S U S TA I N A B I L I T Y

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1 USTAIN ABILITY 1

2 PRESIDENT S MESSAGE From shifting demographics and technology advancements, to a changing climate and constrained natural resources, our world is facing challenges that will impact the well-being of generations to come. But who should and will step up to be part of the solution to these challenges? I am confident Sterigenics understands and welcomes this responsibility. Our core competency, sterilization services, is about more than just sterilizing medical devices and reducing bioburden contamination on food products. We see our jobs as helping to protect global public health. Every day, we impact 500,000 people that undergo medical procedures in countries all around the globe. We remind ourselves that the products we handle could be meant for someone within our own circle of family and friends. So we are connected with the work we do each and every day. We also understand that the issues and challenges affecting local communities are our issues too. We work and live in these communities and have the responsibility to create more sustainable connections around the globe. The needs of our communities and our planet encourage us to act. More than 1600 Sterigenics employees globally step up every day to not only solve problems for our customers, but also to advance our sustainability commitments. Throughout this report, you ll read about our employees who are on the front lines, working hard to make the world a better, more sustainable place. These stories make me proud to be part of Sterigenics. Of course, we must match collaboration with commitment - establishing goals and pragmatic planning. As we work to improve our energy program, we continue toward a goal to evaluate our energy consumption and advance towards different ways to operate our 43 facilities around the globe. I m proud to report that we have made significant progress toward achieving that goal and will continue to enhance our energy conservation program. The programs implemented in the past year, have strengthened local communities, reduced environmental impact, monitored and collectively changed our energy needs, and focused on ongoing employee safety. These provide tangible proof that the hands, hearts, and minds of Sterigenics employees are making a real difference in the world. On behalf of all my Sterigenics teammates, I invite you to read on to learn a bit more about our business, and how we believe we can not only make a difference for our customers, but for the global communities we live and work in. Phil Macnabb Phil Macnabb President 2

3 CONTENTS 06 SOCIAL + COMMUNITY INVOLVEMENT 10 ENVIRONMENTAL RESPONSIBILITY 22 EMPLOYEE SAFETY + DEVELOPMENT 3

4 CAN A COMPANY BE DEFINED BY WHAT IT CARES ABOUT? In sophisticated and state-of-the-art facilities around the globe, Sterigenics provides the most advanced and reliable sterilization of medical devices, pharmaceutical products, and food and pharmaceutical packaging. In addition, Sterigenics reduces the bioburden contamination on spices, other food products, and various pet products. Sterigenics is the leading provider of mission-critical solutions to improve global health. We think Inside the Box, placing our focus on safety, quality and making the connection between the products we sterilize and the people who depend on them. We take this responsibility very seriously. Our reputation and company values support strong commitments to: Strong, healthy communities where families grow and thrive; Consideration for the environment which is uncompromised by our processes; and A safe, efficient workplace and a diverse, innovative workforce. We promote a strong safety culture and heightened sense of awareness for health, safety and environmental standards both on and off the job. We take personal responsibility for safety, and are committed to protecting the environment in the communities where we conduct business. Only actions, we believe, can truly define a company. We constantly challenge the existing ways of doing business in pursuit of innovation and continuous improvement. 4

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6 SOCIAL + COMMUNITY INVOLVE MENT6

7 SUSTAINABILITY PRINCIPLE 1 SOCIAL + COMMUNITY INVOLVEMENT Sterigenics employs more than 1600 women and men in 43 locations across North and South America, Europe and Asia. Working together at the local level, our employees make positive impacts across a range of communities issues and interests. WORLDWIDE REACH Sterigenics Employees By Region (1615 Total Employees at ) 103 (6%) 271 (17%) 218 (13%) 1053 (65%) North America South America Europe Asia Our facilities, employees and their families are integral members of communities around the globe. Together, we work to improve the current and future welfare of these communities by sharing our capabilities to support global health. Last year several projects and causes were supported. Here is a small cross section of last year s citizenship and community involvement pursuits: Salt Lake City, Utah, USA The Road Home Petit Rechain, Belgium Relay for Life Mexico City, Mexico Reforestation, Orphanage Donations 7

8 PUBLIC OUTREACH We have started to pursue projects for public outreach. THE ROAD HOME HOMELESS SHELTER SALT LAKE CITY, UTAH During safety week, the facility had a day focused on gathering food and toys for the homeless families in the community. The mission of The Road Home is to help people step out of homelessness and back into our community. REFORESTATION MEXICO CITY, MEXICO At a local Cuautitlan area school, we helped plant trees with the first grade students. 8

9 RELAY FOR LIFE CANCER FUNDRAISER PETIT RECHAIN, BELGIUM SOCIAL Donations are used to fund life saving cancer research, patient support programs, prevention information, education, detection and treatment programs Two operators are committed to organizing this event over the weekend, this year the team raised a total of 143,260. ORPHANAGE DONATIONS MEXICO CITY, MEXICO With the help of employees, we were able to collect food, as well as some new and used toys to donate to a Cuautitlan area orphanage. 9

10 ENVIRON MENTAL RESPON SIBILITY 10

11 SUSTAINABILITY PRINCIPLE 2 ENVIRONMENTAL RESPONSIBILITY Sterigenics Environmental Policy underscores commitment to the community and environment. Sterigenics has a global EH&S management system that details worldwide established requirements and standards. Our management system focuses on identifying hazards, and eliminating risk to protect people, the environment, and property. Sterigenics maintains a documented Environmental Management system that is consistent with acceptable standards including ISO Good citizenship is a key value for Sterigenics. We are dedicated to protecting the community and environment in which we work and complying with all applicable environmental regulations. Sterigenics Environmental Policy Statement The foundation of environmental compliance starts with policy and procedures; Sterigenics EH&S Management system promotes operations beyond compliance. This compliance is not just guided in policy and procedures; Sterigenics implements a high level of compliance in practice. MINIMIZING EO EMISSIONS Ethylene Oxide is the primary material used in the chemical sterilization process. Facilities using Ethylene Oxide (EO) for sterilization are highly regulated in most regions and require effective emission controls. Where regulations do not exist or are less restrictive, our internal compliance standards demand performance from our pollution control equipment to achieve a high level of control STERIGENICS ETHYLENE GLYCOL RECYCLED Waste 3% Recycled 97% ETHYLENE GLYCOL RECYCLING All U.S. facilities using Ethylene Oxide (EO) for sterilization generate Ethylene Glycol as a byproduct of the acid scrubber emission control system. Rather than allowing for this byproduct to become a waste material, Sterigenics has partnered with local vendors to recycle and reuse this material as a raw material. The subsequent reuse of ethylene glycol provides a recycling program for the industry that is mutually beneficial. In 2016, our EO facilities generated approximately 121,960 gallons (1,109,850 pounds) of ethylene glycol; 97% of the Ethylene Glycol byproduct produced in U.S. EO facilities was recycled % 99.60% 99.55% 99.50% 99.45% 99.40% 99.35% 99.30% 99.25% 99.20% TOTAL EO CONTROL EFFICIENCY (%)

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13 Sterigenics has initiated a global rebranding project to ensure our facilities have a common look and feel to our employees and for our current and future customers. As part of those rebranding efforts, Sterigenics has partnered with vendors that truly believe and promote sustainable solutions. From purchasing carpeting and furniture designed by life cycle analysis, to purchasing printable fabric to display our company Values manufactured in 40% recycled polyster; Sterigenics is working to standardize our look and extend our partnership to vendors who share our same vision. ENVIROMMENTAL 13

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15 ENVIRONMENTAL RESPONSIBILITY - WATER Sterigenics consolidates water consumption data for all global operating facilities. Our objective is to compile and validate 2016 data to create a company use baseline. This effort is a new objective with a company goal with incremental targets to focus on water conservation: Willowbrook, IL, USA Smart Seal System In 2017, Sterigenics continues to collect, validate and monitor water usage data to evaluate potential re-use and conservation projects. ENVIRONMENTAL RESPONSIBILITY - ENERGY In 2016, Sterigenics continued to consolidate and monitor energy (electricity and natural gas) data for all global operating facilities. The company s objective is to collect,validate and trend this data to create a solid baseline to measure performance. This data provides insight to develop and implement projects to reduce consumption and promote the use of alternative energy renewal sources. During 2016, specific project improvement initiatives were measured to illustrate the benefits realized with energy conservation. Listed below are examples of 2016 projects completed to demonstrate progress in energy renewal, energy alternatives and solutions focused on energy consumption or generation: Green Energy Purchases Wiesbaden, Germany Combined Heat and Power System Wiesbaden, Germany ISO Certification Lighting Projects Minerbio, Italy; Cotia, Brazil; Jarinu, Brazil 15

16 WATER PROJECTS: SMART SEAL SYSTEM The Willowbrook, Illinois facility has identified and approved a project geared to replace the sealed water system which currently uses a once through water consumption method. The proposed new smart seal system recirculates water and eliminates excess water consumption by nearly 300,000 gallons annually. ENVIRONMENTAL ENERGY PROJECTS: LIGHTING Sterigenics approved several projects involving LED lighting upgrades. The approved projects in Minerbio, Italy and Cotia and Jarinu, Brazil combined has preliminary projections to reduce lighting KWH consumption by 49-62%. All projects are currently underway. ENERGY PROJECTS: ISO WIESBADEN In 2016, our Wiesbaden, Germany facility was re-certified to the ISO Energy Management Standard. The standard specifies the requirements for establishing, implementing, maintaining and improving an energy management system. The standard aims to help organizations continually reduce their energy use, energy costs and greenhouse gas emissions and their greenhouse gas emissions 16

17 FACILITY GREEN ENERGY PURCHASED (%) GREEN ENER- GY CONSUMED (KWH) IN 2016 FORT WORTH, TX 20% GRAND PRAIRIE, TX 20% QUEENSBURY, NY 20% SALEM, NJ 20% ROCKAWAY, NJ 20% WILLOWBROOK, IL 20% SCHAUMBURG, IL 20% ITASCA, IL 20% GURNEE, IL 20% WESTERVILLE, OH 100% (JULY-DEC) TOTAL M KWH ENERGY PROJECTS: ENERGY PROCUREMENT ENVIROMMENTAL Sterigenics negotiated key energy contracts in several U.S. facilities. In total, ten (10) locations are now using green energy to operate. ENERGY PROJECTS: WIESBADEN In 2014, our Wiesbaden, Germany installed a Combined Heat and Power (CHP) system. A CHP system, also known as cogeneration, has the ability to generate electricity and useful thermal energy in a single, integrated system. Wiesbaden has the ability to generate useful electricity and steam. This integration also has significantly reduced electricity consumption as seen fully in 2015 and 2016 Since the installation of the cogeneration system in Wiesbaden, the facility experienced a 42% reduction in electricity consumption. 17

18 MPLOYEE SAFETY + DEVELOP MENT 18

19 SUSTAINABILITY PRINCIPLE 3 EMPLOYEE SAFETY + DEVELOPMENT Sterigenics promotes a safe and healthy work enviroment for our employees, visitors and contractors and a safe supply chain for our customers. Sterigenics Safety Policy is driven by strong, worldwide requirements and standards. Sterigenics has established requirements and standards within its corporate EH&S management system. This Sterigenics documented Health and Safety Management system is consistent with acceptable standards including OHSAS SAFETY FIRST Safety First is the nature and mantra of this sustainability principle, which involves our most valuable asset at Sterigenics: our Employees. In order to create positive momentum and sustain continuous improvement we must: Ensure health and safety is synonymous with our motto that Safety is Always First. Attract and retain the best and brightest minds Emphasize continuous improvement to address potential safety issues Provide training and developmental growth options throughout one s career. Promote dynamic leadership at all levels supported by Human Resources-driven educational programs. Sterigenics consistently measures and trends health and safety performance. Incident analysis focuses on the identification of where, when and how incidents occur worldwide.sterigenics historic health and safety performance is consistently favorable to equivalent industry standards. During 2016, a 27% increase in recordable incidents was realized mobilizing an incident prevention plan. In late 2016, Sterigenics launched the Safety Starts with Me campaign focused on hazard identification, reporting health and safety opportunities for improvement and watching out for each other. This initiative launched in September to promote a prevention-based safety culture and encourages early identification of near misses or unsafe conditions. As a result, hazard identification and reporting increased by 37% compared to STERIGENICS - HAZARD IDENTIFICATION REPORTING 125 Sterigenics Global Facilities Worldwide, the Sterigenics value of reinforcing Safety First is effective. An incident prevention mindset is critical to promoting a positive safety culture in the Sterigenics business. In 2016, 60% of facilities celebrated milestones without recordable injuries: 200 STERIGENICS FACILITIES - TIME SINCE LAST RECORDABLE INJURY 43% 11% 23% 5% 11% 11% Lifetime of Facility Since Integration 10+ Years 5-9 Years 3-4 Years 1-2 Years <1 Year 19

20 A new safety culture program was introduced in Sterigenics locations needing performance improvement. Preliminary results are positive with improvement noted at each pilot location. In 2017, each facility has a measurable objective to identify and report safety-related hazards and/or near miss events. Further safety culture improvement programs are being introduced at locations across the globe. Sterigenics recognizes the sustainability of our business depends on effective management of operations and minimizing EH&S impact. A continued, and intense focus on EH&S performance improvement, as well as providing safe and effective sterilization services to our global customers supports business objectives. RE - FOCUS HOW CAN I IMPROVE SAFETY TODAY? 20

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22 CORPORATE HEADQUARTERS: Broadview Heights, OH USA Telephone: Sterigenics International. All rights reserved. 22