Materiality Assessment

Materiality Assessments provide us with a tool to prioritize and make sense of the sustainability landscape as well as a powerful mandate to focus and act on topics that are the highest priority for the business and stakeholders.

Indorama Ventures conducts biennial materiality assessments to define the key environmental, social, economic, and governance topics crucial to both our business and internal/external stakeholders. The process integrates input from external stakeholders, trend analyses, and internal engagement across our business group, concerning the influence of stakeholder interests on our operations and the significance of the business impacts. We believe that developing effective sustainability strategies that fully account for the interconnection of material topics will lead to improved performance in the long run. Our latest assessment in 2022 identified ten key material topics. Further information is available in our 2022 Materiality Assessment Summary and 2022 Sustainability Report.

We deep drive more on our assessment to align more with the Double Materiality Approach (DMA). This approach has been incorporated into the EU Corporate Sustainability Reporting Directive (CSRD), Dow Jones Sustainability Index (DJSI), and Global Reporting Initiative (GRI) standard. The DMA enables the Company to understand and efficiently manage potential organizational risks, opportunities, and impacts aligning with the expectations of stakeholders in a comprehensive and effective manner.

Materiality Assessment Process at Indorama Ventures

Materiality Assessment Outcomes

This robust Double Materiality Assessment shapes our company narrative, aligns with stakeholder expectations, and enhances long-term value creation. The advantages lie in informed decision-making, proactive risk management, and a strengthened commitment to responsible, resilient business operations.

Nine material topics were identified and prioritized in terms of impact materiality and financial materiality on society, the environment, and the Company’s value. They were endorsed by the SRMC for sustainability disclosure as follow:

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Materiality Assessment Summary 2023

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Indorama Ventures Material Topics	Corresponding GRI Topics	Key Stakeholders Impacted and Boundary		Ongoing Indorama Ventures Commitments and Targets (2019-2025)
Indorama Ventures Material Topics	Corresponding GRI Topics	Within the Organization	Outside the Organization
Compliance Management	Ethics and Integrity Management Approach Anti-corruption Anti-Competitive Behavior Socioeconomic Compliance Environmental Compliance	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Contractors Community Regulators, Government	Zero non-compliance Beyond all applicable environmental compliance
Business Ethics	Ethics and Integrity Management Approach Anti-corruption Anti-Competitive Behavior Human Rights Assessment Public Policy Child Labor	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Contractors Regulators, Government	Business conduct and ethics training and creating awareness to all employees Zero corruption Publicly reporting any material non-compliance
Risk and Crisis Management	Strategy Ethics and Integrity Governance Management Approach Economic Performance	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) Managements Employees	Business Partners Contractors Community Regulators, Government	Identification and continuous monitoring of emerging risks
Cybersecurity	Security Practices Management Approach	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational) Managements Employees	Business Partners Contractors Customers	Zero information security breaches Zero cases of clients, customers, or employees affected by breaches

Indorama Ventures Material Topics	Corresponding GRI Topics	Key Stakeholders Impacted and Boundary		Ongoing Indorama Ventures Commitments and Targets (2019-2025)
Indorama Ventures Material Topics	Corresponding GRI Topics	Within the Organization	Outside the Organization
Climate Change and Decarbonization	Economic Performance Management Approach Water Emissions Environmental Compliance Supplier Environmental Assessment Socioeconomic Compliance	All Managerial Control Operations Manufacturing Operations Employees	Business Partners Contractors Community Regulators, Government	10% GHG Intensity Reduction (combined Scope 1 & Scope 2) by 2025 from 2020 based year To maintain the 5% of revenue from sustainable products by 2025 To embed carbon price into business decision
Post-consumer PET Bottles Recycling and Plastic Waste	Economic Performance Organizational Profile Management Approach Materials Emissions Effluent and waste Customer Health and Safety	All Managerial Control Operations Manufacturing Operations Employees	Business Partners Contractors Community Regulators, Government	To recycle a minimum 750,000 tons of PET post-consumer materials as feedstock into our PET production by 2025 To invest 1.5 billion USD in recycling Enhancing the Circular Economy

Indorama Ventures Material Topics	Corresponding GRI Topics	Key Stakeholders Impacted and Boundary		Ongoing Indorama Ventures Commitments and Targets (2019-2025)
Indorama Ventures Material Topics	Corresponding GRI Topics	Within the Organization	Outside the Organization
Human Rights	Non-discrimination Freedom of Association and Collective Bargaining Human Rights Assessment Child Labor Forced or Compulsory Labor Right of Indigenous Peoples Supplier Environmental Assessment Supplier Social Assessment Security Practices Ethics and Integrity Management Approach	Employees	Business Partners Contractors Community	Compliance with the fundamental rights of the workforce, as per UN Guiding Principles and ILO standards ZERO Human Rights violations
Supply Chain Management	Supplier Environmental Assessment Supplier Self- Assessment for Labor Practices Supplier Human Rights Self-Assessment Supplier Self-Assessment for Impacts on Society	Manufacturing Operations Employees	Business Partners Regulators, Government	100% of new raw-material suppliers and critical non-raw material suppliers assessed
Occupational Health & Safety	Organizational Profile Management Approach Ethics and Integrity Security Practices Occupational Health and Safety Training and Education Effluents and Waste	All Managerial Control Operations Manufacturing Operations Managements Employees	Business Partners Contractors Community	Zero fatalities LTIFR < 0.5 cases per 200,000 man-hours by 2025 Note: 2025 target has been revised to 0.46, as the 2023 performance has already surpassed it. 2030 target has been revised to 0.25

Business Overview and Value Chain

Chain Indorama Ventures is one of the world’s leading petrochemicals producers. In 2023, we have 149 operating sites in 35 countries (Sustainability reporting scope). The company’s portfolio is comprised of 3 business segments: Combined PET Business, Indovinya (The previous name of the business division was Integrated Oxides and Derivatives (IOD)) and Fibers Business

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