     performance, and from next year will form the basis for reporting our
leader in sustainable water-based polymer solutions, our products         progress against internationally recognised standards, and the
eliminate the use of over 500ktes of solvents which contain volatile      challenges we face on the way.
organic compounds (VOCs). This puts our business at the heart
                                                                          We believe it reflects our resolute focus on sustainability and
of a global trend away from VOCs, driven by increasingly stringent
                                                                          ESG improvements and we are determined to deliver on it.
environmental regulations. And, as we continue to invest in innovation,
we will be able to supply more customers with more sustainable
products. This speaks to Synthomer’s purpose: ‘to create innovative
                                                                          Tim Hughes
and sustainable polymer solutions for the benefit of customers
                                                                          President – Corporate Development
and society’.

5     Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
VISION 2030                                                                                  70% EMPLOYEE
                                                                                             PARTICIPATION
                                                                                             IN EMPLOYEE

ROADMAP
                                                                                             ENGAGEMENT
                                                                                             SURVEYS
                                                                                             We will achieve a 70% participation
                                                                                             rate in employee engagement surveys,
Following an extensive Company-wide review Synthomer is                                      both globally and at country level,
                                                                                             and continuously update leadership
pleased to introduce its Vision 2030 Roadmap for sustainability.                             action plans.
Ambitious, measurable and achievable, the goals are aligned with
                                                                                               Read more on page 15.
the United Nations Sustainable Development Goals (SDGs) which
mature in 2030. These stretching targets will define our current
and future sustainability programme.                                                         50% GENDER
                                                                                             DIVERSITY IN
                                                                                             NEW HIRES
                                                                                             We will increase diversity and inclusion in
                                                                                             our organisation with a target of 50% of
                                                                                             new hires in leadership, management
                                                                                             and professional roles being women.

                                                                                               Read more on pages 16 and 17.

                                                             ea                       t
                                                                                 y
                                                           H

                                                                  lth            fe
                                                                        and Sa
                                                                                                               Pe o p l e

                                               TOP QUARTILE SAFETY
                                               PERFORMANCE                                   SUPPORT
                                               While aiming for zero harm, we will deliver
                                               top quartile performance for personal and
                                                                                             COMMUNITIES
                                               process safety:                               We will provide volunteer support and
                                               • RCR = 0.20/100,000 hours for                financial contributions in excess of
                                                 employees/contractors                       £1 million per year to advance education,
                                               • PSER = 0.10/100,000 hours                   public health, diversity and environmental
                                                                                             stewardship.
                                                 Read more on pages 19 to 21.
                                                                                               Read more on page 18.

6   Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
40% REDUCTION
    IN SCOPE 1 AND 2
    EMISSIONS
    On the path to net zero by 2050,
    we will reduce our greenhouse
    gas emissions intensity by 40%
    (Scopes 1 and 2) vs. 2019.

      Read more on pages 8 to 10.

                                                   80% RENEWABLE                              AT LEAST 60% OF
    10% REDUCTION IN                                                                          NEW PRODUCTS
    SCOPE 3 EMISSIONS                              ELECTRICITY USE
                                                                                              WITH ENHANCED
    We will reduce our upstream Scope 3
    emissions intensity by 10% vs. 2019.
                                                   We will source 80% of our electricity
                                                   from renewables. We will also improve      SUSTAINABILITY
      Read more on pages 8 to 10.
                                                   energy efficiency through technology
                                                   benchmarking.                              BENEFITS
                                                     Read more on pages 22 to 24.            At least 60% of our new product launches
                                                                                              will have enhanced sustainability benefits
                                                                                              as measured by our Project Sustainability
                                                                                              Impact Scorecard.

                                                                                                Read more on pages 27 to 30.
               St

                                       s
                                  es

                  te                  in
                ra

                     g   y a nd Bus
                                                                 En
                                                                      vironment

                                                   MANAGE AND                                                                     in
                                                                                                         Su

                                                                                                                              ha
                                                                                                            ai
                                                   MINIMISE WATER USE
                                                                                                          st

                                                                                                                 na               C
                                                                                                                      ble Value

                                                   We will rigorously manage and minimise
                                                   water consumption in all locations, and
                                                   put sustainable water management
                                                   programmes in place in water-stressed
                                                   areas and our highest consumption sites.
                                                                                              80% OF OUR
                                                     Read more on page 26.
                                                                                              PROCUREMENT
                                                                                              SPEND TO HAVE
                                                                                              A SUSTAINABILITY
                                                                                              RATING
                                                                                              80% of our raw material procurement
                                                                                              spend will be covered by a sustainability
                                                                                              rating (50% by 2025).

                                                                                                Read more on pages 27 to 30.

7       Synthomer plc Sustainability Report 2020
RESILIENT SUSTAINABLE GROWTH - Synthomer plc Sustainability Report 2020
Environmental, Social and Governance (ESG) – review of our six pillars

1. Strategy and Business
Sustainability is embedded across the entire Group and requires the
engagement of all stakeholders. To clearly identify our material areas,
define our objectives and achieve our long-term goals, our actions are
channelled through six pillars, and three priorities for 2021. We made
significant progress quantifying, improving and communicating the
sustainability of all our activities in 2020.

Synthomer focuses its sustainability programme around six pillars – Strategy and            Our approach (GRI 103-1, 103-2, 103-3)
Business, Governance and Compliance, People, Health and Safety, Environment and             Safety, Health and Environment (SHE) are the
Sustainable Value Chain. In this report we review each of the six pillars, beginning with   heart of Synthomer‘s core values. Our ultimate
Strategy and Business.                                                                      goal is to have zero accidents or incidents and
                                                                                            no adverse impact on the health of those who
Our three strategic priorities for 2021 are carbon and climate change (see Environment      work in or live near our operations or use our
pillar), diversity and inclusion (see People pillar) and supply chain assurance             products. We care about the environment as
(see Sustainable Value Chain pillar), which are introduced below. These priorities          we care about our people’s health, while
complement our personal and process safety commitment which remains central                 minimising any environmental burden created
to our culture and values.                                                                  by our activities.
                                                                                            As a chemical company that uses natural
                                                                                            resources – mainly energy and water – in its
    STRATEGY AND                                GOVERNANCE AND                              production processes, climate change is a

    BUSINESS                                    COMPLIANCE
                                                                                            core priority. We are aiming to respond to the
                                                                                            climate emergency by significantly reducing
                                                                                            our Scope 1 and 2 greenhouse gas emissions
                                                                                            by no less than 20% by the end of 2022 and
                                                                                            40% by 2030, as well as delivering our net
                                                                                            zero 2050 roadmap in alignment with the
                                                                                            Paris Climate Agreement.
                                                                                            Employing more than 4,600 people
                                                                                            across the globe, Synthomer contributes to
                                                                                            improved social conditions in all geographies.
    PEOPLE                                      HEALTH AND                                  Synthomer’s Diversity and Inclusion Plan
                                                                                            sets out our commitment to further
                                                SAFETY                                      expand ethnic, gender, age and cultural
                                                                                            diversity and welcome it in an inclusive way,
                                                                                            believing this is the path to build a socially
                                                                                            sustainable organisation.
                                                                                            Launched in 2020, Synthomer’s Sustainable
                                                                                            Procurement Policy and Strategy clearly sets
                                                                                            out our ambition to work with our upstream
                                                                                            partners, ultimately ensuring that there are
                                                                                            no supply outages due to environmental or

    ENVIRONMENT                                 SUSTAINABLE
                                                                                            social aspects covered by this policy. We are
                                                                                            working continuously to minimise risks and

                                                VALUE CHAIN                                 catch opportunities while contributing to
                                                                                            a more sustainable and secure supply chain.
                                                                                            More and more, society is driving towards
                                                                                            zero waste, reducing, re-using and recycling
                                                                                            as much as possible. Synthomer operates
                                                                                            in a variety of markets with a diversity of
                                                                                            water-based chemistries, exhibiting a wide
                                                                                            spectrum of requirements. Our goal is to
                                                                                            move towards a circular economy, reducing
                                                                                            the impact of our activities and working
                                                                                            together with our customers to offer
                                                                                            sustainable solutions with increased
                                                                                            performance and manage the end of life
                                                                                            of our products.

8    Synthomer plc Sustainability Report 2020
1. Strategy and Business continued
ESG covers a broad range of topics, so our materiality assessment
allows us to respond to the issues that matter most to our stakeholders.
We reviewed our materiality assessment in 2021 to reflect the impact
of the OMNOVA acquisition and the increasing priority of ESG issues.

Building sustainable solutions                     Sustainability risks and opportunities             Starting to report against TCFD in 2021,
The development of sustainable solutions           (GRI 102-11, GRI 102-15)                           we will also develop knowledge to minimise
is intrinsically associated with three factors,    Through the expansion of our risk assessment       our environmental footprint, establishing
namely, reducing the use of resources,             framework to climate-related risks and             a roadmap based on a below 2ºC scenario
lowering environmental footprint and               opportunities we are committed to gain             option and assessing the impact on the
managing product life cycle.                       knowledge and develop sound tools to ensure        businesses arising from technology shifts
                                                   that our businesses will be resilient against      and the financial impact of carbon pricing.
One of Synthomer’s strategic priorities has
                                                   climate change.
always been to minimise the use of natural                                                            Alignment with SDGs (GRI 102-12)
resources by increasing the efficiency of          We have already incorporated the potential         Our actions are aligned with the UN SDGs
our production activities. We remain vigilant      impact of corporate responsibility issues in the   material to our business and those towards
to new opportunities to improve energy and         Group’s risk management processes and our          which Synthomer can have a major impact.
water efficiency and reduce waste, and we          investment decisions consider potential            We highlight the SDGs related to natural
actively look for new ways to enhance              consequences for all stakeholders, including       resources used in our operations as well as
circularity of these resources.                    employees, customers and suppliers, as well        those to which our activity imparts a higher
                                                   as the environment.                                benefit to people and society.
Reducing direct and indirect operational
greenhouse gas emissions (Scope 1 and 2),
in addition to reducing Scope 3 supply chain
                                                   Most relevant UN SDGs for the delivery of Synthomer 2030 goals
originated emissions, are strategic action
points for Synthomer, intimately related to
business strategies.
To accomplish our net zero goal by 2050
at the latest, potential areas for improvement
which are linked to our climate actions include:
• using technology and innovation,
  to develop products based on alternative
  low carbon intensive raw materials and
  more efficient processes;
• assessing R&D projects and
  capex expenditures against our
  sustainability criteria;
• defining science-based targets to align
  our longer-term strategy to the global goals
  in alignment with the Paris Agreement;
• considering the need to incorporate carbon
  pricing within our capital planning processes;
• establishing partnerships with our suppliers
  to reduce the carbon burden of our existing
  raw materials;
• assessing the viability and resource
  requirements to undertake Life Cycle
  Assessments for key products –
  considering at least cradle to gate
  footprint; and
• addressing end of life product management
  for each market where we operate.
Growing in a sustainable way (GRI 102-10)
                                                     FUTURE ACTIVITIES
We recognised the impact that our acquisition
of OMNOVA had on the Company’s overall
                                                     By 2021
sustainability profile and have integrated the       • Report against Task Force on Climate-related Financial Disclosures
two legacy companies using a consistent ESG          • Assess all operations and projects against sustainability criteria
approach. Synthomer’s sustainability agenda          • Maintain Silver EcoVadis level as a minimum for enlarged Group
takes 2019 as our baseline year to define our
new, short-term, targets between now and the         By 2022
end of 2022.
                                                     • Evaluate alignment of our net zero programme to Science Based Targets initiative
Synthomer took the acquisition as an
opportunity to consider sustainability as a
business imperative and a decision factor in
all processes and projects.

9     Synthomer plc Sustainability Report 2020
Environmental, Social and Governance (ESG) – review of our six pillars

1. Strategy and Business – Stakeholder engagement and materiality assessment
(GRI 102-21, 102-40, 102-42, 102-43 and 102-44)

Updating our materiality assessment                                                   We introduced a new category called                  We confirmed all 24 aspects, including the
We reviewed our key stakeholder groups                                                ‘Digitalisation’, since it represents an             three new ones, are relevant material aspects
and assessed how the Group engaged with                                               increasing opportunity to reduce our carbon          (scoring high or very high as regards internal
those groups. We also reviewed the areas                                              footprint as we learn lessons from the               and external importance) for continued focus.
of sustainability that are materially significant                                     COVID-19 pandemic and take advantage                 The outcome of our assessment shows there
to our work to align with the GRI Standards.                                          of our Pathway business transformation.              is a strong alignment between stakeholders
In all, we found direct influence and                                                                                                      and the Group on most of the topics, with
                                                                                      Synthomer’s activity relating to product
engagement were maintained with seven                                                                                                      emphasis on those with highest priority.
                                                                                      life cycle is now incorporated within the new
stakeholder groups: customers, employees,
                                                                                      ‘Circular economy’ topic.                            Our Sustainability Steering Committee
suppliers, shareholders, legislators,
                                                                                                                                           reviewed the additional concerns and
authorities and local communities.                                                    An online survey was designed to collect
                                                                                                                                           suggestions from this survey, to identify
                                                                                      stakeholders’ feedback. This survey asked
Of the initial set of materiality topics we                                                                                                potential new focus areas for target action.
                                                                                      for views on these 24 sustainability topics,
first identified in 2018, 21 of 22 remained
                                                                                      covering topics directly influenced by               Although no significant shifts were observed
unchanged or were slightly modified.
                                                                                      Synthomer’s operations as well as topics             since 2018, Community engagement and
We incorporated ‘Quality’ into ‘Customer
                                                                                      linked to the value chain both downstream            Circular economy will have additional
satisfaction and engagement’ and added
                                                                                      and upstream.                                        attention in the future.
three new topics.
                                                                                      The online survey was submitted to nearly            The most material topics are already
Following our acquisition of OMNOVA and
                                                                                      400 individuals, including representatives           considered in the corresponding
stronger presence in North America, we
                                                                                      of all the stakeholder groups identified,            sustainability pillars, as well as in our
focused on ‘Communication and training’,
                                                                                      across all the geographic regions where the          short and medium-term objectives.
to ensure clear understanding of our
                                                                                      Company operates. The stakeholders asked
procedures, targets and achievements.
                                                                                      to participate in the survey were selected by
                                                                                      Synthomer following close contact with the
                                                                                      respective stakeholder groups.

  Materiality assessment chart                                                                                                              Materiality assessment
                                                                                                                                            (GRI 102‑44, GRI 102-46, GRI 102-47)
                                                                                                                                      13
                                                                                                                                                 Strategy and Business
                                  Very important

                                                                                                                      3
                                                                                                                                      14    1    Sustainable growth
                                                                                       2                                                    2    Risk management
                                                                                            1                         7
                                                                                                                                            3    Ethics and integrity
                                                                                           18                        22                     4    Digitalisation
                                                                                                9                                15
                                                                                       5                        23                               Governance and Compliance
                                                                                                                                            5    Responsible and involved management
                                                                         16      8                    10
                                                                                                                                            6    Stakeholder involvement and engagement
                                                                                                           20        17                     7    Compliance
                                                                                                      19                                    8    Communication and training
     Importance to stakeholders

                                                                    6                      21                                                    People
                                                                                           11                                               9    Employment conditions
                                                                    24                                                                      10   Diversity and Inclusion
                                                   12                                                                                       11   Talent development
                                                                                                                                            12   Community engagement
                                                   4                                                                                           Health and Safety
                                                                                                                                            13 Occupational health and safety
                                                                                                                                            14 Process safety
                                                                                                                                                 Environment
                                                                                                                                            15   Energy management and reduction
                                                                                                                                            16   Water stewardship
                                                                                                                                            17   Greenhouse gases reduction
                                                                                                                                            18   Waste generation and minimisation
                                                                                                                                                 Sustainable Value Chain
                                  Important

                                                                                                                                            19   Responsible procurement
                                                                                                                                            20   Technology and innovation
                                                                                                                                            21   Manufacturing excellence
                                                                                                                                            22   Product safety
                                                                                                                                            23   Customer satisfaction and engagement
                                                        Important                                                    Very important         24   Circular economy
                                                                              Importance to Company

10                                 Synthomer plc Sustainability Report 2020
2. Governance and Compliance
Management approach
(GRI 103-1, 103-2, 103-3)
Ensuring and demonstrating a high standard of
                                                      CODE OF CONDUCT
effective and compliant corporate governance
                                                      The Group’s Code of Conduct, together with our Core Values, reflects how we work together
is a key priority of the Group and expectation
                                                      internally and with our stakeholders. It exemplifies our beliefs and values of a diverse and
of our stakeholders.
                                                      open culture, and sets out how we expect our employees to work in a responsible and
Synthomer plc has regard to matters set out in        sustainable manner. It further provides our employees with the tools to guide them in making
Section 172(1) of the Companies Act 2006 and          decisions based on integrity, honesty and mutual respect.
during its last financial year has complied, in all
material respects, with the 2018 UK Corporate
Governance Code.
Significant progress was made in 2020
in terms of the diversity of the Synthomer
Board, which follows the Hampton-Alexander
                                                      COMPLIANCE
recommendations and the Parker Review on
gender and ethnic representation. An externally       The Group is committed to maintaining an effective Compliance Framework to protect it
facilitated Board evaluation also began during        from the risks of breaches of laws, rules and regulations, including judicial/regulatory action
2020 which concluded that the Board and its           and reputational damage. We continually improve our Compliance Framework, and in 2020
Committees are run in an effective and                appointed a Head of Global Compliance dedicated to identifying, assessing, managing and
collaborative manner and suit the current             mitigating ethics and compliance risks.
governance needs and company obligations.
The evaluation did identify some areas of
development which include succession
planning, diversity and inclusion and
responding to the increasing ESG agenda
and particularly climate change. These will           CORE VALUES
all be areas for specific focus in 2021.
                                                      SHE – We always have time to work safely.
                                                      Innovation – We welcome change and new ideas.
                                                      Teamwork – We are stronger as ONE team.
                                                      Integrity – We act with integrity and show respect.
                                                      Accountability – We deliver on our promises.

                                                               SYNTHOMER                      A ccountabi l i ty

                                                               CORE
                                                               VALUES

                                                                   I nnovati on
                                                                                              SHE                              Integrity

                                                                                                 Teamwork

11     Synthomer plc Sustainability Report 2020
Environmental, Social and Governance (ESG) – review of our six pillars

2. Governance and Compliance continued
Code of Conduct and Ethics Helpline                The Group is committed to ensuring that            2020 also saw significant developments in
(GRI 102-16, 102-17)                               slavery and human trafficking is not taking        the Group’s e-learning capabilities, with the
We published our current Code of Conduct           place in any of its supply chains, as set out in   launch of an improved in-house Learning
in 2018 in 13 languages, supported by              our most recent Modern Slavery Statement           Management System (LMS), as a platform for
Group-wide training and an externally              available here: www.synthomer.com/company/         hosting e-learning content. Consequently, in
hosted ethics helpline.                            corporateresponsibility/grouppolicies/.            2020, we saw the launch of a new e-learning
                                                                                                      module relating to facilitation of tax evasion
The training received very positive feedback.      Bribery, corruption and
                                                                                                      under the UK Criminal Finances Act 2017,
A recent survey across the enlarged Group          anti-competitive behaviour
                                                                                                      together with the finalising of two new
reinforced the outcome of our 2019 ‘Your           The Group’s bribery, corruption and competition
                                                                                                      e-learning modules on Bribery and Corruption
Voice’ employee survey which demonstrated          law policies are key aspects of the Group’s
                                                                                                      and Anti-Competitive Practices, which were
that most employees understand the Code            Code of Conduct and have featured heavily in
                                                                                                      launched at the start of 2021. The LMS also
of Conduct and how it applies to their role.       the scenario-based Code of Conduct training
                                                                                                      enhances the Group’s ability to record training
The survey also showed that employees know         that has been held Group-wide. In addition,
                                                                                                      (e-learning and face-to-face/online), to track
how to report suspected unethical and/or           during 2020, enhanced competition law training
                                                                                                      completion, and to escalate incidences of
unlawful behaviour.                                continued to be given to employees more highly
                                                                                                      required training not being completed in
                                                   exposed to competition law risk, and we have
During 2020, no material issues were                                                                  a timely manner. The development of e-learning
                                                   continued to improve our online ‘toolboxes’
reported under the established Ethics                                                                 modules for Code of Conduct and GDPR/data
                                                   for competition law and bribery and corruption.
Helpline (whistleblowing) procedure. (GRI 419-1)                                                      protection was purposefully delayed in 2020
                                                   Due diligence processes also continue to be
                                                                                                      as a consequence of the OMNOVA acquisition,
In 2020, the Group also relaunched its Core        in place to manage risks related to bribery and
                                                                                                      mainly due to the positive feedback received
Values highlighting, amongst other things,         corruption, for example in connection with the
                                                                                                      about the training and the opportunity it
Integrity and Accountability as foundations        appointment of agents and/or distributors,
                                                                                                      provided to interact with legacy OMNOVA
of the Synthomer way of working, and the           to ensure we are partnering with third parties
                                                                                                      colleagues. E-learning modules on these topics
importance of the Code of Conduct in               who share in Synthomer’s commitment to
                                                                                                      are currently being developed for roll-out
guiding employees in ensuring they always          do business legally and ethically.
                                                                                                      during 2022.
act in accordance with these values.
                                                   Compliance training (GRI 205-2)
Human rights                                       During 2020, face-to-face/online scenario-
In 2020, a Procurement Excellence team was         based workshops continued to be held
established alongside the publishing of a new      across the Group to reinforce the importance
Sustainable Procurement Policy and Strategy,       of applying the highest ethical standards as set
which included compliance with human rights        out in the Code of Conduct. This included the
as one of its key focus areas.                     legacy OMNOVA management team following
                                                   the acquisition.

                                                                                                       FUTURE ACTIVITIES
                                                                                                       By 2022
                                                                                                       • Continue to roll out training and
                                                                                                         e-learning
                                                                                                       • Implement lessons learned from
                                                                                                         Compliance Programme Review
                                                                                                       • Launch new ‘dawn raid’ guidance
                                                                                                       • Board evaluation process

12     Synthomer plc Sustainability Report 2020
2. Governance and Compliance – Sustainability governance                                                         (GRI 102-20)

The Sustainability Steering Committee is
responsible for the development of the Group’s      Sustainability main bodies
sustainability strategy and coordination of
sustainability-related activities across the
                                                                             Board of Directors oversees ESG agenda
organisation. Formed in 2018, it is a cross-
functional group comprising representatives
from all key functions and businesses including
Corporate Development, Human Resources,
Procurement, Technology & Innovation and SHE,
alongside the Divisional Presidents. In order to                                         Executive Committee
manage the increasing interest and opportunity
in sustainability the Group added additional          The Executive Committee is responsible for delivering our ESG strategy and policy
resource in 2020.                                     commitments and reviews sustainability-related topics on a monthly basis. The CEO has
                                                      ultimate responsibility for delivering the ESG strategy and commitments.
Over the past year, we have strengthened
our internal network of people to drive
sustainability. This diversified group is our
Sustainability Delivery Board and, like our
Committee, represents functions and
divisions from across the global organisation.                                     Sustainability Steering Committee
It ensures proper communication to all levels
of the organisation and captures any
                                                      Through its highest level representation, the Sustainability Steering Committee is
opportunities to improve our approach. It is
                                                      responsible for defining our ESG targets and roadmap, monitoring the progress of the
also the Delivery Board’s responsibility to
                                                      workstreams and liaising with our Executive Committee and Board of Directors.
address internal and external stakeholders’
needs and coordinate cross-functional
workstreams, set up to meet the targets set
out by the Sustainability Steering Committee.
The Sustainability Steering Committee meets
quarterly and is chaired by the Group                                                Sustainability Delivery Board
Sustainability Director. The Committee
reports directly to our Executive Committee,          Our Sustainability Delivery Board comprises our sustainability champions from our
ensuring effective two-way communication              functions and businesses. The Board is responsible for managing cross-functional
at the highest levels of our organisation to          workstreams throughout the organisation to deliver our ESG agenda.
embed our material sustainability topics into
                                                      It makes recommendations to the Sustainability Steering Committee and is also
the Group’s strategy and businesses.
                                                      responsible for monitoring the sustainability-related KPIs.
The Executive Committee meets monthly
                                                      Progress is followed up on a monthly basis and meetings are hosted by the
and is responsible for ensuring effective
                                                      Sustainability Director.
delivery of the agreed strategy and meeting
the policy commitments.
The Board of Directors routinely reviews ESG
topics with increasing focus on carbon and         “AT SYNTHOMER, SUSTAINABILITY IS A JOURNEY
climate change, diversity and inclusion and
supply chain assurance as ESG priority areas.      WE MAKE TOGETHER. THE ENGAGEMENT OF ALL
Full details of Synthomer’s governance             COLLEAGUES ALLOWS OUR ESG AGENDA TO
structures can be found on pages 82 to 89
of the 2020 Annual Report. (GRI 102-18)
                                                   DEVELOP FAST IN ITS MULTIPLE DIMENSIONS.”
                                                   Susana Carvalho
                                                   Group Sustainability Director

13    Synthomer plc Sustainability Report 2020
Environmental, Social and Governance (ESG) – review of our six pillars

3. People – Our people and communities
Management approach
(GRI 103-1, 103-2, 103-3)
Synthomer remains committed to developing
                                                    EMPLOYEE ENGAGEMENT
our people to help them fulfil their potential,
                                                    We aim to create a high performing and engaged workforce by implementing employee
and in engaging with our communities in
                                                    engagement strategies that align our employees with our Core Values and ensure that we
a positive manner.
                                                    listen to, develop and recognise all employees.
The Global HR Vice President remains
responsible for implementing programmes of
work to deliver on the Group strategy, including
those linked to leadership and succession
management, supported by divisional and
regional HR leads. He reports to the Executive
Committee through the President –
                                                    DIVERSITY AND INCLUSION
Performance Elastomers, M&A and Global HR.
                                                    We value the difference everyone brings and are committed to creating a diverse and inclusive
Our strategic People objectives are as follows:     workplace, where people are supported to make their best contribution in creating a vibrant,
                                                    successful business.
Build a sustainable talent pipeline: strengthen
our talent pipeline with diverse and highly
skilled employees, and continuously drive
improvements in our talent practices, ensuring
that we have the right people with the right
skills in the right role at the right time.
Strengthen leadership capability: develop
                                                    SUPPORT COMMUNITIES
empowered leaders at all levels of Synthomer;
                                                    Through our ‘We Care’ initiative and Synthomer Foundation in the USA,
leaders who act as role models, coach and
                                                    we are continuously strengthening our engagement with local communities.
develop their teams and lead the way in
successfully driving our business strategy.
Drive organisational effectiveness: operate
efficient and effective organisational structures
and people processes, to drive towards
functional excellence and to strengthen our
capability to successfully manage business
transformation in an agile way.
Establish a winning workplace culture:
establish an inclusive culture where our people
feel valued, engaged, empowered and able
to use their strengths to enable Synthomer
to thrive.
Our People agenda has made further progress
in 2020, with our new Core Values launched
and embedded, a new diversity and inclusion
strategy launched, new global communications
and development initiatives, and the integration
of the OMNOVA business and alignment of key
HR processes and activities.

14     Synthomer plc Sustainability Report 2020
3. People – Employee engagement                                       (GRI 102-8, 102-41, 401-1, 404-1, 404-3)

Who we are

 4,600+
 More than 4,600 employees
                                                    100%
                                                    ~100% full time employees
                                                                                                                 100%
                                                                                                                 ~100% under permanent contract

 10.2%
 turnover
                                                    7.1%
                                                    new hires
                                                                                                                 67%
                                                                                                                 under collective bargaining agreements

 1,272
 employees received a full written
                                                    17.9
                                                    training hours per employee in 2020
 appraisal: 83.4% of the target population          (23.3 in 2019, 19.8 in 2018)

Our Core Values                                     Leadership development and training                          Supporting employees during
Employee engagement was at the heart of             Our third European and Asian Graduate                        the COVID-19 pandemic
developing our new values; over 200 of our          Programme took place in 2020 with seven                      Some employees were required to work
employees from across our organisation              new programme participants in Europe and                     from home for long periods of time due to
contributed to the redesign by completing           four in Asia. In total, this adds up to more than            the COVID-19 pandemic. Different measures
surveys or attending a focus group and more         30 Graduates. Over 90% of candidates in                      were deployed to support their physical and
than 600 attended values virtual workshops.         Asia and Europe have moved into post-                        mental well-being, as follows:
                                                    programme roles.
We also set up a Steering Group, which                                                                           • In Malaysia, frequent newsletters were
included three Executive Committee members.         We also continued High Potential Programmes                    delivered including regular business
The whole Executive Committee was also              across all regions of the organisation.                        updates and tips on how to work from
closely involved to ensure that our values were                                                                    home effectively. Virtual exercise classes
                                                    Our early career talents have continued to
fully aligned to and integrated with our business                                                                  were held to socially interact, catch up
                                                    represent Synthomer externally by publishing
strategy. The Committee’s support also                                                                             and exercise. ‘Grab Some Help!’ provided
                                                    articles and giving speeches at conferences.
ensured that the values received very clear and                                                                    virtual workshops and remote
                                                    To strengthen our talent pipeline, we developed
visible senior leadership sponsorship.                                                                             psychological support for employees.
                                                    a new global Talent Toolkit and established
                                                                                                                 • In Germany, virtual coffee breaks and
Listening to our employees                          a harmonised framework for our annual
                                                                                                                   virtual social events were designed to keep
Alex Catto, the Non-Executive Director with         talent reviews.
                                                                                                                   people connected whilst working remotely.
responsibility for ‘Employee Voice’ on the Board,
                                                    Our Excellence Academy saw 12 individuals                    • In the UK our ‘Be Supported: Virtual
visited UK sites and had virtual calls with the
                                                    participate in a new programme to provide                      Working’ initiative provided training and
USA and Italy, to meet employees and review
                                                    fundamental skills and knowledge in how                        support for team managers and employees
their issues. Feedback was provided to
                                                    to improve safety and productivity on our                      working from home.
the Board.
                                                    manufacturing facilities. The programme                      • Our global Learning and Development
The Board receives regular feedback on the          delivered almost 50 hours of learning over                     team has developed a series of learning
employee discussions and on our people              a five month period.                                           modules, such as ‘Working from Home’,
strategy, and has had a detailed report on                                                                         ‘Embracing New Ways of Working’ and
                                                    Recognition
the results of the 2019 Your Voice Employee                                                                        ‘Working or Leading Virtually’.
                                                    Our OMNOVA colleagues celebrated their
Engagement Survey and the progress
                                                    second year as a NorthCoast 99 workplace, a
against actions defined.
                                                    programme that honours great Northeast Ohio
In 2021 we intend to run a second Your Voice
Employee Engagement Survey following the
                                                    workplaces for top talent. The recognition
                                                    project to compete for this award was                         FUTURE ACTIVITIES
survey we ran in 2019.                              managed – and led – by a group of our
                                                    employees. As well as recognising our                         By 2021
                                                    business as a great place to work, the process
                                                                                                                  • Deploy new global Human Resources
                                                    of competing for this award has provided
                                                                                                                    information system
                                                    invaluable learning in support of the
                                                                                                                  • Repeat and extend coverage of
                                                    continuous improvement that we strive for.
                                                                                                                    the ‘Your Voice’ Employee
                                                                                                                    Engagement Survey
                                                                                                                  • Review and expand the Board Employee
                                                                                                                    Voice Strategy

                                                                                                                  By 2030
                                                                                                                  • Achieve 70% participation rate in
                                                                                                                    employee engagement surveys,
                                                                                                                    both globally and at country level,
                                                                                                                    and continuously update leadership
                                                                                                                    action plans

15    Synthomer plc Sustainability Report 2020
Environmental, Social and Governance (ESG) – review of our six pillars

3. People – Diversity and inclusion                               (GRI 108-1, 405-1)

                                                   At Synthomer we see D&I as a                       Our drivers for action
 Our D&I vision and strategy                                                                          • Core Values
                                                   fundamental part of our Core Values
 Our strategy is organised under                                                                        D&I is a part of our Core Values.
                                                   D&I is one of the three 2021 priorities of our
 three core pillars:                                                                                    Showing respect regardless of a person’s
                                                   ESG agenda to which we are fully committed.
 Raising awareness                                 The acquisition of OMNOVA has increased              background is an important part of creating
 • We educate the organisation on                  the number of people we employ outside of            an inclusive culture and a thriving business.
   the dimensions and benefits of D&I.             Europe, with significantly more employees in       • Business case
 • Key action areas include:                       the USA, China, and Thailand. We have also           There is a growing body of research
   developing a strategy and business              added a site in Portugal to our European             about why D&I is important. A diverse and
   case, anchoring D&I in our business             footprint and increased our presence in France.      inclusive environment is strongly linked to
   activity and unconscious bias.                  We now have sites in 24 countries across the         performance, D&I is good business.
                                                   USA, Europe, and Asia. As we grow, we              • Employee focus
 Strengthening culture                             continue to be a truly global business with a        There was a clear message from
 • We build and nurture an inclusive               culturally diverse employee base from across         our employees through the Employee
   workplace culture.                              the world.                                           Engagement Survey, the Core Values
 • Key action areas include:                                                                            Survey and other channels, that D&I
   Core Values, inclusive leadership                                                                    is important.
   and flexible working.                                                                              • External focus
                                                                                                        D&I is receiving increased focus in the
 Growing talent                                                                                         media, with investors and society in
 • We attract, develop and retain                                                                       general, which is reflected in legislation
   a diverse range of talent.                                                                           and formal reporting requirements.
 • Key action areas include:
   Talent acquisition, learning and
   development and networks.

 Our strategy is underpinned by
 communication and engagement plans
 and measurement and monitoring.

 Our D&I governance structure
 A new structure was launched in 2020 to ensure delivery against our objectives

                    D&I Steering Committee                                                           Executive Team
     This small senior group provides sponsorship and advocacy and               The Executive Team signs off D&I plans and concrete initiatives.
        oversees tangible delivery. Its members are the Chair of the                  This ensures governance and role modelling across
     Synthomer Board, the Executive Team Sponsor and the Head of HR.                                   the organisation.

                                                          D&I Leadership Team
                      This cross-business group sets the strategy, agrees on annual plans and designs/delivers D&I initiatives.

                  Employee resource groups                                                    Potential local D&I teams
     Independent groups with clear terms of reference and link to and                  Country groups where there is scale and appetite.
             support from the Global D&I Leadership Team.                                Could also be local/regional D&I champions.

16     Synthomer plc Sustainability Report 2020
3. People – Diversity and inclusion continued                                                  (GRI 108-1, 405-1)

Where we are                                             Additional 2020 activities                                 Hampton-Alexander Review of 33% female
                                                         We launched ‘Engender’, a new networking                   representation on FTSE 350 boards by the
Board                                                    and resource group for women in Synthomer,                 end of 2020.
                                                         with virtual events commencing in Quarter 4
                                                                                                                    Women represent 17% of senior leaders
                     3                   6               2020 and a full programme planned for 2021.
                                                         A review of ‘family friendly’ policies in 2020
                                                                                                                    (a significant increase from 8% at the end
                                                                                                                    of 2019). However, we have not yet reached
                     Female              Male            across our major employee locations – the UK,              the Hampton-Alexander Review target of 33%
                                                         Germany, Malaysia and the USA – has resulted               and, in particular, recognise that there are
                                                         in a number of improvements that create a suite            no women on our Executive Committee.
Senior management                                        of policies that are all in line with regional best
                                                                                                                    Across our whole organisation women
                                                         practices. We are pleased to be supporting
                                                                                                                    account for 21% of our workforce, with greater
                                                         prospective and new parents – including those
                     8                   40              who are adopting – with progressive policies
                                                         that reflect the changing nature of family life.
                                                                                                                    representation at more senior leadership levels.
                                                                                                                    One member of our Board is from an ethnically
                     Female              Male
                                                                                                                    diverse background and therefore we meet
                                                         D&I metrics are now included in our new global
                                                                                                                    the target for Board representation set by
                                                         talent management process.
                                                                                                                    the Parker Review. In total, 14% of our senior
Other employees                                          Caroline Johnstone was appointed Chair of                  leadership population represent colleagues
                                                         the Company on 16 December 2020, our first                 from a diverse ethnic background, with

                     948                 3,603           female Chair. Cynthia Dubin also joined the
                                                         Board in 2020 and we now have three women
                                                                                                                    representation across all functions and
                                                                                                                    business areas.
                     Female              Male            on our Board, meeting the target set by the

                                                         “WE BELIEVE THAT DIVERSITY AND INCLUSION DRIVES
Board
                                                         INNOVATION AND IMPROVED BUSINESS PERFORMANCE –
Ethnically                                          1
                                                         WE SEEK TO RECRUIT, RETAIN AND DEVELOP THE VERY BEST
diverse background
Non-ethnically
diverse background                                  8
                                                         TALENT, REGARDLESS OF BACKGROUND, TO DRIVE BUSINESS
                                                         SUCCESS. DIVERSE PERSPECTIVES ARE TRULY VALUED AT
Senior management                                        SYNTHOMER AND ALLOW US TO MAKE BETTER, MORE
Ethnically                                           6
                                                         INFORMED DECISIONS. CREATING AND MAINTAINING AN
diverse background
Non-ethnically
diverse background                                  42
                                                         INCLUSIVE CULTURE WHERE EVERYONE FEELS VALUED IS
                                                         ALSO SIMPLY THE RIGHT THING TO DO.”
                                                         Rob Tupker
                                                         President – Functional Solutions
                                                         and Executive Team Sponsor for D&I

                                                                                                                     FUTURE ACTIVITIES
                                                                                                                     By 2021
                                                                                                                     • 20% female representation in
                                                                                                                       senior leadership
                                                                                                                     • Implement the 2021 Synthomer
                                                                                                                       Diversity and Inclusion Plan

                                                                                                                     By 2022
                                                                                                                     • 25% female representation in
                                                                                                                       senior leadership

                                                                                                                     By 2025
                                                                                                                     • 33% female representation in
                                                                                                                       senior leadership
                                                                                                                     • 20% ethnic diversity in senior leadership

                                                                                                                     By 2030
                                                                                                                     • 50% of new hires in leadership,
                                                                                                                       management and professional roles
                                                                                                                       being women

17       Synthomer plc Sustainability Report 2020
Environmental, Social and Governance (ESG) – review of our six pillars

3. People – Support communities                                       (GRI 413-1)

Synthomer has engaged with its communities             supplies, she approached a family member who
in various ways around the world. 2020 was             works for Synthomer with a request for help.
a challenging year for volunteering due to             We were able to source a supply of gloves and
COVID-19 restrictions, but our sites continued         also help with the significant challenge of getting
to positively interact with their local communities.   the consignment from Malaysia to an extremely
                                                       remote location in rural Tanzania.
                                                       The volunteers’ group in Sintra (Portugal)
                                                       is active in three areas: social, environment
                                                       and education. For the last ten years, they
                                                       have been engaging with the communities               On the environmental side, several colleagues
The US Synthomer Foundation was founded                in activities such as painting, cleaning fields       volunteered to take part in the ‘Broom Day’
some 60 years ago as a funded endowment                in the woods, performing sessions on                  in Marl (Germany), an annual event with the goal
to benefit US communities.                             chemistry, waste and safety in elementary             to clean up the neighbourhood. The volunteers
                                                       schools, supporting activities with the               from the Marl office split into three groups and
                                                       elderly population, making donations of               cleaned the surrounding pavements and green
                                                       food or gathering and donating clothes                spaces on planned routes. In all, volunteers –
                                                       to homeless people.                                   including our employees – helped collect
                                                                                                             9.8 tonnes of litter.
Whether providing grants to non-profit                                                                       Support during the COVID-19 pandemic
organisations or volunteering with employees                                                                 In Malaysia Synthomer donated protective
through our We Care initiative, we are dedicated                                                             gowns and N95 face masks to the Kluang
to making a positive impact in the communities                                                               General Hospital. In addition to the Company
where we operate throughout the USA. In 2020,                                                                donation, a group of Kluang employees
the Foundation awarded nearly $1.2 million to                                                                independently gathered donations in the
non-profit organisations in the USA which                                                                    form of personal protective equipment
provide services that improve the quality of life                                                            (PPE) and food supplies for the hospital.
through education, health and human service,
civic initiatives and the arts.                                                                              In Italy, Synthomer donated 450,000 medical
                                                                                                             gloves to the municipal Papa Giovanni XXIII
The Synthomer Foundation accounts for the                                                                    Hospital in Bergamo, Italy. The hospital is
donations of our USA operations and in 2020                                                                  situated in the heart of the Lombardy region
we highlight the following activities: Our Global                                                            of Italy which has been severely affected by the
Technology Centre in Akron (USA) donated                                                                     COVID-19 pandemic. Our Filago plant, which
laboratory-grade glassware to Kent State                                                                     produces Nitrile latex for the medical glove
University. We were delighted to support the                                                                 industry, is situated just 17km from the hospital.
local community and help the next generation
of Science, Technology, Engineering and                                                                      In Germany we donated used but functional
Mathematics (STEM) students in their academic                                                                laptops to the Aloysius elementary school
journey. Colleagues from Roebuck (USA)                                                                       in Marl. The laptops were prepared with
participated in the ‘Bags of Love’ charity project                                                           updated software by the Synthomer IT team
and donated gift bags to housebound seniors                                                                  and then donated to the school, which
in their community for Valentine’s Day. The bags                                                             passed the devices to pupils who used them
included Valentine’s cards, books and                                                                        for their home schooling.
pharmacy items and were given to elderly
community members who are housebound                   “OUR FOUNDATION HAS A
due to mobility limitations. Synthomer has been
taking part in this annual project for several         RICH COMMUNITY HISTORY                                 FUTURE ACTIVITIES
years and cooperates with ‘United Way of the
Piedmont’ and ‘Meals on Wheels’ to provide
                                                       OF ENHANCING THE QUALITY                               By 2021
the bags to their recipients.                          OF LIFE FOR THOSE IN NEED.                             • Draw on the experience of the
                                                                                                                Synthomer Foundation to expand
Colleagues in Malaysia have supported                  IT’S BEEN AN HONOUR TO                                   community support activities
a rural hospital in Tanzania with a donation
of medical gloves. This initiative was started         LEAD THIS EFFORT FOR                                   By 2030
by a medical student at Glasgow University,
who volunteered at the Kilimatinde Hospital in
                                                       NEARLY THREE DECADES.”                                 • Provide volunteer support and financial
Tanzania during her final year project in 2019.        Theresa Carter                                           contributions in excess of £1 million per
Seeing the serious shortage of essential medical       President – The Synthomer Foundation                     year to advance education, public health,
                                                                                                                diversity and environmental stewardship

18    Synthomer plc Sustainability Report 2020
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