2025
Sustainability Report
This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards.
Advancing What’s Possible
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Products & Solutions
Advancing Performance
A note from our CEO If you spend your career in manufacturing, you learn something simple. The best results are not achieved by working harder. They come from designing systems that
We are not undertaking this shift for its own
hold steady when conditions change. Our customers
sake. It is a disciplined way to create value for
live with that reality every day. In a tight market, small
our customers, built on the chemistry expertise
drifts become real cost. Waste shows up quickly. Rework
Over the past year, Hexion has laid the groundwork
and technical support they already rely on, and
shows up even faster.
for that shift. We strengthened operating visibility
designed to deliver measurable results over time.
across the business, sharpened execution discipline,
In the pages that follow, you will see our progress
Building and construction has always rewarded
and reduced day to day variability. Across our sites,
manufacturing excellence. What is changing is the
our teams also improved efficiency, reduced waste and
baseline. Manufacturers today need performance that
strengthened EHS performance.
our people, along with the governance and data
for waste. The next leap will come from better systems
This year, we are advancing to the next step:
be transparent about where we are advancing,
that see more, learn faster and respond earlier, so
Chemistry-as-a-Service™. It is a new way of working
where we still have work to do, and how we are
performance improves and holds as conditions change.
that connects chemistry expertise with operating data
measuring performance year over year.
holds under more complexity and with less tolerance
and advanced intelligence, so customer teams can That is also what sustainability demands today. It cannot
identify improvement opportunities sooner, make
be a separate program. True sustainability demands
better decisions and respond more consistently as
system designs that use fewer resources, generate less
conditions change.
waste, reduce emissions where possible, and strengthen safety and reliability each day.
The technology is not the point. Better performance is.
For us, sustainability and operational performance
We believe this shift is where sustainability becomes
are becoming the same design challenge. The next
concrete. Raw materials that adapt to the plant, less
advantage will come from systems that learn and
waste at the source and steadier production become
improve over time, raising the baseline for performance
possible when better visibility leads to earlier decisions
while waste, rework and risk come down.
and more coordinated execution, without compromising
across safety, environmental performance and practices that support credible reporting. We will
What Comes Next
Appendix
Sustainability isn’t just about doing less harm. It’s about reimagining manufacturing with intelligence built into the system. Chemistry-as-a-Service™ connects chemistry expertise with operating intelligence, bringing customers and value-chain partners together to improve safety, reduce waste, and lower environmental impact.
We are shaping what’s next, together.
Michael Lefenfeld PRESIDENT & CEO
safety, quality or reliability. Over time, improvement becomes easier to sustain because it is built into the system’s design, not dependent on one off effort.
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2 0 2 5
Hexion at a Glance Manufacturing & Research Facilities
Global Headquarters
Hope, AR, USA
Brisbane, Australia
Columbus, GA, USA
Brimbank, Australia
C O L U M B U S, O H I O
Alexandria, LA, USA
Curitiba, Brazil
Missoula, MT, USA
Montenegro, Brazil
Morganton, NC, USA
Edmonton, AB, Canada
Fayetteville, NC, USA
St. Romuald, QC, Canada
Moreau, NY, USA
Tel Aviv, Israel
Springfield, OR, USA
Pernis, Netherlands
Diboll, TX, USA
Moerdijk, Netherlands
Sheboygan, WI, USA
Hornby, New Zealand
21
WITH
Mountview, New Zealand
Manufacturing
11
Tacuarembó, Uruguay
FACILITIES WORLDWIDE
&
N E A R L Y
170
R& D sites
years in business
1,284 dedicated employees
3.52M 803 MT 3,626 $ 500,000 & 14,534 loads CO e M O R E
miles saved
T H A N
in charitable contributions
hours of volunteer service
scopes 1 & 2
eliminated in 2025
2 GHG reduction against 2024
3
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Appendix
The progress reflected in this report is the result of thousands of choices made across our business to operate more efficiently, innovate responsibly, and reduce our environmental impact. While we are proud to have achieved our emissions reduction goal ahead of schedule, our 2035 goals reflect a continued commitment to raising our ambition and creating lasting value.”
Jacob Miller Global Sustainability Leader
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Appendix
2 02 5 2 017
20 19
20 21
20 23
2 03 0 20 27
20 29
100%
When we established our 2030 sustainability goals, we challenged ourselves to make meaningful progress across our products, operations, and value chain while strengthening the foundation for future growth. Today, we are proud to share that we achieved our goal to reduce absolute Scope 1 and Scope 2 emissions five years ahead of schedule,
90%
demonstrating strong progress in decarbonizing our operations.
Goal Reduce absolute Scope 1 and Scope 2 emissions by 20%
Baseline Year
Baseline Value*
2025 Result
% Change vs. Baseline
2017
100% (baseline index)
73.39% (index)
26.61% reduction
Status
80%
Achieved ahead of 2030
*Baseline value shown as an index (2017 = 100) to clearly illustrate progress relative to the target. *See metrics table at end of report for full emissions calculations.
70%
73.39%
26.61%
reduction 5 years early
This milestone demonstrates what is possible when sustainability is embedded into business
Achieving our 2030 goals early is an opportunity to raise our ambition.
decisions, innovation efforts, and everyday
As expectations evolve and the need for sustainable solutions continues to grow, we are setting
actions across our company. It is the result of the commitment of our employees, the collaboration of our customers and partners, and a shared belief that business performance and
a new course for 2035. Our next generation of goals builds on the progress we have made while expanding our focus on the areas where we can create the greatest impact: sustainable products, climate and energy, responsible value chains, clean operations, and people and governance.
sustainability progress go hand in hand.
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The progress we made gives us momentum. Our 2035 goals give us direction. Together, they define the next chapter of our sustainability journey.
25% reduction
2035 vs. 2017 baseline, aligned
of energy intensity by
with SBTi methodology
2035 vs. 2017 baseline
Increase renewable energy purchased
25%
by 2035
C L E A N O P E R AT I O N S Water intensity
reduced 10% Hazardous waste generated
reduced 5%
Appendix
Increase the share of bio-based content across our raw material portfolio to represent Develop and publish PCF for
90%
of portfolio revenue by 2035
15% of total raw material spend
Develop and deploy an AI-enabled product sustainability assessment framework that embeds sustainability criteria across the product portfolio
R E S P O N S I B L E VA L U E C H A I N
C L I M AT E A N D E N E R G Y
50% Scope 1 and 2 by
What Comes Next
S U S TA I N A B L E P R O D U C T S
2035 Sustainability Goals
absolute reduction
Advancing Performance
100% of tier 1 suppliers
covered by a supplier risk assessment by 2035
Commitment to reduce
Scope 3 emissions
PEOPLE & GOVERNANCE Waste generated
reduced 10%
20% health and safety and
reduction of exposure to
environmental incidents and spills by 2035
*All goals based on 2025 baseline unless noted
Maintain
top quartile safety performance of ACC member companies
By 2035, Hexion will be recognized
as an employer of choice through sustained year-over-year improvement in employee engagement, inclusion, development, and well-being, while expanding our positive impact in the communities where we live and work
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AI has become a practical
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n o ti a ov n n I s r AI e n n i W e g n e l l a Ch
force multiplier in our day-to-day work, helping us move faster through routine tasks so we can focus more on developing ideas, experimenting, and collaborating. What stood out most is how accessible it is. You don’t need a technical background to use it effectively, just curiosity and a willingness to learn.” Sean Manji Product Manager Ryan Clarke Senior Research & Development Scientist
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AI Innovation Challenge
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employees across nine countries generated 242 AI-driven ideas
125+ employees onboarded with measurable productivity gains
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Turning Data into Decisive Action Leaders pull ahead when they embed AI directly into workflows to make decisions faster and more effective. The advantage shows up in how quickly signals become insight, and how consistently those insights become action. When that intelligence loop tightens, risk declines, variability narrows, and resource efficiency improves. That is where AI begins to make sustainability
Innovation Powered by Our People
efforts tangible.
Advanced intelligence is showing up in three ways across
In 2025, Hexion advanced a company-wide effort to
end-to-end processes, and how people get work done.
embed AI into core workflows. AI-enabled analytics
Together, these efforts are helping teams act earlier,
enhanced how teams interpret data, detect emerging
reduce variability, and improve consistency.
Hexion: how we serve customers, how we redesign
patterns, and prioritize action. Real-time visibility combined with predictive insights supports earlier, more consistent responses across the organization.
CUSTOMER VALUE
Our focus is a practical use of AI to reduce variability,
Challenge focused on
practical techniques across enterprise platforms
Appendix
evolving products and service models through smarter systems and decision support
strengthen prevention, and improve efficiency in day-to-day execution while building a more adaptive and resilient operating model.
OPERATIONAL REDESIGN
applying an AI-first lens to end-to-end workflows to reduce cycle time and improve execution
PERSONAL PRODUCTIVITY
equipping teams with tools and training that improve day-to-day work 8
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Appendix
01 Smarter Decisions: As part of Hexion’s proactive health and safety management program, the EHS AI Insights system, introduced this year, aggregates data from ROC entries and near-miss reports across global manufacturing and R&D sites. Using AI, the system analyzes hazards, unsafe conditions, permit violations, and PPE non-compliance to identify recurring risk patterns and surface actionable
Earlier Signals, Smarter Response Artificial intelligence is helping convert growing volumes of operational data into insights that enable faster, more informed action. These capabilities help teams move beyond reacting to events and toward addressing risks and opportunities earlier. The examples following demonstrate how Hexion is operationalizing intelligence by using AI to strengthen prevention, improve manufacturing performance, and support
02 Smarter Manufacturing: At Pernis and Moerdijk, teams of operators,
insights that support proactive incident prevention.
engineers and technologists worked to apply an AI
R E S U LT :
improve yield, and reduce resource intensity. They
Over a 12‑month period ending April 1, 2026,
focused on refining key process steps, including
the system analyzed approximately 700 records
distillation parameters used to purify Versatic™
across 27 sites and consolidated them into up to six
Acid 10 and making adjustments to reactor and
actionable insights. Assuming a five‑minute review
distillation conditions in vinyl ester production.
per record, this reduced review time from roughly 58 hours to 30 minutes, representing a 99% reduction in
predictability model to optimize process conditions,
R E S U LT :
manual review effort.
Higher yield translated directly into reduced raw
W H Y I T M AT T E R S :
generation, and improved energy and process
By transforming large volumes of EHS data into
efficiency across targeted production steps.
clear, prioritized insights, the system improves decision‑making efficiency, enables earlier intervention, and strengthens a proactive, data‑driven safety culture.
material consumption, lower off‑spec material
W H Y I T M AT T E R S : This work demonstrates how advanced analytics can be applied consistently across Hexion operations to improve manufacturing efficiency and reduce environmental impact.
What This Enables Next By embedding intelligence into daily workflows, teams can see risk earlier, act with greater clarity, and reduce the variability that drives waste, rework, and incidents. At Hexion, we are applying this approach in our own facilities first; embedding earlier signals and more consistent follow-through into how work gets done every day. It is our people who turn insight into action. They make decisions, adjust in real-time, and continuously improve performance. That is the foundation for Chemistry-as-a-Service™, where this same model will extend outward to support our customers.
more sustainable operations.
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Empowering People 03
It is our people—operators, engineers, technicians, and leaders—who translate insight into action. They are the ones who make adjustments and continuously improve how our systems perform.” Ann Lindsey Head of Enterprise Operational Integrity and EH&S
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A Culture of Ownership In 2025, the Hexion High Five program quickly took off, giving employees an easy way to recognize and spotlight each other in real-time. Peers celebrated peers, turning everyday wins into visible moments.
m tu n e om ar m e th le c s a w
22,423 High Five
recognitions awarded
~746
employees actively recognizing and celebrating peers
Products & Solutions
Impact in our Communities
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Appendix
~13.5% increase in chartitable contributions year-over-year
3,500+ HOURS
volunteered by employees worldwide* *Estimated; not all volunteer hours formally reported
This shows up in meaningful ways: Our community impact is often rooted in what we know best—science and sustainability—
Teams achieving milestones such as
Cross-functional
“100 Consecutive
collaboration
Days Injury Free” through sustained focus and discipline
Employees redesigning processes to reduce waste, improve
accelerating improvements
while extending into the communities where our employees live and work. This connection brings both responsibility and opportunity, shaping how we contribute our time, expertise, and resources. Across our global footprint, these efforts take many forms, reflecting local priorities while contributing to a broader, shared commitment to making a meaningful difference.
across operations
efficiency, and strengthen safety 11
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Advancing Health, Safety & Research Teams rallied around causes like Pelotonia, the American Heart Association Walk, Breast Cancer Awareness, and Movember to advance life-saving research and community health.
Local Impact, Global Commitment Participating in STEM
Turning Waste into Impact
Inspiring the Next Generation
Through the ReVeste Project in Curitiba, Brazil,
Engaging students through STEM education to build
event at our corporate headquarters.
recognized by KWM (Kapersul Waste Management) for advancing circular economy principles and
Science and Mathematics visited Hexion’s
sustainable waste management.
Morganton plant for a hands-on chemistry completed a safety orientation, toured
trades. We held our largest Bring Your Child to Work
blankets for vulnerable communities—an initiative
Students from North Carolina School of
and manufacturing experience. Students
the next generation of scientists, engineers, and skilled
employees transformed used uniforms into
Building Stronger Communities
Hexion Resource Groups in Action Hexion Resource Groups turn shared purpose into
production areas, learned about resin
S T U F F T H E B A C K PA C K :
action through communities supporting employees
manufacturing and everyday applications,
Employees volunteered at the United Way
of African heritage, veterans, women, LGBTQIA+,
and saw a lab demonstration on methanol
Stuff the Backpack event, helping build
and employees seeking professional growth
concentration analysis. The visit left students
educational support in the
through mentorship and networking. Together,
with new knowledge and enthusiasm.
communities where we live
they foster belonging, engagement, leadership
and work.
development, and community impact.
H A B I TAT F O R HUMANITY: Employees volunteered with Habitat for Humanity, helping create safe, stable
Honoring Service Hexion formally joined the U.S. Army Partnership for Your Success (PaYS) Program, deepening our commitment to veterans and the communities we serve.
housing in the communities where we live and work. 12
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Learning and Development
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What Comes Next
Appendix
Hexion’s Learning and Development team supports employees through training, career development programs, and educational opportunities that help them build skills, expand expertise, and
Career Compass Program
prepare for future career opportunities.
The Career Compass program empowers employees to define career aspirations, identify skill development opportunities, and create actionable plans for achieving their professional goals. The tool encourages self-reflection,
Pipeline Development Program The Pipeline Development Program
continuous learning, and proactive career management aligned with both individual interests and business needs.
provides recent graduates with rotational assignments, mentorship, performance feedback, and structured learning experiences designed to build technical and leadership capabilities.
Performance Reviews Through our annual performance review process, employees and managers review performance goals, assess achievements, discuss core competencies, and establish future development objectives. Performance reviews are conducted for all eligible full-time employees, representing more than 71% of our workforce.
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Appendix
Recognition of these efforts continues to grow, including the Business First Corporate Citizenship Award, reflecting the collective commitment of our teams.
The Pursuit of Community Impact
Across every location, this work reflects a shared belief: strong communities are built through consistent action. Our people are part of that progress every day.
We support employees in pursuing leadership opportunities aligned with the causes they care about, extending their impact beyond the workplace and into
From Insights, Through People, to Action
the communities they serve. After completing the United Way Project Diversity Pride Leadership (PDPL) program, Molly Thomas now serves on the board at Mental Health America of Ohio, helping guide resources and support to those who need it most.
As Hexion continues to operationalize intelligence, our people are changing how work gets done. Decisions happen closer to the moment of risk. Patterns are easier to see. Follow-through is clearer. Over time, that shifts performance from individual effort to repeatable execution.
I’m grateful for Hexion’s investment in my participation in PDPL. Their support strengthened my leadership capabilities and enabled me to show up more fully in my community, ultimately resulting in my appointment to the Board of Mental Health America of Ohio.” – Molly Thomas Sr. HRConnect/HRIS Analyst
Training, recognition, and accountability are being built into the way work runs at Hexion. Capability building is expanding how teams use digital tools in recurring workflows, while programs like High Five reinforce ownership and follow-through. In parallel, systems like ROC participation and EHS AI Insights help teams surface risk patterns sooner and act with greater consistency. Together, these mechanisms make improvement easier to sustain across sites and functions.
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04
From Strategy to Execution
Sustainability delivers the greatest impact when it becomes part of how work gets done every day. Across our operations, teams are identifying opportunities, implementing practical solutions, and sharing what works.” Matthew Clarke Global Leader, Operations Excellence
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Sustainability Embedded in Operations
Driving Efficiency Through Smarter Operations
Sustainability is no longer driven by individual initiatives. It is built into how
In Montenegro, improved visibility into equipment usage
operations run, how work is prioritized, and how performance is managed.
revealed an opportunity to reduce energy waste in
Over the past year, Hexion has strengthened the processes, tools, and behaviors that enable consistent execution across the organization. Opportunities are identified through data and operational insight, validated
the urea discharge area. A simple automation solution eliminated unnecessary runtime, reducing energy use and equipment wear.
through cross-functional collaboration, and scaled across sites to deliver
At our Springfield site, a broader systems view of steam
consistent results. This model connects operations so improvements are
operations led to a redesign of condensate recovery.
implemented with discipline, measured in consistent ways,
Condensate that was previously lost
and shared so they can be sustained.
is now captured and reused as part of normal operations.
The system is not finished, but it
supports operations across 100% of Hexion sites to identify opportunities,
Appendix
R E S U LT : The Montenegro automation saves approximately 216 kWh of electricity per day while reducing maintenance demands. In Springfield, the condensate recovery redesign saves 1.47 million gallons of water annually and recovers approximately 1,500 MMBtu of energy each year. W H Y T H I S M AT T E R S : These improvements show how better operational insight, disciplined execution, and targeted solutions can deliver measurable
is scaling rapidly. Our Continuous Improvement team
What Comes Next
Meaningful operational improvements in 2025 across:
efficiency gains, reduce resource intensity, and strengthen the reliability of everyday manufacturing operations across the company.
improve efficiency, optimize processes, and deliver projects that contribute to operational excellence and
ENERGY EFFICIENCY
sustainability goals. LOGISTICS OPTIMIZATION RESOURCE CIRCULARITY 16
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Optimizing Logistics and Reducing Risk At the Springfield facility, a cross‑functional review of material flows identified an opportunity to improve safety and environmental
From Strategy to Execution
Products & Solutions
production samples were managed. After the required storage period, materials were returned to the reactor rather than discarded.
reducing transportation risk and emissions.
catalyst‑containing material is reintroduced into the production process to reduce wastewater sent offsite and limit the need for virgin catalyst inputs.
reduced transportation‑related emissions by 72 tons per year, and
R E S U LT :
delivered $250,000 in annual cost savings. In addition to lowering
In Curitiba, 3.5 metric tons of material were reused, reducing waste,
greenhouse gas emissions, the reduction in transportation activity
disposal costs, and unnecessary handling. In the Netherlands,
also contributed to a decrease in air pollutant emissions from logistics
catalyst recovery efforts are lowering wastewater volumes, avoiding
operations. The project was completed with 0 safety incidents,
recurring disposal costs, and reducing demand for new catalyst.
reflecting strong coordination across operations, engineering, and
Appendix
In Curitiba, operators and technical teams re‑evaluated how retained
A similar approach is being applied in the Netherlands, where
The change eliminated approximately five truck shipments per week,
What Comes Next
Advancing Circularity Through Practical Innovation
performance. Caustic deliveries were converted from truck to rail,
R E S U LT :
Advancing Performance
logistics teams.
W H Y T H I S M AT T E R S :
W H Y T H I S M AT T E R S :
advance circularity by turning waste streams into opportunities for
This project demonstrates how integrated decision‑making can
recovery and reuse, improving resource efficiency while supporting
simultaneously improve safety, efficiency, emissions performance,
safer and more cost‑effective operations across Hexion.
These efforts illustrate how practical, site‑driven innovation can
72
tons per year emissions reduced
3.5
metric tons
of material were reused
and cost, reinforcing the value of cross‑functional collaboration in operational improvements. 17
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Appendix
05
Products & Solutions
Our customers aren’t just looking for products—they’re looking for more predictable and repeatable performance. By connecting chemistry with real-time data and process insight, we’re helping them run more efficiently, reduce variability, and achieve results that weren’t possible before.” Pedro Lopes Chief Commercial Officer
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Appendix
Building & Construction Our adhesives, resins, coatings, and engineered wood technologies help improve structural strength, durability, energy efficiency, and fire performance across
From Operational Excellence to Customer Advantage What we have strengthened inside Hexion this past year is now showing up in our support for customers: better visibility into operating conditions, systems that support and extend operator knowledge, and tools that reduce variability and waste. The intent is to help customers run closer to target, improve
Our Core Products
modern building systems. From low-emitting binder systems for wood products to high-performance coatings and insulation materials, our technologies are designed
01
Specialty Monomers & Acids Products including Versatic™ Acids, VeoVa™ monomers, and Cardura™ Glycidyl
Hexion’s products support critical
Ester help customers improve durability, adhesion, weather resistance, and process
industries around the world, helping
performance in demanding applications. These versatile chemistries support
customers build stronger, safer, and more efficient products and infrastructure. Across our business segments, we combine advanced chemistry, technical expertise, and customer collaboration to improve
to help customers build more resilient and resource-efficient structures.
innovation across industries while enabling higher-performing end products.
02
performance while supporting more sustainable outcomes.
Natural Resources
efficiency and reduce the costs that come from variability.
Our products are used across oil and gas, forestry, agriculture, and industrial
What began as operational discipline for Hexion now becomes
resource applications, where customers rely on durable, high-impact solutions
customer advantage. This is where our model differentiates. We are
backed by decades of technical expertise. From engineered wood systems to energy
expanding from supplying materials to helping to optimize performance,
and resource applications, we work alongside customers to optimize performance
connecting our legacy chemistry expertise with today’s leading
To learn more about Hexion’s products,
intelligence technologies so customers can raise the bar of what is
applications, and customer case
possible when insight and execution are no longer managed through
studies, visit our product portfolio at
traditional approaches.
hexion.com/products.
03
and unlock new possibilities in resource-intensive industries.
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SMARTECH AI Smartech AI products use production line data to better understand process behavior and surface improvement opportunities. These tools help teams see drift earlier and identify where operating settings can be adjusted to SMARTSYSTEMS Smart Systems are physical equipment solutions that improve how raw materials are dispersed and applied. Tighter control over delivery rate, dispersion, and placement helps reduce overuse and improve consistency at the point of application. In practice, that translates into lower raw material consumption, fewer
04
quality swings driven by variability, and less waste tied
Smartech
manufacturers reduce wax consumption while
Smartech targets two practical sources of loss in manufacturing: input variability and process drift. Through precision control at the point of application and data-informed decision support, it helps reduce variability and the waste, rework, and unnecessary
improve stability and efficiency. When variability comes down, waste and rework come down too, supporting both cost performance and sustainability outcomes.
Appendix
Improving Resource Efficiency in Wood Panel Manufacturing At customer sites, implementation of Smartech products have improved process control by enabling more precise
SmartQuality™ uses AI-driven analytics to monitor
applications. These systems reduce variability while
process conditions and product quality trends in
maintaining board quality.
real-time, helping teams reduce variability and improve consistency across production runs.
Smartech’s more controlled approach lowers raw material consumption and supports more efficient,
SmartPress™ applies advanced process intelligence
consistent operations. Following initial successes,
to optimize press performance, improve throughput
customers have expanded their systems across
stability, and support more predictable manufacturing
additional capacity, reinforcing confidence in Smartech’s
outcomes.
performance.
improving product consistency and operational
As process variability decreases, manufacturers can
Customer results: reduced input costs, improved
efficiency.
reduce waste, lower energy intensity tied to rework and
supply stability, and a faster return on investment—
inefficiency, and improve overall production reliability.
demonstrating how efficiency and sustainability
to off-target application. SmartWax™ transforms wax into a precision wax suspension at the point of application, helping
SmartPF™ optimizes phenolic resin application,
outcomes can be achieved together.
enabling lower resin usage while maintaining board quality and reducing material loss during production.
energy use that come with it. Customers
SmartMDI™ dynamically controls MDI resin
may deploy one or both capabilities based
preparation and application to improve resin
on what fits their operation.
distribution, reduce raw material use, and support lower-emission manufacturing processes.
Early implementations of Smartech AI are demonstrating:
Together, these systems help customers improve process consistency, reduce waste and rework, and support more efficient resource utilization across wood panel manufacturing operations.
To learn more about Smartech solutions visit hexion.com/smartech.
10-30%
reduction in raw material usage
10-15%
reduction in energy and waste
10-20%
improvement in carbon performance
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Differentiation Through Integration We are helping customers move beyond incremental
Chemistry-as-a-Service™ and Next-Gen Resins
improvements toward sustained performance gains. Sustainability is no longer a tradeoff—it becomes a direct outcome of better systems, better decisions, and better execution. As this model expands, it also opens new opportunities—
By combining Smartech’s digital capabilities with Hexion’s chemistry
new ways to partner with customers, new markets to
expertise, we are creating a more connected system—one that links raw
serve, and new solutions that go beyond traditional product
materials, process conditions, and performance outcomes in real-time.
offerings.
Instead of relying on fixed resin formulations, we are moving toward
The next step is to measure that progress—consistently
adaptive solutions that respond to actual operating conditions. This
and transparently.
allows customers to maintain more stable processes, improve product quality, and reduce inefficiencies—even as inputs and conditions change. Over time, this creates a compounding advantage. Each improvement builds on the last. Each system becomes more accurate. And each customer benefits from a model designed to deliver consistent performance—not just individual gains.
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06
Measuring performance is essential to understanding our progress and identifying opportunities for improvement. These indicators provide a transparent view of how we are managing resources, protecting our employees and communities, and supporting a workplace where people can grow and succeed.
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Environmental Performance We recognize that the chemical industry plays a
Products & Solutions
Advancing Performance
Emissions
Advancing What’s Possible
Scope (MT CO2e)
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2025
Appendix
% Decrease from 2024
% Decrease from Baseline
2024
2017 (Baseline)
2023
SCOPE 1
98,945
-1.50%
20%
97,488
100,645
123,684
SCOPE 2
62,503
3.51%
31.79%
64,314
64,473
90,972
58,243
3.35%
35.64%
60,263
55,662
90,498
(Market-Based)
meaningful role in both enabling solutions and
SCOPE 2
managing environmental responsibility. Our approach
(Location-Based)
reflects a commitment to continuous improvement,
26.61%
where operational excellence and sustainability are closely connected.
Absolute Reduction compared to baseline of Combined Scope 1&2 (Market-Based)
Absolute Reduction compared to baseline of Combined Scope 1&2 (Location-Based)
25.00% 4,300 MT Downstream CO2e Transportation
Scope 3 emissions saved through logistics improvements in 2025
Emissions Intensity
We care about the environment, and that commitment is reflected in how we
0.07
to reduce energy use, greenhouse gas emissions, air pollutants, water consumption, and waste generation. These efforts are guided by a focus on practical improvements, where incremental changes across sites can collectively drive meaningful progress. By applying industry best practices and investing in targeted process and technology improvements, we aim to optimize efficiency while minimizing our environmental footprint and supporting the communities where we operate.
Energy management remains a central lever in reducing our overall impact. By identifying opportunities to optimize energy usage, our facilities can lower emissions while improving operational efficiency. These improvements are not standalone. They contribute to broader outcomes, including reduced greenhouse gas emissions, responsible water use, and more effective waste management. Together, our environmental performance metrics provide a transparent view of how we are progressing and where we continue to focus our efforts.
Energy, Water and Waste
measure and manage our performance. Across operations, our teams actively work 2025
2024
2023
TOTAL ENERGY CONSUMPTION (MWh)
441,107
395,690
418,205
WATER WITHDRAWAL (ML)
14,922
16,978
21,522
HAZARDOUS WASTE (MT)*
78.24
83.76
98.48
NON-HAZARDOUS WASTE (MT)*
3,082
4,982
4,258
Energy Intensity
0.19
*Waste is only from North American sites
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Products & Solutions
Safety Performance As operations become more connected, our approach to safety becomes more proactive, supported by stronger data and clearer visibility into risk. The goal is simple: identify risk earlier, respond consistently, and prevent repeat events.
ACC 2026 Responsible Care Facility Safety Awards
®
Alexandria LA; Diboll TX; Fayetteville NC; Columbus GA; Hope AR; Missoula MT; Moreau NY; Morganton NC.
RECOGNITION, OBSERVATION, AND CONCERN (ROC) ENTRIES SIGNIFICANT SPILLS
4,518 6
2024 6,519
2023
What Comes Next
Appendix
People Metrics
EXCELLENCE AWARD RECIPIENTS:
This progress is reflected in our performance metrics: 2025
Advancing Performance
2025
2024
2023
NUMBER OF EMPLOYEES
1,284
1,307
1,289
PERCENT OF FEMALE
22.37%
23.79%
23.66%
VOLUNTEER HOURS
3,626
4,100
6,700
PARTICIPATION IN THE
92%
88%
N/A
16.96
18.29
17.15
INTERNAL PROMOTION RATE
6.6%
6.5%
11.2%
PERCENT OF EMPLOYEES
15.8%
17.4%
16.7%
100%
100%
100%
EMPLOYEES
4,307
11
EMPLOYEE ENGAGEMENT
16
SURVEY
OCCUPATIONAL ILLNESS AND INJURY RATE
0.52
0.71
0.97
CORPORATE EHS TRAININGS COMPLETED
14,132
15,428
6,859
EMPLOYEES TRAINED IN OCCUPATIONAL HEALTH AND SAFETY*
100%
100%
100%
4,518
reduction of
PER EMPLOYEE
45%
IN THE U.S. THAT IDENTIFY AS A PERSON OF COLOR PERCENT OF EMPLOYEES
Our commitment to structured safety
ROC entries reinforcing a culture of active participation
AVERAGE TRAINING HOURS
TRAINED ON BUSINESS ETHICS
management is further demonstrated by the renewal of our American Chemistry in significant spills compared to 2024
Occupational Illness and Injury Rate (OIIR)
reduced by
27%
Council Responsible Care® RC14001 certification for North and Latin America,
compared to 2024
*Hexion identifies required competencies for each role based on workplace hazards, risk assessments, and compliance obligations, ensuring that employees and contractors are adequately prepared to perform their work safely.
now valid through April 2029. This globally recognized standard reinforces that safety is embedded as a core organizational value and integrated into operating and continuous improvement systems. 24
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Appendix
07
What Comes Next
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A Procurement Perspective
Products & Solutions
Advancing Performance
What Comes Next
Appendix
Sustainability extends across our value chain. The ability to maintain efficiency and consistency depends on how well systems are connected—and how effectively decisions are made. That is where our approach is evolving.
Over time, this builds a more resilient system. Supply chains become more adaptive. Resource use becomes more efficient. Performance improves across
We are moving beyond managing inputs toward shaping
suppliers, operations, and customers—reinforcing both
outcomes. As Chemistry-as-a-Service™ expands,
business and sustainability outcomes.
stronger connections are forming between what we source, how we operate, and how our customers perform. Decisions are informed earlier, with greater clarity, and aligned more closely to performance. This evolution is being supported by strengthened sustainability governance. With executive sponsorship and a newly established Sustainability Steering Team,
We are continuing to build this capability, with a clear direction. Procurement will play an increasingly central role in connecting partners, aligning decisions, and enabling performance across the system. It is no longer defined by securing supply alone—it is defined by shaping outcomes.
we are aligning priorities, improving cross-functional
That is how resilience is strengthened.
decision-making, and ensuring accountability as this
That is how long-term value is created.
approach scales across the business.
And that is how we move forward—together.
Gäel De Martelaere CHIEF PROCUREMENT OFFICER & S U S TA I N A B I L I T Y C H A M P I O N
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Appendix
08
Appendix 27
Advancing What’s Possible
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Empowering People
Sustainability Management
From Strategy to Execution
Products & Solutions
Double Materiality Assessment (DMA)
Environmental
and decision-making. Oversight is provided by the Board of
Hexion is committed to providing a safe, supportive, and engaging workplace. Our approach to working conditions
that drives integration across operations, procurement, and strategic planning. We align our sustainability program with leading frameworks and
Resource outflows related to products and services
materiality assessment to identify and prioritize the sustainability
management processes, and ongoing engagement with employees to improve experience and retention. Full-time
Equal treatment and opportunities
Informationrelated impacts
Communities’ economic, social and cultural rights
Financial Material
Tax transparency (Entity-specific)
Impact Material
with capital planning, risk management, and operational decision-making. Climate-related risks and opportunities are managed in alignment with TCFD, and performance metrics, including emissions data, are used to inform investment decisions and operational improvements. For each material topic, we
promote physical and mental health. Employees have access to retirement savings plans with company contributions, paid time off, and professional development opportunities to support long-term growth.
Protection of whistle-blowers
We conduct regular employee engagement surveys to gather feedback and identify opportunities for improvement.
Information security (Entity-specific)
Insights from these surveys are used to enhance workplace
policies, actions, and performance tracking. Sustainability is embedded into our business through integration
being, financial security, and work-life balance including and vision coverage, along with wellness programs that
topics most relevant to our business and stakeholders. These topics are managed through defined governance structures,
employees receive comprehensive benefits supporting wellparental leave. Hexion offers comprehensive medical, dental,
Other work-related rights
continuously refine our approach through formal assessments and data-driven processes. In 2025, we conducted a double
includes structured benefits programs, performance
Impacts on the extent and condition of ecosystems
Directors, with execution supported by the Executive Leadership Team and a cross-functional Sustainability Steering Team
Appendix
Governance
Climate change adaptation
governance framework that integrates environmental, social, and business conduct considerations into strategy, operations,
Social
What Comes Next
Working Conditions
Impacts and dependencies on ecosystem services
Hexion manages sustainability through a structured
Advancing Performance
Political engagement and lobbying Fair competition (Entity-specific)
Anti-corruption and bribery
Geopolitical tensions (Entity-specific)
practices, strengthen culture, and support long-term employee satisfaction. Working time and employment practices are monitored as part of our broader human capital management approach, consistent with our material focus on working conditions.
Talent sourcing (Entity-specific)
establish governance oversight, define actions, set measurable targets, and monitor performance to support accountability and continuous improvement.
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Advancing Performance
Occupational Health & Safety Hexion’s Occupational Health and Safety (OHS) Management System provides a consistent framework for managing workplace health and safety risks across global operations. Aligned with Responsible Care® RC14001, the system uses a risk-based approach to identify hazards, assess risks, implement controls, support regulatory compliance, and drive continual improvement. Hazards and incidents are systematically reported, investigated, and analyzed to determine root causes, while corrective and preventive actions are tracked and evaluated for effectiveness. Worker participation is supported through regular communication, safety meetings, and engagement initiatives that promote awareness of safety policies, workplace risks, and individual responsibilities. Hexion identifies required competencies based on workplace hazards, risk assessments, and compliance obligations, and provides job-specific onboarding and refresher training to maintain workforce competency and promote worker health and wellbeing. In 2025, 100% of workers received occupational health and safety training. The OHS Management System applies to employees and contractors and includes processes to identify, assess, and mitigate occupational health and safety risks associated with operational activities. In 2025, 100% of employees were covered by Hexion’s occupational health and safety management system.
Ethics and Integrity Hexion maintains a strong commitment to ethical business practices through its Employee Code of Conduct and supporting policies, which apply globally across operations and business relationships. Training programs are a core component of this approach, and in 2025 100% of employees required to complete ethics training did so. The training covered anti-corruption, anti-trust, and related topics.
What Comes Next
Appendix
This foundation enables us to provide customers with reliable product information, maintain compliance across global markets, and support responsible use in increasingly complex regulatory environments.
In 2025, Hexion identified no confirmed incidents of corruption or bribery and was not subject to any confirmed findings or enforcement actions relating to anti-competitive conduct or monopolistic practices. We reinforce expectations through ongoing communication, including company-wide awareness messages focused on integrity, respect, and accuracy in reporting. Employees and external stakeholders have access to the Hexion Hotline in local languages, which provides a confidential channel to raise concerns. All reports are assessed and, where appropriate, investigated and tracked to resolution.
Responsible Information Management Hexion is committed to protecting information assets and maintaining robust cybersecurity practices. We invest in systems, training, and processes to manage risks associated with data protection and cyber threats. Our cybersecurity approach includes employee awareness training, regular risk assessments, continuous monitoring of systems, and defined incident response processes. Data protection principles guide how personal and sensitive information is collected, used, and safeguarded, supporting compliance with applicable regulations and reinforcing stakeholder trust.
Supplier Engagement
Social Dialogue
Hexion extends its expectations for responsible business conduct across its value chain. Our Supplier Code of Conduct, signed by 100% of our suppliers, establishes requirements related to labor practices, human rights, ethics, and responsible sourcing, and applies to suppliers and third parties globally.
Hexion supports open and constructive dialogue with employees and respects the fundamental rights of freedom of association and collective bargaining. We recognize the role of employee representation structures, including works councils where applicable, in fostering engagement and communication.
Our responsible sourcing approach is further supported by targeted policies, including conflict minerals due diligence, which reinforce expectations for ethical supply chain practices and transparency.
As reflected in our workforce data, 26% of employees are covered by collective bargaining agreements, demonstrating established mechanisms for labor representation and dialogue.
Product Stewardship
Equal Treatment, Non-Discrimination and Anti-Harassment
Hexion applies a disciplined, lifecycle-based framework, aligned with Responsible Care® 14001 Product Safety Code requirements, to ensure our products are developed, manufactured, and used in ways that support regulatory compliance, safe handling, and environmental responsibility. From raw material selection through end-of-life considerations, we evaluate product risks using sciencebased methods and integrate stewardship reviews into new product development, product changes, and customer applications. This includes the use of Safety Data Sheet management systems, ongoing regulatory compliance with frameworks such as TSCA and REACH, and processes to assess and, where appropriate, advance chemical substitution.
Hexion is committed to maintaining a workplace free from discrimination and harassment. Our policies and practices promote equal treatment and opportunity across our workforce and reinforce expectations for respectful conduct. We monitor diversity metrics and track progress toward a more inclusive workplace. All employees are required to complete training on topics including mutual respect and workplace conduct, reinforcing awareness of anti-harassment expectations. Reported concerns can be raised through formal grievance mechanisms, including confidential reporting channels, and are reviewed and addressed in accordance with established procedures. In 2025, there were no incidents of discrimination.
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GRI Reference Table
Empowering People
From Strategy to Execution
Products & Solutions
Advancing Performance
What Comes Next
Appendix
Standard
Disclosure
Location
GRI 2: General Disclosures 2021
2-1 Organizational details
Hexion Inc. is a privately held global chemical company incorporated in the United States that develops and manufactures specialty resins, coatings, adhesives, composites, and related performance materials. The company's global headquarters is located in Columbus, Ohio, USA. Hexion operates manufacturing, research, and commercial facilities across North America, Europe, Asia-Pacific, Latin America, and the Middle East, serving customers in a diverse range of industrial and consumer end markets.
2-2 Entities included in the organization’s sustainability reporting
The report refers to Hexion Inc. and its global operations.
2-3 Reporting period, frequency and contact point
Full year 2025, for questions regarding this report please contact sustainability@hexion.com.
2-6 Activities, value chain and other business relationships
Hexion operates globally with production processes dependent on energy and feedstocks; its value chain includes manufacturing, procurement, and logistics, and is exposed to upstream raw materials and downstream customer demand for lower‑carbon products.
2-7 Employees
See People metrics, page 24.
2-9 Governance structure and composition
See Appendix, pages 28 and 29.
2-12 Role of the highest governance body in overseeing the management of impacts
See Appendix, page 28.
2-14 Role of the highest governance body in sustainability reporting
See Appendix, page 28.
2-15 Conflicts of interest
Please see our code of conduct on Hexion.com.
2-16 Communication of critical concerns
Please see our code of conduct on Hexion.com.
2-22 Statement on sustainable development strategy
See Appendix, page 28.
2-27 Compliance with laws and regulations
Please see our code of conduct on Hexion.com.
2-30 Collective bargaining agreements
See Appendix, page 29.
3-1 Process to determine material topics
See Appendix, page 28.
3-2 List of material topics
See Appendix, page 28.
3-3 Management of material topics
See Appendix, page 28.
102-4 GHG emissions reduction targets and progress
See Environmental Performance: Emissions, page 23.
102-5 Scope 1 GHG emissions
See Environmental Performance: Emissions, page 23.
102-6 Scope 2 GHG emissions
See Environmental Performance: Emissions, page 23.
102-8 GHG emissions intensity
See Environmental Performance: Emissions, page 23.
102-10 Carbon credits
2051 MWh
This table identifies the GRI disclosures and standards referenced within this report.
GRI 3: Material Topics 2021
GRI 102: Climate Change 2025
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Appendix
Standard
Disclosure
Location
GRI 103: Energy 2025
103-1 Energy policies and commitments
See our 2035 Sustainability Goals, page 6.
103-2 Energy consumption and self-generation within the organization
See Environmental Performance: Energy, Water and Waste, page 23.
103-4 Energy intensity
See Environmental Performance, page 23.
103-5 Reduction in energy consumption
See Environmental Performance: Energy, Water and Waste, page 23.
205-2 Communication and training about anti-corruption policies and procedures
See Appendix, page 29.
205-3 Confirmed incidents of corruption and actions taken
See Appendix, page 29.
GRI 206: Anti-competitive Behavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
See Appendix, page 29.
GRI 303: Water and Effluents 2018
303-3 Water withdrawal
Energy, Water and Waste, page 23.
GRI 306: Waste 2020
306-3 Significant spills
See Safety Performance, page 24.
306-3 Waste generated
See Environmental Performance: Energy, Water and Waste, page 23.
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees
See Appendix, page 28.
401-3 Parental leave
See Appendix, page 28.
403-1 Occupational health and safety management system
See Appendix, page 29.
403-2 Hazard identification, risk assessment, and incident investigation
See Appendix, page 29.
403-4 Worker participation, consultation, and communication on occupational health and safety
See Appendix, page 29.
403-5 Worker training on occupational health and safety
See Appendix, page 29.
403-6 Promotion of worker health
See Appendix, page 28 and 29.
403-8 Workers covered by an occupational health and safety management system
See Appendix, page 29.
403-9 Work-related injuries
See Safety Performance, page 24.
404-1 Average hours of training per year per employee
See People metrics, page 24.
404-2 Programs for upgrading employee skills and transition assistance programs
See Empowering People, page 13.
404-3 Percentage of employees receiving regular performance and career development reviews
See Empowering People, page 13.
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees
See People metrics, page 24.
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken
See Equal treatment, Non-discrimination, and Anti-harassment, page 29.
GRI 205: Anti Corruption 2016
GRI 401: Employment 2016
GRI 403: Occupational Health and Safety 2018
GRI 404: Training and Education 2016
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Imagine everything.
hexion.com
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