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2020 Sustainability Report

ESG Report

Stakeholder Engagement

ESG Report

We actively engage with stakeholders to better understand outside perspectives and priorities


We actively engage with stakeholders to better understand outside perspectives and priorities about our company and the industries and communities in which we operate. This engagement helps us build upon our sustainable business practices and improve our company as a whole.

Each of our locations, businesses and functions is expected to effectively engage its stakeholders, whom we identify as those entities that can affect or be affected by our actions, objectives and policies. This engagement is conducted on an ongoing basis, and the following provides an overview of how we establish and maintain productive relationships with our key stakeholder groups, and the key topics discussed.

PPG Engagement Strategy

Stakeholder Group Typical Engagement Activities

Employees

  • Companywide CEO townhalls, video and email messages and informal question-and-answer sessions with leaders
  • Daily intranet articles, employee magazines and regional publications
  • Regular employee communications and town hall meetings involving executives, business leaders and site managers
  • Training and development programs
  • Human Resources Service Center
  • Family-inclusive activities, such as open houses
  • Employee resource networks
  • Wellness programs
  • Dispute-resolution programs
  • Global employee engagement surveys and initiatives
  • Open-door programs
  • Collective bargaining
  • Ethics helpline
  • Quality programs
  • Recognition events

Customers

  • Ongoing relationship building
  • Account management interaction
  • Trade shows
  • Industry gatherings
  • Technical and application support
  • Training sessions and workshops
  • Company-owned stores
  • Broad distribution channels
  • Customer service call centers
  • Advertising and marketing communications

Suppliers

Investors and analysts

  • Quarterly earnings announcements, conference calls and presentation materials
  • News releases and U.S. SEC filings
  • Annual Report and overview presentations
  • Annual meeting of shareholders
  • PPG Industry Deep Dive Presentation
  • Presentations by PPG executives at financial and industry conferences
  • One-on-one meetings
  • PPG Investor Center
  • Provide detailed information about our corporate governance and executive compensation program in our Proxy Statement.
  • Proactive ESG outreach meetings with investors
  • Annual publication of ESG Report
  • Publication of DE&I Report

Government

  • Activities reported to select federal agencies
  • Visits to elected officials and agencies and international government officials
  • PPG's employee Political Action Committee (PAC)
  • Government affairs website
  • Industry and trade association involvement
  • Plant tours and site visits for government officials

Philanthropies, nonprofits and nongovernmental organizations

  • Employee volunteering and giving programs
  • Global giving programs (Asia Pacific; Europe, Middle East and Africa; and Latin America)
  • China corporate social responsibility committee and program
  • Canadian charitable contributions and employee programs
  • Disaster response
  • One-on-one meetings and site visits
  • Sponsorships
  • News releases and media engagement
  • Family programs
  • PPG Colorful Communities Program
  • PPG Foundation grants and charitable donations

Residents of communities where PPG operates

  • PPG Colorful Communities program
  • Charitable giving programs
  • Site visits by community emergency services
  • Local sponsorships
  • Public education support and interaction
  • Community boards
  • Open houses
  • Community meetings and events
  • Community volunteerism
  • Community steering committees
  • Local media relations
  • Industrial park membership
  • Community advisory panels
  • Hazardous waste collection events
  • Chamber of commerce memberships
  • State or city industrial association memberships
  • Permit hearings

Key Topics Raised in 2021

Stakeholder Group Topics Response

Employees

Labor shortages, engagement and development

We continue to invest in learning and development to give our employees the knowledge and tools to be engaged at every stage of their careers. Learn more in the People Overview, Learning and Leadership Development and Engagement sections.

Diversity, equity and inclusion (DE&I)

We continue our focus on DE&I across the company, by developing a vision, structure and commitments, as well as disclosing our most recent diversity data. We continue to make progress against our goals and published our first DE&I report in 2022.

Safety and health

The safety and health of our employees is our most important core value. We are creating a global culture of health, where our people and their families can prioritize mental and physical well-being. Learn more in the Safety and Health, COVID-19 response and Wellness sections.

Customers

COVID-19: Continuation of operations, product availability, health and safety

Throughout the ongoing pandemic, we have enacted and adjusted protocols to protect our people and manage our business in this new environment. Since the onset of the pandemic in late 2019, we implemented proven operating practices to enhance workplace safety, communicated frequent updates to employees, provided workplace flexibility, increased employee engagement and recognition, and worked with our customers in new ways.

In addition, our products played an essential role in a wide range of key industries during the pandemic. Learn more in the COVID-19 response and Product Overview sections.

Shareholders

Shareholder returns

Despite the challenges presented throughout 2021, our net sales totaled approximately $16.8 billion. We continued our legacy of returning cash to shareholders by extending our consecutive annual dividend payments to over 120 years, including raising our annual dividend payout for the 50th successive year. Learn more in the About PPG section.

ESG and sustainability progress

We remain steadfast in our commitment to serve the communities in which we operate and develop innovative products and sustainable solutions that create value for our stakeholders, supported by our high standards of integrity and professional conduct.

Learn more in the 2021 Progress, Product Overview, Community Overview and Governance sections.

Climate-related risks

In 2021 we conducted a climate scenario analysis to evaluate transitional and physical climate-related risks and opportunities. To address climate risks, we maintain systematic business continuity planning and crisis management processes. Learn more in the Climate-Related Risks and Opportunities section.

Suppliers

Continuation of operations, raw material supplies, health and safety

A number of global suppliers were impacted by the weather events in February 2022 and subsequent loss of energy supplies in Texas and other southern U.S. states, as well as recent Hurricane Ida impacts. At the same time, there was a significant increase in demand in some markets we supply due to increased consumer demand for our paint products for residential renovations. PPG continues to take an aggressive approach to securing materials and carriers to minimize the impact to our customers.

Throughout the ongoing pandemic we have enacted and adjusted protocols to protect our people and manage our business in this new environment. Learn more in the COVID-19 response, Safety and Health and Product Overview sections.

ESG and sustainability progress

PPG works with our suppliers around the world to encourage sustainability as a core value, aligned to our high standards of integrity and professional conduct. Learn more in the Supplier Sustainability section.

Communities

Giving in priority areas: Education, community sustainability, employee engagement, and diversity, equity and inclusion

We amplify the unique talents of our employees and the financial contributions from PPG and the PPG Foundation to reach our global communities – helping students connect with science-related inspiration and advanced learning, transforming communities with bright colors and addressing evolving, essential needs around the world. Learn more in the Community Engagement and Community Engagement Framework sections.

Government Agencies

COVID-19: Continuation of operations, product availability, health and safety

Throughout the ongoing pandemic we have enacted and adjusted protocols to protect our people and manage our business in this new environment. We implemented proven operating practices to enhance workplace safety, communicated frequent updates to employees, provided workplace flexibility, increased employee engagement and recognition, and worked with our customers in new ways.

Our products played an essential role in a wide range of key industries during the pandemic. Our paints, coatings and specialty materials helped create life-critical products for the health care, defense, food and beverage, hygiene, agriculture, energy, public works electronics industries and many others. Learn more in the COVID-19 response and Product Overview sections.

Product stewardship

In compliance with all legal and ethical procedures, our Government Affairs team works closely with government stakeholders at the local, state, federal and international level to discuss environmental stewardship, sustainability, transportation, infrastructure, energy and environment related issues. Learn more in the Product Stewardship section.

Industry Engagement

We actively work with the following industry associations by maintaining board and other leadership positions:

  • American Chemistry Council
  • American Coatings Association (Michael McGarry, PPG chairman and CEO, served as Chair from April 2020 to April 2022
  • Ethics & Compliance Officers Association
  • European Council of the Paint, Printing Ink and Artists’ Colours Industry (Roald Johannsen, PPG vice president, Automotive OEM Coatings, serves as Chair until September 2024)
  • Fédération des industries des peintures, encres, couleurs, colles et adhesives (FIPEC)
  • The National Association of Manufacturers In addition, we are an active participant in the RESPONSIBLE CARE® and COATINGS CARE® initiatives.

Political Contributions

We do not make any political contributions as a company to political parties or candidates.

In the United States, our employees have formed a political action committee (PAC). Under the umbrella of this independent, voluntary, registered committee, employees collect donations to politicians, political parties and associations and make decisions as to how the funds will be used. The PAC Executive Committee has broad employee representation and approves all political contributions made on behalf of the PAC. The PAC is governed by a series of internal policies and adheres to a strict set of by-laws.

In 2021, total PAC contributions totaled $67,000 to local, state and federal candidates for elected office representing the Republican and Democratic political parties.

Our PPG PAC contributions included those made to individual candidate political campaigns as well at other business PAC's including our trade associations. There was no spending on ballot measures or referendums.

Following the events at the U.S. Capital on January 6, 2021, the PPG PAC suspended political giving to members of Congress who opposed certification of the Electoral College votes. In September 2021, the PPG PAC resumed political engagement on a caseby- case basis, guided by the key issues important to PPG PAC members. These issues include DE&I, energy and environment, infrastructure, regulatory reform, tax and budget, technology, and trade.

Political contribution receipts and disbursements are reported in detail and disclosed publicly on the U.S. Federal Elections Commission website. A political contributions overview and more information on political activities is provided on the PAC website and our Government Affairs website.

The largest public policy advocacy issues for 2021 included our response to the COVID-19 pandemic, infrastructure investment, tax and trade.

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