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 2024 identified fifteen material topics. Further information is available in our 2024 Double Materiality Assessment Summary and 2024 Integrated 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

Double 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.

Fifteen 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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Double Materiality Assessment Summary 2024

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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
Corporate governance	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
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
Cybersecurity	Security Practices Management Approach	Manufacturing Operations (Subsidiaries, Joint Ventures including Joint Ventures with no managerial and operational control) 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
Circular Economy	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
Climate Change and Energy	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 Reduction in energy intensity 5% by 2025 15% by 2030
Water	Waste Management Approach Economic Performance Energy Emissions Biodiversity	All Managerial Control Operations Manufacturing Operations Employees	Business Partners Contractors Community Regulators, Government	Reduction in water intensity 10% by 2025, 20% by 2030
Sustainable products	Materials Energy Emissions Materials Emissions Waste Supplier Environmental Assessment	All Managerial Control Operations Manufacturing Operations Employees	Customers Business Partners Contractors Community Regulators, Government	Our sustainable products include those made from renewable sources, bio-based feedstocks, and recycled raw materials from our PET recycling, as well as recyclable PET products. Products classified according to the Life Cycle Assessment (LCA) and the WBCSD’s Product Sustainability Assessment (PSA) were counted. In 2024, we generated more than $1,500 million, accounting for almost 10% of our total sales revenues.
Biodiversity	Water and Effluents Materials Waste Emissions Supplier Environmental Assessment Occupational Health and Safety Local Communities Economic Performance	All Managerial Control Operations Manufacturing Operations Employees	Customers Business Partners Contractors Community Regulators, Government	Indorama Ventures applied the TNFD framework to guide the assessment and disclosure of nature-related risks across 150 operational sites and there is no significant biodiversity-related impacts occurred in 2024.

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
Human Capitals	Freedom of Association and Collective Bargaining Forced or Compulsory Labor Security Practices Rights of Indigenous Peoples Human Rights Assessment Supplier Social Assessment Child Labor Socioeconomic Compliance	Managements Employees	Business Partners Contractors Community	We continued to prioritize workforce development by creating opportunities for growth and enabling a culture of learning, innovation, and leadership. We invested approximately $2,217,665 in employee development across our global operations.
Stakeholder Engagement	Local Communities Supplier Environmental Assessment Supplier Social Assessment Economic Performance Tax Occupational Health and Safety Diversity, Equal Opportunity, Non-Discrimination Marketing and Labeling	All Managerial Control Operations Manufacturing Operations Managements Employees	Business Partners Contractors Community Customers Regulators, Government	we strengthened our approach to stakeholder engagement by developing the Stakeholder Management Guideline, aligned with the AA1000 Stakeholder Engagement Standard (AA1000SES) The Stakeholder Management Guideline was applied to the Double Materiality Assessment, covering all group-wide activities and involving seven key stakeholder groups: employees, customers, communities, suppliers and vendors, bankers, investors, and fund providers; media; and government and regulators.
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)
Consumer Safety	Marketing and Labeling Customer Privacy Socioeconomic Compliance Materials Waste Supplier Assessments Occupational Health and Safety Emissions	All Managerial Control Operations Manufacturing Operations Managements Employees	Business Partners Contractors Community Customers	Indorama Ventures ensures consumer safety and sustainability at every stage of the product life cycle from raw material sourcing to end use. Cross-functional teams integrate regulatory compliance, toxicology, and environmental health into portfolio development, supported by tools such as the Portfolio Sustainability Assessment (PSA) and Life Cycle Assessment (LCA).
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 Customers Regulators, Government	100% of new raw-material suppliers and critical non-raw material suppliers assessed
Diversity, Equity and Inclusion	Employment Training and Education Labor/Management Relations Freedom of Association and Collective Bargaining Child Labor	Managements Employees	Business Partners Contractors Customers Community	Our Diversity Policy forms the foundation of our DEI strategy, which is fully integrated into our culture and business operations to support a respectful and inclusive workplace that ensures dignity and equal opportunity Indorama Ventures is a proud signatory of the Women’s Empowerment Principles (WEPs), a United Nations Global Compact and UN Women initiative that promotes gender equality across the workplace, marketplace, and community

Business Overview and Value Chain

Chain Indorama Ventures is one of the world’s leading petrochemicals producers. In 2024, we have 150 operating sites in 31 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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