2013 Sustainability Overview

Sustainability Overview Ashland Inc. 2013

With good chemistry great things happen.™

Contents Profile........................................................................................................................................................................................................... 3 Performance Summary................................................................................................................................................................ 6 Economic Summary......................................................................................................................................................................... 13 Environmental Summary............................................................................................................................................................ 14 Innovative and Sustainable Products............................................................................................................................. 18 Labor Practices and Decent Work Summary............................................................................................................ 20 Human Rights Summary............................................................................................................................................................. 25 Society Summary............................................................................................................................................................................... 26 Product Responsibility Summary....................................................................................................................................... 27 GRI G3 Index........................................................................................................................................................................................... 29

Ashland Inc.

Fiscal 2013 Sustainability Overview

Profile

1 Strategy and Analysis 1.1 CEO statement Within Ashland, we like to say that — With good chemistry great things happen.™ That’s not simply a tagline that appears under our logo. Those six words go to the very heart of what we’re trying to build as a socially responsible company with 15,000 employees and customers in 100 countries.

Whether it’s the way we treat each other at work or how we partner with our customers, suppliers and local communities, Ashland is committed to being a leader among global specialty chemical companies.

James J. O’Brien Chairman and Chief Executive Officer

You will find tangible examples of that commitment demonstrated every day in our offices, research labs, technical centers and manufacturing facilities around the world. It is there you’ll see our global employee teams hard at work, developing breakthrough chemistries that help our customers succeed while operating more sustainably: • At Ashland’s facility in Chatham, N.J., our teams discovered that a byproduct generated during the manufacturing of a cosmetic ingredient has beneficial use as a fertilizer for sod farms, thereby eliminating the waste and disposal of the byproduct.

• At our plant in Texas City, Texas, a hydrogen byproduct generated during a specialty chemical manufacturing process is being captured and combusted in the facility’s boiler for steam generation.

• Within our Valvoline business, we reduced landfill waste by 44 percent in 2013 by repurposing materials previously designated for disposal. As a result, Valvoline now has established zero landfill facilities in College Park, Ga.; Noblesville, Ind.; and Dordrecht, The Netherlands.

These are just a few examples of the progress Ashland is making in building a legacy of meaningful contribution in the area of sustainability. We’re also working to become smarter, more efficient consumers of energy and water. For example, we have cut our overall water usage by 11 percent over the past two years. In 2013, we reduced our consumption of fuel oil by 82 percent by converting boilers at a number of our manufacturing plants to natural gas, which is cheaper and lowers our carbon emissions. We plan to convert more boilers from oil to natural gas in the years to come. Ashland reduced its hazardous waste generation by 28 percent, or nearly 7 million pounds, compared to the previous year, with progress in every region of the world.

Oct. 1, 2012, to Sept. 30, 2013

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Fiscal 2013 Sustainability Overview

Ashland Inc.

We’re also doing a better job of recycling. Ashland Specialty Ingredients, our largest business, recycled more than 20 metric tons of chemicals last year. Besides providing a cost benefit to our plants, recycling eliminates the need to dispose of these chemicals after a single use.

We execute this commitment to sustainability through Ashland’s comprehensive Responsible Care* program, a global industry initiative introduced in the 1980s to advance the safe and secure management of chemical products and operations. Ashland was one of the early adopters of the Responsible Care Code of Management Practices. Within Ashland, this program today includes a global management system, employee involvement at every level of the organization, continuous improvement toward our goal of operating with zero incidents, achieving 100 percent compliance, and reducing our environmental, health, safety and security impact. The tenets of Responsible Care are the foundation for Ashland’s past, present and future.

Whether it’s helping to bring clean drinking water to an elementary school in Ahmedabad, India; teaching groups of students about environmental responsibility at our manufacturing plant in Jiangmen, China; or providing matching gifts to non-profit groups when our employees volunteer their time in our “Dollars for Doers” program, Ashland is committed to helping protect our environment and enhance our local communities.

We have made good progress on our sustainability efforts, but we expect more – and so do our customers, suppliers and others. We will continue working with our business teams around the world to identify opportunities for responsibly managing our global environmental, health, safety and security obligations while also giving back to local communities where our employees live and work.

At Ashland, we are nearly 15,000 people – from renowned scientists and research chemists to talented engineers and plant operators – working together to deliver sustainable value to stakeholders around the world. In the year ahead, we look forward to sharing more stories about how, with good chemistry, Ashland is making great things happen.

James J. O’Brien Chairman and Chief Executive Officer

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Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

Fiscal 2013 Sustainability Overview

Ashland’s Basic Elements of Sustainability Products Quality Product Stewardship Sustainability

People Safety Community Compliance Diversity and Inclusion

Planet Environment Carbon Footprint Community

Corporate responsibility Corporate responsibility and sustainability are important in all of Ashland’s business activities. This Sustainability Overview highlights Ashland’s efforts to find the best balance between environmental, social and economic needs. To prepare this document, Ashland followed the Global Reporting Initiative (GRI) guidelines, one of the world’s most widely used sustainability reporting frameworks.

GRI Application Level C Ashland is moving forward with tracking and reporting sustainability metrics. This report is an overview of Ashland’s efforts using GRI’s 2006 G3 guidelines at Application Level C. Please refer to GRI’s website, www.globalreporting.org, for more details.

See page 29 for a complete list of indicators.

Oct. 1, 2012, to Sept. 30, 2013

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Fiscal 2013 Sustainability Overview

Ashland Inc.

Performance summary Performance Data Economic Performance (in millions, except per share data)

2013

2012

Sales

$7,813

$8,206

Operating income

$1,241

$302

EBITDA

$1,662

$714

Adjusted EBDITA

$1,242

$1,359

Income from continuing operations

$677

$38

Net income

$683

$26

• Income from continuing operations

$8.50

$0.48

• Income (loss) from discontinued operations

$0.07

(0.15)

• Net income

$8.57

$0.33

Cash flows from operating activities from continuing operations

$791

$385

Additions to property, plant, equipment

$314

$298

14,200

14,900

• Electricity (gigajoules)

4,270,000

4,110,000

• Natural gas (gigajoules)

10,150,000

8,510,000

• Other fuels (gigajoules)

1,746,500

2,330,040

• Direct (MT CO2 eq. emitted)

732,000

724,000

• Indirect (MT CO2 eq. emitted)

417,000

467,000

Toxic release inventory (million pounds)

40.38

44.06

Hazardous waste disposal (metric tons)

7,387

10,341

Water withdrawal (million cubic meters)

21.8

22.2

14,600

14,600

11.7

21.4

• Employee recordable injury rate

1.03

1.1

• Employee lost workday rate

0.47

0.44

0

0

$937,312

$806,202

Diluted earnings per share

Number of shareholders Environmental Stewardship Total energy consumption

Greenhouse (gas emissions)

Social Responsibility Total employees at fiscal year-end Average formal training hours per employee per year Safety performance

• Employee fatalities Philanthropy Cash and in-kind donations (USD)

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Oct. 1, 2012, to Sept. 30, 2013

Our vision

Our values

What we seek to become.

Our vision is to be viewed as the best specialty chemical company in the world.

Who we are.

• We act with integrity and honesty.

• We focus on customer and shareholder success and compete to win.

• We recognize each person for the difference he or she makes.

• We drive innovation and results by understanding the market and its opportunities.

• We are committed to the values of responsibility, sustainability and transparency.

• We create safe and health-conscious work environments, require compliance and embrace environmental stewardship.

Our mission

Why we are here.

We satisfy our customers by delivering results through quality chemical products and services. Our desire to grow drives our passion to win in the marketplace. With a unified, low-cost operating structure, we’ll remain competitive across every business and in every geographic region.

2.0 Organizational Profile 2.1 Name of the organization Ashland Inc. 2.2 Primary brands, products and services Ashland Inc. (NYSE: ASH) is a global leader in providing specialty chemical solutions to customers in a wide range of consumer and industrial markets. Through our four commercial units – Ashland Specialty Ingredients, Ashland Water Technologies, Ashland Performance Materials and Valvoline – we use good chemistry to make great things happen for customers in more than 100 countries.

Our innovative products and services add value to a variety of things that touch people’s lives every day. Our chemistries help whiten your teeth, protect you from the sun and make your medicine work more effectively. We help create cleaner water for industrial and commercial companies and help provide more sustainable building products and energy sources. We protect the environment through recycled, re-refined motor oils. Our ingredients can be found across a broad spectrum of applications, including architectural coatings, automotive, construction, energy, food and beverage, personal care, pharmaceutical, pulp and paper, and water treatment.

Ashland Specialty Ingredients Ashland Specialty Ingredients offers industry-leading products, technologies and resources for solving formulation and product-performance challenges. Using natural, synthetic and semisynthetic polymers derived from plant and seed extract, cellulose ethers and vinyl pyrrolidones, Specialty Ingredients offers comprehensive and innovative solutions for consumer and industrial applications.

Key customers include pharmaceutical companies; makers of personal and home care products, food and beverages; manufacturers of paint, coatings and construction materials; and oilfield service companies.

Ashland Water Technologies1 Ashland Water Technologies is a leading supplier of specialty chemicals and services to the pulp, paper, mining, food and beverage, power generation, refining, chemical processing, general manufacturing and municipal markets. We offer chemical and equipment technologies and services designed to help customers improve operational efficiencies, enhance product quality, protect plant assets and minimize environmental impact.

To meet the diverse requirements of our customers, Water Technologies offers a range of services, including start-up and ongoing applications support, analytical and applications laboratories and customized program offerings.

Water Technologies’ products include biocides, cleaners, coagulants and flocculants, converting additives, corrosion inhibitors, defoamers, deposit control agents, food and beverage processing aids, internal and surface size agents, membrane treatments, mining and mineral processing aids, monitoring and control systems, odor inhibitors and neutralizers, oxygen scavengers, pulp mill additives, retention, drainage and clarification aids, scale inhibitors, sludge dewatering polymers, surface treatments, tissue-making additives, wet- and drystrength additives and wood adhesives.

On July 31, 2014, Ashland Inc. completed the sale of Ashland Water Technologies to a fund managed by Clayton, Dubilier & Rice. For purposes of this report, which covers Ashland’s 2013 fiscal year, Water Technologies’ business and operations have been included.

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Fiscal 2013 Sustainability Overview

Ashland Inc.

Ashland 2013 Specialty Ingredients Sales by Market

Sales by Product

Sales by Region

 Specialty

 Cellulosics 33%

Performance 25%  Industrial 18%  Personal Care 23%  Pharmaceutical/ Nutrition 20%  Coatings 14%

 Solvents/

 North America 32%

Intermediates 18%  PVP 16%  Guar 7%  Vinyl Ethers 5%  Actives 5%  Biocides 4%  Other 12%

 Asia Pacific 19%

Water Technologies Sales by Market

Sales by Product

 Europe 39%

 Latin America/Other

10%

Sales by Region

 Paper 66%

 Functional 46%

 North America 45%

 Industrial 32%

 Utility 28%

 Europe 35%

 Municipal 2%

 Process 26%

 Asia Pacific 11%  Latin America/Other

9%

Performance Materials Sales by Market

Sales by Product

Sales by Region

 Construction 49%

 Composites 58%

 North America 65%

Industrial 30% Residential 14% Infrastructure 5%  Transportation 25%  Packaging & Converting 15%  Marine 11%

 Elastomers 20%

 Europe 20%

 Adhesives 22%

 Asia Pacific 10%

Valvoline Sales by Market

 Latin America/Other

5%

Sales by Product

International Sales by Region1

 Do-It-For-Me 40%

 Lubricants 85%

 Asia Pacific 58%

Installer Channel 24% Valvoline Instant Oil Change 16%  Do-It-Yourself 30%  Valvoline International 30%

 Chemicals 8%

Australia 24% Other Asia Pacific 34%  Europe 25%  Latin America/ Other 17%

 Antifreeze 5% 

Filters 2%

Includes nonconsolidated joint ventures 1

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Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc. Ashland Performance Materials Ashland Performance Materials is a global leader in helping customers create stronger, lighter, more resistant substitutes for traditional materials through higher performing, cost-efficient resin and adhesive technologies that improve the manufacturing, fabrication and design process. Applied industries include manufacturing, building and construction, packaging and converting. In addition, the elastomers line of business provides high-quality styrene butadiene rubber primarily to the tire market.

Performance Materials also provides metal casting consumables and design services for effective foundry management through the ASK Chemicals GmbH joint venture.2 Performance Materials’ composite resins; water-based and energy-curable coatings; pressure-sensitive adhesives; and elastomers are used in the construction, transportation, infrastructure, boatbuilding, and packaging and converting markets.

Key customers include manufacturers of residential and commercial building products, infrastructure engineers, wind blade manufacturers, pipe manufacturers, auto and truck makers, tire makers, commercial label printers, specialty film converters and boatbuilders.

Valvoline Valvoline is a leading, worldwide producer and distributor of premium-branded automotive, commercial and industrial lubricants, automotive chemicals and car-care products. It operates and franchises approximately 900 Valvoline Instant Oil ChangeSM centers in the United States. It markets Valvoline™ lubricants and automotive chemicals; MaxLife™ lubricants for cars with higher mileage engines; NextGen™ motor oil, created with 50-percent recycled oil; SynPower™ synthetic motor oil; Eagle One™ and Car Brite™ automotive appearance products; and Zerex™ antifreeze.

Key customers include retail auto parts stores and mass merchandisers who sell to consumers; installers, such as car dealers, repair shops and quick lubes; commercial fleets; and distributors.

2.3 Operational structure At the end of fiscal 2013, Ashland operated through four commercial units: Specialty Ingredients; Water Technologies; Performance Materials; and Valvoline, which includes the Valvoline™ family of products and services.

2.4 Headquarters location Ashland is headquartered in Covington, Ky., USA, with regional offices in Shanghai, P.R. China; Barendrecht, Netherlands; Schaffhausen, Switzerland; São Paulo and Araçariguama, Brazil; Mumbai, India; Dublin, Ohio; Lexington, Ky.; Bridgewater, N.J.; and Wilmington, Del., USA.

Fiscal 2013 Sustainability Overview 2.5 Countries of operation In fiscal 2013, Ashland operated 90 manufacturing sites and 36 research, development and technical centers, serving customers in more than 100 countries on six continents. Ashland maintains major administrative offices in Brazil, Canada, China, the Netherlands, Switzerland and the United States.

2.6 Ownership structure Listed on the New York Stock Exchange under the ticker symbol ASH, Ashland Inc. is incorporated under the laws of the commonwealth of Kentucky (USA). Approximately 77.5 million shares were outstanding as of Sept. 30, 2013, and there were approximately 14,200 common stockholders of record.

2.7 Markets served The markets in which Ashland serves and competes are: • • • • • • • • • • • • • • • • • • • • •

Advanced Materials Biorefining Building and Construction Chemical Processing Commercial and Institutional Electronics Energy Food and Beverage General Manufacturing Home Care Metals and Metal Processing Mining and Extraction Municipal Packaging, Converting and Printing Paint and Coatings Personal Care Pharmaceutical Power Generation Printing and Inks Pulp and Paper Transportation

2.8 Organization scale Ashland and its consolidated subsidiaries employed approximately 15,000 people worldwide at Sept. 30, 2013.

2013 fiscal net sales: $7,813 million Total capitalization Total Assets: $12,088 million Total debt: $3,267 million Stockholders’ Equity: $4,553 million Additional information about Ashland may be found in its annual report on Form 10-K for fiscal 2013, available on the company’s website at http://investor.ashland.com or by contacting Ashland Inc., Investor Relations, P.O. Box 391, Covington, Ky., (USA) 410120391 (phone: +1[859] 815-4454).

2.9 Significant operational changes There were no significant operational changes in 2013.

On June 30, 2014, Ashland Inc. completed the sale of this joint venture to investment funds affiliated with Rhone, a private equity investment firm.

2

Oct. 1, 2012, to Sept. 30, 2013

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Fiscal 2013 Sustainability Overview 2.10 Awards In August 2013, 42 Ashland sites were recognized for successes in Responsible Care* by the American Chemistry Council (ACC).

Award winners qualified based on exemplary performance and were selected by a committee composed of ACC and external experts. The Responsible Care Energy Efficiency Awards program is among the ACC’s many ongoing initiatives to improve energy efficiency. Member companies are required to consider operational energy efficiency as well as waste minimization, reuse and recycling when developing their environmental, health, safety and security plans.

In June 2013, Ashland’s manufacturing facility in Texas City, Texas, received a “Best in Texas” safety award from the Texas Chemical Council and Association of Chemical Industry of Texas (TCC/ACIT).

The annual award, which is the trade associations’ highest honor, recognizes outstanding safety performance for facilities in four size categories. Ashland’s Texas City facility was named the 2012 winner in the category for 61-200 employees. A panel of industry peers reviewed safety data and safety programs at 22 member plants. Among the criteria used in judging are performance and leadership in employee and contractor safety programs, as well as participation in TCC activities and annual training seminars.

In May 2013, Ashland Specialty Ingredients (ASI) received a Ringier 2013 Coatings Technology Innovation Award for its breakthrough Natrosol™ Performax paint thickening technology. It is the third consecutive year Ashland has won the innovation award. Natrosol Performax was officially introduced to China’s market in 2012.

This new range of hydroxyethylcellulose (HEC) thickeners allows paint manufacturers to add HEC in a dry form at any point in the paint production process by rapidly dispersing in a water-based medium without lumps.

In April 2013, Ashland’s manufacturing plant in Beijing, China, received a Golden Safety award from the Beijing Tongzhou District Safety Bureau. Initiated in 2011, the award promotes safe production standards.

In February 2013, Ashland Specialty Ingredients (ASI) Philippines received the Chemical Supplier of the Year Award from Splash Corporation, the biggest personal care products manufacturer in the Philippines. Ashland was chosen from a select pool of the top 20 key raw materials and packaging suppliers.

The award recognized Ashland’s long-term commitment to providing excellent products and services; an efficient inventory management system; on-time delivery; and quick response to the customer’s requirements.

That same month, Ashland received the Best Supply Performance Award for 2012 by Henkel at the 2013 American Cleaning Institute (ACI) annual meeting.

In January 2013, Cosmetics & Toiletries, a global trade magazine for the scientific community, announced that ASI was among the finalists for the publication’s 2013 R&D Awards. ASI was named

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Ashland Inc. a finalist for Most Creative Application for its patent-pending HydroSheer™ sun care formulations, a breakthrough technology.

3.0 Report Parameters 3.1 Reporting period Ashland’s fiscal and reporting year is Oct. 1, 2012, to Sept. 30, 2013.

This overview covers metrics and activities during Ashland’s fiscal year, unless otherwise stated.

3.2 Most recent reports This is Ashland’s fourth report using the GRI guidelines. Ashland’s prior report was published in 2013, covering fiscal-year 2012 data.

3.3 Reporting cycle The reporting cycle will be annual and based on Ashland’s fiscal year.

3.4 Contact point Gary Rhodes Director, Corporate Communications Ashland Inc. 50 E. RiverCenter Blvd.

Covington, KY (USA) 41011 +1 (859) 815-3047 glrhodes@ashland.com 3.5 Report content defined Ashland’s sustainability report contains information on the company’s performance in the following areas: environmental stewardship, social responsibility, product stewardship and economic performance. The subjects in this report were selected based upon the GRI guidelines, our management systems, goals and objectives and their importance to our stakeholders.

Our primary audience for this report includes, but is not limited to, the following stakeholders: • Current shareholders and prospective investors; • Customers interested in our sustainability policies and practices; • Current and prospective employees seeking to work for a sustainability-minded company; • Communities where we operate that want to understand how we manage and operate our business as a responsible corporate citizen; • Suppliers with whom we partner, who are critical to our operations; and • Governmental and non-governmental agencies that have an interest in our business and operations.

Our stakeholders help shape our businesses and contribute to our overall success. We strive to be transparent with regards to our activities and operations, and we engage with our stakeholders on their issues of concern in a manner that is positive and constructive.

Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc. 3.6 Report boundary The report covers only Ashland’s majority-owned facilities and operations as of Sept. 30, 2013, unless otherwise noted.

3.7 Limitations of boundary The data included in this report was readily available at the time of preparation. Future reports will contain data for a broader set of indicators as it becomes available.

3.8 Non-majority-owned enterprises No joint ventures, subsidiaries, leased facilities, outsourced operations or enterprises are included in this overview unless they are majority owned.

3.9 Data measurement techniques and bases of calculations Ashland collects information through several data-management systems that were developed to meet specific data-collection requirements. Our Corporate Environmental, Health, Safety and Product Regulatory Department collects data on energy use and emissions, environmental, health and safety incidents, and process safety incidents for use in tracking and reporting our performance.

3.10 Restatements of previous information There are no restatements.

3.11 Significant changes from previous reports There are no significant changes from previous reporting periods.

3.12 GRI content index of standard disclosures The GRI Index is provided at the end of this report.

4.0 Governance, commitments and engagements 4.1 and 4.3 Governance structure and highest governance body For fiscal 2013, Ashland was governed by an 11-member board of directors, 10 of whom were independent directors under New York Stock Exchange guidelines.

For fiscal 2013, the board maintained the following four committees, each consisting entirely of independent directors: Audit – Assists the board in fulfilling its oversight responsibilities relating primarily to: (a) the integrity of Ashland’s financial statements and financial reporting process; (b) the integrity of the systems of internal accounting and financial controls; (c) the performance of the internal audit function and independent auditors; (d) independent auditors’ qualifications and independence and the audit of Ashland’s financial statements; (e) risk-management policies and processes; (f) financial affairs; and (g) legal and regulatory compliance requirements.

Environmental, Health, Safety and Product Compliance (EHS&PC) – Reviews and oversees EHS&PC policies, programs and practices and product-quality issues that affect, or could affect, employees, customers, shareholders and neighboring communities.

Oct. 1, 2012, to Sept. 30, 2013

Fiscal 2013 Sustainability Overview Governance & Nominating – Assists the board in: identifying qualified individuals to become board members; determining the composition of the board and its committees; developing and implementing corporate governance guidelines; and ensuring the independence of the board as it exercises its corporate governance and oversight roles.

Personnel & Compensation – Assists the board in discharging its duties related to: executive compensation; succession; and the adoption, amendment and termination of employee benefit plans sponsored, maintained or contributed to by Ashland, its subsidiaries and affiliates.

The board recognizes the company’s responsibility to protect the health and safety of its employees and the public and to sustain the quality of the environment for future generations. The board monitors public issues that have an impact on the company and maintains oversight of Ashland’s EHS&PC compliance practices. The primary responsibility for assuring compliance with EHS&PC laws and regulations lies with operating management.

During fiscal 2013, Ashland’s day-to-day operations were managed by a three-member executive committee and an 11-member operating committee.

4.2 Governance chair James J. O’Brien, chairman and chief executive officer, is an executive officer, a member of the executive and operating committees and the board of directors. Ashland believes the combined position of chairman and chief executive officer provides clarity of leadership and is in the best interests of Ashland and its shareholders at this time. Ashland also has a lead independent director who coordinates the activities of the company’s independent directors.

4.4 Mechanisms for recommendations Ashland shareholders as of the declared record date are entitled to vote upon matters that come before the company’s annual meeting of shareholders held in January each year. Each Ashland proxy statement provides information as to: (a) how shareholders may submit proposals for consideration at the following year’s annual meeting; (b) how shareholders can make recommendations for director candidates; and (3) the process by which shareholders and other interested parties may communicate with the board.

In addition, Ashland’s external website provides a feedback form for contacting the Investor Relations Department and a mechanism to sign up for email notifications about Ashland’s financial information.

Ashland employees are provided numerous opportunities to engage with executive management, including via worldwide corporate, commercial-unit and resource-group town hall meetings and regional and facility-based employee meetings. All such communication channels incorporate a question-and-answer period.

Additional engagement resources include global/regional executive email boxes, facility-suggestion boxes and a variety of surveys through which employees can provide feedback, suggestions and new product ideas to company management.

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Fiscal 2013 Sustainability Overview 4.12 Externally developed economic, environmental, and social charters, principles or other initiatives to which the organization subscribes or endorses Commitment to Responsible Care* As a member of the American Chemistry Council, Ashland was one of the early adopters of the Responsible Care Code of Management Practices, which were initiated in the early 1980s.

Ashland continues to implement the Responsible Care Management System throughout its worldwide operations. We are committed to continuous improvement of the environmental, health and safety performance of our operations and products.

Commitment to energy efficiency Ashland is committed to reducing its environmental footprint and employing initiatives to conserve and use energy efficiently in our operations. Ashland also participates in the Carbon Disclosure Project, where we publicly report our overall greenhouse gas data and associated risks/opportunities.

Commitment to safety and security of operations Ashland is committed to protecting the safety and security of its employees and follows the following security policies as applicable to specific facilities and operations: • American Chemistry Council’s Responsible Care Security Code • Department of Homeland Security Chemical Facilities AntiTerrorism Standards • United States Coast Guard Maritime Transportation Security Act • Customs-Trade Partnership Against Terrorism 4.13 Memberships in associations and/or national or international advocacy organizations Ashland participates in many associations and trade groups at the regional, national and international levels. Primary association memberships include: • American Chemistry Council (ACC) • Automotive Specialty Product Alliance (ASPA) • Carbon Disclosure Project (CDP) • Chemistry Industry Association of Canada (CIAC) • Conference Board • Consumer Specialty Product Association (CSPA) • European Chemical Industry Council (CEFIC) • Global Environmental Management Initiative (GEMI) • The Nature Conservancy • Supplier Ethical Data Exchange (SEDEX) • Society of Chemical Manufacturers and Affiliates (SOCMA) • Chemical Industry Council (CIA) United Kingdom • Wildlife Habitat Council 4.14 List of stakeholder groups engaged by the organization; and 4.16 Approaches to stakeholder engagement Stakeholder engagement at Ashland is a constant, ongoing activity, occurring at all levels of our organization. Ashland seeks to establish and maintain productive relationships with all of its key stakeholders, encompassing employees, customers, suppliers, government officials, investors and residents of communities in which Ashland operates.

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Ashland Inc. The table below summarizes who we engage with and how.

Stakeholder Group Employees

Methods of Engagement (Including but not limited to) CEO-led company-wide town hall meetings, company webcasts, daily intranet articles, regular employee communications from executives and business leaders, training sessions, employee surveys, employee networks, employee hotline, work councils and union interactions Customers Direct contact through sales and customerrelationship managers, customer service call centers, trade shows, technical applications and support, training sessions/workshops One-one-one meetings, quarterly earnings Investment Community announcements, conference calls, news releases and SEC filings, annual report, annual meeting of shareholders, investor center on ashland.com Suppliers/ One-on-one meetings, contract contractors negotiations, performance reviews, webinars, auditing, shareholders and the investment community, annual report, annual shareholder’s meeting, investor updates, press releases, quarterly results presentations, direct contact Governments and Government affairs liaison, visits to elected regulators officials and agencies, industry and trade associations, direct contact, plant tours and site visits for government officials, grass roots advocacy Local Communities Interaction with civic organizations, business groups, public education support and interaction, local sponsorships, community meetings and events, community volunteerism, Community Advisory Panels (CAPs), visits by community emergency services, city, state, industrial park association memberships Philanthropic Charitable contributions and employeeand non-profit giving programs, employee volunteerism, organizations direct contact, dialogue, collaborative partnerships 4.15 Basis for identification and selection of stakeholders with whom to engage.

Ashland’s engagement with stakeholders is important to our business success. We partner with stakeholders across the company’s value chain that are impacted by the actions Ashland makes and the actions stakeholders make that impact Ashland.

Ashland interacts with selected stakeholders who have specific needs, issues or solutions. Ongoing dialogue and communication with our stakeholders provides Ashland with insight into what we can do as a company to enhance our vision/focus and improve our processes throughout our organization.

Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

Fiscal 2013 Sustainability Overview

Economic summary Ashland’s fiscal 2013 performance (Dollars in millions except per share data) Years ended September 30 Sales Operating income EBITDA Adjusted EBITDA Income from continuing operations Net income Diluted earnings per share • Income from continuing operations • Income (loss) from discontinued operations • Net income Cash flows from operating activities from continuing operations Additions to property, plant, equipment Number of common stockholders of record

2013 $7,813 $1,241 $1,662 $1,242

2012 $8,206 $302 $714 $1,359

$677

$38

$683

$26

$8.50

$0.48

$0.07

(0.15)

$8.57

$0.33

$791

$385

$314

$298

14,200

14,900

EC2 Financial implications and other risks and opportunities due to climate change As noted above, under Items 4.1 and 4.3, Ashland maintains a board-level committee that monitors public issues having an impact on the company and oversees Ashland’s Environmental, Health, Safety, and Product Regulatory (EHS&PR) compliance practices. The vice president of EHS&PR presents potential climate-change impacts and greenhouse-gas (GHG) emissions estimates to the board.

Ashland uses a company-wide process to assess risks in all areas relating to sustainability, including climate change, water resources, waste generation, environmental impact and social concerns. This process covers all types of risks and opportunities, including regulatory, financial and reputational. At the board level, this process is carried out by the Environmental, Health, Safety, and Product Compliance Committee, which serves as the governance body for EHS&PR and sustainability. The board committee meets at least quarterly. The EHS&PR function provides company-wide support throughout the year to all Ashland businesses as they assess these risks to their operations.

Physical risks have the potential to affect Ashland sites in areas prone to sea-level rise or extreme weather events, much as they do the general public and other businesses. However, the company anticipates only minor damage to its sites, and most are expected to be able to return to operation after restoration of utilities. This was our experience in 2012 with Superstorm Sandy and other significant weather events. Resource shortages resulting from these physical risks are also expected to have a similar affect on Ashland as they will on other businesses.

The main regulatory risks to the company involve regulatory controls, such as cap-and-trade, permitting, and emissionreporting regulations that unfavorably affect Ashland and all of industry. While these regulatory burdens do not affect most of Ashland’s facilities directly, due to their low GHG emission rates, Ashland operates several facilities that are subject to GHG emissions reporting or permitting requirements. Ashland also expects to be indirectly affected by the impact on suppliers and customers.

Ashland participates in several markets that have developed as a result of climate change. Ashland’s products have been used for years to create lightweight composites for the automotive industry, which improve fuel efficiency, and for the production of wind turbine blades. Other Ashland products have been used in the development of composite building and construction materials, which can replace traditional concrete and steel construction, provide longer structure life, reduce maintenance requirements and improve energy efficiency. Ashland has also been producing products made from bio-renewable resources for several years and continues to increase those capacities. One Ashland business unit has innovatively utilized and marketed recycled engine lubricating oils. In addition to currently manufactured products, Ashland is constantly evaluating adjacent market opportunities that develop as alternative technologies expand and evolve.

EC3 Coverage of the organization’s defined benefit plans Ashland and its subsidiaries sponsor noncontributory qualified and nonqualified, defined-benefit pension plans that cover many employees in the United States and in a number of other countries. The company also sponsors unfunded post-retirement benefit plans, which provide health care and life insurance for eligible employees who retire or are disabled. Ashland funds its share of the costs of the post-retirement benefit plans as the benefits are paid. The accumulated benefit obligation for all pension plans was $4.2 billion in fiscal 2013 and $4.7 billion in fiscal 2012. The projected benefit obligation for all pension plans was $4.3 billion in fiscal 2013 and $4.9 billion in fiscal 2012.

Ashland has publicly reported about these risks and opportunities to the Carbon Disclosure Project every year since 2006. These statements were also incorporated in the Ashland annual report on Form 10-K for the 2013 fiscal year.

Oct. 1, 2012, to Sept. 30, 2013

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Environmental summary As a worldwide enterprise, Ashland operates in a number of different environments around the world. To minimize the impact of our operations and products, we have implemented environmental, health and safety management systems through our Responsible Care* program to ensure that all Ashland operations achieve and maintain a high level of EHS performance.

Our goals, which are embodied in our Responsible Care* policy, include: Operate with zero incidents. We believe that all injuries, occupational illnesses and incidents are preventable, and we are committed to operating with a zero-incident culture. Our culture engages all employees and promotes off-the-job-safety and environmental stewardship for our employees and their families.

We design, build and operate our facilities to be safe, secure and protective of the environment and the local community.

Ensure compliance. We are committed to ensuring compliance with applicable environmental, health, safety and security laws, regulations, technical specifications and internal standards, while adhering to high ethical standards.

Reduce environmental, health, safety, and security impact.

We are committed to continuously improving our processes and to providing products and services that throughout their life-cycles involve minimum risk to people and the environment, while best meeting the needs of our customers. We are committed to the continual reduction in impact of our operations and products in support of global sustainability efforts. We strive to eliminate or reduce emissions, discharges and wastes from our operations and to promote energy efficiency and resource conservation throughout the value chain.

EN2 Percentage of materials used that are recycled input material Ashland attempts to incorporate recycled materials where possible. Examples of recycled material uses include: • Chemicals: Recovered and recycled chemicals from manufacturing operations, including ethanol, acetone, benzene, isopropyl alcohol, sulfuric acid, polyethylene terephthalate, polypropylene glycol and dimethylformamide, and equivalent to approximately 20 metrics tons annually.

• NextGen™ Motor Oils: Are made with 50 percent re-refined oil.

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• Catalyst recycling program: When possible, Ashland replaces spent catalysts with fresh catalysts. As spent catalysts become available, they are sent to catalyst refiners for regeneration.

• Packaging materials: Other purchased recyclable materials include drums (steel, plastic and fiber), cardboard boxes, and plastic and steel pails.

EN3 and EN4 Direct and indirect energy consumption by primary energy sources During fiscal 2013, Ashland’s global operations consumed the amount of energy shown in the table below. Direct energy includes consumption of fuels by both process and mobile equipment, including natural gas, liquefied petroleum gas, diesel/ fuel oil and gasoline. Direct process energy sources include all fuels used by Ashland plants to prepare goods for consumption, sale and transport, as well as to provide comfort heating for all employees. Direct mobile energy sources include fuels that are combusted in Ashland-owned vehicles, such as fleet cars, lightduty vehicles and product-delivery fleets driven by Ashland employees.

Direct Energy Consumption (gigajoules) Fuels FY13 Natural gas 10,150,000 Fuel oil 204,000 Coal 1,170,000 Liquefied 2,500 Petroleum Gas Other 370,000 Total 11,896,500

FY12 8,510,000 510,000 1,170,000 3,040 650,000 10,843,040

Indirect Energy Consumption (gigajoules) Energy type FY13 FY12 Electricity 4,270,000 4,110,000 Steam 2,340,000 2,480,000 Other 0 0 Total 6,610,000 6,590,000

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Ashland Inc.

Fiscal 2013 Sustainability Overview

Finding New Ways to Manage Waste When it comes to waste management, Ashland looks for new ideas to manage an age old problem. For many years, the company has focused on a wastemanagement hierarchy of Reduce, Reuse, Recycle and Recover waste streams. The ultimate goal is to move up the hierarchy tree from reduction to zero waste.

Reduce has long been a means of waste-management at Ashland. From waste generated in manufacturing processes to energy consumption, it just makes good sense to reduce.

In 2013, Valvoline reduced its landfill waste 44 percent by examining and repurposing materials previously designated for disposal. As a result, Valvoline has established zero landfill facilities at College Park, Ga.; Noblesville, Ind.; and Dordrecht, The Netherlands.

The second step in the waste-management hierarchy, Reuse, either extends a product’s life or reuses a material in a new product or application. Our Chatham, N.J., facility discovered that a byproduct generated during the manufacturing of a cosmetic ingredient can be used as a fertilizer for sod farms, thereby eliminating disposal of a byproduct. At our facility in Texas City, Texas, a hydrogen byproduct generated during a specialty chemical manufacturing process is being captured and combusted in the facility’s boiler for steam-generation.

Recycle, the third step in the hierarchy, involves reuse of materials that cannot be reused in their original

Oct. 1, 2012, to Sept. 30, 2013

form, with minimal reprocessing. Our Ashland Specialty Ingredients operations collect and recycle many of the chemicals used in the manufacture of our products.

These chemicals include acetone, ethanol, toluene, isopropyl alcohol and ammonia. In 2013, Specialty Ingredients recycled in excess of 20 metric tons of chemicals. Besides providing a cost benefit to our plants, recycling eliminates the need to dispose of these chemicals after a single use.

Traditional recyclable materials, such as paper, cardboard, glass, plastic, aluminum and other metals, are also collected from our waste streams and sent to recycling facilities.

Despite all of our reduce, recycle and reuse efforts, some materials end up in our waste streams. To get value from the waste, we move to the last level in the hierarchy, Recover. At our manufacturing site in Calvert City, Ky., we recover clean fuels from our chemical operation, enabling the facility to burn them in the boiler to generate steam. We also send waste material to off-site facilities that use the waste to generate both electricity and steam for energy.

There is no single solution for all our waste-management issues, but these solutions help Ashland reduce its environmental footprint.

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Fiscal 2013 Sustainability Overview

Ashland Inc.

EN5 Energy conservation and efficiency improvements (direct and indirect) Ashland has implemented dozens of initiatives aimed at improving energy efficiency and reducing emissions. These include: Activity Energy efficiency of building services

Description of Activity • Upgrades to: • HVAC, • Lighting, and • Ventilation Energy efficiency • Redesign, replacement, upgrade of of manufacturing equipment; processes • Insulating vessels; • Changes to manufacturing processes; • Installation of high efficiency boilers; • Converting existing boilers to combust natural gas from fuel; • Improve and repair plant utilities; and • Facility improvements based on energy audit findings Process emissions • Redesign/replacement of equipment, reductions and • Changes to manufacturing processes EN8 Total water withdrawal by source In fiscal 2013, Ashland’s facilities consumed 21.8 million cubic meters of water globally, with the largest percentage used for noncontact cooling water. This represents a slight decrease in water usage from 2012. The following table provides information as required by Performance Indicator EN8: Water Withdrawal by Source (in millions of cubic meters) Municipal water Surface water (lakes, rivers, etc.)

Groundwater Total Water Usage (continuing operations)

FY 2013 6.98 9.42 5.41

FY 2012 8.02 9.46 4.73

FY 2011 8.95 9.46 6.06

21.81

22.21

24.47

EN9 Water sources significantly affected by withdrawal of water In 2013, Ashland’s Franklin, Va., facility withdrew 1.7 million cubic meters of groundwater from the Potomac Aquifer. Water levels in the aquifer recently appear to have stabilized.

Ashland’s facility in Savannah, Ga., used 0.94 million cubic meters of groundwater from the Upper Floridian Aquifer Red Zone in 2013. This aquifer experienced significant saltwater intrusion. In April 2012, Georgia Department of Natural Resources, Environmental Protection Division (GAEPD) notified all groundwater withdrawal permit holders and held meetings to discuss the seriousness of the saltwater intrusion.

EN16 Total direct and indirect greenhouse gas emissions by weight: Ashland’s fiscal 2013 GHG emissions in carbon-dioxide 16

equivalents (CO2-E) from global operations are listed in the table below. This information is based on best available data and follows the standards and methodologies of the World Resource Institute/World Business Council for Sustainable Development’s GHG Protocol. All GHG emissions are calculated using published conversion and emission factors.

Greenhouse Gas Emissions (Metric Tons) FY 2013 FY 2012 Direct 732,000 MT 724,000 MT Indirect 417,000 MT 467,000 MT

FY 2011 453,000 MT 269,000 MT

Note: FY 2012 results reflect the impact of Ashland’s acquisition of International Specialty Products (ISP).

EN22 Total weight of waste by type and disposal method Ashland has extensive global programs for waste minimization, recycling and treatment or disposal of generated wastes. We manage our hazardous waste in accordance with governmental regulations and internal policies and procedures. While Ashland does not currently collect data regarding its global, nonhazardous waste generation, this information will be included in future reports.

Global Hazardous Waste (Metric Tons) FY 2013 North America 4,115 South America 232 Europe, Middle East 2,674 and Africa Asia Pacific 366 Total, All Regions 7,387

FY 2012 5,483 396 4,027 435 10,341

In 2013, Ashland had a net reduction of 28.6% of generated hazardous waste compared to 2012.

EN23 Total number and volume of significant spills Ashland did not have any significant spills that could or would have had significant negative impact on the surrounding environment or human health.

In the United States, Ashland is required to report its Toxic Release Inventory (TRI) to the U.S. Environmental Protection Agency (USEPA). The reported data is available on the USEPA’s public website. The table below summarizes Ashland’s TRI releases.

U.S. TRI Waste and Emissions (millions of pounds) 2013 2012 2011 Deepwell Disposal 1.80 1.38 1.43 Releases to Air 1.35 1.31 1.53 Releases to Water 0.06 0.06 0.07 Releases to Land 0.003 0.0 0.06 Offsite Transfers 16.98 19.28 19.94 Releases and Transfers 20.19 22.03 23.02 Total 40.38 44.06 46.05

Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc. EN25 Biodiversity effect on water bodies by discharges of water Wastewater at the majority of Ashland’s sites is processed through publicly owned treatment works (POTWs) prior to discharge to water bodies. Where wastewater is not discharged to a POTW, Ashland has obtained, and complies with, applicable permits to minimize impact on receiving waters. Therefore, Ashland’s discharges do not significantly affect the biodiversity value of water bodies and related habitats beyond those found in typical developed areas.

Habitats protected or restored As part of projects undertaken at Ashland facilities and remediation sites, wildlife habitats are restored to meet or exceed regulatory requirements. These efforts include restoration and enhancement of wetlands and protection of endangered species.

Plans for managing impacts on biodiversity Ashland is an active member of the Wildlife Habitat Council (WHC), a nonprofit, non-lobbying group of corporations, conservation organizations and individuals dedicated to restoring and enhancing wildlife habitats. WHC programs take corporate sustainability objectives and convert them to tangible, measurable, on-the-ground action. As part of its membership, Ashland works with the WHC to identify and implement projects that will have a positive impact on biodiversity.

Partnering with the Delaware Center for Horticulture (DCH) and the University of Delaware College of Agriculture and Natural Resources, more than 50 Ashland employees participated in a two-day event to create a wildlife habitat at the company’s office campus in Wilmington, Del. The project involved almost a year of planning and preparation, starting with a visit and a report issued from the WHC. Employees planted more than 160 plants and trees, and work is ongoing as the site strives to achieve certification through the WHC’s Corporate Wildlife Habitat Certification/International Accreditation Program.

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Environmental protection is a key element of Ashland’s environmental sustainability program. As a part of our commitment, we work to minimize environmental impacts from our operations and products through a number of assessment processes.

Ashland uses stage-gate product-development systems in its New Product Development process, where new products are evaluated. Potential environmental impact and other environmental concerns must be addressed before a product can move to the next phase of development. As part of its productdevelopment program, Ashland proactively seeks alternative raw materials that help reduce our environmental impact.

In 2004, Ashland made a commitment to the American Chemistry Council (ACC) to adopt and implement the newly established Responsible Care Management System (RCMS) in the U.S., including its mandatory, third-party certification. Ashland also has made the commitment to implement RCMS at its worldwide operations. Prior to adopting the new management Oct. 1, 2012, to Sept. 30, 2013

Fiscal 2013 Sustainability Overview system, Ashland implemented the ACC Product Safety Code, which requires a system to manage product stewardship. Today, Ashland’s Product Regulatory Team conducts product safety reviews to help minimize potential adverse effects our products may have on the environment and human health. The team also ensures each product’s specific regulatory requirements are met or exceeded.

Other examples of Ashland’s commitment to product stewardship include participation in the U.S. EPA’s High Product Volume (HPV) chemical testing program and the European Union’s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) initiative.

HPV is a voluntary program and requires participants to make publicly available health and environmental “effects” data on chemicals produced or imported in the U.S. in quantities greater than a million pounds per year.

REACH requires companies to make health and environmental assessments for the chemicals they produce. The two main requirements of REACH are to determine the hazards of chemicals and to carry out comprehensive risk assessments to protect human health and the environment.

Ashland also evaluates environmental protection through its chemical process safety program. Operational changes, including all capital expenditures that finance new products, require a formal assessment of the potential environmental, health and safety impact these changes may have on our operations.

EN27 Percentage of products sold and their packaging materials that are reclaimed by category Ashland sells products in a broad range of markets and for numerous applications, some of which are intermediates to be used in further processing. Ashland products are sold in a variety of packaging, in accordance with distribution regulations. Ashland does not currently maintain data related to downstream product reclamation.

EN28 Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations Penalties and fines assessed against Ashland vary. Criteria include the nature and significance of the alleged violation, the complexity of the facility and mitigation efforts undertaken, including self-reporting and remedial measures. Correspondingly, the amount paid each year will vary.

Year 2009 2010 2011 2012 2013

Environmental Fines ($USD) <$100,0003 <$100,0003 $455,500 $175,000 $2,021,0004

These values are estimates and are composed of insignificant penalties that have been combined for this report.

3

Includes a $2 million penalty paid to US EPA to resolve claims related to alleged unpermitted discharges from a long-closed landfill in western Pennsylvania.

4

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Fiscal 2013 Sustainability Overview

Ashland Inc.

Innovative and Sustainable Products Product

Envirez™ unsaturated polyester resins

Soyad™ adhesives

Natriance™ line of skin care ingredients

Supercol™ GF guar and Supercol U guar rheology modifiers

Enviroshine™ appearance products

Valvoline NextGen™ motor oil

Natrosol™ product family: Natrosol Performax HEC Natrosol B HEC Natrosol FPS™

Natrosol HEC Natrosol Plus HMHEC

Derakane™ epoxy vinyl resins

OnGuard™ 2-plus analyzer

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Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

Fiscal 2013 Sustainability Overview

Description An unsaturated polyester resin composed of rapidly renewable materials. Incorporates a variety of renewable sourced materials, including vegetable oils, ethanol and other bio based-derived glycols in the formulation.

Applications Construction, marine, transportation and energy markets

A patented, formaldehyde-free, water-based adhesive system used to manufacture environmentally friendly hardwood, plywood and composite panels. Formulated with soy flour and a proprietary, crosslinked resin, Soyad is a natural and renewable resource.

Furniture, kitchen cabinetry and other wood composites

Natriance extracts are derived from natural sources, such as pea, flaxseed, corn, bran and soybean. It Natural skin-care products used provides formulators greater options for creating the latest in natural skin-care products, while helping to in creams, lotions, serums and deliver a new level of protection and performance to consumers around the world. other applications for the mass market

Supercol GF guar and Supercol U guar rheology modifiers are all-natural, high-purity, water-soluble guar gums that can be used to thicken personal care formulations. Highly efficient Supercol GF guar and Supercol U guar are 100-percent plant-based polymers. They also conform to Ecocert and COSMOS standards for natural cosmetics.

Personal care products

The Enviroshine™ line of “green” automotive-appearance products are free of the harsh acids, solvents, phosphates and petroleum distillates that can be harmful to humans and animals. The products are biodegradable and will not produce a run-off that could harm aquatic life or the water system or create fumes that may affect air quality or the ozone layer.

Car appearance products: • Car wash • Wheel cleaner • Glass cleaner

Valvoline NextGen contains 50 percent recycled motor oil and offers the same quality as all other Automotive motor oil Valvoline motor oils. Because recycling saves resources, NextGen protects more than automotive engines – it also protects the environment. NextGen is backed by Valvoline’s Engine Guarantee Program.

Natrosol thickeners enhance paint quality and preserve critical performance characteristics, such as efficient thickening, stability, color compatibility and sag-resistance.

Waterborne architectural coatings

Natrosol hydroxyethylcellulose also excels on the sustainability front. The cellulose ether chemistry is derived from natural materials. In addition, HEC is typically sold as a highly efficient dry powder, which means no alkylphenol ethoxylates and no added solvents or carriers.

Derakane offers proven excellence in corrosion-resistant, fiberglass-reinforced plastic (FRP) applications, including exceptional durability, superior heat-resistance, low maintenance and high performance for even the most challenging environments. Ashland is the largest global supplier of specialty corrosion resins.

Building and construction, municipal, pulp and paper, mining and extraction, chemical processing, paint and coatings, power generation, energy

The OnGuard 2-plus analyzer accurately monitors critical cooling-water and heat-exchanger performance Industrial water treatment indicators and parameters, including corrosion, fouling, pH, conductivity, temperature, oxidation reduction potential and water flow. It also provides real-time measurement and process control.

The service has proved in numerous commercial applications to improve operational efficiency, reduce treatment costs and protect plant assets.

Oct. 1, 2012, to Sept. 30, 2013

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Fiscal 2013 Sustainability Overview

Ashland Inc.

Labor practices and decent work summary Diversity and equal opportunity As a global specialty chemical company, Ashland does business in more than 100 countries. We have a significant presence in Australia, Brazil, Canada, China, Germany, Netherlands, Russia, Spain, the United States and many other countries.

Our employees operate across cultures, functions, language barriers and time zones to solve the technical and logistical challenges created by a worldwide customer base. Ashland employees differ in age, gender, race, nationality and language, as well as in personality, behavior, sexual orientation and religious beliefs. They have various skills and abilities, including education, experience and functional knowledge. Their diversity reflects the countries and communities where they live and work, as well as the customers and constituencies they serve.

Ashland is committed to actively creating an environment where each team member feels empowered to learn, grow and maximize his or her personal contribution. By leveraging the similarities and differences that shape each individual, we encourage and promote innovative thinking and drive the kind of sustainable, competitive advantage that will help Ashland grow and create new value for our stakeholders.

To foster a more diverse and inclusive culture, Ashland is focused on the following areas: promoting leadership awareness and engagement; building organizational awareness, skills and behaviors; engaging and retaining a diverse workforce; and sourcing and hiring. All employees are encouraged to help foster a culture of inclusion.

In 2011, Ashland launched two employee-led networking groups, the Ashland Women’s International Network (AWIN) and the African-American Leadership Network (AALN). The networking groups provide members with a forum to communicate and exchange ideas, build a network of relationships across the company and pursue personal and professional development.

Membership in any employee networking group is open to all employees.

Commitment to safety Ashland’s highest priority is the safety and health of employees, customers and the communities where we live and operate. The company believes all accidents are preventable, and preventing workplace incidents is an integral part of our business strategy.

Ashland requires employees to comply with all applicable laws and regulations, as well as Ashland’s safety and health policies. All employees must abide by Ashland’s 10 Safety Expectations and proactively promote our zero incident culture. By incorporating a zero incident culture, our employees take responsibility for their safety-related actions because they are empowered to make informed decisions. Success depends on genuine commitment, basic operating principles, well-communicated visions and, most importantly, a business atmosphere where all employees care for each other.

Zero Incident Culture Cultivating a safety culture is intentional at Ashland and is best shown by our commitment to a Zero Incident Culture (ZIC). ZIC begins with the beliefs, values and actions of Ashland’s leaders demonstrating zero incidents are possible. It means developing processes that promote compliance and allow employees to choose to be safe.

ZIC consists of the following cornerstones: • Leadership – Facilitates appropriate leadership behaviors, tasks and activities to achieve our ZIC. • Employee Engagement – Engages employees in our processes and fosters ownership and accountability for achieving a ZIC. • Risk Reduction – Facilitates proactive processes for identification of risk reduction and near-misses, resulting in a safer work environment and behaviors necessary to achieve a ZIC. • Performance Measurement – Ongoing monitoring, measurement and investigation of our performance for continuous improvement of our processes.

Human rights training Ashland is committed to maintaining a work environment where people are treated with respect. Ashland does not tolerate the harassment of employees or applicants by anyone, including any supervisor, co-worker or third party.

All U.S. and designated non-U.S. employees are required to periodically complete an anti-harassment training course. In fiscal 2013, Ashland provided 5,012 online harassment-awareness training courses to 4,088 employees (some employees, such as managers, take multiple courses due to their roles). This program was introduced to global employees in fiscal year 2010.

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Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

Process Safety At Ashland, process safety management calls for managing the integrity of operating systems by applying good design principles and engineering, as well as sound operating and maintenance practices. Effective process safety management prevents the uncontrolled release of hazardous substances with the aim of avoiding significant incidents with the potential for serious injuries, environmental impact and property damage.

Our approach to process safety management focuses on reducing risks and incidents through our management systems.

This includes classifying risks and scenarios and employing a risk matrix to help us focus overall risk-reduction efforts. We then identify mitigation measures and design and implement multiple safety barriers to reduce and/or eliminate the risks.

Our process safety systems meet, and in many cases exceed, industry norms. We subscribe to industry standards, in addition to our own internal standards that provide an extra level of protection.

In addition to our risk-management processes, we conduct periodic process-hazard assessments to ensure our equipment and processes are operated and maintained to prevent unplanned or uncontrolled release of materials from a process.

Our facilities are also regularly audited to ensure they are in compliance with applicable process safety regulations and standards. The results of these audits are reported to senior management. Where a deficiency is identified, action plans are developed and followed to closure.

As part of our process safety management program, we investigate all incidents and near-misses, determine their root causes and share them across our operations. Ashland also learns from investigations of major industry incidents and incorporates the lessons into our operations and technical standards. We Oct. 1, 2012, to Sept. 30, 2013

Fiscal 2013 Sustainability Overview

also collaborate with the Center of Chemical Process Safety and the American Chemical Council to share lessons learned from our process safety events. Ashland reports process safety performance metrics to our senior management and the American Chemistry Council.

Emergency Preparedness At Ashland, effective emergency preparedness highly depends on good planning and training with emergency personnel both within our operations and the communities where we work. To develop and implement emergency response strategies, we bring together representatives from health and safety, environmental, security, human resources, operations management and other technical advisers to formulate response plans. We also work with local emergency planning committees and response teams to share our plans and pool our resources. We routinely test our plans with our trained emergency-response teams on a range of possible scenarios, including simulated spills, fires, explosions, natural disasters, security incidents and medical emergencies.

Every Ashland site conducts drills in accordance with Ashland and regulatory requirements.

In 2013, our Calvert City plant conducted a comprehensive drill with the Calvert City Industrial Mutual Program (CIMAP). CIMAP is a mutual aid group consisting of local industries and city emergency agencies in western Kentucky that help one another in times of emergencies. The drill, held at a member plant, tested response capabilities to a simulated chemical release, resulting in a list of identified good practices and areas for improvement. The drill is conducted annually and provides an excellent opportunity to practice combined emergency response capabilities.

Additionally, Ashland operating facilities permit local emergencyresponse teams to observe and walk through our facilities so they may become familiar with our sites and internal response capabilities.

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Fiscal 2013 Sustainability Overview

Ashland Inc.

Responsible Care* We are committed to excellence in environmental health, safety and security, and to having a positive impact on the communities in which we operate and society as a whole. How strong is this commitment? We’ve made it a company policy.

We carry out our commitment by supporting the principles and ethics of Responsible Care, a global initiative to advance the safe and secure management of chemical products and operations. Our Responsible Care program includes: • A global management system to deliver excellence in environmental, health, safety and security performance and to meet required local, regional, international and business-specific standards.

• Employee involvement at every level of the organization.

• Continual improvement toward our goals of operating with zero incidents, achieving 100 percent compliance and reducing our environmental, health, safety and security impact.

Security Having a secure workplace is an expectation for all employees, contractors and visitors, and at Ashland this is taken very seriously.

The Ashland Security and Environmental, Health and Safety groups work together to ensure workplace security vulnerabilities are recognized and addressed. Security is part of everything we do, not in addition to the things we do.

Ashland works with the American Chemistry Council (ACC), the Responsible Care Security Code and the Society of Chemical Manufacturers & Affiliates (SOCMA) to develop and understand potential security vulnerabilities at chemical manufacturing sites.

In addition, chemical manufacturers globally are highly regulated for security effectiveness in preventing terrorist activities. These partnerships ensure the best possible plans for preventing and responding to any security event.

Ashland employs several state-of-the-art technologies, communications and administrative controls to prevent our sites from becoming a terrorist target. Among these are security vulnerability analyses (SVA) which are needed to identify potential weaknesses that would allow unintended access to people and assets. Interacting with government officials and other industry leaders allows Ashland to stay current with potential threats, preventive and counter measures. All of these efforts are in place so that everyone at an Ashland site can come to work safe and secure, today and every day.

Certifications As a member of the American Chemistry Council (ACC), Ashland participates in the Responsible Care program for our U.S. manufacturing facilities, headquarters and research and technology centers. All of our U.S.-based facilities are certified in RC14001, an internationally recognized standard. We have extended our certification program to our international 22

operations as well. To date, we have 78 RC14001-certified facilities, of which 28 are international operations. Additionally, we have 32 U.S. and international facilities certified in OHSAS 18001. We plan to certify the remaining international operations to RC14001 within the next few years.

LA1 Total workforce by employment type, contract and region Ashland reported approximately 14,600 employees as of fiscal year-end 2013. Of these, approximately 94 percent were full-time employees.

Geographic Region North America Europe, Middle East & Africa Asia Pacific Latin America Total

Percent 61 21 13 5 100

Approximate Number of Employees 8,900 3,100 1,900 700 14,600

LA4 Percentage of employees covered by collective bargaining agreements During fiscal 2013, approximately 1,206 full time-equivalent employees were covered by collective bargaining agreements at 22 work locations in North America. This represented approximately 14.4 percent of Ashland’s total North American workforce.

In the U.S., most non-supervisory employees are able to organize and bargain collectively on wages, hours, terms and conditions of employment pursuant to the National Labor Relations Act (NLRA).

Under the NLRA, Ashland may voluntarily recognize the union or request an election by secret ballot.

Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

LA5 Minimum notice period(s) regarding significant operational changes, including whether specified in collective agreements If the applicable Management Rights clause or provisions that specifically waive the negotiations process are absent, the NLRA would require that Ashland and the union meet prior to operational changes that would affect or impact wages, hours, and terms and conditions of employment. There is no specific timing for such discussions, and actual time will vary based upon the complexity of the issue. Time specification is not required under law to be incorporated within a collective bargaining agreement, and none of the Ashland collective bargaining agreements provide for a specific period of time.

All Ashland collective bargaining agreements contain a Savings Clause provision, which requires Ashland and the union to re-negotiate any contractual provision during the term of the agreement if such provision is declared invalid due to changes in law.

LA7 Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region Total Recordable Injuries 2013 2012 2011 5 5 and Illnesses TRR TRR TRR5 Ashland 1.03 1.13 1.11 North America (without VIOC) 0.95 0.83 1.00 Europe/Middle East/Africa 0.99 0.83 1.08 Asia Pacific 0.19 0.59 0.59 South America 0.32 0.76 1.40 Valvoline Instant Oil Change 2.44 3.30 1.99 Lost Workday Cases 2013 2012 2011 DAWIR6 DAWIR6 DAWIR6 Ashland 0.47 0.44 0.42 North America (without VIOC) 0.32 0.20 0.27 Europe/Middle East/Africa 0.65 0.50 0.62 Asia Pacific 0.10 0.23 0.40 South America 0.16 0.61 0.70 Valvoline Instant Oil Change 1.14 1.36 0.66 Fatalities 0.0 0.0 0.0

Ashland Total Recordable Occupational Injury and Illness 5 4.5

Occupational Injury & Illness Rate

Ashland’s labor philosophy promotes non-union representation by providing competitive wages and benefits for its employees.

In addition, Ashland promotes open dialogue and reasonable workplace practices and policies for its employees without the intervention of a third party. However, for the locations that are unionized, Ashland recognizes the respective union as the exclusive representative of employees in the bargaining unit and complies with all resulting legal and contractual obligations.

Fiscal 2013 Sustainability Overview

4 3.5 3 2.5 2 1.5 1 0.5 0 2009

2010 Ashland

2011 Business of Chemistry

2012

2013

Manufacturing

LA8 Programs in place to assist employees regarding serious diseases The two categories within Ashland Medical Affairs are occupational medical compliance and personal health and wellness. Both provide opportunities for education and appropriate medical examinations for workers and, in some cases, their families.

The medical compliance programs are designed to assure full compliance with governmental programs related to worker health and occupational exposures. In addition to providing medical exams, education is incorporated to assure the workforce is properly trained to understand and control risks in the workplace. For some specific risks, parallel medical treatments are made available at the worksite to expedite treatment when necessary.

In the personal health and wellness category, an employee assistance program is offered at no cost to employees and families in Canada and the United States to deal with substance abuse and mental health issues. Other programs include weight reduction, smoking cessation, flu shots, health-risk appraisals and assistance with biological issues such as avian influenza, severe acute respiratory syndrome (SARS) and malaria.

While many of the above programs are available to North America employees only, Ashland Medical Affairs continues to globalize its initiatives. Development of the following, additional programs now gives Medical Affairs the ability “to reach out and touch any medical issue, any time, any place in the world.”

• Automatic External Defibrillator management program, now available globally; • Health First, a health and wellness initiative, provides a health risk appraisal in 25 languages; and • International SOS, which provides global medical support for: (a) all employees traveling internationally; (b) severely injured workers outside the US; and (c) various medical issues that may arise in the course of global business.

Total Recordable Rate Days Away From Work Incident Rate FY 2012: Includes ISP acquisition FY 2011: Includes Ashland Distribution and ASK sites prior to divestiture in FY 2011 5 6

Oct. 1, 2012, to Sept. 30, 2013

23

Fiscal 2013 Sustainability Overview LA10 Average hours of training per year per employee The company’s online Learning Management System (LMS), which tracks most, but not all, global training, offered 841 courses to employees, representing 1,200 available training hours, in fiscal 2013. This compares with 821 active courses and 1,067 available training hours in fiscal 2012.

Full-time Ashland employees completed 160,710 hours of LMSprovided training during fiscal 2013, an average of 11.72 hours per full-time employee. This compares with 236,922 hours of training during fiscal 2012, an average of 21.39 hours per fulltime employee. There were 204,222 course completions during fiscal 2013, an average of 14.90 course completions per full-time employee. This compares with 258,756 course completions and an average of 23.36 course completions per full-time employee in fiscal 2012. The number of course completions decreased significantly in fiscal 2013 compared to 2012 due to the complete separation of Ashland Distribution’s employees in LMS. Part-time Ashland employees completed 12,678 hours of training during fiscal 2013, with an average of 17.09 hours spent per parttime employee. This represented 27,380 course completions, with an average of 37 course completions per part-time employee.

This compares with 9,621 hours of training during fiscal 2012, with an average of 15.85 hours spent per part-time employee.

This represented 18,224 course completions in fiscal 2012, with an average of 30 course completions per part-time employee. (Data by region was not readily available.)

Ashland Inc. Ashland also provided tuition assistance for U.S. employees enrolled in higher education programs directed at improving their job performance or helping them prepare for a future job within the company. Sixty-four full-time employees participated in the program during fiscal 2013.

LA11 Skill development and lifelong learning for employees Ashland’s Learning Management System provides employees with required training classes in 13 languages and offers optional classes to further employee development. Classes are available addressing such topics as safety, compliance, customer service, business skills, product training, management skills and professional effectiveness.

LA 12 Percentage of employees receiving performance reviews During fiscal 2013, 71 percent of Ashland’s employees worldwide, excluding those covered by collective bargaining units, received annual performance appraisals. This compares with 75 percent during fiscal 2012 and 78 percent during fiscal 2011 and 2010.

Eighty-seven percent of salaried, non-manufacturing employees received performance ratings in 2013 compared to 98 percent in 2012. In addition to performing annual performance appraisals, Ashland managers are expected to review progress toward achieving annual goals with their employees on a quarterly basis.

Risk Reduction in Action Operations at Ashland’s manufacturing plant in Houston, Texas, which supports Ashland Water Technologies customers are nothing but routine at times — or so they thought. Consider the time a few plant employees were tasked with cleaning out an office area. This included removing office furniture and equipment and disposing of it in the trash compactor.

Prior to the actual removal of furniture, an employee placed some personal belongings in a desk slated to be destroyed. Ultimately, the desk was discarded in the compactor and crushed – along with the personal belongings.

The job at hand now? Retrieve the personal items from the compactor, not a routine undertaking by any means.

In order to address this situation, the employees relied on their non-routine task procedure, coupled with their Hazard Recognition Plus* (HRP) training, enabling them to assess the situation.

Using their Pre-Job Think Card and the “HRP Thought Process,” the employees were able to identify potential energy sources and associated hazards, which ultimately kept them safe while getting the job done.

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Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

Fiscal 2013 Sustainability Overview

Human rights summary Ashland believes in treating people with dignity and respect, including those outside the company. We are firmly committed to conducting business throughout the world in accordance with the highest legal and ethical rules and principles. Ashland’s Global Standards of Business Conduct is the cornerstone of this commitment and sets the standards for our actions. It was established as a guide to help employees understand the company’s expectations and alert them to potential legal and ethical issues. Employees are encouraged to promptly report any potential violations of our Code of Business Conduct to the Law Department or through our Employee Hotline, which is available 24 hours a day, seven days a week.

Ashland is committed to maintaining a professional and safe work environment, free from violence, intimidation, discrimination and harassment.

HR2 Screening of employers and contractors on human rights Supplier Code of Conduct In order to continue to honor our values and principles, Ashland has decided to conduct business with suppliers who share a similar commitment. Ashland has created a Supplier Code of Conduct that outline what Ashland expects from its suppliers with respect to labor and employment rights, environmental, health and safety, business ethics and social responsibility, and global trade practices. Suppliers are expected to adhere to this code, and must operate in full compliance with the laws and regulations of the countries they operate. Ashland expects suppliers to establish programs that are consistent with these policies.

HR 6 Child labor Ashland abides by child labor laws and does not employ underage workers in its worldwide operations.

HR7 Forced and compulsory labor None of Ashland’s operations employ forced or compulsory labor.

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken Ashland has no violations involving the rights of indigenous people.

Supporting our communities Community partnerships enable Ashland to combine our resources with organizations to maximize impact and outcomes.

As a Responsible Care* company, we proactively engage with communities and seek continuous improvement through transparency and dialogue with stakeholders. Through this dialogue, we identify and address social issues, such as education, environmental stewardship and health and human service needs.

Ashland encourages and assists employee volunteers in their community-building activities. At our major U.S. campus locations, we have employee-led Community Engagement Teams that plan and oversee volunteer activities. In China, we have regional employee volunteer clubs that partner with local schools Oct. 1, 2012, to Sept. 30, 2013

and agencies to address area needs. In addition, our plants and facilities develop community relations plans that engage key community stakeholders worldwide.

Since 1988, Ashland has recognized outstanding Kentucky (USA) teachers with its Teacher Achievement Awards Program. In 2001, Ashland began a partnership with the Kentucky Department of Education that combined the best elements of Ashland’s Teacher Achievement Awards and the KDE’s Teacher of the Year programs.

Through these programs, Ashland has awarded more than $684,000 to nearly 475 teachers of grades kindergarten through 12. In Shanghai, China, Ashland has provided continuous support for the Qizhi Special School with an annual donation and visits by Ashland Shanghai volunteers since 2007.

At times, Ashland is able to combine its focus on education and the environment. For example, in many plants and facilities our employees partner with local schools to help support sustainability efforts, such as recycling and proper disposal of chemical products. For 21 years, the company has hosted a community-wide event at its campus in Dublin, Ohio, to collect and properly dispose of household hazardous waste.

For 11 years, employees of Ashland’s gelcoat plant in Miszewo, Poland, have worked with schoolchildren on environmental education. The students collect plastic bottles throughout the school year, and Ashland redeems the bottles for trees that are planted throughout the community.

Ashland employees from the Savannah, Ga., plant joined Georgia’s Department of Natural Resources’ Coastal Resources Division and the Richmond Hill, Ga., chapter of the Coastal Conservation Association (CCA) to repair a marine ecosystem by building an oyster reef.

Ashland supports programs that take science and chemistry education from the museum to classrooms throughout Ohio and Kentucky. In Delaware and New Jersey, we have supported programs aimed at teaching scientific method and water conservation to students and a teach-the-teachers program to enhance teachers’ knowledge of science and math.

Since 2005, Ashland has maintained a public green space in Shanghai, China, to raise awareness for environmental protection.

Through greenspace adoption, Ashland helps conserve land for parks, gardens and other natural places to ensure enjoyable communities for future generations.

In Lexington, Ky., Ashland volunteers completed their ninth Habitat for Humanity building project. From framing to laying sod, employees dedicated their time to make the dream of home ownership a reality for a deserving family.

As part of Earth Day 2013, employee volunteers worldwide enhanced areas surrounding their facilities and many local communities by picking up trash and safely disposing of hazardous materials.

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Fiscal 2013 Sustainability Overview

Ashland Inc.

Society summary Investments for the public good In the United States, Ashland supports community health and human services organizations through an annual Employee Giving Campaign. The campaign offers employees the ability to direct donations to a number of organizations; in turn, Ashland provides a company match. During the past 13 years, Ashland has contributed more than $6.4 million in matching funds.

For Ashland’s fiscal 2013 campaign, employees could choose to support the American Cancer Society, American Diabetes Association, American Heart Association, American Red Cross, Big Brothers Big Sisters of America, Community Health Charities, Earth Share, Feeding America, Global Impact, Habitat for Humanity or the United Way. Ashland believes offering a variety of options lets employees direct funding to organizations that are meaningful to them and provides a means of helping the greatest number of people – in Ashland neighborhoods around the world.

Through Ashland’s U.S. Dollars for Doers program, employees who volunteer at least 20 hours with a nonprofit organization can apply for a $250 grant to support the organization they’ve served.

Outside the United States, local funding needs are addressed through contributions by the company and employees.

SO3 Percentage of employees trained in anticorruption policies Corruption Wherever Ashland does business, it must comply with the terms of its consent decree with the U.S. Securities and Exchange Commission and all anticorruption laws. This includes the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits, among other things, the payment of money, gifts or other things of value to influence foreign officials. The United States, like nearly all countries, outlaws bribing its own government officials.

All of Ashland’s business units are analyzed for risks related to corruption.

26

The Global Standards of Business Conduct booklet is the foundation of Ashland’s comprehensive compliance program. The booklet has been translated into 11 languages and underscores Ashland’s commitment to the law and high ethical standards. The board of directors has designated the general counsel as Ashland’s chief compliance officer and chair of the Ethics and Compliance Committee to oversee the ethics and compliance program.

All Ashland employees worldwide are required to complete annual training on the legal and ethical standards presented in the Global Standards of Business Conduct. In 2013, 1,186 individual completions were recorded for online training courses covering antitrust, bribery, corruption, the U.S. Foreign Corrupt Practices Act and competition laws around the world. Certain online courses are required from year to year, while others are taken based on supervisor directive or personal initiative. These online courses are available in multiple languages. Additionally, 219 instructor-led course completions were recorded covering the same topics. Instructor-led courses are conducted by the Law Department as needed to provide training.

Specific corporate policies and procedures also support the Global Standards of Business Conduct and are accessible through the employee intranet.

SO6 Total value of financial and in-kind contributions to political parties, politicians and related institutions by country Ashland corporate policy prohibits the use of corporate funds to make campaign contributions. Ashland maintains two federal political action committees (PACs) in the United States: the Ashland Inc. Political Action Committee for Employees (PACE) and the Hercules Incorporated Voluntary Political Action Committee, as well as two state PACs in Kentucky and Ohio.

Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc.

Fiscal 2013 Sustainability Overview

Product responsibility summary Ashland offers quality products and services that provide added value to its customers. These products can be used and processed, and services performed, in a safe manner.

Product stewardship summaries are provided to the public via the Ashland website and give more information about certain chemicals contained in various Ashland products. Ashland strives to improve the products it sells by reducing any product risk associated with use or consumption, while maintaining value derived by the customer.

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures Ashland reviews its products for potential impact to the environment, health and safety. These reviews help identify adverse effects on human health and the environment from exposure during each stage of the product life cycle. All products are assessed for improvement opportunities at each stage of the product’s life cycle as indicated below: Yes No Development of product concept X Research and Development X Certification X Manufacturing X Marketing and promotion X Storage distribution and supply X Use and service X Disposal, reuse or recycling X PR3 Type of product and service information required by procedures and percentage of significant products and services subject to information requirements The following information is provided for all significant products.

Yes No Origin of components X Content that might produce environmental impact X Safe use of product X Disposal of product and impacts X All Ashland products must comply with applicable hazardcommunication requirements, including labeling and Safety Data Sheets (SDSs) for all countries in which Ashland sells products.

Ashland’s hazard communication system supports 41 languages for these documents.

In addition, Ashland provides customer-service support when additional handling or safety information is requested. Ashland also provides regulatory data for many products via regulatory data sheets and provides the public with product stewardship summaries for priority chemicals, which are available on Ashland’s website.

Ashland is also compliant with numerous country chemical inventory control laws, including REACH regulations in the European Union.

Oct. 1, 2012, to Sept. 30, 2013

Ashland also has a significant program under way to ensure compliance with the Globally Harmonized System for Classification and Labeling, which has been implemented in many countries around the world.

PR5 Practices related to customer satisfaction Ashland’s commercial units conduct market research as appropriate to measure customer satisfaction and foster continuous improvement. The approach varies by business, so there is no consolidated company process. Examples include: • Formal and regular customer surveys • Frequent customer visits – call reporting • Customer relationship management systems • Customer complaint systems • Customer retention measures • Technical Service – call reporting • Industry and Trade association participation Ashland Performance Materials surveys its customers annually to understand their perspectives on Performance Materials’ strengths and opportunities. The electronic survey is emailed to key individual contacts for more than 500 customers and includes questions about such critical areas as quality, innovation and customer service. Using customer feedback, coupled with year-over-year analysis, Performance Materials develops action plans for improving alignment with its overarching philosophy that investments in people, processes and products must continue to focus on meeting the needs of customers both now and in the future.

Ashland’s Valvoline Instant Oil Change business unit solicits feedback on an ongoing basis from customers at approximately 900 company-operated and franchised automotive service centers. Store managers use this customer feedback to improve service levels and recognize team members for outstanding performance. Executives use the customer satisfaction data in combination with other key performance indicators to gain insight into emerging business trends.

Valvoline Instant Oil Change also conducts other types of market research to better understand both consumers’ needs and its brand equity in the competitive marketplace. Additionally, customer feedback is welcomed via the Valvoline Instant Oil Change website and its call center, where trained customer-care agents respond to customer questions and resolve any issues that arise.

Ashland also provides a mechanism, via a “Contact Us” form on its public website, www.ashland.com, whereby customers, investors/potential investors, employees/potential employees, the media, retirees and other stakeholders can submit a comment, question or complaint. These messages are relayed to appropriate personnel for response.

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data None of Ashland’s commercial units, resource groups or information technology-supported networks and systems have received any substantiated complaints relating to a breach of customer privacy and/or loss of customer data.

27

Fiscal 2013 Sustainability Overview

Ashland Inc.

GHS Globally Harmonized System of Classification and Labeling of Chemicals

The GHS is a standardized approach to the classification and labeling of chemicals. The system was developed by various technical working groups following a mandate from the United Nations. It is gradually being adopted by regulatory authorities throughout the world. Under GHS, common criteria are used to define chemical hazards. It harmonizes the way hazards are communicated by means of warning labels and Safety Data Sheets (SDSs). The system utilizes the same hazard-communication elements (signal words, warning/precautionary language and pictograms) that are used in all countries/regions that have incorporated the GHS into their own regulations. Once implemented, the GHS is expected to improve protection of human health and the environment by providing an internationally understandable system for hazard communication.

Ashlandâ&#x20AC;&#x2122;s GHS implementation project team is working diligently to meet the June 1, 2015, deadline. Preparations have begun for supporting the new SDS and label generation. A number of Ashland facilities around the world are already capable of labeling with new GHS labels. Ashland employees who work with hazardous chemicals have already been trained to understand the new GHS pictograms and the new SDS format. Business contacts are being identified to assist with requirements gathering, decision-making and communicating key information about implementation.

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Oct. 1, 2012, to Sept. 30, 2013

Ashland Inc. Indicator Description 1.1

CEO statement

Fiscal 2013 Sustainability Overview Page 3

Indicator Description

Page

EN9

Water sources significantly affected by withdrawal of water

16

EN16

Total direct and indirect greenhouse gas emissions by weight

16

EN22

Total weight of waste by type and disposal method

16

EN23

Total number and volume of significant spills

16

EN25

Biodiversity effect on water bodies by discharges of water

17

EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

17

EN27

Percentage of products sold and their packaging materials that are reclaimed by category

17

EN28

Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations

17

Organizational Profile

7

2.1

Organization name

7

2.2

Primary brands, products and/or services

7

2.3

Operational structure

9

2.4

Headquarters location

9

2.5

Countries of operation

9

2.6

Ownership structure

9

2.7

Markets served

9

2.8

Organization scale

9

2.9

Significant operational changes

9

2.10

Awards

10

3.1

Reporting period

10

Labor Performance Indicators

3.2

Most recent reports

10

LA1

Total workforce by employment type, contract and region

22

3.3

Reporting cycle

10

LA4

22

3.4

Contact point

10

Percentage of employees covered by collective bargaining agreements

3.5

Report content defined

10

LA5

23

3.6

Report boundary

11

Minimum notice periods regarding significant operational changes, including whether specified in collective agreements

3.7

Limitations of boundary

11

LA7

23

3.8

Non-majority-owned enterprises

11

3.9

Data measurement techniques and bases of calculations

11

Rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities by region

3.10

Restatements of previous information

11

LA8

Programs in place to assist employees regarding serious diseases

23

3.11

Significant changes from previous reports

11

LA10

Average hours of training per year per employee

24

3.12

GRI content index of standard disclosures

11

LA11

Skill development and lifelong learning for employees

24

Governance, Commitments and Engagements

11

LA12

Percentage of employees receiving performance reviews

24

4.1 and 4.3

Governance structure and highest governance body

11

Human Rights Performance Indicators

4.2

Governance chair

11

4.4

Mechanisms for recommendations

11

4.12

Externally developed economic, environmental and social charters to which the organization subscribes or endorses

12

4.13

Memberships in associations and/or national/international advocacy organizations

12

4.14 and 4.16

List of stakeholder groups engaged by the organization; and Approaches to stakeholder engagement

12

4.15

Stakeholder engagement

12

Performance Indicators EC2

Financial implications and other risks and opportunities due to climate change

13

EC3

Coverage of Ashlandâ&#x20AC;&#x2122;s defined benefit plans

13

EN2

Percentage of materials used that are recycled input materials

14

EN3

Direct energy consumption by primary energy sources

14

EN4

Indirect energy consumption by primary energy sources

14

EN5

Energy conservation and efficiency improvements (direct and indirect)

16

EN8

Total water withdrawal by source

16

Oct. 1, 2012, to Sept. 30, 2013

HR2

Screening of employers and contractors on human rights

25

HR6

Child labor

25

HR7

Forced and compulsory labor

25

HR9

Total number of incidents of violations involving rights of indigenous people and actions taken

25

Society Performance Indicators SO3

Percentage of employees trained in anticorruption policies

26

SO6

Total value of financial and in kind contributions to political parties, politicians, and related institutions by country

26

Product Responsibility Performance Indicators PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and services categories to such procedures

27

PR3

Type of product and service information required by procedures and significant products and services subject to such information requirements

27

PR5

Practices related to customer satisfaction

27

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

27

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Global headquarters Ashland Inc. 50 East RiverCenter Blvd.

P.O. Box 391 Covington, KY 41012-0391 +1 859 815 3333 Asia Pacific Shanghai, China +86 21 2402 4888 Europe, Middle East, Africa Barendrecht, Netherlands +31 10 497 5000 Schaffhausen, Switzerland +41 52 560 55 00 Central, South America São Paulo, Brazil +55 11 3089 9220 ashland.com

® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries * Trademark owned by a third party © 2014, Ashland PC-12876

All statements, information and data presented herein are believed to be accurate and reliable, but are not to be taken as a guarantee, an express warranty, or an implied warranty of merchantability or fitness for a particular purpose, or representation, express or implied, for which Ashland Inc. and its subsidiaries assume legal responsibility.

Infinite possibilities.

At Ashland, we are passionate about the possibilities created through good chemistry. We believe chemistry is about innovative, differentiated science — and also about the way people come together to solve problems. From the speed at which a call or email is returned to the lengths we go to in order to develop solutions that solve a specific customer need, good chemistry is what makes Ashland different and what makes us better. That’s why Ashland is one of the world’s leading specialty chemical companies.

In more than 100 countries, we provide the specialty chemicals, technologies and insights to help customers create new and improved products for today and sustainable solutions for tomorrow. People encounter our chemistries in a wide variety of markets and applications, including architectural coatings, automotive, construction, energy, personal care and pharmaceutical. Through our deep industry knowledge and customer-focused innovation, we make great things happen every day.

Visit ashland.com to learn more.