PLZ Corp is the North American leader in specialty aerosol and liquid product manufacturing.
PLZ ESG REPORT 2021 RESULTS
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT
2021
Published June 2022
PLZ ESG REPORT 2021 RESULTS
TABLE OF CONTENTS
Table of Contents
Page 03 • A Message from our CEO 04 • About PLZ 10 • Our Approach to ESG 16 • People Development 26 • Product Stewardship 33 • Sustainable Operations 40 • Business Values and Principles
45 • About this Report 47 • ESG Tear Sheet 48 • Appendix
PLZ ESG REPORT 2021 RESULTS
MESSAGE FROM OUR CEO
A Message from our CEO
I am inspired each and every day by the resilience and dedication of our outstanding employees at PLZ Corp. The last couple of years have been quite the challenge, but even amid a global pandemic that affected supply chains and labor markets across the world, we remained steadfast and focused on our mission to safely deliver world-class products to our valued customers. Our products have been essential to so many households and businesses, and we’re grateful to have played a leading role in providing people with the products they rely on and trust. Maintaining our daily operations during COVID presented its own unique set of challenges. As we worked through the challenges of the pandemic, our team wanted to be a part of the solution. The PLZ team responded rapidly by producing and donating much-needed supplies such as cleaning products, disinfectants, and hand sanitizer to those who needed it most. We believe in giving back to where we live and work and are devoted to helping our communities thrive. The past year also brought a renewed attention to issues of social justice and the need for all of us to prioritize diversity, inclusion, and respect in every aspect of our lives. At PLZ Corp, we are committed to a diverse, equitable, and inclusive workforce. Over the past year we have launched many initiatives to celebrate and promote our diversity and have prioritized accelerating these efforts.
Our ESG Journey Begins I’m proud to announce that we’re embarking on an ambitious new Environmental, Social, and Governance (ESG) journey that will help illuminate our unwavering commitment to our communities and the environment we all share. We understand that having a license to operate goes beyond permits and approvals to include being a responsible company. I’m proud to launch our new ESG initiative and I’m very grateful to all our stakeholders for supporting us every step of the way. Our new ESG initiative is just one part of what we are doing to advance our vision – to be the partner of choice, making products that make people’s lives better.™ At PLZ Corp, we know that our values and people are truly the engine that powers our growth and overall success. We live our values of safety, customer focused, integrity, performance, continuous improvement, and teamwork every day. Thank you for your support and trust as we continue our ESG journey. We are excited for the future and look forward to sharing our progress.
“Integrity is one of PLZ’s top values, right up there with safety. We want to show that we do business the right way. And when I consider our level of ambition for pursuing an ESG strategy, I think we have an opportunity to lead the pack within our industry.”
Sincerely,
Aaron M. Erter Chief Executive Officer
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PLZ ESG REPORT 2021 RESULTS
OUR APPROACH TO ESG
About PLZ
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PLZ ESG REPORT 2021 RESULTS
ABOUT PLZ
About PLZ
PLZ Corp (“PLZ”) is the leading North American manufacturer of specialty aerosols, liquid products, and more, concentrating in the development, manufacturing, packaging, and distribution of a comprehensive line of contract fill, branded, and private-label products. Headquartered in Downers Grove, Illinois, with a workforce of more than 2,000 dedicated employees across the United States and Canada, PLZ is committed to investing in its people, culture, systems, and processes.
We are the partner of choice, making products that make people’s lives better.™
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PLZ ESG REPORT 2021 RESULTS
ABOUT PLZ
Manufacturing Facilities 17
1. Pacific, MO
10. Social Circle, GA Acquired: 2018
Established: 2012 Square footage: 432,600
Square footage: 98,000
2. St. Clair, Food Acquired: 1990
11. Riverside, CA Acquired: 2021
Square footage: 88,000
Square footage: 280,000
3. St. Clair, Industrial Established: 2012
12. Chino, Personal Care Acquired: 2019 Square footage: 130,000
Square footage: 250,000
4. Clinton, MO
13. Chino, CA
Acquired: 2021 Square footage: 450,000
Acquired: 2018 Square footage: 47,000
5. Coal City, IL
14. Thousand Oaks, CA Acquired: 2016
Acquired: 2017 Square footage: 240,000
Square footage: 134,000
6. Bridgeview, IL Acquired: 2018
15. Vaughan, ONT Acquired: 2011
Square footage: 200,000
Square footage: 110,000
7. Germantown, WI Acquired: 2020
16. Mississauga, Industrial Acquired: 2011 Square footage: 110,000 17. Mississauga, Personal Care Acquired: 2012 Square footage: 101,000
Square footage: 39,000
2.7M Square Feet of Manufacturing & Warehousing
11 Research & Development Centers
120 Aerosol, Liquid, and Non-Aerosol Filling Lines
8. Indianapolis, IN Acquired: 2020
Square footage: 228,000
Downers Grove, IL Corporate Headquarters
9. Fall River, MA Acquired: 2019
Square footage: 145,000
PLZ acquired our Riverside, California, and Clinton, Missouri, sites mid-2021. This report includes partial-year data for each, reflecting the period after each came under the operational control of PLZ Corp. 2021 results also include our Elk Grove Village, Illinois, facility, which has been consolidated with other sites in our network.
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PLZ ESG REPORT 2021 RESULTS
ABOUT PLZ
HOUSEHOLD & CLEANING Cleaners, polishes, air care, disinfectants for home & professional use
PERSONAL CARE Hair care, skin care, men’s grooming, & over the counter (OTC) products
We formulate, blend, fill and package more than 2,500 products including cleaners and polishers, personal care products, lubricants, degreasers and adhesives, food service products, air fresheners, insecticides, industrial solvents and commercial supply disinfectants for home, industrial, and commercial use.
AUTOMOTIVE Appearance and maintenance products
FOOD SERVICE Cooking, baking, & seasoning sprays
INDUSTRIAL & MAINTENANCE Paint, pesticides, adhesives, lubricants, degreasers, & cleaners
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PLZ ESG REPORT 2021 RESULTS
ABOUT PLZ
Mission & Values
To be the partner of choice, making products that make people’s lives better™
Vision
PLZ is committed to partnering with our customers to deliver quick-to-market, innovative, safe, and compliant products and solutions. It’s our pledge to provide high-touch service throughout the value chain to ensure the success and satisfaction of our customers.
Mission
Values
PLZ ESG REPORT 2021 RESULTS
ABOUT PLZ
Our Stakeholder Community Stakeholder engagement is a top priority at PLZ Corp. We take great care to unite with our stakeholders because we value their voices. To be successful, we must remain agile, proactive, diligent, and motivated to consistently challenge ourselves to do better. We’re confident that if we, along with our stakeholders, continue to use meaningful conversations, innovative mindsets, and inclusive principles, we’ll achieve long-lasting industry leadership.
PLZ CORP STAKEHOLDERS
PRIMARY OBJECTIVES
• High-quality, safe products • Innovative solutions and seamless customer experience • Responsible management of customer data • Packaging optimization • Safe and healthy workplaces • Diverse, equitable, and inclusive work environment • Professional development, mentorship, and growth opportunities • Awarding outstanding achievements
Customers
Employees
• Increased shareholder value • Strategic growth • High professional and ethical standards • Risk mitigation
Investors
• Resilient, transparent, sustainable supply network • Opportunities for collaboration and partnerships
Suppliers
• Minimize impacts on surrounding environments • Compliance with laws and regulations • Optimize energy management practices
• Reduce, reuse, and recycle waste • Maintain water-wise operations • Improve end-of-life product management • Communicate proper recycling practices for product packaging • Support for charitable causes • Engage with and support local community members and organizations
Community
Note: More information regarding some of the stakeholder groups we engage with can be found in the report Appendix 1.
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Our Approach to ESG
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PLZ ESG REPORT 2021 RESULTS
OUR APPROACH TO ESG
A Sustainable Strategy
In 2021, PLZ formed its first dedicated and highly cross-functional ESG Steering Committee (the Committee) consisting of 13 representatives from different departments at PLZ Corp to provide overarching ESG Governance and help develop our corporate ESG strategy. Members of the Committee are accountable for driving initiatives specific to their departments and establishing ESG goals for the company. These goals, associated action plans, and progress are reported to the Board of Directors at regular intervals. We always welcome input from all voices in our organization and as such, all employees are encouraged to bring ideas for improving our ESG initiatives to the Committee.
At PLZ Corp, we always welcome input from all voices in our organization. All employees are encouraged to bring ideas for improving our ESG initiatives.
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OUR APPROACH TO ESG
Factors shaping the PLZ materiality matrix
In order to keep pace with the ever-evolving ESG landscape, PLZ Corp keeps an ear to the ground with regard to what is happening in our industry. We looked both internally and externally to develop our first materiality assessment to identify the economic, environmental, and social issues on which PLZ has the greatest impact—and these issues are our highest priorities moving forward. The assessment also takes into account the priorities of our valued customers, external stakeholders, industry, and competitors. We paired these priorities with sustainability trends, industry frameworks, and sustainability rating agencies to further refine our materiality assessment.
Based on the insights collected, PLZ Corp was able to develop a tailored materiality matrix. It identifies current material ESG topics and prioritizes them across a spectrum -- priority, high priority, and critical. We view this as a living document. We will continue to assess the position and relevancy of these material issues so they most accurately reflect ESG materiality for PLZ Corp.
Note: While the featured frameworks and rating agencies informed PLZ’s materiality matrix, PLZ is not formally aligned with the entities.
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OUR APPROACH TO ESG
PLZ CORP MATERIALITY MATRIX
Employee Engagement, Diversity, Equity, & Inclusion
CRITICAL
Supply Chain Management
Carbon Footprint
Responsible Products
Operational Waste & Hazardous Waste /Recycling
Product Recycling & Design Innovation
Community Engagement
HIGH PRIORITY
Ethical Business Practices
Employee Health & Safety
Product Labeling & Marketing Transparency
People Development
Customer & Supplier Privacy
PRIORITY
Product Stewardship
Sustainable Operations
Water & Wastewater Management
Business Values and Principles
PLZ CORP’S SIGNIFICANT ECONOMIC, ENVIRONMENTAL, AND SOCIAL IMPACTS
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OUR APPROACH TO ESG
Say hello to our ESG Framework, including the four ESG pillars and our 12 areas of focus:
+ Employee Health & Safety + Employee Engagement, Diversity, Equity, & Inclusion + Community Engagement People Development
+ Responsible Products + Product Recycling & Design Innovation + Supply Chain Management Product Stewardship
+ Carbon Footprint + Operational Waste & Hazardous Waste / Recycling + Water & Wastewater Management Sustainable Operations + Ethical Business Practices + Product Labeling & Marketing Transparency + Customer & Supplier Privacy Business Values & Principles
PLZ ESG REPORT 2021 RESULTS
OUR APPROACH TO ESG
Along with our ESG Framework, we also developed a five-year roadmap that will serve as a guide for goal implementation and mechanisms for measurement to demonstrate long term performance. PLZ Corp has aligned some of our goals with seven United Nations Sustainable Development Goals (SDGs) with a commitment to communicating goal progress through our annual ESG reports. More information on our current actions, goals, and commitments towards the SDGs can be found in Appendix 2 of this report.
1 NO POVERTY
3 GOOD HEALTH
2 NO HUNGER
4 QUALITY EDUCATION
5 GENDER EQUALITY
9 INNOVATION & INFURSTRUCTURE
6 CLEAN
8 GOOD JOBS & ECONOMIC GROWTH
7 RENEWABLE ENERGY
10 REDUCED INEQUALITIES
WATER & SANITATION
12 RESPONSIBLE CONSUMPTION
11 SUSTAINABLE CITIES & COMMUNITIES
13 CLIMATE ACTION
14 LIFE
15 LIFE ON LAND
BELOW WATER
16 PEACE & JUSTICE
17 PARTNERSHIPS FOR THE GOALS
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OUR APPROACH TO ESG
People Development
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PLZ ESG REPORT 2021 RESULTS
PEOPLE DEVELOPMENT
The Key to Success
At PLZ Corp, our employees deliver quality products for our customers. Our goal is to create an inclusive, engaging workplace that prioritizes employee health and safety, diversity, and equal outcomes. We also aim to support our communities environmental and social programs.
Employee Health & Safety (EHS)
We’re fully committed to operating a safe and healthy workplace with a target of zero injuries.
In 2021, PLZ rolled out the Adopt-a-Plant Program, which matches a member of the executive team with each PLZ facility to support the facility’s EHS program and ensure that the facility’s successes and concerns are visible to leadership.
PLZ Corp embraces several practices and procedures to foster a workplace that emphasizes EHS performance: • Comprehensive trainings in worker safety • Employee safety incentive programs • Key performance indicators that track safety Like most companies, our lagging indicators include our Total Recordable Incident Rate (TRIR) and our Days Away Restricted Time (DART), and we rally our teams around bringing those numbers to zero. Proactive practices such as safety observations, facility inspections, near-miss reporting, and corrective and preventative actions help prevent injuries before they occur.
2021 TRIR 2.87
2021 DART 2.10
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PLZ ESG REPORT 2021 RESULTS
PEOPLE DEVELOPMENT
Taking Safety Seriously: 2021 Enhancements
Longstanding Facility Success
To supplement existing EHS procedures, we made significant additions and improvements to our overall safety program. In 2021, PLZ Corp established our Plant Leadership Safety Steering Committee with representation at the employee and management level. The committee’s responsibilities include: • Identify safety trends at the manufacturing facility • Create action plans for reducing and eliminating safety and environmental hazards • Develop personal safety goals for all members of manufacturing facility leadership
Our unwavering commitment to employee health and safety has demonstrated great success at our Mississauga Industrial and Elk Grove manufacturing facilities. They have achieved three and four years, respectively, without a recordable incident. Our Mississauga Industrial manufacturing facility is a great example of continuous improvement in EHS and the dividends it pays. All employees at our Mississauga Industrial manufacturing facility are engaged through Tier I safety meetings, our Safety Observation Program, daily safety talks led by the management team, pre-shift stretching, and more. At this facility, we achieved a 96% closure rate for safety observations in 2021. These efforts culminated in mindful, tailored safety improvements, including adding pedestrian walkways, posting pallet racking certification and load ratings, installing containment around wet equipment to prevent slip hazards in pedestrian traffic areas, posting machine-specific Control of Hazardous Energy Procedures, and installing 11 new pinch point guards as part of our focus on machine safety.
• Review safety observation cards to track behavioral trends
• Conduct manufacturing facility safety walkthroughs
• Provide relevant safety trainings for manufacturing facility personnel and leadership
PLZ launched 10 required Occupational Safety and Health Administration (OSHA) trainings across all manufacturing facilities -- resulting in a 97% completion rate. We supplemented that required training with 12 hands-on safety trainings to practice what we learned on our plant floor.
of our manufacturing facilities completed all monthly Safety Hands-On Trainings in 2021
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PLZ ESG REPORT 2021 RESULTS
PEOPLE DEVELOPMENT
FORWARD-LOOKING GOALS
PLZ Corp will improve our EHS performance by setting several goals, including:
• Executing a behavior based safety program to focus on identifying and correcting unsafe behaviors
• Achieving TRIR of 1.66 or below for 2022 and a TRIR of less than 1 by 2026
• Expanding the total number of hours and annual completion rates of EHS trainings
• Establishing a program to identify and correct unsafe conditions at our sites
• Creating an incident investigation program to focus on risk areas, root causes and actions to prevent future injuries
• Implementing a training program that will focus on the hazards of job tasks
• Supporting an industrial athlete training program to focus on pre-shift stretching
• Achieving OSHA VPP status at five PLZ Corp U.S. manufacturing facilities by 2026
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PLZ ESG REPORT 2021 RESULTS
OUR PEOPLE | DEI
Diversity, Equity, & Inclusion (DEI) Fostering a diverse workforce that values and respects each other regardless of individual backgrounds is imperative to PLZ Corp. As an equal opportunity employer, we maintain non-discrimination, anti-bullying, and anti-harassment policies, track race and gender composition across workforce and job category, and recognize a myriad of international and cultural holiday celebrations.
DIRECTOR LEVEL & ABOVE (INCLUDING EXEC. LEADERS)
EXECUTIVE LEADERSHIP
ENTIRE COMPANY
EMPLOYEES
PRIOR YEAR
CURRENT YEAR PRIOR YEAR
CURRENT YEAR PRIOR YEAR
CURRENT YEAR
Male, Caucasian
50%
60%
60%
58%
44%
43%
Male, Diverse
13%
20%
11%
14%
14%
15%
Female, Caucasian
37%
20%
22%
24%
30%
27%
Female, Diverse
0%
0%
8%
5%
11%
15%
Note: Employees included in these data are those for whom gender, race, or ethnicity has been identified.
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OUR PEOPLE | DEI
DEI Highlights
PLZ Corp had an active and productive year of initiatives to cultivate a diverse, equitable, and inclusive workforce. This year’s highlights include: • Established our DEI committee with the goals of removing barriers of discrimination and intolerance in the workplace, promoting awareness around DEI issues and opportunities, and offering guidance and support to leadership • Incorporated unconscious bias training into PLZ University, which houses our online training • Conducted an employee DEI survey, which addressed various topics including demographics, company attitudes toward DEI, and areas of improvement for PLZ Corp related to DEI • Delivered 25 e-pamphlets in 2021 with topics including cultural celebrations, LGBTQIA+, Black History Month, and many more • Continued a multi-year program, “Women in Manufacturing (WiM),” which targets high-performing women in the organization and provides them with internal and external training and mentoring programs
FORWARD-LOOKING GOALS
PLZ Corp will seek to further foster a diverse, equitable, and inclusive workforce by:
• Expanding DEI training among employees and leadership
• Increasing diversity at all levels across the organization
• Increasing professional development and internal promotion for diverse employees
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PLZ ESG REPORT 2021 RESULTS
OUR PEOPLE | COMMUNITY ENGAGEMENT
Community Engagement
By engaging our workforce in environmental and social impact programs, we work together to better our surrounding communities.
We had an active and successful year of community participation and we are pleased to share some of our highlights.
Our Downers Grove, Illinois, headquarters partnered with Naperville Responds for Veterans, a nonprofit organization that provides services to Veterans in need. Our employees dedicated approximately 60 volunteer hours of time to support three events and contributed donations of approximately $5,000. Our Social Circle, Georgia, facility supported the local Police Department to host Earth Day events, and our Bridgeview, Illinois, facility staff joined Village Commerce Group in hosting events such as Trunk-or-Treat and making food and clothing donations. Our Indianapolis, Indiana, facility engages annually with the “Shop-with-a-Cop” program. During the 2021 holiday season, approximately 200 children were given the opportunity to shop for family gifts with a police officer. Each child was then presented with gift of a backpack filled with school supplies and personal care products. The Indianapolis site donated bottles of hand sanitizer to be included in the backpacks as a token of support for this program. Our Coal City, Illinois, facility also donated hand sanitizer to first responders in 2021, and supported a few other great causes, too, including their local high school students. They contributed to Coal City High School’s purchase of a 3D printer for use in its industrial arts program to enable students to learn digital programing and fabrication and build self- esteem to enter the workforce in industrial settings. They also contributed to the effort to raise the funds necessary to host a safe, post-prom celebration for the students. These are just a few of the many important and impactful community events PLZ Corp supported over the course of 2021. Beyond seasonal events, charities, and donations, several of our manufacturing facilities also consistently engage throughout each year with various external stakeholder groups based in their local communities such as Local Emergency Response and First Responders groups. We are very proud of all these efforts and contributions and look forward to sharing more stories in future reports.
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OUR APPROACH TO ESG OUR PEOPLE | COMMUNITY ENGAGEMENT
Community Engagement - COVID-19 To demonstrate our gratitude to frontline workers and hospitals, we contributed much-needed personal protective equipment (PPE) to fight against COVID-19: • Our Indianapolis, Indiana, manufacturing facility donated 100,000 bottles of hand sanitizer to frontline workers Approximate Value $36,770 • Our Coal City, Illinois, manufacturing facility donated their time to package bulk hand sanitizer into two million 32 oz. bottles for Houston Hospital Approximate Value $1.1 MM
FORWARD-LOOKING GOALS
PLZ Corp will seek to continue to engage and support our local communities by:
• Creating a Community Giving Program with charitable contributions offered to local communities
• Developing a dedicated People Committee at every manufacturing facility
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OUR PEOPLE | EMPLOYEE ENGAGEMENT
Employee Engagement The people behind the label. Our more than 2,000 employees throughout the U.S. and Canada work hard every day to deliver the quality products that make people’s lives better. That’s why we take great pride in expanding our employee base; and it starts with recruiting the best talent to ensure positive customer experiences. To help our employees grow and succeed in their careers, we have launched various training and development programs ranging from safety to cybersecurity and many other skill-based courses. The adoption of lean manufacturing principles within our operations allows for engagement of our workers from the front lines to the front office. A new Leadership Steering Committee was launched in 2021 to help provide additional employee engagement, meeting regularly to discuss opportunities for implementing innovative engagement programs. We also rolled out an “Adopt-a- Plant” program to provide a direct line of communication to the executive team. We also identified an opportunity to do more for the outstanding women of PLZ Corp and engaged with Women Unlimited Inc., a development and leadership organization designed for high-potential women. We’ve augmented it with our own PLZ Corp’s Women Mentorship Program to offer:
At PLZ we are the partner of choice, making products that make people’s lives better. This is a bold claim, and for it to be true, it starts with us. We come together every day. Part of a team. From all over. Before a customer ever sees the product, it’s up to us to make sure everything is of the highest quality. While most people only know about what’s inside the bottle, can, or package, for us it starts… Behind The Label.
In-depth mentorship and skills development which includes 360° leadership skills assessments
At the end of the day, we want to make sure our employees feel valued, appreciated, and heard.
Alumnae, peer mentors, and manager-mentor coaching
Senior executive engagement and on-the-job action assignments
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PLZ ESG REPORT 2021 RESULTS
OUR PEOPLE | EMPLOYEE ENGAGEMENT
During the COVID-19 pandemic, it was imperative to keep our employees safe and healthy, both inside and outside of work. PLZ Corp responded by offering various COVID vaccine incentives to workers and hosting onsite vaccination clinics. Our Canadian operations also obtained rapid antigen test kits, which were used to assess potential worker exposure and prevent workplace transmission. Finally, in 2020, PLZ Corp implemented an annual employee satisfaction survey to help us gather critical feedback, hear concerns, gather questions, and explore opportunities to do better. Now that we have our baseline metrics, we will focus on consistent improvement.
FORWARD-LOOKING GOALS
PLZ Corp will continue to strive to increase overall employee engagement by:
• Conducting an employee survey in 2022 and utilizing the data to create action plans across the organization to increase employee engagement
• Achieving improvement in our employee satisfaction rate
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OUR APPROACH TO ESG
Stewardship Product
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PLZ ESG REPORT 2021 RESULTS
PRODUCT STEWARDSHIP
Setting the Standard
As North America’s leading provider of specialty aerosol and liquid products , we know that consumers expect safe, effective, quality products produced with a sustainability mindset. By consistently focusing on our complex and evolving regulatory landscape, we’re ensuring that all our formulations include ingredients that are properly vetted and tested for safety and quality. This way we make certain that our partners and suppliers operate with the same high standards. It also inspires us to continuously challenge ourselves to innovate the way we develop, manufacture, package, and distribute our products to lessen any negative environmental impacts throughout their lifecycle.
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PRODUCT STEWARDSHIP
Responsible Products We strive to bring confidence and a sense of reliability to all our customers through the products we create. We proudly stand behind the products we make for our customers. We also maintain strict compliance and a proactive approach to proper management of the impact the company and the products we create could have on humans and natural resources such as land, air, and water. We review our formulas, packaging, and processes for ways to reduce our impact on the environment. Every aerosol product is made in the U.S. or Canada with globally sourced materials. All PLZ branded products adhere to all federal and state requirements for Volatile Organic Compounds (VOCs) compliance where they are sold and are reformulated to meet regulations when they change. What’s more, PLZ Corp is constantly evaluating the chemicals we use in production and looking for ways to make our operations safer. For example, in 2021, PLZ Corp determined that we should no longer produce products containing methylene chloride (MC), a known carcinogen in humans that is used in industrial and consumer products. Even though use of MC is still permitted by government agencies, we proactively reformulated 57 products to remove this chemical ingredient from all formulations. PLZ Corp has and will continue to evaluate the use of chemicals listed as carcinogens or those that may cause reproductive harm according to California’s Proposition 65 (“Prop 65”). While these chemicals are permitted in the products that Californians purchase if a warning is present, we’re evaluating each chemical and reformulating PLZ Corp’s branded products to eliminate their use. As a result, PLZ Corp reformulated 168 products to remove these ingredients. We also consistently and clearly inform our customers of ingredients in their formulas that contain Prop 65 hazards.
It’s a continual effort to ensure that all our products are in compliance with changing regulations. For instance, the California Air Resource Board (CARB) regularly reduces the VOCs allowed in household cleaning products, personal care products, and pesticides. To stay ahead of those ever-changing rules, PLZ Corp reformulated approximately 4,722 products to meet the new 2023 standards.
Proactive Formula Review in 2021
Proactive reformulations for chemicals of concern 57 Methylene
Reviewed in advance of new VOC requirements 2,630 Air care products Personal care products 2,092
168 Prop 65 ingredients products
Chloride products
Delivering Quality Products . Our goal in 2021 was to achieve a quality acceptance rate of 99.9% or greater as demonstrated by a rejection rate of 0.1% or less of all units produced—and we reached that goal.
PLZ aims to reduce the quality rejection rate in 2022 by 10 percent from 0.1% to 0.09%
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PLZ ESG REPORT 2021 RESULTS
PRODUCT STEWARDSHIP
Launch of PLZ Prodigy , a premier product development and chemical regulatory management system In 2021, PLZ Corp made a substantial investment in the customization of ProductVision® software and launched PLZ Prodigy to improve accuracy, speed to market, and regulatory compliance in our new product development process. By leveraging this innovative software technology, PLZ Corp is now able to efficiently manage inputs of all information required for product development, including the safety data for each raw chemical ingredient and the regulations that govern its usage. The software provides a central repository of all relevant information about our formulas and the chemicals used in those formulas. This allows for visibility and enhanced collaboration during product development. It also ensures that everyone is working together toward a common goal, using the same information and procedures. We’re happy to report that all sites are benefiting from PLZ Prodigy. We can also automatically generate raw material and formula-driven safety data sheets and product labels that meet or exceed reporting regulations including the Global Harmonization System regulations in the U.S. and Canada. Additionally, we can create food nutrition labels and ingredient declarations that comply with the current Nutrition Labeling and Education Act regulations, and we have the tools necessary to maintain compliance.
FORWARD-LOOKING GOALS
PLZ Corp will challenge ourselves to meet or exceed our commitments to producing responsible products by:
• Rolling out PLZ Prodigy to 12 initial manufacturing facilities (80% of plan) in 2022 with implementation at the remainder of sites in 2023
• Continuing efforts to reformulate products prior to 2027 and 2030 CARB VOC regulations
• Drive toward 100% quality acceptance rate by further reducing our quality rejection rate by 10 percent from our 2021 goal of 0.1% to 0.09% in 2022
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PRODUCT STEWARDSHIP
Product Recycling & Design Innovation
As a product manufacturer, PLZ Corp recognizes how critical it is for us to do all we can to create products and packaging with the most sustainable attributes possible without compromising quality, performance, integrity, and price. While some customers, who are the brand owners, are responsible for much of the decision-making around product and packaging specifications, we have a responsibility to challenge the way we design, test, and promote materials. It’s how we strive to make products that are built for a circular economy and won’t put additional strain on our natural environment. That’s why we seek out operational innovations, partnerships with customers, and industry groups to improve sustainable end of life management for end-use consumers and reduced packaging waste. Over the years, we’ve taken the time to review the sustainable attributes of both the materials we purchase and the products and packaging we offer to our customers to better understand what works and what we might be able to reimagine. Currently, we have 115 different active products that utilize Bag-on-Valve (BOV) technology. These BOV products are referred to as ”Planet Friendly.” Instead of using a hydrocarbon propellant, they use propellants like compressed gas or other natural gases like Nitrogen or Carbon Dioxide. Some customers prefer the BOVs to other traditional aerosols because the propellant— regardless of the type—is also kept separate from the product. PLZ Corp produces most aerosol products in steel and aluminum cans. Today, our steel cans contain an approximate average of 28% recycled content, which is a combination of post-consumer and post-industrial recycled steel. We are committed to gaining a better understanding of recycled content in our product components and packaging including aluminum and plastic. We also purchase and ship many of our products to our customers in cardboard boxes, which typically contain a portion of post-consumer recycled content.
FORWARD-LOOKING GOALS
PLZ Corp remains motivated to set goals related to product recycling and design innovation. In the near term, we are committed to:
• Developing baselines for recycled content in our product components and packaging which means less reliance on the extraction of virgin materials upstream
• Providing relevant, accurate, and practical information to consumers to increase awareness around proper recycling strategies throughout the U.S. and Canada
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PRODUCT STEWARDSHIP
Supply Chain Management PLZ Corp follows guidelines for choosing suppliers that share our values and adhere to our Supply Chain Code of Conduct. A resilient network of sustainable suppliers that support our commitment to our customers, our employees, and the environment is important to all of us.
The following documents related to suppliers are published on the PLZ website:
• Supply Chain Code of Conduct • Supply Quality Requirements Manual • Transparency in Supply Chain Statement
Our Supply Chain and Procurement teams, in conjunction with other departments, consistently work to identify and assess material sourcing and efficiency opportunities such as vendor and materials consolidation. We also have systems in place to validate our suppliers are operating with integrity and use a Vendor Scorecard to score them in categories like quality, service, and lead time. We also perform random periodic supplier audits which include validating supplier compliance with regulations and laws pertaining to conflict minerals, forced/child labor, human trafficking, exploitation, and Restriction of Hazardous Substances (ROHAS), among others. PLZ Corp recognizes the need for a robust supply chain program. With that said, in the near term we plan to assess the current state of where we are sole-sourced, single- sourced, and dual-sourced for critical components from suppliers located around the globe. Ultimately, we want to ensure we maintain a resilient, low-risk supply chain.
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PLZ ESG REPORT 2021 RESULTS
PRODUCT STEWARDSHIP
PLZ Corp launches Sales, Inventory and Operations Planning (SIOP) Our commitment to continuous improvement led us to adopt an operating model known as Sales, Inventory, and Operations Planning (SIOP). We began the process design work in mid-2021 and are very excited to launch SIOP throughout PLZ Corp in April 2022. The SIOP operating model is also referred to as Integrated Business Planning (IBP). SIOP/IBP drives sustainable business decisions by building one integrated plan of record and securing alignment across all functional disciplines within PLZ Corp and our customer and vendor partners. Integrated plans are reviewed and refreshed monthly where key underlying assumptions are challenged, validated, and adjusted as needed keeping all functional areas informed, engaged, and aligned. The SIOP/IBP business process positions PLZ Corp to react quickly with a cross-functional team approach to respond to any unforeseen challenges.
FORWARD-LOOKING GOALS PLZ Corp is focused on continuous improvement in how we evaluate, engage with, and measure success when it comes to working with our vast network of suppliers. We have established goals to support these efforts, including:
• Updating and integrating new sustainability initiatives into our Supply Chain Code of Conduct and/or Supply Chain Management Plan
• Establishing a baseline survey to solicit data regarding supplier reporting activities or verifications by industry standards, certifications, and assessments
• Increasing the number of annual supplier audits
SIOP/IBP at PLZ Corp will deliver better utilization and efficiency of available resources, reduced waste of valuable resources, greater responsiveness, faster speed to market, and improved service to markets we serve.
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PLZ ESG REPORT 2021 RESULTS
OUR APPROACH TO ESG
Sustainable Operations
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PLZ ESG REPORT 2021 RESULTS
SUSTAINABLE OPERATIONS
Our Commitment
To future generations. We believe we have an obligation to employ practices that help protect the environment. That’s why we’re making efforts to understand our operational carbon footprint and explore ways to reduce our greenhouse gas emissions (GHGs). Many of our manufacturing facilities maintain various programs to reduce, reuse, or recycle our operational waste and limit the materials that are sent to landfills. Our programs work to manage any hazardous waste we generate in a sustainable manner while also abiding by applicable federal, state, and local regulations. We also conserve water by using only what we truly need and properly managing any wastewater.
To PLZ Corp, sustainability isn’t a destination, it’s a process: One of constantly looking to do more with less to minimize our environmental footprint.
PLZ ESG REPORT 2021 RESULTS
SUSTAINABLE OPERATIONS
Carbon Footprint PLZ Corp is on a mission to optimize energy management practices with the goal of lowering our overall operational carbon footprint. We calculated our carbon footprint for the first time in 2021 and are tracking metrics around consumed energy, natural gas, and fuel. These metrics are reviewed on a quarterly basis to ensure we are on track to reach our exciting new commitment to reduce our greenhouse gas emissions related to energy consumption by 15% per unit of product produced by 2025. Our 2021 carbon footprint calculations are based solely on consumed energy, including electricity, natural gas, and mobile/vehicle fuel. The footprint includes the total consumed energy at all our sites. Counted in the GHG emission totals are propane usage for forklifts, diesel fuel used for fleet vehicles, stationary combustion from equipment and machinery, and electricity from fossil fuel and renewable sources provided by local utilities. As we do utilize a limited number of HFC propellants, which contribute to GHG emissions if released to the atmosphere, we have a near-term objective to evaluate and calculate HFC propellant loss contributing to our total GHG emissions.
PLZ Corp is committed to reducing GHG emissions from energy consumption by 15% per unit by 2025
SCOPE 1 EMISSIONS
11.624 CO2-e (metric tons) 0.04003 lb. CO2-e per unit of product
STATIONARY COMBUSTION
1.615 C02-e (metric tons) 0.00556 lb. CO2-e per unit of product
MOBILE SOURCES
LOCATION-BASED SCOPE 2 EMISSIONS
18.718 CO2-e (metric tons) 0.06446 lb. CO2-e per unit of product
PURCHASED AND CONSUMED ELECTRICITY
31,957 CO2-e (metric tons) 0.11005 lb. CO2-e per unit of product
TOTAL ORGANIZATION EMISSIONS
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PLZ ESG REPORT 2021 RESULTS
SUSTAINABLE OPERATIONS
Efficiency Upgrades A vast majority of our manufacturing facilities have implemented a wide range of efficiency upgrades over the years including things like switching to LED lighting with occupancy sensors. When our facilities have the need to replace or retrofit assets such as HVAC, boilers, chillers, cooling towers, compressors, or dehydrators, we strive to source equipment with increased efficiency and sustainable attributes. Our Indianapolis manufacturing facility sources 100% of its energy from wind power generated from Indiana and other Midwestern wind farms via the local utility. We are currently exploring opportunities for more manufacturing facilities to source renewable energy through utilities where viable as well as understanding whether certain manufacturing facilities are good candidates for other renewable energy projects.
We’re also in the process of performing energy assessments to identify opportunities for improvements. We’re starting with our Missouri manufacturing facilities, where we consume the most energy, with the goal to continue rolling out those efforts to additional manufacturing facilities in our portfolio.
FORWARD-LOOKING GOALS
All the above activities are in support of our primary goal around carbon, which is:
• Achieving a 15% reduction in Scope 1 and Scope 2 GHG emissions related to energy consumption, per unit of product produced, company-wide from baseline year 2021 by 2025
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PLZ ESG REPORT 2021 RESULTS
SUSTAINABLE OPERATIONS
Water and Wastewater Management Protecting the Earth’s most precious natural resources. We’re aware water is becoming increasingly scarce in certain regions. It’s important for PLZ Corp to do our part to conserve as much as we can. We use water as an ingredient in our products, as a medium to test the integrity of our aerosol products, and to clean our operational equipment. Often the water we use as an ingredient is run through a filtration system to achieve the necessary purity demanded by our customers. To test the physical integrity of our aerosol products, we pass them through a heated water bath to ensure that the aerosols meet Department of Transportation standards. PLZ Corp has operating procedures to capture line washes and divert them for further treatment to the greatest degree possible. Our manufacturing facilities that make industrial products do not discharge to wastewater treatment facilities.
We will inventory all our manufacturing facilities on their water and wastewater profiles and evaluate all water systems with the goal of identifying opportunities to standardize operations and develop water use reduction strategies, prioritizing locations where water-stress is most prevalent. In future annual ESG reports we’ll report our progress on these goals to increase water efficiency and reduce water emissions.
PLAN OF ACTION
FORWARD-LOOKING GOALS
PLZ Corp is committed to ensuring proper oversight of our water use and consumption as well as exploring opportunities to conserve water. We have established our goals of:
• Developing an enterprise-wide inventory of water. We have profiles at all manufacturing facilities
• Using the profile information to target improvements in water use efficiency
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PLZ ESG REPORT 2021 RESULTS
SUSTAINABLE OPERATIONS
Many of our manufacturing facilities have identified creative outlets or programs for repurposing materials, with some programs having the added benefit of generating revenue.
Operational Waste & Hazardous Waste / Recycling PLZ Corp has various initiatives in place across our portfolio of manufacturing facilities dedicated to waste and hazardous waste management as it relates to facilities operations. These include:
• Our Missouri manufacturing facilities send used cardboard boxes to a moving company who then repurposes them for business activities. Empty shipping totes are sent out for reconditioning and reuse and scrap food-grade oils are collected and sent to a rendering plant. • Some of our manufacturing facilities also have recycling programs for metal drums and mixed plastics. • Wood pallets are typically resold to buyers that repair and rebuild pallets or reuse the material for other purposes.
Implementation of lean manufacturing principles focused on waste reduction at our manufacturing facilities
Beneficial reuse programs
Our Fall River, Massachusetts, manufacturing facility maintains a “Zero Waste to Landfill” program. We intend to expand these types of landfill diversion programs to other manufacturing facilities, where viable.
ZERO WASTE TO LANDFILL
Recycling and vendor takeback programs
Proper hazardous waste treatment, handling, disposal
All these activities help support PLZ Corp’s commitment to more sustainable operations by lessening the need for virgin materials and extraction of natural resources and increasing our company-wide landfill diversion rate. Additionally, our manufacturing facilities do generate universal waste such as light bulbs and batteries as well as other hazardous waste materials. Each facility maintains programs and partnerships with vendors for proper collection, storage, treatment, recycling, and/or disposal of these waste streams that meet applicable federal, state, and local regulations. The product compounding and filling rooms at our Vaughan, Ontario, Canada manufacturing facility, for example, are connected to outdoor recovery tanks. When we flush our lines (i.e., for changeovers), all residual liquid solvents also go to the outdoor recovery tanks. This accumulated solvent is picked up by a licensed waste service provider who then reprocesses the liquids to meet our safety and quality specifications and returns the material back to our manufacturing facility as a clean solvent.
Regulatory compliance
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PLZ ESG REPORT 2021 RESULTS
OUR APPROACH TO ESG SUSTAINABLE OPERATIONS
Beneficial Reuse We are particularly proud of the reuse programs in place at two of our manufacturing facilities in Missouri where innovative processes and partnerships were developed to capture materials that would have otherwise gone directly to waste outlets. Instead, now we reuse, repurpose, or recycle them. At our Pacific and St. Clair, Missouri, manufacturing facilities we repurpose or beneficially reuse 100% of our liquid manufacturing waste, which includes solvents that would alternatively need to be disposed of as a hazardous waste. This waste is captured and hauled to a cement kiln where it is used as an alternative fuel source to power the kiln. Some of this waste is also used in place of virgin solvents to perform equipment flushes. Once the flush material has served that purpose, it is also then used as an alternative fuel to help power the kiln. Our teams are actively searching for strategic partners that can repurpose bulk solvent waste in pursuit of expanding the beneficial reuse solvent program to other PLZ facilities.
FORWARD-LOOKING GOALS
PLZ Corp is committed to continuously improving and expanding upon our operational waste and recycling efforts with near-term goals focused around:
• Developing a system to track and monitor all waste metrics
• Achieving reductions in landfilled waste annually via recycling programs
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PLZ ESG REPORT 2021 RESULTS
OUR APPROACH TO ESG
Business Values & Principles
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PLZ ESG REPORT 2021 RESULTS
BUSINESS VALUES & PRINCIPLES
Operating with Integrity
Business ethics are key to our identity. With 17 manufacturing locations and over 2,000 employees spread across the U.S. and Canada, communication and transparency are vital to fostering a culture of sound ethics and integrity. Ethical Business Practices PLZ Corp provides services that satisfy the highest professional and ethical standards of the industry including the promotion of human rights and strict compliance with labor laws and internationally accepted norms and standards. We support a robust suite of formal policies concerning business ethics, including a Code of Business Conduct & Ethics and policies related to anti-bribery and corruption, antitrust and competition law, trade compliance, and third-party management. Each employee commits to abiding by the Code of Conduct. Employees have multiple avenues to report any concerns about potential violations of our Code and are assured that they can do so without fear of retaliation. We also host a regular training program for executives related to anti-corruption and anti-bribery.
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