RISKS IVL is mindful about potential increases in our OPEX to deal with a rise in future environmentbased taxes being introduced globally. Similarly, we predict a rise in CAPEX by investing in green technologies to meet potential changes in environmental legislation and regulations. HOWWE ARE MITIGATING RISKS • CARBON PRICING - We have adopted an internal carbon price that we factor into investment decisions and business plans. Five countries where we operate al ready have carbon pr icing regulations and we expect to see more coverage in the future. • CLEAN ENERGY AND GREEN PROJECTS - We are transitioning towards cleaner sources of energy and decarbonizing our production to reduce emissions from our sites. • DECARBONIZING VALUE CHAIN - Wearemakingprogress throughasustainable supply chainprogramthat prioritizes supplier climate maturity. • EARLY ADOPTION OF NEW DECARBONIZATION TECHNOLOGIES AND SOLUTIONS - Wehavemade inroads towards implementing CarbonCaptureUtilizationandStorage (CCUS) at our site in addition to advanced recycling to drive our circularity efforts. HOWWE ARE UTILIZING OPPORTUNITIES We securedUS$1.3billion in sustainable financing as of the end of 2021 through: - Thailand’s first green loan from Japan’s Mizuho Bank for both US$ 200 mi l l ion and EUR 200 million - A syndicated ESG loan for US$ 255 million arranged by Mizuho Bank. - A blue loan for US$ 300million arranged by the International Finance Corporation (IFC). - Thailand’s largest Sustainability-Linked Bond worth THB 10 billion (~US$ 300 million) These investments will be used to decarbonize our operations and produce low carbon intensive products while also being mindful of customer requirements. Through these proactivemeasures, wewill be able to retain our position and improve our competitiveness as a leading chemical OPPORTUNITIES Climate financing commitments made at COP26 allow us to leverage opportunities in securing financial capital tobetter fundourdecarbonization efforts globally and achieve our sustainability goals. IMPACTS ON IVL As theworldmoves towards these ambitious targets inmitigating climate change, there are areas of improvement that need to be addressed. Public-private partnerships are key in reaching these targets, which is why it is crucial for corporations to step up and declare their commitments to decarbonization. To play our part towards in mitigating climate impacts, we joined more than 90 CEOs of large multinational organizations in signing a recent open letter published by the CEOs Climate Alliance. All signatories are committed to reducing emissions by more than 1Gt annually by 2030 and believe that businesses can do more if world leaders reach an agreement at COP26 that put us on a 1.5 °C pathway. We recognize that undertaking collective efforts will accelerate the decarbonization process. We must continue to apply a carbon lens to everythingwe do, challenge ourselves and push this agenda forward, including at COP27. 3 SUSTAINABILITY REPORT 2021 Responsible Business and Effective Governance Driving Sustainable Value Creation and Growth Towards Net Zero Carbon Empowering Our People and Communities Global Performance Data GRI Standard Content Index
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