https://www.avient.com/sites/default/files/2025-07/Avient 2024 Sustainability Report_6.pdf
Safety Milestones 2024 99.5% 45% 3851% Global Site Ergonomic Events Global Participation Safety Engagement Reduction in Hand Injuries YoY Improvement in Lost-time Injury Rate YoY 0.00 0.25 0.50 0.75 1.00 In ju ri e s p e r 10 0 W o rk e rs 0.40 Total Recordable Incident Rate (TRIR) by Year 2020 2021 2022 2023 2024 0.50 0.55 0.51 0.58 Sustainability Report | 2024 34Contents | About Avient | Message from the CEO | Sustainability at Avient | Enabling a Sustainable World | Preserving the Planet | Culture of Safety & Sustainability | Governance | Appendix Occupational safety, health and well-being are paramount at Avient because we understand the value of good performance in these areas to our people, their families, collective morale, operational costs, our contractors, the communities in which we operate, and our reputation.
Policies & Guidelines Animal Testing Policy Audit Committee Charter California Transparency in Supply Chains Act Disclosure Code of Conduct Code of Ethics—Applicable to Avient Senior Officers ColorMatrix Europe Limited—Modern Slavery and Human Trafficking Statement Compensation Committee Charter Conflict Minerals Policy Corporate Governance Guidelines Environmental Policy Equal Employment Opportunity Global Chemical Management Global ISO Certificate Library Global Policy on Anti-Bribery and Anti-Corruption Global Policy on Antitrust Governance and Corporate Responsibility Committee Charter Human Rights Policy No Surprises PledgeSM Position on Biodiversity Position on Water Stewardship Privacy Statement Product Stewardship Policy Quality Policy Responsible Care Policy Safety and Health Policy Security Policy Supplier Code of Conduct Sustainability Report | 2024 45Contents | About Avient | Message from the CEO | Sustainability at Avient | Enabling a Sustainable World | Preserving the Planet | Culture of Safety & Sustainability | Governance | Appendix https://www.avient.com/sites/default/files/2022-03/Sustainability%20ESG%20Disclosures_Animal%20Testing%20Policy.pdf https://www.avient.com/sites/default/files/2023-01/Avient%20Audit%20Committee%20Charter.pdf https://www.avient.com/california-transparency-act-disclosure https://www.avient.com/company/policies-and-governance-0/code-conduct https://www.avient.com/sites/default/files/2023-12/Senior%20Financial%20Officer%20Code%20of%20Conduct%20Policy%20%282023%29_0.pdf https://www.avient.com/sites/default/files/2025-06/CM%20Europe%20Ltd%20Modern_Slavery_Statement_2025.pdf https://www.avient.com/sites/default/files/2025-06/CM%20Europe%20Ltd%20Modern_Slavery_Statement_2025.pdf https://www.avient.com/sites/default/files/2024-10/Compensation%20Committee%20Charter%20-%20Final.pdf https://www.avient.com/sites/default/files/2020-10/avient-conflict-minerals-policy-10.2020.pdf https://www.avient.com/sites/default/files/2024-05/3b%20-%20Corporate%20Governance%20Guidelines.Draft%20Feb.%202024.v1.2.Revised.4-16-24.Final_.pdf https://www.avient.com/sites/default/files/2023-12/Avient_Environmental%20Policy_Dec_18_2023.pdf https://www.avient.com/sites/default/files/2024-06/EEO%20Policy%20Jan%202024.pdf https://www.avient.com/sites/default/files/2022-03/Sustainability%20ESG%20Disclosures_Global%20Chemical%20Mgt%20Policy.pdf https://www.avient.com/company/policies-and-governance-0/global-iso-certificate-library https://www.avient.com/company/policies-and-governance/global-policy-anti-bribery-and-anti-corruption https://www.avient.com/company/policies-and-governance/global-policy-antitrust https://www.avient.com/sites/default/files/2024-05/3b%20-%20Corporate%20Governance%20Guidelines.Draft%20Feb.%202024.v1.2.Revised.4-16-24.Final_.pdf https://www.avient.com/company/policies-and-governance-0/avients-human-rights-policy https://www.avient.com/company/sustainability/sustainability-report/products/no-surprises-pledge https://www.avient.com/company/policies-and-governance-0/avients-position-biodiversity https://www.avient.com/company/policies-and-governance-0/avients-position-water-stewardship https://www.avient.com/company/policies-and-governance-0/avient-corporation-privacy-statement https://www.avient.com/sites/default/files/2023-12/Avient_ProdStewardship_Policy_Dec_18_2023.pdf https://www.avient.com/sites/default/files/2023-12/Avient%20Quality%20Policy%20-%20Dec%2018%202023%5B83%5D.pdf https://www.avient.com/sites/default/files/2023-12/Avient_ALL_Policies_Dec_18_2023.pdf https://www.avient.com/sites/default/files/2023-12/Avient_Health_And_Safety_Policy_Dec_18_2023.pdf https://www.avient.com/sites/default/files/2023-12/Avient_SecurityPolicy_Dec_18_2023.pdf https://www.avient.com/company/policies-and-governance-0/supplier-code-conduct Appendix People Data & Metrics Planet Data & Metrics Workforce Demographics Earth Day Photos GRI/SASB/TCFD Content Index Reconciliation of Non-GAAP Financial Measures Sustainability Report | 2024 46Contents | About Avient | Message from the CEO | Sustainability at Avient | Enabling a Sustainable World | Preserving the Planet | Culture of Safety & Sustainability | Governance | Appendix Category 2019 2020 2021 2022 2023 2024 Total TRIR (#—Direct) 0.56 0.50 0.55 0.51 0.58 .40 Total TRIR (#—Contractors) 0.00 0.00 0.00 0.00 2.00 1.67 Recordable Injuries (Total #) 36 37 55 57 62 44 Recordable Illnesses (Total #) 0 0 0 0 0 0 Total LTIR (#—Direct) 0.29 0.24 0.14 0.15 0.26 0.13 Total LTIR (#—Contractors) 0.00 0.00 0.00 0.00 1.50 0.00 Total Injuries of High Consequence (% of TRIR) 14 8 2 2 2 2 Total Fatality Rate (#—Direct) 0.00 0.00 0.00 0.00 0.00 0.00 Total Fatality Rate (#—Contractors) 0.00 0.00 0.00 0.00 0.00 0.00 Process Safety Incident Count (#) 0 0 0 0 0 0 Process Safety Total Incident Rate (#) 0.00 0.00 0.00 0.00 0.00 0.00 Process Safety Incident Severity Rate (#) 0.00 0.00 0.00 0.00 0.00 0.00 Transport Incidents (#—US DOT 5800/EU ADR) 0 0 0 0 0 0 Employee Safety Engagement Activities (#) N/A N/A 10,100 14,658 11,806 23,229 EH&S Internal Audits (#) 58 37 25 40 76 57 Workers covered by an EH&S Management Systems (%) 100 100 100 100 100 100 Workers covered by an internally audited EH&S MS (%) 100 100 100 100 100 100 Facilities externally certified ISO45001 (or equivalent — %)* N/A 52 56 54 51 62 Suppliers externally certified ISO45001 (% of surveyed) N/A 44 56 53 54 38 *Certificates can be found at (https://www.avient.com/company/policies-and-governance/global-iso-certificate-library) People Data and Metrics Sustainability Report | 2024 47Contents | About Avient | Message from the CEO | Sustainability at Avient | Enabling a Sustainable World | Preserving the Planet | Culture of Safety & Sustainability | Governance | Appendix https://www.avient.com/company/policies-and-governance/global-iso-certificate-library Planet Data and Metrics Category 2019* 2020* 2021* 2022* 2023 2024 Energy1 Total Energy (GJ) 2,377,860 2,242,291 2,361,107 2,265,482 2,144,770 2,217,903 Energy Intensity (GJ/MT Sales) 5.09 5.04 4.77 5.05 5.63 5.61 Renewable Electricity (MWh)** 104,880.63 122,505.22 174,701.68 232,488.43 253,894.78 259,622.57 Electric Power (MWh) 461,426.13 439,773.23 460,693.35 439,215.11 409,650.68 424,609.88 Renewable Electricity (%) 23 28 38 53 62 61 Renewable Energy (%) 16 20 27 37 43 42 Total Self-Generated Energy (GJ) 11,845 14,590 11,461 12,019 15,710 13,490 Energy Saving Activities (#) 59 74 102 129 118 103 Annual Savings from Energy Saving Activities (GJ) 35,573 19,490 72,845 100,951 65,538 27,104 Capital Invested in Energy Savings ($MM USD) 1.97 2.43 1.74 5.05 3.85 3.48 Purchased Energy (%) Purchased Electricity (%) 49.74 51.70 51.05 69.79 68.76 68.92 Purchased Natural Gas (%) 12.89 14.11 13.46 29.45 30.24 30.09 Purchased Steam (%) 0.00 0.00 0.00 0.00 0.00 0.12 Purchased Diesel Fuel (%) 0.87 0.95 1.12 0.76 0.48 0.38 Sources of Purchased Electricity (%)2 Non-Renewable: Coal 46.72 45.53 41.12 40.04 39.61 38.40 Non-Renewable: Natural Gas 33.69 36.12 17.51 17.41 17.35 16.70 Non-Renewable: Other Fossil Fuels 0.00 0.00 0.26 0.21 20.00 19.00 Non-Renewable: Nuclear 11.95 11.37 9.86 9.01 8.82 8.70 Non-Renewable: Oil 2.16 1.60 1.82 1.70 1.67 1.43 Renewable: Hydro 3.24 2.23 14.79 15.22 14.07 14.24 Renewable: Wind 0.70 0.88 7.94 9.02 9.97 10.00 Renewable: Solar 1.48 2.20 3.76 4.67 5.61 7.14 Renewable: Biomass 0.06 0.07 2.53 2.44 2.37 2.41 Renewable: Geothermal 0.00 0.00 0.29 0.28 0.27 0.25 Sustainability Report | 2024 48Contents | About Avient | Message from the CEO | Sustainability at Avient | Enabling a Sustainable World | Preserving the Planet | Culture of Safety & Sustainability | Governance | Appendix Category 2019* 2020* 2021* 2022* 2023 2024 Emissions1 Greenhouse Gas Emissions (MT Scope 1 GHG)** 36,680 39,023 36,147 34,792 33,384 37,334 Greenhouse Gas Emissions (MT Scope 2 GHG)** 169,789 102,479 100,595 99,465 72,976 62,431 Greenhouse Gas Emissions (MT Scope 3 GHG)3 584,622 1,440,584 2,122,338 6,421,128 5,685,564 See CDP Greenhouse Gas Emissions (MT Scope 1 & 2 GHG)** 206,469 141,502 136,742 134,257 106,360 99,765 Greenhouse Gas Emissions Intensity (MT 1&2 GHG/ MT Sales) 0.44 0.32 0.28 0.30 0.28 0.25 Greenhouse Gas Emissions Intensity (MT 1&2 GHG/ $B Revenue) 51,864 63,886 41,249 39,524 33,840 30,792 Annual GHG Emissions Avoidance from ESA & WMA (MT) 8,880 10,809 34,705 62,406 127,991 6,588 Reportable Releases—Above Permitted Limits (#) 0 0 0 0 1 0 Emissions of SOx/NOx/VOC/HAPs (MT) SOx 0.08 0.08 0.08 0.17 0.16 0.16 NOx 14.74 10.85 11.77 12.96 13.40 10.45 VOC 695.40 659.43 648.17 563.96 669.99 452.66 Top 4 Hazardous Air Pollutants 0.98 1.00 1.18 6.96 5.98 6.79 Particulate Matter 33.78 30.99 32.88 28.02 24.12 26.43 Waste Total Waste (MT) 31,087 29,783 33,090 32,267 31,462 30,012 Total Waste Intensity (Kg Waste/MT Sales) 66.60 66.92 66.90 71.88 82.66 75.97 Total Waste Intensity (MT Waste/ $B Revenue) 7,809 13,447 9,982 9,499 10,010 9,263 Percent of Total Waste Recycled/Beneficially Reused (%) 51.45 50.51 47.85 48.60 61.06 58.95 Percent of Total Waste Landfilled (%) 40.13 40.20 43.26 44.24 34.17 35.20 Total Waste Landfilled (MT)** 12,476 11,972 14,315 14,274 10,751 10,565 Total Non-Hazardous Waste (MT) 27,608 26,606 29,298 28,503 28,318 26,125 Waste Minimization Projects (#) 34 53 142 114 84 74 Annual Diversion from Waste Minimization Projects (MT) 2,087 743 3,136 8,423 2,975 1,845 Capital Invested in Waste Minimization ($MM USD) 0.00 0.33 1.48 2.67 0.40 1.21 Landfill Free Sites (%) N/A N/A N/A N/A 47 50 Hazardous Waste Hazardous Waste US & Canada (%) 29 16 19 21 26 34 Hazardous Waste Latin America (%) 5 5 6 6 3 3 Hazardous Waste Europe (%) 36 51 41 34 36 27 Hazardous Waste Asia Pacific (%) 27 25 30 36 34 34 Hazardous Waste Middle East & Africa (%) 3 3 4 3 2 3 Total Hazardous Waste (MT) 3,480 3,177 3,792 3,850 3,173 4,169 Sustainability Report | 2024 49Contents | About Avient | Message from the CEO | Sustainability at Avient | Enabling a Sustainable World | Preserving the Planet | Culture of Safety & Sustainability | Governance | Appendix Category 2019* 2020* 2021* 2022* 2023 2024 Water & Biodiversity Total Water Withdrawal (1000 m3) 1,356 1,801 1,796 1,738 1,599 1,652 Total Water Withdrawal Intensity (m3/MT Sales) 2.90 4.05 3.63 3.87 4.20 4.18 Total Wastewater Discharge (1000 m3) 892 1,032 1,164 1,122 1,146 1,247 Wastewater Recycled (% of Total) 34 43 35 35 28 25 Total Water Related NoV (#) 0 0 0 0 3 0 Withdrawal & Consumed from High & Extremely High Water Risk Areas (% of Total) N/A N/A N/A N/A 26 37 Water Minimization Projects (#) 4 6 19 19 10 10 Annual Diversion from Water Minimization Projects (1000 m3) 9 20 55 115 284 6 Capital Invested in Water Minimization ($MM USD) 0.04 0.38 0.24 0.07 1.02 0.39 Sites in High Biodiversity Physical Risk Areas (%) N/A N/A N/A N/A 10 7 Sites in High Biodiversity Reputational Risk Areas (%) N/A N/A N/A N/A 0 4 Sites in High & Extremely High Water Risk Areas by Region US & Canada (%) N/A N/A N/A N/A 11 11 Latin America (%) N/A N/A N/A N/A 4 4 Europe (%) N/A N/A N/A N/A 6 8 Asia Pacific (%) N/A N/A N/A N/A 12 13 Middle East & Africa (%) N/A N/A N/A N/A 4 4 Certified Environmental Management Systems Facilities externally certified to ISO14001/RC14001 (%)4 N/A 50 52 57 58 52 Facilities externally certified to ISO50001 (# of high energy sites)4 2 2 2 2 3 3 Suppliers externally certified ISO14001 (% of surveyed) N/A 70 75 72 72 54 Suppliers externally certified to ISO50001 (% of surveyed) N/A 17 19 24 32 22 *Includes estimated full year performance of APM acquisition **2019 baseline data revised to account for acquisition pro-forma performance and divestitures (1) Refer to CDP Climate Change Report for finalized Energy/Emissions information https://www.avient.com/company/sustainability/sustainability-report/reporting/cdp-climate-change-report (2) Estimates.
https://www.avient.com/sites/default/files/2020-03/Global_High_Yield_%26_Leverage_Conference %281%29.pdf
Leverage PolyOne’s global reach Phase 1 Phase 2 Phase 3 18-20% operating margins Invest in commercial resources I N V E S T - T O - G R O W P R O O F O F P E R F O R M A N C E PolyOne Corporation 24 Commercial Resources Operating Income ($ in millions) Operating Margins 256 309 At Acquisition Today $36 $100 At Acquisition Today 9% 19% At Acquisition Today Established Acquisitions (> 7 years) + 20% + 165% + 1000 bps CLARIANT MASTERBATCH ACQUISITION DRIVES NEXT LEVEL SPECIALTY TRANSFORMATION ACCELER ATING GR OWTH WITH SUSTAINABLE SOLUTIONS T R A N S F O R M A T I O N H E A D L I N E S PolyOne Corporation 26 F I T W I T H F O U R P I L L A R S T R A T E G Y PolyOne Corporation 27 Specialization • Innovation-led organization with heavy emphasis on R&D • World-class expertise in color formulation • Strong presence in specialty end markets including Consumer, Packaging and Healthcare Globalization • Diverse geographic portfolio with an established presence in every major region • Expands PolyOne’s ability to serve customers in key growth areas including India, China and Southeast Asia Operational Excellence • Extensive manufacturing footprint with 46 facilities • Organizational focus on optimizing supply chain to better serve customers • Color design expertise Commercial Excellence • Value-focused salesforce with vast experience marketing and commercializing specialty technologies • Diverse customer portfolio with established OEM’s People Experienced and talented associates with a winning mentality E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 28 Building & Construction 5% 2006 2019E PF* 4% 12% 10% 18% 8% 20% 2006 2019E PF* Healthcare Consumer Packaging 50% 22% High Growth End Markets Percentage of Total Revenue 38% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business E N D M A R K E T T R A N S F O R M A T I O N PolyOne Corporation 29 Packaging 8% Building & Construction 38% Wire & Cable 11% Industrial 10% Electrical & Electronic 7% 2006 2019E PF* Healthcare 4% Transportation 12% Consumer 18% Building & Construction 5% Wire & Cable 6% Industrial 12% Electrical & Electronic 5% Appliance 3% Textiles 6% Transportation 13% Healthcare 12% Packaging 20% Consumer 10% * 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E PolyOne Corporation 30 United States 38% Europe 33% Asia 19% Canada 4% Latin America 6% United States 22% Europe & Middle East 48% Asia 23% Canada 1% Latin America 6% Color & Engineered Materials Clariant Masterbatch Business Net Sales by Geographic Region United States 31% Europe & Middle East 39% Asia 21% Canada 3% Latin America 6% Pro Forma Color & Engineered Materials U N I F I E D F O C U S O N S U S T A I N A B I L I T Y PolyOne Corporation 31 2006 - 2013 2013 – 2019 PEO PLE PRO D U C TS PLA N ET PER FO R M A N C E PolyOne Clariant Masterbatch Business • Building mini-recycling plants to facilitate customer projects on design for recycling - CycleWorks • Uses packaging additives & colorants to improve recyclability and enhance automated sorting • Manufactures oxygen scavengers to extend shelf-life of perishable items and reduce material requirements • Combines UV-blocking additive colorants & other barriers to prevent spoilage and waste • Offers spin-dyeing solutions that use significantly less water than traditional methods, allowing for sustainable coloration of textiles • Produces infrared absorbing additives that reduce energy requirements for bottle manufacturing ($ in millions) PolyOne (Continuing Operations) Clariant Color & Additive Masterbatch Business Synergies New PolyOne 2019 Total Sales $2,863 $1,150 $4,013 2019 Adjusted EBITDA $309 $130 $60 $499 % Margin 10.8% 11.3% 12.4% 2019 CapEx $68 $85 % Sales 2.4% 2.1% 2019 Free Cash Flow $161 $250 2019 Adjusted EPS $1.69 $2.22 2019 PF Adjusted EPS $1.69 $2.54 P O L Y O N E + C L A R I A N T M A S T E R B A T C H B U S I N E S S PolyOne Corporation 32 (1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction (1) $0.85/share O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y PolyOne Corporation 33 46% 66% 0% 20% 40% 60% 80% 100% 2005 2010 2015 2019E PF % o f A d ju st e d E B IT D A * JV's Performance Products & Solutions Distribution Specialty 7% 87% * Adjusted EBITDA is EBITDA excluding corporate costs and special items ** 2019E Pro Forma for PP&S Divestiture and Clariant Masterbatch business acquisition with synergies Specialty EBITDA $14M $117M $273M $500M ** T R A N S A C T I O N O V E R V I E W • Expected mid-2020, subject to regulatory approvals and customary closing conditions Closing Conditions / Timing • Committed financing in place • Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage • Equity issuance of $500MM • Target net leverage below 3.5x, 3.1x synergized PolyOne Corporation 36 • $1.45 B net purchase price • Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies) • Pre-tax synergies of $60MM expected to be fully realized by the end of 2023 • Synergies realized from sourcing, operational, technology / commercial, and general administrative Transaction Value Synergies Financing Estimated Synergy Breakdown $60MM • Expect EBITDA synergies of $60MM – Proven integration expertise with a decade of acquisition experience – Administrative synergies reflect reduction of duplicative internal and third-party costs • Run rate synergies of $20MM by the end of Year 1 with $60MM achieved by the end of Year 3 • Significant additional opportunity for geographical expansion – Clariant Masterbatch business has complementary regional presence in key growth areas including India & Southeast Asia • Opportunity to accelerate growth with a combined portfolio of innovative solutions aligned with sustainability megatrends Sourcing 40% Operational 30% Administrative 30% PolyOne Corporation 37 S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S $450 $600 $624 $743 2019 2020 2021 2022 2023 2024 2025 2026 A T T R A C T I V E F I N A N C I N G S T R U C T U R E Attractive Debt Maturity Profile Existing Revolver Existing Senior Notes Existing Term Loan B New Debt Financing Financing Summary Terms on New Debt • $465 million of cash from the balance sheet expected to fund a portion of the purchase price • Bridge financing for remainder fully committed from Citi, Morgan Stanley and Wells Fargo • Permanent financing expected to include a combination of long-term debt and new equity • The timing of the permanent financing is subject to a number of factors, including, but not limited to, market conditions • PolyOne is committed to preserving a strong balance sheet – Target net leverage at close below 3.5x, excluding synergies • Pro forma capital structure positions PolyOne with flexibility to pursue continued growth strategy • New financing expected to have same or better covenant package than existing capital structure • Capital structure would be “covenant lite” Capital Policy • Transaction in line with PolyOne’s disciplined capital allocation policy • Existing PolyOne dividend policy to be maintained • Focus on deleveraging in the near term 2028+ PolyOne Corporation 38 PolyOne Corporation 37 $0.16 $0.20 $0.24 $0.32 $0.40 $0.48 $0.54 $0.70 $0.78 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cumulative Share Repurchases (In millions) $0 $150 $300 $450 $600 $750 $900 2011 2012 2013 2014 2015 2016 2017 2018 2019 $917M R E T U R N I N G C A S H T O S H A R E H O L D E R S O V E R $ 1 . 2 B I L L I O N S I N C E 2 0 1 1 PolyOne Corporation Increasing Annual Dividend 38 $0.81 PolyOne Corporation 39 W H Y I N V E S T I N P O L Y O N E ?