GEON Performance Solutions Shareholders Report
VI EXECUTIVE COMMIT TEE LEADERSHIP
Jason Hart
Oxy Vinyls LP
2020 Chair
Roger Kearns
Westlake Chemical Corporation 2020 Vice Chair
Richard Mason
Shintech, Inc.
2020 Secretary
Richard Heinle
Formosa Plastics Corp. U.S.A.
2020 Treasurer
VI BOARD OF DIREC TORS
Jason Hart
Oxy Vinyls LP
2020 Chair
Roger Kearns
Westlake Chemical Corporation 2020 Vice Chair
Richard Mason
Shintech, Inc.
2020 Secretary
Richard Heinle
Formosa Plastics Corp. U.S.A.
2020 Treasurer
Rick Terrill
Dow Chemical Company
Robert Emery
Eastman Chemical
Melanie Bower
ExxonMobil Chemical Company
Larry Shaw
GEON Performance Solutions
Steven Kahara
Kaneka
Don Townley
Lubrizol Advanced Materials
Bill Hartman
Omnova Solutions
Louis Cappucci
Teknor Apex
James Gray
Vestolit
VI OPER ATING COMMIT TEE
Allen Bodron
Westlake Chemical Corporation 2020 Chair
Tom Gentile
Shintech, Inc.
Mary Bachynsky
Formosa Plastics Corp. U.S.A.
Jeremy Burnell
Oxy Vinyls LP
Rick Terrill
Dow Chemical Company
David DiRienzo
GEON Performance Solutions
David Adenuga
ExxonMobil Chemical Company
Luiz Fernando Zagolin Eastman Chemical Steven Kahara
Kaneka
Don Townley
Lubrizol Advanced Materials
Bill Hartman
Omnova Solutions
Terry Hemmelgarn
Omnova Solutions
James Gray
Vestolit
Louis Cappucci
Teknor Apex
Mike Patel
Teknor Apex
2020 Vice Chair
T H E V I N Y L I N S T I T U T E A N D G E O N P E R F O R M A N C E S O LU T I O N S PA R T N E R S H I P
Dear GEON Senior Leadership Team, The Vinyl Institute (VI) is uniquely positioned to advance and protect the vinyl industry in the United States in partnership with GEON Performance Solutions. By focusing solely on this industry, the VI effectively advances specific policies that foster industry growth, protect our economic interest, and address our unique regulatory issues. Our goal is to create an environment that helps sell more vinyl products. We proactively work with local, state, and federal agencies and elected officials to support open competition for the material used by municipalities when they build or replace pipelines. We respond to state and federal legislation as needed to defend the PVC industry, notably when other trade groups may represent multiple materialsOur team in Washington advocates with Congress and federal agencies specifically on PVC MACT and TSCA. Our team of experts engage with code and standard setting bodies to ensure that vinyl issues are fairly addressed. We fight red lists which harm resin, compound, and additive sales. We educate architects, interior designers, engineers and specifiers about the many positive attributes of vinyl which helps grow sales. We also engage in collaborative studies and research projects to strengthen the body of evidence in support of vinyl products. We proactively promote the image of vinyl and protect it from disparagement with our Vinyl Verified social media programs and direct engagement with mass media publications, shows and networks. Our organization, through our partnerships with allied trade associations, also supports the entire supply chain and many of your customers. As detailed throughout this report, our governmental and technical advocacy efforts have been and continue to be well aligned with GEON’s top priorities. Thanks to your membership on the VI Board of Directors, GEON helps direct this strategy, establish legislative positions and develop priorities – all which directly affect the industry’s success. Increasing the level of direct engagement in VI and with industry peers can result in more productive, procompetitive conversations about where VI advocacy and program efforts would be most useful in order to achieve industry goals. We look forward to continuing to work with GEON in 2020 and to discussing how we can continue to effectively work together. GEON’s leadership with the VI is critical to supporting the vinyl resins, vinyl compounds, vinyl chloride monomer, and vinyl additives industries. We appreciate your partnership in these critical efforts and your strategic leadership in the years ahead.
Sincerely,
Ned Monroe President & CEO The Vinyl Institute
ABOUT GEON PERFORMANCE SOLUTIONS GEON is a global leader in the formulation, development and manufacture of performance polymer solutions for a broad range of markets including appliances, building and construction, electronics, healthcare, transportation and wire and cable. Operating 10 facilities in the United States, GEON understands how policy decisions made by leaders in Washington can affect growth, innovation, and future prosperity. The past few years have presented many opportunities and challenges, and GEON’s partnership with the VI matters more than ever. Through our contacts in Washington, DC, and all 50 state capitals, the VI is positioned to assist with legislative and regulatory outreach to those who represent your facilities. We have the capacity to arrange factory tours with elected officials. And we are your voice with federal regulatory agencies who may want to change regulatory policies impacting your facilities.
LEADERSHIP WITH GEON
Larry Shaw serves on the VI’s Board of Directors and David DiRienzo serves on the VI’s Operating Committee. The VI greatly appreciates their leadership and engagement in developing the VI’s 20202023 strategic plan. GEON has been active in the Vinyl Sustainability Council task force meetings, notably attending our vinyl recycling meeting in Cleveland in 2018 and 2019. In addition to Larry and David, Jeff Zarzecki, Joe Shilens, and James Mattey actively participated in the Vinyl Sustainability Council’s Landfill Diversion, Emissions and Health and Safety task groups as well. GEON’s staff are currently active with the VI on several committees and task forces including: • Health, Safety, & Environmental (HSE) Committee • Eco-Standards Coordinating Group • Vinyl Sustainability Council (VSC) • VSC Health & Safety Task Force • VSC Emissions Task Force • VSC Landfill Diversion Task Force PROVIDING BEST-IN-CLASS POLICY A D V O C AC Y, R E G U L ATO RY A N D S TA N DA R D S I N T E R FAC E
Advocacy is a fundamental function of the VI. Representing its members’ interests at the federal, international, state and local levels of government, and with codes and standards organizations. It is essential to ensuring that laws, regulations, codes and standards are appropriate to foster the continued use and growth of vinyl products in meeting the needs of society. VI is highly regarded for the effectiveness of its advocacy through its work to establish a best-in-class advocacy platform. Current regulatory activities by which GEON’s operations can be directly or indirectly impacted include: • Advancing Environmental Protection Agency’s (EPA) PVC Maximum Achievable Control Technology Rulemaking • Responding to EPA’s TSCA prioritization of phthalate plasticizers and organochlorides • Recommending modifications to EPA’s Risk Management Program revisions
• Clarifying the impacts of OSHA’s lockout/tagout (LOTO) probably rulemaking • Commenting on proposed ACGIH occupational exposure limits for antimony trioxide D R I V I N G F E D E R A L R E G U L ATO RY R E F O R M
The VI continues to make progress in getting the U.S. EPA to re-evaluate its priorities and policies that harm the growth and health of the U.S. vinyl industry. In accordance with Presidential Executive Order 13777 establishing regulatory reform task forces at each Federal Agency, the VI proposed changes to 10 EPA regulations that are ineffective, duplicative, and burdensome to the vinyl industry and do not achieve intended environmental benefits. Significant rules addressed by the VI comments included EPA’s Risk Management Program, Leak Detection and Repair, State and Federal Implementation Plans for National Ambient Air Quality Standards, and General Provisions. The VI has also met with the EPA to drive change in its Environmentally Preferred Purchasing (EPP) Policy guidelines that allow non-consensus type ecolabels that restrict vinyl materials. The VI continues to advocate in its comments for increasing consistency and transparency in determining costs and benefits during the rulemaking process. A D VA N C I N G S TA N DA R D S
The VI supports the U.S. vinyl industry by participating on several ANSI standards development bodies, including at ASTM, NSF, IEEE and more. Examples of areas where VI is participating include Piping Systems, Plastics, Indoor and Workplace Air Quality, Waste Management, Environmental Assessments, Sustainability, Electronics, Fire Safety and more. We share insights from these standards bodies through a monthly member update, the Eco-Standards Coordinating Group. In addition, we evaluate and highlight new opportunities for standards development and NGO engagement for members to consider for industry participation. VI has been actively participating in the update to Operation Clean Sweep to actively improve plastic containment and loss prevention throughout the industry.
MEDICAL MARKET SPECIFIC SUPPORT
In 2016, VI assisted GEON sales professionals in preparing for key meetings with medical device manufacturers that needed assurances of health, safety, and environmental performance if their products switch to housings made from GEON vinyls. Our understanding is that at least one manufacturer completed the transition into GEON vinyl materials. VI actively works with other branded medical device manufacturers to support their continued use of vinyl. D R I V I N G C U S TO M E R P R E F E R E N C E F O R V I NYL P R O D U C T S W I T H + VA N TAG E V I NYL™
+Vantage Vinyl is a voluntary effort within the U.S. vinyl value chain to advance the industry’s
contribution to sustainable development and position vinyl as the material of choice. Developing awareness for the +Vantage Vinyl brand will drive preference and grow market share for vinyl products. +Vantage Vinyl provides GEON a foundation in which they can incorporate their existing sustainability efforts, show continuous improvement toward industry sustainability goals and key performance indicators (KPIs) and communicate their commitment through use of the trademark. The VI and the VSC stand ready to continue to support GEON in its journey towards contributing to sustainable development issues and becoming a leading player in the vinyl industry’s sustainability efforts.
RECOGNIZING 2019 INDUSTRY HEALTH, SAFETY & ENVIRONMENTAL LEADERS Each year the VI recognizes top performing companies in the vinyl industry for improving worker safety and protecting the environment at facilities throughout the United States and Canada. This year, four GEON facilities received eight awards from the VI for outstanding performance. These awards are based on stringent, superior facility performance according to federal Occupational Safety and Health Administration (OSHA) recordable incidents, the U.S. Environmental Protection Agency’s (U.S. EPA) National Emission Standards for Hazardous Air Pollutants (NESHAP), other regulatory permit performance, and the U.S. EPA’s Toxic Release Inventory data for air and water during the 2017 calendar year. The VI’s Safety Excellence Awards recognize plants with five or more consecutive years with no recordable incidents. GEON facilities recognized include: • GEON Performance Solutions, PVC Compounding plant, Long Beach, California (5 consecutive years of performance) The VI’s Safety Performance Awards recognize plants with no recordable incidents for the reporting year. GEON facilities recognized include: • GEON Performance Solutions, PVC Compounding plant, Long Beach, California • GEON Performance Solutions, PVC Compounding plant, Pasadena, Texas • GEON Performance Solutions, PVC Compounding plant, Terre Haute, Indiana The VI’s Environmental Excellence Awards are based on outstanding track record of performance for five or more consecutive years under U.S. EPA’s NESHAPs, and other environmental permit requirements. GEON facilities recognized include: • GEON Performance Solutions, PVC Compounding plant, Long Beach, California (5 consecutive years of performance) • GEON Performance Solutions, PVC Compounding plant, Louisville, Kentucky (5 consecutive years of performance) • GEON Performance Solutions, PVC Compounding plant, Pasadena, Texas (5 consecutive years of performance) • GEON Performance Solutions, PVC Compounding plant, Terre Haute, Indiana (5 consecutive years of performance)
ABOUT US
• We represent the voice of the U.S. vinyl industry. • We represent the leading manufacturers of vinyl resins, vinyl chloride monomer, and vinyl additives and modifiers. • We work on behalf of the industry to promote the benefits of the world’s most versatile plastic, used to make everything from pipe for water infrastructure to building materials such as cladding, windows, flooring, roofing, and wallcovering. • The U.S. vinyl industry employs more than 350,000 highly skilled people, at nearly 3,000 facilities, and generates an economic value of $54 billion. • We understand how to forge and maintain relationships with Congress, the Administration, coalition allies, and the public. H O W T H E V I S U P P O R T S T H E U.S. V I NYL I N D U S T RY
• ADVOCATE : Provide Best in Class Policy Advocacy, Regulatory and Standards Interface & Legal Guidance • ENGAGE : Promote a Positive Image, Defend the Industry, Engage End Users and Increase Visibility • STEWARD : Champion Sustainability Initiatives Through Continuous Improvement, Collaboration & Communication • INNOVATE : Convene Industry Thought Leaders & Provide a Platform for Supply Chain and Technology Innovation • INFORM : Enable Vinyl Industry Growth by Providing Actionable Industry Data Analysis • DEVELOP : Build the Workforce of Tomorrow • PERFORM : Drive Organizational Excellence Responsive to Member Needs The VI collaborates with members of the vinyl value chain to address challenges, capitalize on opportunities and advance the industry. We focused our time and resources where we could return the most value for our industry.
2019 was a year filled with exciting strategic engagement with stakeholders to engage them with vinyl’s contribution to our nation’s economy, clean water delivery, sustainable buildings, and community safety. H I G H L I G H T S I N C LU D E
• 110 meetings with coalition partners to advance our industry’s key legislative priorities – PVC MACT, Water Infrastructure, U.S.-Mexico-Canada Agreement (USMCA) and Open Competition. • 228 engagements with federal legislators, including 68 meetings with legislators during our annual congressional fly-in to discuss VI’s key issues: water infrastructure, trade, and common-sense regulatory reform. • 30 engagements with state, county, and local officials. • 1,663 engaged architects, specifiers and designers through lunch and learns, online education courses, surveys and 38 in-depth conversations. • 3 university women presented grants to attend Vinyltec. • More than 25 presentations given by VI staff at 43 industry meetings attended. • 1 new four-year strategic plan created to help drive the industry forward. • An increase in attendance at both Vinyl360 and the Vinyl Congressional Fly-in. • 135% increase in followers on VI’s LinkedIn and 198% increase in engagement on VI’s Twitter. • 2 newly designed industry websites, including a refreshed Vinylinfo.org and the launch of VantageVinyl.com. • 14 letters of support to Congress signed on behalf of VI, including urging passage of USMCA and the Phase One deal, which resulted in the USMCA’s passage by the House in 2019 and water infrastructure legislation passing it’s key House committee in 2019.
Besides just our proactive outreach, VI worked hard to ensure vinyl and PVC were represented accurately in legislative affairs and in the media. • 129 harmful pieces of legislation and regulations blocked, including the Udall plastic waste bill at the federal level. • 18 favorable pieces of legislation advanced or passed, two at the federal level, which were the USMCA and H.R. 1497. • 7 in-depth discussions with the U.S. Environmental Protection Agency (EPA), and 15 detailed communications with other federal agencies. • 7 official comments submitted to government agencies related to protecting vinyl in regulatory rule setting. • 20 instances where VinylVerified.com set the record straight on PVC in public discourse. • 198% increase in followers on Vinyl Verified’s Twitter account and • 889% increase in the amount of users who saw Vinyl Verified tweets. The Vinyl Sustainability Council (VSC) advanced sustainability efforts within our industry. This year we were excited to launch the first-ever industry-wide sustainability initiative open to all members of the U.S. vinyl value chain, +Vantage Vinyl.™ • 52 companies actively participating in the VSC to establish guidelines and set goals. • 8 companies verified through +Vantage Vinyl’s pilot program. • 3 impact categories determined (landfill diversion, emissions, and health and safety) that encompass the six priority areas identified in the materiality assessment, and align with three United Nation’s Sustainable Development Goals, where the vinyl industry can make significant contributions. • 58 key industry respondents participated in the VSC’s benchmarking survey. • 1st ever Vinyl Recycler of the Year award presented to Return Polymers.
Vinyl Institute 1747 Pennsylvania Ave., NW Suite 825 Washington, DC 20006 www.vinylinfo.org T: 202.765.2200 F: 202.765.2275 @vinyl_institute & @Vinyl_Vfied www.linkedin.com/company/the-vinyl-institute
www.vantagevinyl.com