Environmental Report Vinnolit GmbH & Co. KG

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1 Environmental Report Vinnolit GmbH & Co. KG

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3 Acting Responsibly We are committed to combining economic success with social and environmental responsibility. At all times, we take our responsibility for people and the environment very seriously. Safety, the protection of human health and the environment are the primary goals of our corporate policy. This commitment demands compliance with high standards of safety and environmental protection in production, conservation of resources in the operation of our production facilities, and the sale of products only when we are convinced of their safety and environmental compatibility. Because we are an energy-intensive company, our attention focuses on the improvement in the efficiency of our energy consumption. In the last several years, Vinnolit has made substantial investments in related efforts that have been highly successful. Regular audits by impartial assessors confirm our reliable compliance with the requirements established by standards for quality, safety, environmental protection and energy conservation. When challenges related to environmental sustainability that can be mastered most effectively by the PVC or plastics industry as a whole arise, we cooperate with other companies in the plastics industry, especially in the PVC value chain, within the framework of associations and initiatives to find solutions. Among other activities, Vinnolit is actively involved in VinylPlus (the voluntary sustainable development program of the European PVC industry), the Euro Chlor sustainability program, and the worldwide Responsible Care initiative of the chemical industry. The industry has made tremendous success in recent years, especially in PVC recycling, the more sustainable use of PVC additives, and the conversion to the environmentally friendly membrane cell process for the production of chlorine and caustic soda. This environmental report, which supersedes the annual environmental protection declarations and their updates of the past years, describes the company s goals, actions and past successes in environmental protection. However, we have no intention of resting on our laurels. We will continue, now as a member of the Westlake group, to set demanding targets and to face the coming challenges in the future. Come along with us! Dr. Josef Ertl Managing Director Vinnolit Environmental Report

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5 Inhalt The company 6 Responsibility for people and environment 8 Associations and initiatives 10 Products 12 Processes 14 Environmental targets 18 Figures 20 Contact 20 Vinnolit Environmental Report

6 The company Vinnolit With an annual capacity of 780,000 metric tonnes (1.7 billion lbs) Vinnolit is one of the leading PVC producers in Europe and, worldwide, is the market and technical leader in specialty PVC. The six production sites are in Burghausen, Gendorf, Knapsack, Cologne, Schkopau, and Hillhouse (UK); company headquarters are located in Ismaning near Munich. With 1,400 staff, Vinnolit has an annual turnover of ca. 900 million. Since mid-2014, Vinnolit has been a part of Westlake Chemical Corporation, a leading international producer of petrochemicals, polymers and PVC building products. Vinnolit headquarters in Ismaning The world market and technology leader for PVC specialties Vinnolit produces and markets a broadly diversified range of PVC products encompassing all of the common PVC applications, e.g., in construction, the automotive industry and medical technology. No matter whether PVC is required for flooring, wallpaper, window profiles, pipe, rigid film, technical coatings, vehicle underbody protection, cable sheathing, or infusion bags Vinnolit has solutions to match the requirements for any product. Vinnolit is also a leading producer and supplier of intermediate products such as caustic soda, vinyl chloride, and tin tetrachloride that are required for further processing in the chemical industry and many other sectors. Sites Vinnolit has production plants at six sites in Germany and Great Britain. Burghausen Vinnolit produces suspension and emulsion PVC as well as PVC copolymers at the Burghausen site. The Vinnolit plants are located on the premises of the Burghausen site belonging to Wacker Chemie AG. The PVC raw material vinyl chloride (VCM) is supplied to the PVC plants via pipeline from Vinnolit s Gendorf site. Burghausen is also the location of the Vinnolit application technology center where all important PVC processing methods can be replicated and customers can get advice about formulation and processing technology. Silo storage of PVC at the Cologne site 6 Vinnolit Environmental Report

7 Gendorf Vinnolit produces emulsion PVC and PVC copolymers, the preliminary products chlorine, ethylene dichloride (EDC) and VCM, as well as caustic soda and tin tetrachloride at the plants in the Industrial Park "Werk Gendorf". The VCM is transported via closed-system pipelines to the PVC plants in Gendorf and Burghausen. Gendorf is also home to Vinnolit s Innovation Management with its research laboratory and technical center. Here work on the ongoing improvement of products and manufacturing processes as well as the development of new products takes place. Increases in energy efficiency, reduction of emissions and conservation of raw materials and supplies are examples of the objectives for process improvements. Production processes can be replicated on a trial scale in the technical center as a way to test improvements in processes and products without disrupting normal production. Knapsack The Vinnolit plants in Knapsack are integrated into the Chemical Park Knapsack. Suspension PVC, the preliminary products chlorine, EDC and VCM, as well as caustic soda are produced here. VCM is supplied to the Cologne site from Knapsack. The internal chlorine network of the Chemical Park is an example of modern material flow management. Vinnolit plays a major role in the interlinked material loops, in which other companies producing at the site participate, too. Cologne Vinnolit converted to the environmentally friendly membrane cell process for the production of chlorine and caustic soda back in Microsuspension and suspension PVC are produced in the Vinnolit plants on the premises of the Cologne site of Wacker Chemie AG. Deliveries of VCM are accepted at a ship unloading facility in the petroleum port Cologne-Niehl or alternatively at a railroad tank car unloading facility in the plant and transferred via closed-system pipelines to the VCM tank farm. The raw material is supplied to the PVC plants from here. Schkopau The plant, which manufactures emulsion PVC in Schkopau is located on the premises of the Dow ValuePark. VCM is supplied from Dow by pipeline. Hillhouse (UK) Vinnolit operates a plant for the production of emulsion and microsuspension PVC at the Hillhouse International Business Park in Hillhouse. Supplies of VCM are brought to the site by tank trucks. Site services Various services such as the supply of energy, the disposal of waste water and waste, environmental protection, safety and health protection services, engineering services, and vocational and advanced training are purchased at the sites, for the most part, from the local site service provider. Energy sources such as steam, electricity, cooling water, compressed air, or natural gas which Vinnolit requires for the heating and cooling of product flows, the operation of motors, the drying of our products, and other purposes are procured from the service units of the plants. They are subject to environmental protection standards comparable to those found at Vinnolit. Vinnolit Environmental Report

8 Responsibility for people and environment Safety and the protection of human health and the environment are the primary goals of the Vinnolit corporate policy and are fi rmly anchored in the company s vision and values. Effective environmental management ensures compliance with laws and voluntary obligations undertaken by the industry and defi nes the standards required for this compliance. Environmentally compatible processes, technical safety, and the protection of human health are fi xed components of our objectives beginning at the product development stage. Our principles also include the implementation of ongoing improvements aimed at the reduction of any possible negative impact on the environment. For instance, numerous measures have been implemented in the production and further processing of the raw material chlorine to make the processes even safer. Companies in the industry share their experience within the framework of Euro Chlor, the association of European chlorine producers organized as part of the European Chemical Industry Council (CEFIC), and within the German Federation of the Chemical Industry (VCI). Strict standards also apply to the production of the chlorine daughter products EDC, VCM and PVC. Producers of these products are organized in the European Council of Vinyl Manufacturers (ECVM). Integrated management system Vinnolit maintains an integrated management system for quality, safety, environmental protection, and energy management that ensures the trackable and continuous improvement of products and work processes in the company. Vinnolit is certifi ed in accordance with DIN EN ISO 9001/14001 and and with BS OHSAS and OHRIS. Compliance with the requirements is confi rmed by impartial assessors in the course of regular audits. The issued certifi - cates can be viewed on the company website under Company/Integrated Management System. Organization The Vinnolit organizational structure, the assignment of responsibilities regarding quality, safety, environmental and health protection, and energy, and the names of the responsible officers at each of the product sites are listed in the corporate manual. In accordance with Section 52 b of the German Federal Emissions Control Act (BIm- SchG), one member of top management performs the duties and obligations of an operator of plants subject to approval. Direct responsibility for environmental protection is situated in the chain of delegation from the operations director to the relevant heads of the production divisions and plant managers. The organizational chart is set forth in Safety and protection of human health and the environment are the primary goals of the Vinnolit corporate policy. manuals and in process and operating instructions. Training is conducted at regular intervals to ensure that employees are familiar with these instructions and comply with them. Idea management One of the important pillars for the ongoing improvement of our work procedures, occupational safety, environmental protection, and energy management is provided by the employee suggestion system (idea management). Emergency management system Vinnolit is integrated into the emergency management system at each of the sites. Primary contact in case of an emergency is the plant fi re department, which is staffed around the clock. The Cologne Professional Fire Department is responsible for fi re protection and the protection of the population at the Cologne site. It is supported 8 Vinnolit Environmental Report

9 by personnel, technical and organizational measures in the plant. As necessary, various on-call services of the plant are notified in accordance with a ranking system to provide support to the fire department personnel. Well-equipped measurement squads are able to detect possible local immissions outside of the plant boundaries. The reporting channels to government authorities and the issue of information to the general public are precisely defined. Possible emergency scenarios are the subject of regular discussions and are simulated during realistic drills involving personnel from outside the plant and with the participation of representatives of government authorities. Any and all deviations from normal operations are documented and reviewed to determine possible means to prevent the occurrence of similar incidents in the future. Incidents Dr Josef Ertl (left) and Dr Ralph Ottlinger (right), Vinnolit managing directors, with Dr Hubert Martin, TÜV-Süd auditor. Incidents within the sense of the Incident Reporting Ordinance (12th BImSchV [German Federal Emissions Control Ordinance]) are any events resulting in a major hazard, whether inside or outside of the plant premises, or serious material damage. The company is insured for environmental pollution caused by such incidents. The policies also include coverage of possible environmental pollution from proper operations. No incidents occurred at Vinnolit during the reporting period. Chemical Park Knapsack maintains readiness for emergencies by conducting a large-scale emergency drill every year. Vinnolit Environmental Report

10 Associations and initiatives VinylPlus Vinnolit is an Official Partner of VinylPlus, the voluntary sustainable development program of the European PVC industry, and supports the program financially, through commitment to its principles, and through active participation. VinylPlus defines the obligations undertaken by the PVC industry: Expand PVC recycling Help to ensure that persistent organic componds do not accumulate in nature and to reduce emissions further Drive the environmentally more sustainable use of PVC additives Protect the climate through energy efficiency and responsible utilization of resources and raw materials Foster integration and sensitization of the entire PVC value chain for environmentally sustainable business operations The industry has made major progress in environmental protection by realizing Vinyl- Controlled-loop management SUSTAINABILITY AWARENESS Sustainable use of additives SUSTAINABILITY AWARENESS SUSTAINABILITY AWARENESS Organochlorine emissions Sustainable energy & climate stability SUSTAINABILITY AWARENESS Plus and Vinyl 2010, its predecessor program. For instance, more than 481,000 metric tons of PVC were recycled in Europe in 2014 within the scope of VinylPlus. The use of lead stabilizers has been reduced by 86%, and they are to be completely replaced by alternative stabilizer systems by Short-chain phthalates are being replaced in more and more applications with alternative, non-hazardous plasticizer systems. Of no less importance is the increase in energy efficiency along the full length of the value chain. The advances are documented in an annual progress report. ( Responsible Care Vinnolit participates in the Responsible Care program of the chemical industry, which seeks the continuous improvement of safety and protection for human health and the environment. PlasticsEurope PlasticsEurope represents the political and economic interests of plastics producers in Germany and Europe, serving as a contact for all subjects relevant for plastics. Environmental and sustainability topics are at the special focus of the work done in the division People and Environment. Vinnolit participates in the Zero Pellet Loss initiative of PlasticsEurope, which aims to prevent the entry of plastics into the environment. ECVM The European Council of Vinyl Manufacturers (ECVM) represents the specific interests of the European PVC producers. One important focus is on the sharing of experience related to environmental and safety issues. Vinnolit is a founding member of the Bavarian Environmental Pact for the continuous improvement of operational environmental protection. In 2011, Dr. Ralph Ottlinger (right), managing director, accepted a certificate from Dr. Markus Söder, Minister of the Environment, in recognition of this. EuroChlor Vinnolit is also a member of Euro Chlor, the association of European chlorine producers, and supports the Euro Chlor environmental sustainability program. Vinnolit had in 2009 already fulfilled the voluntary commitment of the Euro Chlor members to convert chlorine production from the mercury cell to the environmentally friendly membrane cell process by AGPU Vinnolit is an active member of the Working Group PVC & Environment e.v. (AGPU), a joint environmental initiative of business and academics, which has been working successfully for the sustainable development of PVC in Germany for 25 years. 10 Vinnolit Environmental Report

11 There are recycling systems available for many PVC applications, e.g., for window profiles. More than 481,000 metric tons of PVC were recycled in Europe as part of the environmental sustainability program VinylPlus in Vinnolit Environmental Report

12 Products PVC Chlorine, which is produced from rock salt, a virtually inexhaustible resource, using an electrolysis process, makes up about 57% of PVC. Since the raw material component rock salt plays such a major role, the manufacture of PVC requires relatively small quantities of raw materials from nonrenewable fossil sources a long-term benefit from both economic and ecological perspectives. PVC products conserve resources and are especially economical, efficient, and low-maintenance. And they lend themselves well to recycling. PVC is a modern and innovative material which is constantly evolving. Thanks to its quality and versatility, PVC is an ideal material for an enormous range of applications. Floor coverings made of PVC are especially easy to maintain and are available in many different designs. Decorative vinyl wallpaper create special atmosphere, and PVC window profiles have outstanding qualities for energy-saving window systems. In the construction industry, PVC is also used for long-lasting pipes, cable sheathing, or sturdy tarpaulins. We encounter this versatile material in our daily lives as credit cards, artificial leather, wearresistant rain clothing, in car interiors, and in many other areas, including blister packs for pills and life-saving blood bags. The first patent for PVC was issued 100 years ago, and further development of the material has steadily continued ever since. Today, it consistently compares well, economically and ecologically, with alternative materials: 12 Through the relatively low quantities of raw materials from non-renewable fossil sources, PVC helps to conserve resources. About 70% of the products fabricated using PVC (windows, flooring, pipes, etc.) are very durable and have a life cycle exceeding ten years - in some cases even 50 years. The low level of required maintenance and the good recyclability offer ecological and economic benefits. Important ecological criteria (e.g. energy consumption or greenhouse gas emissions) can be quantified by life cycle assessments. As a rule, PVC products score well in these assessments as shown in a comparative EU ecological assessment study in In general, PVC products are characterized by significant cost advantages in comparison with alternatives. Their use saves money, which can be spent for other ecological or social improvements. PVC is a well-studied, safe plastic that has proven its value for many years. As such, it is used in medical technology, food packaging, drinking water pipelines, and other applications. It is shipped to customers in silo tank cars, as palletized sacks, or in large containers (big bags). Caustic soda Caustic soda is a co-product of the production of chlorine, the raw material for PVC. It is an important basic chemical and its uses include the manufacturing of paper, glass and ceramics, aluminum, detergents and cleaning agents, or viscose fiber. In addi- PVC is the ideal material for a broad range of applications from floor coverings and car interiors to blister packaging and wallpaper. Vinnolit Environmental Report

13 tion, caustic soda is used as a neutralization agent, a precipitation agent, a cleaning agent, and a food additive. The product is shipped to customers in tank cars, tank trucks, and ships. It is conveyed in pipelines at the respective sites. Loading caustic soda in Knapsack Hydrogen Hydrogen, a co-product of chlor-alkali electrolysis, is used primarily as an energy source replacing natural gas, but it is also utilized in chemical processes or as an energy source for hydrogen stations. Tin tetrachloride Tin tetrachloride is produced from chlorine and tin and is the base product for tin-based special chemicals, especially tin stabilizers used in the processing of PVC. In addition, it is used for coating glass surfaces or as a hardener for polyurethane systems. The packaging of tin tetrachloride is fully automatic, and it is shipped mostly in railroad tank cars. Research and development tinuous development of our product technologies and PVC raw materials to meet the demands and markets of tomorrow. Our work in this area includes cooperation beyond the boundaries of our company and involves customers and universities. Vinnolit is one of the most innovative companies in our industry. More than half of our PVC products for paste applications now being sold have been developed and launched on the market in the last ten years. On average, two new developments are added each year. The Innovation Management division is located at the Gendorf site. Our employees in the laboratory and pilot facility develop new products for our customers. All of the important PVC processing technologies can be replicated at the Vinnolit application technology center in Burghausen. This unit cooperates closely with Innovation Management in Gendorf and with Vinnolit laboratory our customers to work continuously on the optimization of processing technologies and products. This collaborative effort culminates in creative solutions for special customer requirements. Vinnolit invests multi-million-euro amounts in research, development, and application technology every year. We work on the con- All of the important PVC processing technologies (here the extrusion of window profiles) can be replicated at the application technology center in Burghausen. Vinnolit Environmental Report

14 Processes Production and technology The Vinnolit plants are subject to the provisions of the German Federal Emissions Control Act (BImSchG) and the extended obligations of the Incident Reporting Ordinance (12th BImSchV [German Federal Emissions Control Ordinance]). The latter includes the preparation of a comprehensive safety report. All of the plants have obtained operating permits issued by the relevant government authorities. During the approval process for the permits, all of the plants were examined by impartial experts or by the relevant government authorities in accordance with the extensive legal requirements. Regular inspections and maintenance work are carried out on all of the equipment in the plants to ensure disruption-free operation. Compliance with all legal regulations, the lowest possible impact on the environment, and the highest possible level of energy efficiency using state-of-the-art technology are never in question during the procurement of new technical equipment and the improvement of existing facilities. Emissions The process chain for the production of chlorine, dichloroethane, and finally vinyl chloride releases small quantities of emissions (inorganic and organic gases, particulate matter) into the air. Although filters have been installed, these emissions are technologically unavoidable. Process water is treated in the central biological treatment facilities at the chemical sites. Emissions into the air and water are limited by legal regulations or voluntary commitments and are monitored to ensure compliance with these limits. Thanks to the conversion to modern, environmentally friendly membrane cell electrolysis, mercury has not been used for the production of chlorine since mid The production of PVC and the preliminary products takes place within closed systems. Monomer, which is not converted, is returned to the manufacturing process to prevent its emission into the air. Material and durability demands made on the containers and pipelines used in these systems are naturally high as well. The equipment is freely ventilated only during drying and reprocessing. Low emissions of particulate matter occur at dedusting filters and cannot be completely eliminated technologically. We have been able to reduce these emissions significantly by installing new filter systems. Suspension PVC powder from Vinnolit The actual emissions are regularly reported to government authorities in emissions statements and in the European pollutant register E-PRTR. Raw materials The most important raw materials are delivered to the Vinnolit plants via closed pipeline systems; salt is delivered as a bulk product by rail. Packaging materials play a role only for the relatively small quantities of auxiliary supplies. Generally speaking, all possible actions are taken to reduce consumption. Suppliers of raw materials and technical materials are requested to avoid superfluous packaging and to offer recycling systems. Plastic packaging and plastics are recycled and utilized in cooperation with RIGK GmbH. In 2013, the recycling led to an saving of more than 65 metric tons of greenhouse gases. Environmental concerns are elements of our supplier assessments. Raw materials are stored in containers or rooms approved for this purpose in conformity with legal requirements. As many of the raw materials we use are hazardous substances within the sense of the Hazardous Substances Regulations, we pay special attention to the environmental relevance of the required raw materials and auxiliary supplies right from the product development stage and look for environmentally compatible substances that can serve as substitution. Waste All of the Vinnolit facilities take steps to prevent the occurrence of waste. Compared to the quantities of raw materials used, the manufacture of PVC produces very little waste. All of our processes have been optimized to prevent as much waste as possible for economic and ecological reasons. PVC waste resulting from the processes is utilized. Most of this waste results during the cleaning processes. Collection systems for different recycling and disposal channels are operated at the plants and used by Vinnolit. In addition to using the facilities operated by the plants themselves, we take advantage of the opportunity for thermal recovery outside of the plant as well. Employees receive regular training for handling waste products during safety instruction sessions. 14 Vinnolit Environmental Report

15 Rock salt raw material for the manufacture of PVC Vinnolit Environmental Report

16 Water and waste water Programs for conserving water have resulted in a substantial reduction of water consumption. For instance, the company has been operating PVClean, the first largescale technology facility for recycling process water from a suspension PVC plant, in Knapsack since Ultrafiltration and water recycling have made it possible to reduce water consumption by 200,000 cubic meters annually. The polymerization of VCM to PVC in water and the cleaning of the equipment with high-pressure water produces contaminated waste water; it is collected and, after separation of the solids it contains, conveyed to the waste water treatment plants via the pipeline systems maintained by the plants. Noise and odor Noise protection concepts are in place for the plants. Noise levels at the workplaces are monitored on the basis of a plant noise register. Work to eliminate the sources of noise is ongoing. Noise protection concerns are a major element of the terms and conditions of purchasing whenever new equipment is procured. As a rule, the Vinnolit plants do not produce any disagreeable odors. Soil Whenever there is suspicion that pollution has occurred, special soil or groundwater samples are taken and, if necessary, the appropriate monitoring, security, or restoration concepts are coordinated with government authorities. Tests for soil contamination are conducted whenever excavation work is done. All of the relevant filling/transfer facilities are equipped with liquid-tight floor troughs, collecting pits, etc. Special floor coverings and cups in the production facilities serve as protection from possible soil pollution when working with potential water pollutants. Energy efficiency The ongoing modernization and optimization of plant equipment has substantially reduced the consumption of electricity, steam, and cooling water. Specific energy consumption has also been significantly reduced since 2009 by the conversion of the electrolysis technology from mercury cell to membrane cell technology. By taking these steps, Vinnolit has made an important contribution to increasing energy efficiency and reducing CO2 emissions. The further improvement in energy efficiency remains an important corporate target. With this in mind, Vinnolit continually invests in the modernization of equipment and the improvement of process procedures. The company-wide project VinSavE encouraged employees to develop ideas for energy conservation that can reduce energy consumption in the company by more than 10%. Many of the proposed actions have been implemented - others will follow in the coming years. After the conclusion of the project, the instruments were implemented as permanent elements of the management system. In an international comparison of energy consumption, Vinnolit posts excellent results based on experience from past industry benchmarks. Fluctuations in energy consumption are possible as a consequence of shifts in the product mix. Traffic and transport Vinnolit consciously relies on environmentally friendly green logistics, both when procuring raw materials and shipping its products, and to the greatest possible extent uses railroads, ships, and pipelines for transport. The following principles are observed as a way to keep environmental pollution during shipment to customers as low as possible: Avoidance of packaging by using silo vehicles whenever the customers facilities permit Return of the rock salt quantities which are unusable to the mine on the same train Use of railway silos and railway silo containers whenever the customers facilities permit Use of recyclable paper for bagged goods and participation in the Repasak model Shrinking of bagged goods with recyclable shrink wrapping Stacking of bagged goods on standardized chemistry pallets for which there is a circulation and repair system Environmental aspects are also taken into consideration during the selection process for forwarding agents. For instance, Vinnolit has been participating in the Eco-Plus program of its logistics partner DB Schenker Rail since the beginning of 2012; the program features the utilization of renewable energies for the rail transport of rock salt to the Gendorf site. This has enabled Vinnolit to reduce CO2 emissions every year by about 5,900 metric tons in comparison with road shipment and by about 1,000 tons in comparison with rail shipment without Ecoplus. 16 Vinnolit Environmental Report

17 Occupational safety Appropriate actions to ensure occupational safety have been implemented on the basis of extensive risk assessments pursuant to the Occupational Safety Act and the Hazardous Substances and Industrial Safety Regulations. Equipment and tools are provided, safely used and regularly inspected by trained personnel to ensure that they are in good operating condition. Employees receive operating instructions and regulations, and managers monitor compliance with their provisions. Whenever necessary, employees wear the required personal protection equipment. Instruction regarding risks and measures at the workplace based on an annual schedule is given to employees. Workplace area and noise measurements are carried out to ensure compliance with limits on hazardous substances and noise at the workplaces so that employees exposure is minimized. Employees are examined regularly by the company physician in accordance with the Regulations for Occupational Health Screening. The program Sicherheit PLUS (dealing with behavioral risk components) secures the participation of employees and their direct supervisors in the risk assessments and accident reviews. Environmentally relevant equipment The Vinnolit plants make use of the extensive environmental protection equipment at the plant sites, ensuring an environmentally friendly on-site treatment and disposal of waste water and waste that for the most part does not require any transport. In addition, Vinnolit operates its own facilities for this purpose. The ultrafiltration facility PVClean in the Knapsack S PVC plant Environmentally relevant facilities at the production sites Residue incineration Incineration of solid, liquid, and gaseous waste Waste water stripper Cleaning of process water contaminated with VCM Flocculation Separation of solids from process water Waste water cleaning Mechanical, chemical, and/or biological cleaning of plant waste water with analytical testing Water retention Emergency basin for incidents/water for fighting fires Dumps Storage of construction rubble and similar waste HCl recycling/central Thermal recycling of exhaust gases exhaust gas recycling Recycling facilities Utilization/recycling of by-products from VCM/PVC production Exhaust gas cleaning Recycling of VCM from exhaust gases plant Rain water utilization Utilization of collected and cleaned rain water as cooling water Burghausen Gendorf Knapsack Cologne Schkopau Hillhouse Ultrafiltration facilities Facilities at the plant sites Vinnolit facilities Concentration of PVC latex and conservation of steam; Recycling of water Vinnolit Environmental Report

18 Environmental targets Energy consumption, emissions, waste, and waste water are environmental effects that are the inevitable consequences of all human action and thus of all industrial processes and activities. The assessment of these environmental effects is an essential element of our integrated management system and is used as the starting point for setting targets for our environmental programs. Energy efficiency (steam, electricity, natural gas) per t output The production divisions concentrate largely on the areas of energy, efficient use of resources, and emissions, but do not neglect other environmental aspects. Conservation of heating energy and electricity, reduction in the use of paper, and separation of waste in offices are relevant for the administrative departments. Achievement of targets Vinnolit set itself the objective of reducing specific energy consumption (steam, natural gas, electricity) by 5% over the period between 2009 and Energy efficiency has been improved significantly since Improvement of energy efficiency in % (Basis 2008 = 100%) This target was exceeded when, due to the conversion of the electrolysis processes from mercury cell to modern, power-saving membrane cell technology and the conservation program VinSavE, a figure of -7.8% was recorded. About 242 million kilowatthours are saved in electricity alone every year during the annual production of 2 million metric tons of products. Natural gas consumption has been reduced by the use of hydrogen from chloralkali electrolysis as a fuel gas in EDC cracking. The company-wide project VinSavE ( Vinnolit Saves Energy ) contributed to further improvement in energy efficiency. Over the course of the program, the company s employees contributed numerous ideas aimed at reducing energy consumption even further. Savings were consequently achieved for compressed air, electricity, steam, The optimization of the insulation on steam ducts conserves 710,000 kwh per year. 18 Vinnolit Environmental Report

19 and cooling water at various points of the production processes. Achievement of targets 2012 Based on the assessment of environmental effects, Vinnolit concentrated primarily on the subject of energy conservation in 2012 as well. Through conservation measures for electricity and steam and the reduction of heat loss, the 2012 target has been achieved and energy efficiency has been improved by further 0.44%. Achievement of targets 2013 In 2013, a number of projects culminating in annual savings of 16,452,300 kwh of energy were successfully carried out on the basis of the energy saving program VinSavE. The energy-relevant sectors electricity, cooling water, steam, compressed air, natural gas, and demineralized water were involved. Outstanding results came from one project that saved 6,966,000 kwh of steam and demineralized water annually by recovering condensation not otherwise used from an evaporation plant and returning it to the process. The constant assessment of environmental impact in the production facilities also made it possible to reduce emissions by about 3.4 metric tons, waste by 22.8 metric tons, and waste water by 155,000 m³. The reduction of the waste water volume came from the aforementioned reutilization of the condensation from the evaporation plant. 664,000 kwh of electric power are saved annually after the replacement of a hydrogen compressor with a rotary compressor. Emissions Achievement of targets 2014 In 2014 more measures based on the energy saving program VinSavE were implemented that led to an annual saving of 2,825,536 kwh energy. It involved the areas of electricity, steam and compressed air through the use of more energy efficient compressors, the optimization of insulations and improved operation modes. Significant reductions have already been achieved in emissions; further progress will therefore be in very small steps. Nevertheless, it was possible to lower the specific emissions still further in the period between 2009 and Vinnolit Environmental Report

20 Figures Core indicators according to EMAS III (EG) No. 1221/2009 The values are subject to inevitable fluctuations owing to changes in the utilization of plant capacities or the product mix, technological modifications, and fluctuations in weather conditions. t = metric ton of total output from production. Vinnolit Group Energy efficiency (GJ/t) Water consumption (m³/t) Biological diversity (m²/t) Emissions Particulate matter (kg/t) Nitrogen oxides (kg/t) Sulfur dioxide (kg/t) Carbon dioxide equivalents (kg/t) Inorganic gases (kg/t) CHC/HC (kg/t) Waste (kg/t) Waste water (m³/t) Increase of waste due to construction measures in 2014 Contact Dr. Oliver Mieden Head of Environmental Affairs & Corporate Communications Phone: oliver.mieden@vinnolit.com Michael Süß STEM Sicherheit, Technik, Energiemanagement EHS Environmental Health Safety Phone: michael.suess@vinnolit.com In case of any incident you will receive information via the community helpline: Burghausen site: Gendorf site: Schkopau site: Cologne site: Knapsack site: Hillhouse site: Brochures containing information for the general public required pursuant to Section 11 Incident Reporting Ordinance were prepared at all production sites and distributed at all of the households in the vicinity. They have been prepared in consultation with the relevant government authorities and contain information about proper conduct in the event of the occurrence of incidents. 20 Vinnolit Environmental Report

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22 Vinnolit 2015; Version 1.1 (10/13/2015) Vinnolit GmbH & Co. KG, Corporate Communications Carl-Zeiss-Ring 25, Ismaning, Germany Phone: Photos: Vinnolit GmbH & Co. KG, Benecke-Kaliko AG, Bilcare Research GmbH, Heiner Heine, Marburger Tapetenfabrik, Schüco International KG, Tarkett Holding GmbH. Cover: Kathrin Frischemeyer/Pixelio.

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