A Message from our President & CEO

Dear Stakeholders,

At Element Solutions, we frequently talk about the power of “focus.“挑选挑刺活动，并以牺牲其他活动为代价优先考虑它们. When you combine focus with great people and aligned incentives, magic happens. Nowhere is that more evident than in ESG at ESI. Since we picked up the pen to write our first ESG report in late 2020, this company has taken tremendous strides. We have improved ESG data transparency, set ambitious goals, and made meaningful progress against those goals. This is a case study for how ESG reporting can be impactful. Due to its low-energy and low-discharge manufacturing, 我们公司天生就比我们行业的平均水平更环保, but the reporting added focus and clarified opportunities for improvement. The need for goals gave us the impetus to set ambitious targets. 结合“我们的文化元素”，鼓励我们接受挑战, make commitments and care about our communities and the world at large, we were on our way.

It has not been an easy two years from a global macro perspective. However, 凭借我们明确的关键战略——包括“实现可持续发展”——公司能够稳定地管理短期波动，而不会忽视我们的长期机会. 我们的文化要求我们履行我们的承诺——在所有市场环境和所有类型的承诺中都是如此. ESG is no exception. In 2022, we delivered on our sustainable development priorities, including the announcement of our ambitious Sustainability Goals, supporting many of the United Nations Sustainable Development Goals, and the release of our first TCFD Index related to climate risk management. 无论是加强对客户可持续发展解决方案的支持，还是我们在应对原材料短缺时继续负责任的采购实践, 我们在最信用的十大网投和客户价值主张的交叉点进行交易. I am grateful to all our employees who allowed us to execute on our vision.

In 2022, 我们朝着我们的长期可持续发展目标前进，以改善我们对环境的影响和公司的质量：

• Sustainable Chemistry就可持续化学的收入而言，我们今年达到了一个里程碑. In 2022, our net sales from sustainable chemistry totaled ~$700 million. We are well on our way to our 2030 goal of $1 billion.
• Energy Use & Emissions: In 2022, we improved the foundation for our program around emissions reduction. 我们将最近的收购纳入我们的基线，并开始与第三方专家合作，扩大我们的脱碳方法和执行计划.
• Occupational Health & Safety: In 2022, 我们又举办了一年一度的全球安全日，并在世界各地加强了安全培训和观察率. 与2021年相比，我们今年的总可记录事故率（TRIR）略有下降，并正在积极采取具体措施进一步改善这一结果.
• Diversity, Equity & Inclusion (DE&I): In 2022, 我们实现了成为一个更具包容性和多样性的全球性组织的第一个目标——我们90%的美国员工都是员工.S. employees completed our DE&I training and 100% of our U.S. managers benefitted from a more in-depth inclusion program.

我们与客户密切合作，为可持续的供应链做出贡献，支持负责任的制造业和人权. 为此，我们专注于为市场提供新的创新产品，以改善环境管理. 我们的产品通过实现绿色产品或提高工艺效率来帮助减少对环境的影响, 通过绿色化学倡议去除有害化学物质，或通过产品和包装回收支持循环经济.

我们在ESI证明，从ESG的角度改进是一个长期的价值驱动因素. We have substantial, 与改善客户对环境的影响相关的有利可图的商业机会. 这将推动我们实现到2030年实现10亿美元可持续发展相关销售额的目标. 我们将继续在这一领域进行创新，并在2022年推出了几项令人兴奋的功能. 一些最大的突破是在我们的水处理业务与推出的影子^ZD, 近零排放系统允许近99%的处理水在直接金属化过程中重复使用. 这一创新使我们核心电路业务的客户能够使用不到1%的水将电路板金属化，而这些水在之前的工艺中会使用. 鉴于印刷电路制造工业的很大一部分位于缺水地区, particularly in China, this is a great opportunity to help our customers and the planet. 我们也为工业解决方案业务的现有客户创新了新的设备工艺. Along the way, 我们安装的配套水处理设备继续防止污染，并通过金属回收提供价值.

We have many other examples of sustainable chemistry in other businesses. 我们的解决方案使汽车工业远离六价铬, which continues to gain traction with leading OEMs. 我们的直接金属化工艺最大限度地减少了甲醛和其他有害物质的使用，同时也减少了水和电力的消耗和废物的产生. This process remains the industry standard. The list is long and growing.

看到所有这些内部进展得到第三方的认可是值得的. 我们提高的ESG透明度和报告已经转化为我们行业的高度认可. We are proud of our EcoVadis medal for the second year in a row, improving to a Gold medal in 2022 from Silver in 2021. 我们还第二次入选《最信用的十大网投》美国最负责任公司榜单.

尽管面临越来越多的挑战，所有这些都有助于提高员工的参与度和满意度. In our 2022 engagement survey, 与2020年相比，我们看到82%的回复率更高，在97%的问题上反映出更积极的情绪. We care about and invest in our people and their communities. Since our 2020 ESG report, we have donated over $1.600万美元与ESI基金会的员工捐款相匹配，或者捐给他们选择的事业. Our people are the most critical ingredient in our formulas, and therefore our sustainability strategy demands that we attract, develop and nurture a diverse, high-performance team. 我们为我们在这一领域取得的进展感到自豪，但我们能够——也将会——取得更多成就.

As we look to 2023 and beyond, we are excited to continue to engage with our customers, employees and other stakeholders on our sustainability journey. 我们致力于每年在实现雄心勃勃的可持续发展目标方面取得进展, adapting to the ever-evolving technology needs of our industry, 随着报告标准的不断发展，提供高质量的信息披露. 我们期待着继续这一讨论，并邀请您阅读这份新报告中有关我们进展和倡议的令人兴奋的细节.

Benjamin Gliklich
President & CEO