SUSTAINABILITY REPORT 2024
Chief Executive Officer and President
Message From the CEO
Our vision is to be the trusted partner to the world?s leading manufacturers, who rely on our process fluid so utions to advance the world safely and sustainably.As the global leader of industrial process fluids, it is our responsibility to create a lasting pos tive impact on our ndustry.Sustainability is fu y embedded in our va ue proposition and our enterprise strategy.Our products and services provide significant value to our customers and communities by reducing waste,water and energy consumpt on, and improving their outcomes.
The macroeconomic, geopolitical and regulatory landscape remained dynamic in 2024, and the uncertainty created will likely have last ng effects It is evident that despite these cha enges, our commitment to responding to the needs of our customers and society is more important than ever.
In 2024, we achieved 90% of our internal goals as part of our long-term sustainability strategy, building on the momentum from prior years.We are pleased to report that we have decreased Scope 2 greenhouse gas
emissions by 7% compared to 2023, and we also increased renewable electricity by 5% compared to 2023 Now 76% of the Company s electricity is from zero carbon or renewable sources.We also reduced, or avoided, 23,000 metric tons of waste at QH FLUIDCARE? customer locations.We have continued our focus on build ng a culture that prioritizes the safety and well being of our colleagues For the fifth consecutive year we have improved our safety performance, and we are proud to be recognized as a leader amongst our industry's safest companies.These achievements reflect our commitment to our core values and driving sustainable progress
Following the completion of our first double materia ty assessment in 2024, which incorporated financial and impact materia ty, we have a more targeted v sion of how to affect positive change and respond to the changing needs of our industry, customers, and regulatory environment.Our strategy will remain centered around our pillars:Innovat ng for a
Better Tomorrow, Protecting Our Planet, Empowering Our Colleaguesand Communities, and Sourcing Our Materials Responsibly.How we measure success and report on progress, however,may evolve over time.We are making intentional investments in our business to reduce complexity in our operations and manufacturing to better serve customers and align with those that share our vision for making progress on our sustainability mission
We are proud of the progress we have made and the externa validation by EcoVadis, Newsweek, Statista and others Our success s built on the foundation of our talented people, and I am confident in our ability to continue providing sustainable innovations to our customers and drive the Company Forward Together?
We appreciate your interest in Quaker Houghton.We are devoted to continued progress and transparency and encourage you to read more in th s2024 Sustainability Report .
Joseph Berquist
A Discussion on the Evolving Landscape
Joe Berquist, the President and CEO of Quaker Houghton, ment oned in his letter that the sustainability strategy w ill stay the same but how you measure success may evo ve What exactly does that mean? And w hy change it now ?
While the four pillars of our strategy will remain the same, some of the top cs we focus on under those pi lars may evolve This means we must assess how our targets align to those updated topics and that we will ad ust our initiat ves, and how we measure success, accord ngly
In 2020, we completed our first impact materia ity assessment This created the foundation of our sustainabil ty strategy, which we then launched in 2021 S nce then the world, as wel as the needs of our stakeho ders, has evolved.As a result, in 2024, we conducted a doub e mater ality assessment (DMA), which looks to determine what impacts, risks, and opportun t es are cr t cal from both an impact and financial mater ality perspective
This updated view of mater ality,fina ized ate in the year, has conf rmed that moving forward our approach must evolve.This will enab e us to continue supporting our stakeholders n a way that is most impactful to them.
Does the pol tical environment directly impact your strategy?
While the po itical environment may indirectly impact the expressed needs of our stakeholders in certain parts of the world, it is not the driving force behind our strategy We are a global organization,whose key stakeholders inc ude our people, customers, investors, suppliers, and communities at arge.As we cater to the wor d?s lead ng manufacturers, we know that their core ambitions will not change, they continue to a m for efficiency in the r operat ons. We plan to continue to support those ambitions by contribut ng positively to their goa s, to reduce their negative impacts such as waste, water, and energy consumpt on, with the use of our products.Our sustainabil ty strategy and ambitions a low us to continue prov d ng susta nab e va ue to our key stakeholders globally
Will Quaker Houghton remain an inclusive workplace regardless of any external environment changes?
We strive to have an env ronment where all col eagues are treated fair y and inc usive y and feel ike they belong We be eve that nclusion of col eagues with different backgrounds, experiences, and thoughts makes us stronger, so this will cont nue to be a foundat on of our cu ture
Does Quaker Houghton have new sustainabi ity targets?
We are still assessing the impact of the DMA on our goals and targets?all good th ngs take time
The DMA was f nalized in late 2024. In 2025, we w ll bui d our path forward in a way that helpsus achieve our vision and support our stakeho ders n a dynam c env ronment Then,we w llaim to f nalize the governance and organ zat onal structure needed to support that path I look forward to sharing these developments with you n ear y 2026
If the company is re-assessing itssusta nability targets w ill progress continue in 2025?
Absolute y! Our respons b ity and commitment to susta nability s unwavering.In 2025, we have established 25 internal goalsfocused on br ng ng new susta nab e innovations to our customers, cont nued reduction of energy and water, cont nued investment in our colleaguesand communities, and collaborating with our supply chain to move the ndustry Forward Together? These goals are aligned with our new mater al topics and continue to align w th our enterprise strategy I look forward to sharing our continued progress w th you in next year?sreport
Highlights: 2024 at a Glance
15,000+ customers served
~$1.84 B in net sales named one of America's Most Responsible Companies, by New sweek and Statista additional colleague resource groups launched 15% score improvement and a silver medal awarded by EcoVadis for our sustainability performance
36 manufacturing sites around the world
~4,400 colleagues committed to the success of our customers and our company
167
site-level projects implemented to reduce our waste, water, and energy consumption
5% increase in renewably based electricity,now 76% of the Company's electricity is from zero carbon or renewable sources
23,000 metric tons of waste avoided/ reduced at QH FLUIDCARE? partner locations
Exceeded external benchmark1 for volunteering participation by 2% points
0.33 7% reduction in Scope 2 greenhouse gas (GHG) emissions compared to 2023 75% of our total direct raw material spend is sourced by suppliers w ho exceed our Sustainability performance threshold 75% increase in average hours of employee training compared to 2023 2
8% of our mineral oil based raw materials come from reclaimed or re-refined, compared to 7% in 2023
Total Recordable Incident Rate (TRIR), w hich iswell below the average TRIRof 1.8 for Chemical Manufacturing (2023), as cited by the US Bureau of Labor Statistics
Who We Are and How We Manage Sustainability
Company Overview
Quaker Houghton s the global eader in ndustrial process fluids.With a robust presence around the world, inc uding serving customers in 100+countries, our customers include thousands of the world?s most advanced and spec alized stee , aluminum, automot ve, aerospace, offshore, container, m n ng, and meta working companies.Our high-performing, nnovat ve, and susta nable so ut ons are backed by best-in-c ass technology, deep process knowledge, and custom zed services With approx mately 4,400 col eagues, ncluding chemists, engineers, and ndustry experts,we partner w th the world?s leading manufacturing companies who rely on our process f uid so ut ons to advance the world safely and susta nab y.
Sustainability Governance and Management at Quaker Houghton
At Quaker Houghton we strive to integrate sustainable business pract ces across our operations and to continua ly develop susta nable so utions that meet evo ving customer needs According y, our sustainabi ty strategy is critica to our ong-term business objectives and a strong governance structure, and management approach are needed to support the achievement of our ambitious sustainabi ty v sion. Our governing process creates accountabi ity,supports consistent communication, and dr ves progress.
Board Level Governance
Quaker Houghton?s Board Sustainabil ty Comm ttee (BSC), established in 2020, assists the Board of Directors in ts assessment and evaluation of Quaker Houghton?s sustainab lity programs pertaining to the company?s business, operat ons, and co leagues The Committee?s responsibilities inc ude ntegrat ng sustainabi ty initiat ves into the company?s bus ness planning, risk management, processes, and culture, while assessing and responding to r sks connected with sustainabil ty matters. They engage in the development and implementation of the organization's sustainab lity progress.The Board Sustainabil ty Committee traditional y meets no less than twice annually, but met four t mes in 2024. Beyond the Board Sustainabi ity Committee, Quaker Houghton?s fu Board of Directors rece ve sustainabi ty updates from the Executive Leadership Team (ELT) via quarter y reports and periodic presentat ons
Add t onal informat on on susta nab lity management and report ng responsib lities is ava lable in the Board Susta nability Comm ttee Charter Deta ls on the Board Sustainabi ity Committee members?know edge and expertise are available in our most recent Proxy Statement.
Executive Level Governance
The ELT has operational eadership and responsibil ty for susta nability management In 2024, the Execut ve Sponsors of the program included the Chief Commerc al Officer, Ch ef Techno ogy Off cer, Chief Human Resources Officer, and Chief Supply Cha n Off cer
Functional and Disclosure Leadership
Quaker Houghton?s Director of Corporate Susta nability partners with eaders across business funct ons to propel our existing sustainabi ity activities forward and to develop and execute on new in t atives The co lective susta nability team works with funct onal leaders as well as market ng, corporate communications, ega , and investor relat ons to accurately and efficiently share informat on with our stakeholders.
Our Materiality Results
Relevant Topics
Quaker Houghton completed an mpact materiality assessment n 2020, following the comb nation of Quaker Chem cal Corporation and Houghton International, to identify the susta nab lity topics most significant to our company and key stakeholders These topics were identified via extensive research and benchmarking of the ndustry andscape as we l as n-depth stakeho der engagement They were then mapped across the Quaker Houghton value chain to determine where they were most re evant in the business.
Stakeholder Engagement
The mater ality assessment process ncluded substantial engagement with internal and externa stakeholders.Internal stakeholder engagement included interviews with leaders across business functions and a survey of approximately 10% of our colleagues External stakeho der engagement inc uded nterviews with investors, customers, and suppliers We further engaged our Executive Leadersh p Team and Board Susta nab lity Committee to validate the prioritized material topics (see f gure to right).
Application
The f nal list of mater al topics informed the development of our susta nab lity strategy re eased in August 2021 These topics continue to be the focus of our sustainabil ty initiat ves and reporting to date During the annua report ng process, we re-engage key internal stakeholders responsible for our mater al topics to review our approach, programs,and progress
Double Materiality Update
In 2024, the company completed its first double materia ity assessment The results of that assessment, ts mpacts, and potentia impacts on targets, are sti be ng reviewed internally and are expected to be disclosed n the 2025 Sustainabil ty Report.In 2025, we plan to focus our efforts on material topics that were highl ghted in the 2020 impact assessment, and that align with the resu ts of the doub e material ty assessment, as wel as our overa l enterprise strategy
Materiality Matrix
Progress on Material Topics
Minimizing Hazards in Our Portfolio
Transit oning Our Solut ons to Support a Low -Carbon Economy
PROTECTING OURPLANET
Formulating With Renewable Raw Materials
- Deve oped 2 new roadmaps for CMR2 reductions and implemented 2 corresponding field tr als with customers
- Continued implementation of Green Chemistry Gu del nes and ncluded more translat ons n the ocal languages of our colleagues
- Eiminated over 23,000 metric tons of waste at QH FLUIDCARE? partner locations
- Updated our preferred raw mater al l st which was launched in 2023
- Deve oped 3 new roadmaps for reducing waste, water, and energy at customer locations, and implemented 2 corresponding field trials
- Continued implementation of Green Chemistry Gu del nes and ncluded more translat ons n the ocal languages of our colleagues
- Deve oped 7 new roadmaps for reducing virgin foss l-based raw materials, and mp emented 3 correspond ng fie d trials with customers
- Achieved 19% renewable raw materia s g oba ly, excluding reclaimed and refined minera o l
- Increased our recla med or re-refined mineral oi based raw mater als to 8%
- Continued implementation of Green Chemistry Gu del nes and ncluded more translat ons n the ocal languages of our colleagues
Reducing Our Greenhouse Gas Em ssions
Managing Our Water Responsibly
Minimizing Our Waste
- Reduced Scope 2 GHG Emissions by 9% compared to 2023
- Created a roadmap to reduce GHG emissions at ma or ocat ons
- Imp emented 64 projects which further reduced energy consumption
- Increased renewably based electricity by 5%, now 76% of Quaker Houghton's electricity is sourced renewably v a grid, on site solar generation,and purchased renewable contracts
- Insta led solar panel systems at 3 add tiona manufactur ng ocat ons
- Rol ed out energy monitoring software at 5 add t onal manufacturing locations
- Created a roadmap to reduce water consumption at ma or locat ons
- Imp emented 34 pro ects which reduced water consumption in key processes
- Created a roadmap to reduce waste to landfi and hazardous waste generat on at major locations
- Imp emented 69 projects which reduced waste to andf ll and hazardous waste generation
Incremental Sustainable Improvement
We are proud to share Quaker Houghton s now ranked in the top 13th percent le of al companies assessed for the r Susta nab lity performance in EcoVadis, and as a result was awarded a silver meda In late 2024, Quaker Houghton underwent a thorough reassessment of its operationa susta nab lity practices and in March of 2025 increased its score by 15%.
Quaker Houghton partners with EcoVadis to rate the susta nab lity performance of our suppliers, and for the past f ve years we have also partnered with them to be assessed annually for our business?susta nab lity performance. Through its globally recognized platform, EcoVadis rates how susta nab e companies are based on four key categories:environmental impact, abor and human r ghts standards, ethics,and procurement practices This involves a r gorous two-month certificat on process, which inc udes answering over 300 questions, submitt ng documentation, and completing audits
Since 2020, when we forma y began the implementation of our sustainabi ity strategy, our Ecovadis score has ncreased by 35% With each passing year, the organization more deep y embeds this nto existing processes and programs and makes progress on our materia top cs This significant mprovement demonstrates our commitment to susta nab lity and we ant cipate that as we continue to drive progress we wi l be ab e to further mprove our performance
EMPOWERING OURCOLLEAGUESAND COMMUNITIES
Empower ng Our Col eagues to Live Safe
- Ach eved a TRIR of 0 33 and zero severe recordable njuries
- Ma ntained ISO 45001certificat ons n 80% of our non-U S ocations
- Certified 53% of our U.S.sites aga nst the RC 14001standard
Invest ng in Our People?s Grow th and Development
Embracing Inclusion
- Continued prov d ng earn ng and eadership development opportunities for our colleagues
- Increased usage of QH University by 10% s nce 2023
- Kicked off the "Belong ng Campa gn" by holding inclus on tra ning for eaders
- Introduced al yship in our inclus on tra ning for leaders and as an element of our Colleague Resource Group framework
- Provided global programming experience for al co leagues for Internat onal Women?s Day
- Provided targeted learning opportunities to women and minority eaders through partnership w th Leader s Edge
- Expanded co league resource groups to include Veterans and PRIDE
Support ng Our Local Commun ties? Development
SOURCING OURMATERIALSRESPONSIBLY
Ensuring Everyone n the Supply Cha n Is Treated With D gnity and Respect
Confirm ng Sustainable Sourcing of Raw Materials
- Exceeded volunteering engagement goal of 3% (industry standard4), by ach eving over 5%employee engagement in our volunteer program
- Launched our globa foundation,global donat on-matching,and two global grant-making campaigns
- Estab ished Quaker Houghton reporting metrics on supp er susta nab lity scoring
- Ach eved the Roundtable on Sustainable Palm Oil (RSPO) certificat on for the Santa Perpetua,Spa n site
- Ach eved 75% of total direct spend w th suppliers3 that exceed our sustainabil ty threshold
- 65% of tota palm oil and pa moleine vo ume was ful y segregated through the RSPO
- Se ected and announced additional supply chain awareness train ng for col eagues
3 This percentage is der ved from supp iers who are deemed mater a o Quaker Houghton w h a d rect spend above $100k
4 As compared o the indus ry average according to the B ackbaud 2023 CSRIndustry Review
Innovating Together for a Better Tomorrow
As the global leader in industrial process fluids, we continuously seek ways to improve and adapt to stay ahead in a changing world Through our solutions that bring about positive environmental and societal impacts, we help everybody win ? our customers, our communities, and the planet.
Innovating Together for a Better Tomorrow is a critica endeavor at Quaker Houghton Our management approach n 2024 is consistent with our 2023 approach For more details on our approach to:
- Minimizing Hazards in Our Portfolio, please see pg.11of our 2023 report.
- Trans tioning Our Solutions to Support a Low-Carbon Economy, please see pg.13 of our 2023 report
- Formulating With Renewable Raw Materials, please see pg 14 of our 2023 report
Minimizing Hazards in Our Portfolio
While our portfo io is largely non-hazardous we continue to strive to minimize the use of Global Harmonized System (GHS) category 1labeled products that are Carcinogen, Mutagen, Reprotoxic (CMRs) Currently, these CMRs are mostly found in the surface chemistry segments, such as, metal finishing,plating, conversion coatings, and passivation.In 2024, we introduced two product transit on roadmaps specific to reducing CMR hazards2 In parallel to our work to reduce hazards in our portfolio, our commercial and strategy teams engaged n a multi-year project to simplify our portfolio, which significantly and strategically reduced the amount of finished goods with CMR hazards2 . As a result of both strategic projects, we have
reduced CMR hazards2 in our finished goods portfolio from 2 2% in 2022 to 13% in 2024
Re-classifications of hazards across the globe are increasing, which slightly increased the finished goods labeled as CMR category 1, or 1A/ B, in 2024 compared to 2023, but we remain committed to reducing these types of hazards in our portfolio In 2025, we strive to continue reducing CMRs by formulating 100% of new finished goods not labeled as CMR category 1A/ B and plan to also reduce current active formulat ons which are labe ed as CMR category 1A/ B.
Transitioning Our Solutions to Support a Low -Carbon Economy
We continue to support all customers in their transition to support a low-carbon economy by working together to reduce product consumption, waste, water, and energy While much of our solutions provide one or multip e of those benefits our See Beyond? portfolio, launched in March 2024, highlights products which provide the most significant sustainable benefit to customers.In addit on, our QH FLUIDCARE? offering prov des sustainable and affordable technical solutions that help our customers achieve waste e imination or avo dance We are pleased to share that QH FLUIDCARE? customers avo ded or eliminated more than 23,000 metric tons of waste in 2024 In 2025, we plan to add new sustainable innovat ons
to our See Beyond? portfolio and partner with our QH FLUIDCARE? customers to continue to signif cantly reduce their product consumpt on and waste.
Formulating With Renewable Raw Materials
Our green chemistry strategy and guidelines play an ntegral role in the successful transition of our portfolio to the use of renewable and refined base oils.In 2024, we bu t upon that success by expanding translat ons so that colleagues could use the guidelines to formulate and ad ust our solutions in their nat ve language.Several roadmaps were created and launched to focus on the reduction of virgin-fossil based raw materia s and we partnered w th several customers to trial those new solutions.Our See Beyond? portfolio highlights solutions with renewable or re-refined base oils which enable our customers to be more sustainable.As a result of our continued efforts, in 2024, 19% of our g obal raw materials were renewably based, excluding reclaimed and re-refined We also increased our reclaimed or re-refined mineral oil based raw materials to 8% In 2025, we plan to add new sustainable innovations to our See Beyond? portfolio and will continue to bu dout and implement roadmaps which reduce the use of virgin-fossil based raw materials.We then plan to partner with customers to trial these new solutions.
23,000
metrics tons of customer waste was eliminated or avoided in 2024 through our QH FLUIDCARE? program
Reduction in Magnetic Iron Sludge Generation by 33%
A large steel customer approached Quaker Houghton to help reduce magnetic ron sludge generation The customer made processchanges and achieved a 5-8% reduction in sludge generation. Once Quaker Houghton was brought on board, our experts suggested both product and process changes which further reduced sludge waste generation by 33% without any additional energy consumption. In turn,this also enabled the customer to ach eve a 20% reduction in their oil consumption.
Protecting Our Planet
To reduce negative impacts on the environment, Quaker Houghton actively strives to improve waste, water, energy, and fuel use.
Protecting Our Planet, by minimizing our impact on the world around us, is a top priority at Quaker Houghton.Our management approach n 2024 is consistent w th our 2023 approach For more details on our approach to:
- Reducing Our Greenhouse Gas Emissions, p ease see pg 16 of our 2023 report
- Managing Our Water Responsibly, please see pg 17 of our 2023 report
- Minimizing Our Waste, please see pg.18 of our 2023 report
This year, we continued the standardizat on of ISO 14001and RC 14001certifications in our manufacturing sites As a result, 100% of our non-U.S.manufacturing sites are ISO 14001 certified In add tion, as a member of the American Chemistry Council, we committed to improve environmental performance through the implementation of the Responsible Care®1(RC) management system.As a part of that membership,eight U S locations are now certified against RC 14001, with four newly certified n 2024 This standardization displays the quality and robustness of our management practices and will support Quaker Houghton in continuing to util ze resources efficiently.For 2025, we plan to certify additional U S sites with RC 14001.
Reducing Our Greenhouse Gas Emissions
Reducing Scope 1, 2, and 3 greenhouse gas emissions (GHG) is integral to Quaker Houghton?s
commitment to the environment, meeting the needs of our customers, and our overall business success.We aim to reduce our GHG emissions through susta nable sourcing of energy and decreasing energy usage, and in 2024 we are happy to announce that we have decreased our Scope 1and 2 GHG Emissions by 5 percent compared to 2022.The Company increased its renewably based electricity by 5%, now 76% of the Company's electricity is from zero carbon or renewable sources via grid, solar pane s, and purchased renewable contracts.Part of that increase is due to new solar installations at our locations in Mex co, Thailand, and Australia.Since 2022, we have implemented energy monitoring equipment at 16 sites, which allow us to target energy reductions strategically With 5 new investments in 2024, we expect an average 7% reduction in electricity consumption at these s tes
In addition, 64 projects were launched or implemented across our primary locations to reduce energy through our site champion program.Site Champions are provided additional funds for mplementing initiatives which reduce waste, water, and energy at major locations.
In 2024, a Scope 3 roadmap was launched to measure and report our material Scope 3 GHG emiss ons for the first time In 2025, we plan to build the first sustainabil ty report using Scope 3 data, continue to increase our renewable energy usage, and implement projects which reduce our Scope 1and 2 GHG emissions
Managing Our Water Responsibly
As the world?s leading supplier of process fluids, water is a critical resource to Quaker Houghton for our operations, our customers, and in our communit es In 2024, 37 projects were launched or imp emented across our primary locations to contribute to water efficiency and reduce water consumption in key processes through our site champion program We are also pleased to announce that we had zero incidents of non-compliance associated with water quality permits, standards, and regulations, and also created a long-term road map to help envision our water management goals.In 2025, we plan to enhance our water management best practices and continue implementing projects which improve our water usage efficiency, contributing to scarcity management.
Minimizing Our Waste
We work to min mize and responsibly manage waste-to-landf and hazardous waste generated in our operations In 2024, 69 projects were launched or imp emented across our primary locations to reduce waste generation We reduced our waste to landfill by 18% compared to 2022, and created a long-term roadmap to envision our waste management goals.
In 2025, we plan to enhance our waste management best practices and standardize in all locations
76% of our electricity is sourced through renewable/ zero carbon electricity, a 5% increase compared to 2023.
Manufacturing Our Ow n Esters Lead to Significant Energy Improvements
One of the ways we better serve our customers is by manufacturing esters in-house which both reduces cost and increasesperformance. Esters are a key component used in many of our products The esterification process is energy intensive and our location in Uithoorn, Netherlands, is one of the select sites globally with these capabilit es This year the local team assessed the esterification process and then implemented operational changes which decreased process ng time by approximate y 50% and decreased the heating temperature by 34%, further reducing the s te s energy consumption This is a significant improvement in the process and key learnings from this project will be mplemented globa y in the future.
Empowering Our Colleagues and Communities
Quaker Houghton maintains an unwavering commitment to our colleagues' engagement, safety, and professional development; advancing inclusion and supporting the communities where we live and work
Empower ng Our Colleagues and Communities is of the upmost importance at Quaker Houghton. For more details on our management approach to:
- Empowering Our Colleagues to Live Safe, p ease see pg.20 of our 2023 report.
- Investing In Our People?s Grow th and Development, please see pg.21of our 2023 report.
- Embracing Inclusion, please see pg 13 of th s report
- Supporting Our Local Communities? Development, please see pg.24 of our 2023 report
Empowering Our Colleagues to Live Safe
Safety is critical to the Quaker Houghton culture We believe everyone has a role to play in protecting themselves and those around them.In 2024, our focus areas were to rev talize our Life Saving Rules, increase emphasis on job task risk analysis (JTRA), invest in Process Hazard Analysis software, and expand the Devonway EHS platform to include Management of Change As a result of our focus on risk assessment,Quaker Houghton colleagues completed over 14,000 safety activities in 2024, a 42% increase from 2023 We also comp eted detailed site improvement plans for all locations, putting additional focus on setting reasonable deadlines for audit findings and completing them on time
We increased ISO 45001certif cations to 80% in our non-U.S.locations, and in 2024, 53% of our U.S.sites were RC 14001certified.ISO 45001is an internationally recognized framework for occupational health and safety management systems, and RC 14001 s a standard for meeting the American Chemistry Council?s (ACC) Responsible Care® (RC) safety and sustainability pr nciples These certifications speak to the robustness of our occupational health and safety, and sustainability program management.In addition to upholding these standards, we also implement compliance audits on a three-year cycle n partnership with a th rd party consultant to support our compliance with EHS regulations and industry best practices
Due to our efforts in 2024, we achieved a Total Recordable Incident Rate (TRIR), of 0.33 and zero severe recordable in uries.We are proud of our progress as this achievement is a decrease of 57% since 2019 and well below the average TRIR of 1.8 for Chemical Manufacturing (2023), as cited by the U.S.Bureau of Labor Statistics.In 2025, we plan to continue to focus on employee engagement, increase employee reporting of leading indicators, standardize policies and procedures, and continue to improve process safety management which we anticipate w lead to a reduction in recordable nc dents.
Investing In Our People?s Grow th and Development
Our colleagues are our most signif cant differentiator To ensure our success, we prioritize supporting and investing in the sk ls, talents, and expertise of our colleagues.
Our global performance management framework, learn ng and development programs, and organizat onal talent assessment process are core elements of Quaker Houghton?s ta ent investment efforts.The performance management process provides a standardized approach and cadence for evaluating colleague performance and identifying learning goals, action plans, and opportunities for professional development that are aligned with our overarching enterprise strategy.
Through our earning and development programs we place importance on developing our leaders at all levels?whether a colleague is eading themselves or others?and providing them with opportunities to enhance their effectiveness. Our organizat onal talent review works to identify the critical skills and capabilities needed to drive our collective success, delivering results.
We prioritize efforts and investments around wellness and wellbeing In 2024, Quaker Houghton partnered with an external global wellbeing platform, Personify Health (former y Virgin Pulse), which prov des access to act v ties, tools, and resources on we ness topics, and ce ebrated World Mental Health Day with enterprise-wide discussions and education.
0.33
TRIR; well below the average TRIRof 1.8 for Chemical Manufacturing (2023), as cited by the U.S. Bureau of Labor Statistics
World Safety Week
Beginning in April, Quaker Houghton celebrated its third World Safety Week
During this time, colleagues received training, partic pated in various activities, and were encouraged to focus on hazard identification and s tuationalawareness. Regardless of a colleague?s role or location these two aspects of safety play an integral part of Quaker Houghton?s Live Safe core va ue. Wh e there was globalprogramming, such as key messaging from leaders and videos involving Quaker Houghton colleagues, there were also dedicated activities at local sites to involve and engage colleagues on these topics We are proud to report that over 90% of our colleagues got involved in the events embracing our Live Safe core va ue and our path to zero vis on
To further support colleague wellbeing, we continued our partnership with Carrot Fertility and offered a new voluntary benefit with Care.com providing unlimited access to the world?s leading online network for finding shortor long-term care for ch dren, seniors, and pets In the United States we also expanded our Paid Parental Leave program in 2024 to birthing and non-birthing parents (prev ously limited to the birthing parent) and offered the Calm App for guided meditations, mindfulness programs, sleep stories, breathing exercises and stress management tools
Colleague engagement will remain an important element of Quaker Houghton?s people strategy, and we will expand opportunities for learning, development, engagement, and total rewards offerings for our colleagues
Embracing Inclusion
of belonging and introduced Inclusion Training for leaders Our globa CRGs (The NextGen Profess onals, HiredPower, the Women?s Inclusion Network, Veteran, and PRIDE) were active during the year and hosted a var ety of events focused on colleague development and building inclusivity.Allyship is a crucial element of our CRG framework and was an element in our inclusion training for leaders We continue to build an inclusive talent pipeline by provid ng learning opportunities to talented women and minority leaders through a partnership with Leader s Edge In 2025, we plan to continue our focus on belonging and engagement.
Employees volunteer at a community center in Brazil
Supporting Our Local Communities? Development
The Global Philanthropy Committee, along with our local vo unteering site coordinators, partnered with colleagues and nonprofit organizations worldwide to make a positive impact in the communities where we ve and work The company expanded its global month of giving to two months in 2024, as a result of the program?s success in 2023.This expansion led the company to surpass its goa of meeting industry benchmarks for volunteer participation, achieving over 5% of colleagues globally involved in our volunteer program.
non-profit grant partnersacross the globe
We aim to foster an nc us ve culture that mirrors our globa organization.We value doing great things together, n a way that celebrates this and creates an environment where everyone belongs One of the core objectives of our Culture and Engagement Taskforce (which focuses on Quaker Houghton?s overall culture) is to support inclusion init atives We leveraged th s taskforce as we expanded our global Co eague Resource Groups (CRGs), which increase opportun ties for our colleagues to fee a sense
Through two successful grant cycles,the organization positively impacted 17 nonprofits wor dwide Additionally, the newly launched global donation matching program amplified the impact of colleagues?generosity while supporting causes important to them
In 2025, we aim to establish ong-term relationships with community organ zations and charities near our primary regional and globa headquarters and increase colleague partic pation in volunteering
Global Months of Giving
As we strive to make significant positive impacts in the places where we live and work, we encourage colleagues around the world to ut ze their 16 hours of paid time off to give back to their communities In April and November, Quaker Houghton hosted two Global Months of Giving, which focused on driving colleague volunteerism.Our colleagues jumped into action?they participated in hundreds of hours of volunteer work and doubled our year-to-date recorded volunteering hours.Activities included cleaning up beaches at the North Sea Shore in the Netherlands, helping at animalshelters in Germany, serving food at a soup k tchen in the United States, providing support for flood survivors in Spain, and organizing a library in China We are proud of the outcomes of our Global Months of Giving and look forward to continu ng this tradition in 2025.
Sourcing Our Materials Responsibly 75%
Quaker Houghton works diligently to source raw materials from suppliers who operate in an ethical and responsible manner.
Sourcing Our Materials Responsib y is a key area of focus for Quaker Houghton Our management approach in 2024 is consistent with our 2023 approach For more details, please see pg 26 of our 2023 report.
Ensuring Everyone in the Supply Chain Is Treated With Dignity and Respect and Confirming Sustainable Sourcing of Raw Materials
Quaker Houghton is comm tted to conducting our business ethically and susta nably to serve the best interests of our company, colleagues, communities, customers, suppliers, and the planet We ho d our suppliers and subcontractors to high standards,which are outlined in both our Supplier Code of Conduct and the Quaker Houghton Code of Conduct New Quaker Houghton suppl ers must commit to the Supplier Code of Conduct when they are approved.All colleagues have a responsibility to select responsible vendors, as outlined in Quaker Houghton?s Code of Conduct which s rev ewed during the onboarding process and recommitted to on a biannual basis.In addition, in 2024 colleagues were required to complete a ?Due Diligence:What?s My Respons bility?course, which enables colleagues to better understand their role in identifying r sks in the supply chain, as part of the company?s annual ethics and compliance program
One of our most significant sustainable supply chain nitiatives is our ambition to only source respons bly derived palm o l.We can achieve this by confirming sustainable sourcing d rectly with the supplier, or through third party certification. We are proud to hold a Supply Chain Cert fication in Uithoorn,the Nether ands and Santa Perpetua, Spain from the Roundtable on Sustainable Palm Oil (RSPO) This certification assures our customers the palm oil used in our products, manufactured in those locations, are 100% respons bly sourced In 2024, 65% of our global supply of palm oil and Palmoleine was fully segregated through the RSPO In certain areas of the world sourcing fully segregated palm o s not feasible, adoption rates are slower with some customers, and/ or may no longer be des red.As a result, the percentage of our fully segregated supply may fluctuate in the future.We plan to continue to invest n fully segregated palm oil, when feas ble, as well as book and c aim through the RSPO, and work directly with suppliers to ensure what we buy is ethica ly and respons bly sourced.
Quaker Houghton also maintains externa partnerships to assess our suppliers? performance.We have partnered with EcoVadis since 2022 to assess the sustainability performance of our direct suppliers with over $100,000 spend.In 2023, we worked to onboard those suppliers to the EcoVadis platform.In 2024, we established a sustainab lity performance
thresho d aspiring that direct suppliers achieve a score of ?low risk?by EcoVadis.In 2024, 75% of our direct raw material spend was with suppliers who exceeded that threshold.In the next year, we strive to continue onboarding supp iers as supply shifts and will work w th targeted suppliers to improve their practices enabling them to meet our threshold
In 2024 we cont nued us ng Supplier IO, a supp ier intelligence platform, to monitor suppliers in our U.S.supply base that are owned by people with varying backgrounds and experiences.By 2025, supplier data sets from Supplier IO reports wil be available to inform our procurement policy recommendations.
of our total direct raw material spend was w ith suppliers w ho exceeded our sustainability performance threshold
Santa Perpetua RSPO certification
In 2024, our Santa Perpetua,Spa n site was newly cert fied as using fully segregated palm oil by the Roundtable on Sustainable Palm Oil (RSPO) With this certification,Santa Perpetua joins our Uithoorn, Nether ands location,which received its RSPO certification in 2015.The RSPO certifies palm oil and its derivatives as sustainable if it has been grown in a manner that protects forests, wildlife,the environment, communities, and workers,which are ma or concerns surrounding the sourc ng of palm oil This work is part of our commitment to ensure that every stage of our supply and value chain, from raw materia s to customer operations, benefits from cont nual improvements in sustainability performance.
About This Report
Reporting Frameworks
Quaker Houghton has reported the informat on cited n the GRI content index with reference to the Global Reporting Initiative (GRI) Standards
Additiona ly, our SASB Index provides information, or the location of nformation, pertain ng to the Susta nab lity Accounting Standards Board (SASB) Standards for the Chem cals industry We report aga nst all of the standards which are material to Quaker Houghton
In 2024, Quaker Houghton continued to d sclose c imate related risks and opportunities a igned with the Task Force on Climate-Related Financial Disclosures (TCFD).Please see our TCFD Index for more nformation
Report Scope
Quaker Houghton reports on our management of susta nab lity topics as determined by the material ty assessment conducted n 2020 The information in our report focuses on activities from January 1, 2024?December 31, 2024. The Data Tables in the append x of the report also inc ude f scal years 2023 and 2022
In 2024, we updated the baseline and historical environmental data, from year 2022 to present to ref ect organizationa changes These changes ncluded divest tures or change in operat ng scope of 3 locations We om t standa one offices or labs from our environmental data as they do not have a mater al impact
Forward-Looking Statements
This report contains ?forward- ooking statements?that fall under the safe harbor provis ons of the Pr vate Secur ties Litigation Reform Act of 1995 and the Secur t es Act of 1933, as amended These statements can be ident f ed by the fact that they do not relate str ctly to historica or current facts We have based these forward-looking statements on assumptions, projections and expectations about future events that we be ieve are reasonable based on currently available information, ncluding statements regarding the potential effects of the conflicts in Ukraine and the M ddle East; trade and tariffs throughout the world;our expectation that we will mainta n suff cient liquidity and rema n in compliance w th the terms of the Company?s cred t facil ty; expectations about future demand and raw materia costs; and statements regarding the impact of increased raw material costs and pricing in t atives These forward-looking statements include statements w th respect to our beliefs, plans, objectives, goals, expectations, ant cipations, intentions, financ al condition, results of operat ons, future performance, and business, which may differ material y from our actua results, including but not imited to the potentia benefits of acqu s t ons and divestitures, the mpacts on our business as a resu t of global supply chain constraints, and our current and future resu ts and plans and statements that nclude the words ?may,??cou d,??should,??would,??believe,??expect,??anticipate,??est mate,??ntend,??outlook, ?target?, ?possib e?, ?potential?, ?p an?or similar expressions A major risk s that demand for the Company?s products and services is arge y der ved from the demand for its customers?products, which sub ects the Company to uncerta nt es re ated to downturns in a customer?s business and unanticipated customer production slowdowns and shutdowns, ncluding as is currently being experienced by many automotive industry companies as a resu t of supply chain disruptions Other major risks and uncerta nties include, but are not limited to inflat onary pressures; supply chain disruptions; customer financial nstabi ity; rising interest rates and the possibil ty of economic recession; econom c and political d sruptions, inc ud ng the impacts of the mi itary conflicts between Russia and Ukra ne and between Israel and Hamas; tariffs, trade restrictions, and the economic and other sanctions imposed by other nations on Russia and/ or other government organ zat ons; suspensions of act vities in Russia by many mu t national companies and the potential expans on of military activ ty; foreign currency f uctuations; significant changes in applicable tax rates and regulations; future terrorist attacks and other acts of violence; the impacts of conso idation in our industry, inc ud ng loss or conso idation of a major customer; and the potent al occurrence of cyber-security breaches, cyber-secur ty attacks and other security inc dents Furthermore, the Company is subject to the same business cycles as those experienced by our customers n the steel, automob e, aircraft, industr al equipment, alum num and durable goods industries.Our forward-looking statements are subject to risks, uncerta nties and assumptions about the Company and ts operations that are subject to change based on var ous mportant factors, some of which are beyond our control These risks, uncertainties, and poss b e inaccurate assumpt ons re evant to our business could cause our actual resu ts to differ materia y from expected and historica results All forward- ooking statements included n th s report, re ease, including expectations about business conditions during 2024 and future periods, are based upon information available to the Company as of the date of this report, which may change.Therefore, we caution you not to p ace undue re iance on our forward-looking statements For more information regarding these risks and uncerta nt es as well as certain additionalrisks that we face, refer to the Risk Factors sect on, wh ch appears n Item 1A of our Annua Report on Form 10-K for the year ended December 31, 2024, and in subsequent reports f led from t me to t me w th the Securities and Exchange Commission We do not ntend to, and we disclaim any duty or obl gat on to, update or revise any forward-looking statements to reflect new information or future events or for any other reason Th s d scuss on is provided as permitted by the Private Securities Litigation Reform Act of 1995.
GRI and SASB Content Index
2-1Organ zat onal details
Quaker Chemica Corporat on D/ B/ A Quaker Houghton 901East Hector Street, Conshohocken, PA,USA
Please see add t onal details in our 2024 10-K
2-2 Entities included in the organ zation?s sustainabil ty Please see our 2024 10-K.
2-3 Report ng per od, frequency, and contact point
2-4 Restatements of information
GRI 2:Genera Disclosures 2021
2-5 External assurance
The 2024 Sustainabil ty Report was published on April 21, 2025, covers the 2024 calendar year, and is updated annually For questions about the 2024 Sustainability Report informat on, p ease contact Sarah Briggs; Director, Corporate Sustainabil ty: susta nab lity@quakerhoughton com
In this report we have updated our baseline for site environmental data, through 2023, to reflect the changesin scope and data reporting errors We removed three d vested sites from our basel ne data and future reporting One additiona site was added back nto the scope of 2022 and 2023 data, as it was a manufactur ng locat on prior to becoming a warehouse.
We add acqu s t ons to our safety data to start reporting the second January after the acquisition is made.In the 2022 report, the 2022 TRIR was reported as 0 32 After ncluding Baron Industr es and Gr ndaix the TRIR was recalculated to be 0 41 Depend ng on M&A activity we may routinely adjust the h storical TRIR as a result.
The h storica data restatements are indicated in 2024 Data Tab es by two aster sks (**)
Quaker Houghton?s sustainability report ng has not been external y assured.
2-6 Activ t es, va ue chain, and other business re ationships Please see our 2024 10-K
2-7 Employees
2-8 Workers who are not emp oyees
2-9 Governance structure and composition
Please see the 2024 Data Tables included in this report
We do not track the proportion of organizational act vities performed by workers who are not class f ed as employees globally n the HR system of record
Please see the Who We Are and How We Manage Sustainabil ty sect on of th s report.Please a so see our 2025Proxy Statement.
2-10 Nominat on and se ect on of the highest governance Please see our 2025 Proxy Statement.
GRI
2:Genera Disclosures 2021
2-11Chair of the highest governance body
2-12 Ro e of the h ghest governance body in overseeing the management impacts
2-13 Delegation of responsibi ty for managing impacts
2-14 Role of the highest governance body in sustainabil ty
2-15 Confl cts of nterest
2-16 Communication of crit cal concerns
2-17 Co ect ve knowledge of the highest governance body
2-18 Eva uation of the performance of the highest governance body
2-19 Remunerat on polic es
2-20 Process to determine remuneration
2-21Annual total compensation ratio
2-22 Statement on susta nab e development strategy
Please see our 2025 Proxy Statement.
Please see the Who We Are and How We Manage Sustainabil ty sect on of th s report,Please also see our 2025 Proxy Statement
Please see the Who We Are and How We Manage Sustainabil ty sect on of th s report.
Please see the Who We Are and How We Manage Sustainabil ty sect on of th s report
Please see our 2025 Proxy Statement
Please see our 2025 Proxy Statement.
Each Board Sustainab ity Committee member has experience in oversee ng environmenta , soc al and governance matters.In addition, Committee members are provided materials at each Committee meet ng which support additional knowledge and ski development n th s evolving landscape Please see our 2025 Proxy Statement
The Board of Directors conducts an annua self-evaluation each year.
Please see our 2025 Proxy Statement.
Please see our 2025 Proxy Statement.
Please see our 2025 Proxy Statement
Please see the Message From the CEO section of this report
Quaker Houghton?s Code of Conduct requires adherence and comp iance with al laws and regulations on human r ghts and al topics/ matters g oba ly
2-23 Policy comm tments
2-24 Embedd ng policy commitments
2-25 Processes to remediate negative impacts
The Legal Department works with a l groups on a l materia pol cy commitments, but they are not housed in one p ace or controlled by the ega department
The Corporate Comp iance Program,as well as the Global Trade Department's trainings and commun cations, include varied and broad top cs, including such areas as human rights
The Legal Department works with a l groups on a l materia pol cy commitments, but they are not housed in one p ace or controlled by the ega department.
Please see our Code of Conduct
2-26 Mechan sms for seeking advice and ra sing concerns Please see our Code of Conduct
2-27 Compliance w th aws and regulations
Quaker Houghton s fulfill ng ts compliance ob gat ons.
GRI 2:Genera Disclosures 2021
GRI 3:Material Topics 2021
2-28 Membership assoc ations
While Quaker Houghton participates in many ndustry associat ons, the company is an active and corporate member of the Amer can Chem stry Counci and is Responsible Care certif ed in many of its U S ocations 2-29 Approach to stakeho der engagement
Please see the Our Materia ity Results sect on of th s report.
Collective bargaining agreements 38% of Quaker Houghton employees are covered by union/ collective bargaining agreement
3-1Process to determine material top cs
3-2 List of mater al top cs
OURWATERRESPONSIBLY GRI 3:Material Topics 2021 3-3 Management of mater al topics
303:Water and Effluents 2018 303-1Interactions w th water as a shared resource
GRI 303:Water and Effluents 2018
303-2 Management of water d scharge-re ated mpacts
Please see the Our Materia ity Results sect on of th s report.
Please see the Our Materia ity Results sect on of th s report.
303-3 Water withdrawa
303-5 Water consumption
MANAGING OURWATERRESPONSIBLY
SASB Water Management
RT-CH-140a.1Total water w thdrawn, and percentage in reg ons with High or Extreme y H gh Baseline Water Stress; Total water consumed
RT-CH-140a 2 Number of ncidents of non-compliance associated with water quality permits, standards, and regu ations
RT-CH-140a.3 Descr ption of water management r sks and d scuss on of strategies and practices to mitigate those r sks
Please see the Managing Our Water Respons b y section of our 2023 Sustainabi ty Report
Please see the Managing Our Water Respons b y section of our 2023 Sustainabi ty Report
Please see the Managing Our Water Respons b y section of the 2023 Sustainabi ity Report.Quaker Houghton has a corporate policy that advises sites on how to manage the r wastewater It instructs on how to apply for permits, l cens ng, and comply w th ocal regulat ons.In 2024, Quaker Houghton has completed several vo untary wastewater nit atives at a site level for 3 of our sites to mprove their wastewater management
Please see the 2024 Data Tables included in this report
Please see the 2024 Data Tables included in this report.
Please see the 2024 Data Tables included in this report
Please see the 2024 Data Tables included in this report.
Please see the Managing Our Water Respons b y section of the 2023 Sustainabi ity Report and the TCFD Index n this report
REPORTING STANDARD DISCLOSURE
REDUCING OURGREENHOUSEGASEMISSIONS
GRI 3:Material Topics 2021 3-3 Management of mater al topics
GRI
201:Economic Performance 2016 201-2 Financ al impl cations and other risks and opportunities
302-1Energy consumption within the organ zat on
GRI
302:Energy 2016
302-3 Energy ntensity
305-1Direct (Scope 1) GHG emissions
305-2 Energy indirect (Scope 2) GHG emissions
305-4 GHG emissions intensity
GRI
305:Emissions 2016
305-5 Reduction of GHG emissions
LOCATION ORDIRECT RESPONSE
RT-CH-110a.1Gross g oba Scope 1emissions
RT-CH-110a.2 D scussion of long-term and short-term strategy or plan to manage Scope 1emissions, emissions reduct on targets, and an analys s of performance against those targets
Please see the Reducing Our Greenhouse Gas Emissions sect on of the 2023 Sustainability Report
Please see TCFD Index inc uded included in this report.
Please see the 2024 Data Tables included in this report
Please see the 2024 Data Tables included in this report.
Please see the 2024 Data Tables included in this report
GWP source used is IPPC Global Warming Potent al Values:August 2024 AR6, as distributed by the GHG Protocol.GHG Protocolis the standard used and fo lowed for methodolog es and calculat ons We account for CO2, CH4, N2O in our calculationsand then convert those to total CO2e The approach Quaker Houghton takes on calculat ons s operational control of all assets P ease see the 2024 Data Tables inc uded in this report
Please see the 2024 Data Tables included in this report
Quaker Houghton follows GHG Protocol standards for ca culating scopes 1and 2 emissions We created an internal calculat on tool to carry out our methodology.This tool is reviewed, but not certified, by a third party to ensure proper conversion factors, methodo ogies, calculat ons, and processes were used in calculat ng tota emissions Conversion factor sourcesinclude the fo lowing g oba ly recognized organ zat ons: Internat onal Energy Agency (IEA), Environmenta Protection Agency (EPA),and GHG Protocol GWP values.
Quaker Houghton has ident f ed 100% operational y controlled manufactur ng s tes (plus any warehouses, labsor offices connected to a manufacturing site), reg onal headquarters and customer processing locations; n scope for emissions calculations.Out of scope sites are sma warehouses, labs, and offices not connected to a manufacturing site Scope 1emission sources include owned and leased company vehicles as we l as burning of fossil fuels consumed in our manufactur ng processesand heating and cooling of sites n scope Excluded scope 1emissions are any potential coo ant leaks on s te Scope 1emission sources a so include burning of fossil fuels for steam generating purposes, wh ch are directly t ed to our manufactur ng processes Scope 2 emissions are a result of electr city consumption directly assoc ated w th manufacturing processes, as we as the heating and cooling of n scope sites We ca culate both location and market based em ss ons for scope 2, and these values are reported annual y via our CDP questionna re, as well as our 2024 Data Tables in this report.Scope 3 GHG em ss ons are excluded from this report, and we ant cipate be ng ab e to begin reporting in the 2025 report
Please see the 2024 Data Tables included in this report.
Please see the Reducing Our Greenhouse Gas Emissions sect on of the 2023 Sustainability Report
SASB Energy Management
RT-CH-130a.1Energy consumption within the organization
Please see the 2024 Data Tables included in this report.
SASB Greenhouse Gas Emissions
GRI 3:Material Topics 2021 3-3 Management of mater al topics
306-1Waste generation and significant waste-re ated
306-2 Management of significant waste re ated impacts
GRI 306:Waste 2020
306-3 Waste generated
306-4 Waste d verted from disposal
Please see the Minim z ng Our Waste sect on of the 2023 Sustainabil ty Report
Please see the 2024 Data Tables included in this report
Please see the 2024 Data Tables included in this report
Please see the 2024 Data Tables included in this report
Please see the 2024 Data Tables included in this report SASB Hazardous Waste Management
RT-CH-150a 1Amount of hazardous waste generated, percentage recycled
EMPOWERING OURCOLLEAGUESTO LIVESAFE
GRI 3:Material Topics 2021 3-3 Management of mater al topics
Please see the 2024 Data Tables included in this report
GRI 403:Occupational Health and Safety 2018
403-1Occupational hea th and safety management system
Please see the Empowering Our Colleagues to Live Safe section of this report
All of our sites operate under a health and safety management system.Al emp oyees and workers, regardless of act vity,are covered by that system In 2024, the Environmenta , Health and Safety (EHS) policy was updated and approved by the CEO and President.Personal Protective Equipment (PPE) and Safety Comm ttee policies were updated,and the new Job Task Risk Assessment (JTRA) procedure was developed Quaker Houghton in its mission to build on process safety, initiated two new programs, the design and implementation of a Management of Change (MOC) program through DevonWay w th an expected rol out n Q2 2025 and a Process Hazards Analysis (PHA) program, uti iz ng ABS Leader software
Quaker Houghton uses a combination of job descriptions, standard operating procedures (SOP s), EHS pol cy and procedures,and ob task r sk assessments to define workers activities These documents are managed via the DevonWay document control module.
GRI
403:Occupational Health and Safety 2018
403-2 Hazard dentification, r sk assessment, and incident invest gat on
There are multiple processes we fol ow to dentify work-re ated hazards and assess risks on a rout ne and non-rout ne basis These nclude:
- Job Task Risk Assessment (JTRA)
- Stop work authority
- Inc dent management system
- Inspection of equ pment, processes, or work procedures to determine if operat ng conditions are within acceptable limits
- Observat on via formal, in-person evaluation of a ob task or work procedure while it?s being performed in ts entirety; assess behaviors, cond t ons, and overal work processes to determine compl ance with regu atory requirements or other defined parameters
In 2024, a new JTRA procedure was developed Quaker Houghton colleagues completed over 14,000 safety activities in 2024, a 42% ncrease over 2023.We ensure the quality of these processes and the competency of the indiv duals through internal audit and performance reviews of EHS trained staff We tie the results to KPIs which are connected to a monthly report Individual and/ or global EHS goa s are built into every Quaker Houghton colleague?s objectives.
Potentia hazards and hazard situations are reported by a l workers through our leading indicators of Hazard ID,Near M sses,and observations in the new platform, DevonWay DevonWay was implemented to improve the end-user exper ence for reporting, but also the tracking of hazards and hazard situations.This wi l help to optimize communicat on across regions, avo d s milar hazards, and reduce the closure time If a hazard does occur, the reporting individual is empowered by the CEO and Pres dent and the rest of the organization to stop work under the Stop Work Authority Program The company also has an Inc dent Management Po cy n place wh ch describes the process for workers to remove themselves from work situations they believe could cause injury or ill hea th There is pub c recogn t on for co eagues who identify and stop potent al hazards from occurring, as hea th and safety eadership routinely communicates these hazards ident f ed through intercompany commun cations.
The ded cated EHS staff, who are screened and trained profess onals, are accountab e for the implementat on of EHSprocesses and programs,including occupational health services.The EHS staff track leading indicators which are access ble in DevonWay, our EHSQ management system, to ensure the qua ity of these serv ces We have implemented Job Task Risk Assessments (JTRA) for tasks performed on a rout ne bas s The purpose of th s procedures is to define the methods and guide ines for assessing and addressing Safety, Environmental and Security risks at Quaker Houghton fac ities
Federal, state and local legislat on, as well as nternat onal standards that Quaker Houghton subscribes to, require that Safety, Environmenta and Secur ty r sks be evaluated and appropriate risk mitigation actions be initiated to prevent safety, env ronmental and security ncidents Typ cally, this s performed using a risk assessment Employees are trained on each JTRA when they have to perform related tasks.
Quaker Houghton has implemented an EHS compliance audit program which contracts a 3rd party EHS consulting firm, GHD, to verify the quality of the occupat onal health services and programs for e iminating hazards and mitigating risksin the work environment Cr t cal Quaker Houghton locat ons are general y audited on a 3 year cycle
403-4 Worker partic pat on, consultation, and communicat on on occupat onal health and safety
Supporting ISO 45001requirements for s te Safety Committees, CORP-P-EHS-0015 defines protoco s for sites to implement Safety Committees Furthermore, there are several EHS polic es defin ng worker part cipation and consultation,examples are: CORP-P-EHS-0004 defines inc dent management and reporting, CORP-P-EHS-0005 defines workers authorization for Stop Work act on, and CORP-P-EHS-0026 defines workers responsib lities and partic pat on in completing hazardous work permitting
403-3 Occupationa health services
403:Occupational Health and Safety 2018
403-5 Worker training on occupational health and safety
403-7 Prevention and m t gat on of occupational health and safety mpacts directly linked by business relationships
Our earn ng management system is used to train our colleagues g oba ly It includes training on generic and specific work-related hazards,hazardous act vities, or hazardous situations.These trainings are often job specif c but inc ude topics such as:Disaster Plann ng and Response, Fire Safety, Ergonomics, Access ng Medical Reports, etc Training is prov ded through onl ne learning platforms (Saba and DSS+). In 2024, our World Safety Week focused on Hazard Recognition and Situational Awareness.
Our organization has placed focus on monitor ng leading indicators and mp ement ng aud t programs that ensure we uphold an effective EHS program that mitigates negative occupational health and safety impacts Setting KPIs and goals around the leading ndicators we mon tor helps us to address specific items, and to dentify and manage larger, more systemic ssuesbefore they become an inc dent.
403-8 Workers covered by an occupational health and safety management system
RT-CH-320a 1Total recordable incident rate (TRIR) and (2) fatal ty rate for (a) direct employees and (b) contract emp oyees
All sites operate under an occupationa health and safety management system, and 100% of employees and workers are covered by that system.Some of our sites are aud ted by a third party.In addition, many of our sites are ISO 45001or RC 14001certified,and we aspire to have all wholly owned manufacturing faci it es certified by the end of 2026
Please see the 2024 Data Tables included in this report Sites mainta n site-spec f c contractor management systems, inc ud ng visitor/ contractor safety training.DevonWay ncident reporting module prov des a system for reporting and tracking contractor n ur es
RT-CH-320a 2 Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term (chronic) health risks
RT-CH-540a 1Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Inc dent Sever ty Rate (PSISR)
At Quaker Houghton we perform several assessments to prevent long-term (chronic) health risks, such as chemical risk evaluations and contro s of water (legionella), air quality, or noise levels All our employees and operators wear personal protective equipment as recommended n the JTRA.
We are taking act on to mp ement low r sk solutions, prevent access to potentia ly hazardous environments,and organize our work to reduce exposure to hazards as much as poss ble.
Please see the 2024 Data Tables included in this report
RT-CH-540a 2 Number of transport ncidents Please see the 2024 Data Tables included in this report
SASB Workforce Health and Safety
GRI 3:Material Topics 2021 3-3 Management of mater al topics
Please see the Embracing Inclusion section of th s report GRI 405:D versity and Equal Opportunity 405-1Breakdown of governance bodies and employees
Please see the 2024 Data Tables included in this report
SUPPORTING OURLOCAL COMMUNITIES?DEVELOPMENT
GRI 3:Material Topics 2021 3-3 Management of mater al topics
GRI 413:Loca Communities 2016 413-1Operat ons w th ocal commun ty engagement, impact, assessments and development programs
RT-CH-210a.1D scussion of engagement processes to manage risks and opportunities associated with community nterests
GRI 3:Material Topics 2021 3-3 Management of mater al topics
308-1New suppliers that were screened using env ronmental criter a
GRI 308:Supplier Env ronmental Assessment 2016
308-2 Negative environmental impacts in the supply chain and actions taken
GRI 414:Supplier Social Assessment 2016 414-1New suppl ers that were screened us ng socia cr teria
MINIMIZING HAZARDSIN OURPORTFOLIO
GRI 3:Material Topics 2021 3-3 Management of mater al topics
GRI 416:Customer Health and Safety 2016
416-1Assessment of the health and safety impacts of product and service categories
Please see the Supporting Our Local Communities' Development section of the 2023 Sustainabi ty Report.
While the infrastructure for globa track ng and consolidation is sti l under deve opment, progress has been achieved in tracking ocal vo unteer ng efforts n 2024. We anticipate enhanc ng our capabilities to provide reporting on local community engagement, mpact assessments, and deve opment programs w th n the next year
In 2024, the Global Philanthropy Comm ttee, along with our local volunteering site coord nators, partnered with col eaguesand nonprofit organizations wor dwide to make a positive impact in the communities where we live and work We util ze a globa volunteering approach to manage opportunities associated with these community nterests.
Please see the Ensur ng Everyone in the Supply Chain Is Treated With Dignity and Respect, Confirming Sustainable Sourc ng of Raw Materials section of the 2023 Sustainab ity Report.
Please see the 2024 Data Tables included in this report.
Please see the 2024 Data Tables included in this report.
Please see the 2024 Data Tables included in this report
Please see the Minim z ng Hazards in Our Portfolio section of this report
Product Stewardsh p eva uates al Quaker Houghton finished goods and creates Globally Harmonized System of C assification and Labe ling of Chem cals (GHS) compliant Safety Data Sheets (SDS) for all of our products globally These customer fac ng documents ensure customers understand the potentia hazards and mitigate the r sk of m susing our products.Shou d a customer have questions or concerns relat ng to our product, our product stewardship team is available to consult and help our customers make the best product choices for the r needs and understand proper use and d sposal.
Please a so see the 2024 Data Tables in this report
SASB Safety & Environmental Stewardship of Chem cals
RT-CH-410b.a (1) Percentage of products that contain Globally Harmonized System of Class fication and Label ng of Chem cals (GHS) category 1and 2 Health and Env ronmental Hazardous Substances, (2) percentage of such products that have undergone a hazard impact
Please see the 2024 Data Tables included in this report.
SASB Air Qua ity
RT-CH-410b 2 Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/ or environmental mpact
The Innovating Together for a Better Tomorrow team developed a high-level roadmap for al GHS category 1A/ B CMR1fin shed goods, and a specific one for fin shed goods using Hexava ent chromium
The team began in 2022 on determin ng and imp ement ng a strategy to reduce those hazards in our portfo io.This work continued n 2024 In 2024, 2 additional roadmaps were developed, processed, and implemented The status of these roadmaps are reported on a quarterly bas s.Our Product Stewardship team continues to work w th operations to determine appropriate label ng and PPE required for management of chemical hazards The introduction of the Green Chem stry Guidelines should reduce human and environmental hazards beyond our focus of GHS category 1A/ B CMR hazards and virgin fossi based raw mater als.The preferred raw material ist s updated monthly supporting new raw mater als and changes in class f cation to ex st ng raw materials and w ll also support this in t ative
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SASB Management of the Legal & Regulatory Env ronment
RT-CH-120a.1Air emissions of the following po lutants:(1) NOX (Excluding N2O, (2) SOX, (3) volat le organic compounds (VOCs), and (4) hazardous a r pollutants (HAPs)
RT-CH-530a 1Discussion of corporate positions related to government regu ations and/ or policy proposals that address environmental and socia factors affecting the industry
Quaker Houghton does not general y track cr teria pol utants from operations as the emissions are immaterial,unless required at a ocal level Th s s due to the relat ve low em ss ons of VOCs and HAPs n the mater als in Quaker Houghton?s manufacturing processes and products
Although our organization supports the mitigation of c imate change and environmental protection, we do not take any forma corporate positions on government regulations.
REPORTING STANDARD DISCLOSURE
VOLUNTARY DISCLOSURES
Qua ty Management System (QMS) Cert fications
Env ronmental Management System (EMS) Certificat ons
Bribery and Corruption Po icy
Percentage of QMS Certifications
Percentage of EMS Cert fications
Comm tments made to m t gate risks posed by bribery and corruption
Corporate Governance Independent Board Chair
Remuneration of members of the execut ve management team
Integrat on of susta nability performance ob ectives into the variable remunerat on of members of the executive management team
LOCATION ORDIRECT RESPONSE
Please see the 2024 Data Tables included in this report.
Please see the 2024 Data Tables included in this report
Our polic es on bribery and corruption, and spec f cally our comp ance with the Foreign Corrupt Practices Act,are set forth in our Code of Conduct
Please see our 2025 Proxy Statement.
Please see our 2025 Proxy Statement
REPORTING STANDARD DISCLOSURE
GOVERNANCE
Disclose the organization?s governance around cl mate-related r sks and opportun t es
1. Describe the board?s oversight of climate-related risks and opportun ties
2 Describe management?s ro e in assessing and managing climate-related risks and opportun ties
STRATEGY
Disclose the actua and potential impacts of climate-related risks and opportunities on the organization?s bus nesses,strategy, and financial p anning where such information is materia
Descr be the cl mate-related risks and opportunities the organization has ident f ed over the short-, medium-, and long-term
1 Describe the impact of climate-related risks and opportun ties on the organization?s businesses,strategy, and financ al planning
2.Describe the resi ence of the organization?s strategy, taking into considerat on different climate-related scenarios, including a 2°C or lower scenario
The Sustainability Comm ttee of the Quaker Houghton Board of Directors has oversight of our sustainabil ty strategy, which ncludes energy consumpt on, greenhouse gas emissions,and water use Initiatives to responsibly manage water,energy, and emissions are mp emented by the Protecting Our Planet team, hand ed loca ly by the operations team at each Quaker Houghton site, and regionally by our procurement teams
Beyond the Board Sustainabil ty Committee, Quaker Houghton?s full Board of Directors receive sustainability updates , ncluding climate-re ated issues, from the Executive Leadersh p Team (ELT) via quarterly reports and per odic presentations Quaker Houghton completed a TCFD-al gned scenario analysis in 2023, and the outputs of this exercise were shared with the Comm ttee.The Chair of the Board Susta nability Comm ttee, Mr.Frisby, is responsible for updating the Board on sustainab lity topics, inc ud ng cl mate risks and opportunities.
We are currently developing the strategy for c rculating the results of the scenar o analysis with our eadership teams and discussing our approach to mater al risks and opportunities. Additional details on Board and Management overs ght of and responsib lity for cl mate-related risks and opportunities are ava lable in the fol ow ng sections of the 2023 Sustainab lity Report: Who We Are and How We Manage Sustainabil ty; Reduc ng Our Greenhouse Gas Emissions; Managing Our Water Responsibly; and Minimiz ng Our Waste
Quaker Houghton recogn zes that both transitional and phys cal c imate-related risks and opportunities may impact and nfluence our business Dur ng the summer of 2023, we conducted a scenar o analysis to identify cl mate-related risks and opportunities over three different future t me horizons.We defined short-term as 0 to 3 years, med um-term as 3 to 7 years, and long-term as 8 or more years
Physical Risks and Opportunities
As climate change exacerbates the frequency and severity of acute hazards,such as hurr canes and flooding, t cou d pose a direct threat to Quaker Houghton?s infrastructure,operations, and personnel safety.Weather-related events may ead to costs in the form of phys cal damage to fac lities, as wel as business nterruptions to our manufacturing process.Severe weather events could create unsafe working conditions, and in response, there may be increased work stoppages Changes in chronic hazards,such as extreme heat and drought, could put a stra n on access to e ectric ty and water,potentia ly ead ng to ncreased operating costs.Physical climate risks in regions where our supp iers operate can disrupt the supply chain, affect ng the ava lability and costs of raw materials
Transition Risks and Opportunities
Po icy and ega r sk,such as carbon pricing schemes enacted n countr es where Quaker Houghton produces, and market risks, like vo atility in raw material pr cing, were identified as the most pert nent trans t on risks.These risks could impact our operat ng expenses, revenues, capita expenses and f nancing opt ons.Identified opportun t es nclude increased demand for our products in deve oping markets, such as supporting the transition from nternal combust on engine (ICE) veh cles to electric vehic es, and mproving our processes to be more energy and water eff cient.We are currently developing the strategy for c rculating the results of the scenar o analysis with our eadership teams and discussing our approach to mater al r sks and opportunities
RISK MANAGEMENT
Disclose how the organization ident fies, assesses, and manages climate-re ated r sks
Descr be the organization?s processes for managing climate-related risks
1 Descr be how processes for ident fying, assessing, and managing climate-re ated r sks are integrated into the organ zat on?s overall risk management
As part of the scenario ana ysis, physica and trans t on risks were assessed to determ ne our exposure to c imate-related risks In line with TCFD recommendations, potent al acute and chronic hazards were reviewed to identify physical risks that could impact our operations. The physical risk analysis was conducted using two warm ng scenarios ssued by the Intergovernmenta Panel on C imate Change.The low warming scenario, referred to as SSP1-2.6, assumes mean global temperature rise rema ns below a 2°C ncrease by the end of the century.In contrast, the higher warm ng scenario, SSP3-7 0,depicts a tra ectory in which the g oba temperature rises 4°C and c imate impacts are he ghtened
Rsks pertain ng to policy, ega , market, technology, and reputat onal matters were assessed to identify cl mate-related transition risks and opportunities The transition risk analysis was conducted with two scenarios from the Internationa Energy Agency?s World Energy Out ook.The Stated Po cies Scenario (STEPS) results in an expected temperature r se of around 2.5°C, and the Announced Pledges Scenario (APS) results in an expected temperature rise of around 17°C
C imate-related risks are also inc uded in our enterprise risk management process Annually, Quaker Houghton?s Rsk Manager engages w th our leaders and the heads of our businesses to ident fy what they consider to be our company?s key risks They further quantify how severe those r sks are and prior t ze them Climate-spec fic impacts have been identif ed as part of this process.
Quaker Houghton has a ong history of mp ement ng programs and processes to manage our GHG emissions, water use, and waste?which are closely re ated to the risksand opportun ties ident f ed during the scenario analysis Please read more about these efforts in the Reducing Our Greenhouse Gas Emissions section of this report Following the outputs of the scenario analysis, our next steps include planning our corporate approach for programs that may address specif c climate-re ated r sks.
METRICSAND TARGETS
Disclose the metr cs and targets used to assess and manage relevant climate-related r sks and opportunit es where such information is mater al.
Disclose the metr cs used by the organ zation to assess c imate-related r sks and opportun t es in line with its strategy and r sk management process
1. D sc ose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.
2 Describe the targets used by the organization to manage cl mate-related risks and opportun t es and performance against targets.
Quaker Houghton?s Scope 1and 2 GHG emissions, as well as other relevant environmental metrics related to water, energy, and waste management, are inc uded in the in this report We monitor these metrics as indicators of our overall environmental performance?and as indicators of our ability to m t gate our contributions to climate change (emissions) and the phys cal impacts of climate change (water, etc ) We a m to complete a Scope 3 GHG emissions assessment n 2025 and ant cipate this to be detailed in the 2025 report
We are a so mak ng progress on each of our material top cs many of which relate to c imate-related mpacts As a resu t we aspire to reduce our greenhouse gas emissions,waste to landfill, hazardous waste, and water intensity.Please read more about our progress n the Reducing Our Greenhouse Gas Em ss ons section of this report.
2024 Data Tables
REDUCING OURGREENHOUSEGASEMISSIONS
1Workforce
IN OURPEOPLE?SGROWTH AND DEVELOPMENT
EVERYONEIN THESUPPLY CHAIN ISTREATED WITH DIGNITY AND RESPECT, CONFIRMING SUSTAINABLESOURCING OFRAW MATERIALS
GRI 308-2 Negat ve environmental impacts in the supp y cha n and actions taken
MINIMIZING HAZARDSIN OURPORTFOLIO
GRI 416-1Assessment of the health and safety mpacts of product and Percentage of significant product and service categor es for which health and safety mpacts are assessed for improvement16
SASB RT-CH-410b 1Safety and env ronmental stewardship of chemica s
WITH RENEWABLERAW MATERIALS
16 Product Stewardsh p c ass es 100% of Quaker Houghton f n shed goods us ng GHS (G obal y Harmon zed System of C assificat on and Label ng o Chem ca s) Depend ng on the c ass f ca ion pro ects are defined to e ther rational ze those fin shed goods, reformu ate hem, or ensure that EHS precaut ons can be taken by our customers and at our own p an s tes
17 These figures represent the volume of fin shed goods new y class f ed or category 1A/ B (No nc ud ng Ca egory 2 and Carc nogens, Mutagens and Reproduct ve Hazards n category 1A B ha were ested by oral route of exposure) ntroduced n the calendar year ha are app cab e for professional or industr a app icat ons Based on Vo ume (To a QH Revenue exc udes data rom IKV, Si co Sutai Norman Hay)
18 100% of a Quaker Houghton products ( nc uding GHS category 1and 2 Hazardous Substances) have undergone a hazard assessmen as part of the Quaker Houghton product stewardsh p program when we generate sa e y data sheets Once a new formu a s introduced, rev sed, or if new re evant nforma on s rece ved, we upda e a l hazard assessments
19 Data represents g oba usage of rec a med or re-re ned o l
20 This percen age includes g oba manufactur ng s tes
21This percentage includes non-U S Manufactur ng s tes
22 Th s percentage nc udes U S Manufactur ng s tes
23 Th s percentage nc udes non-U S Manufac ur ng s tes