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<START 1> RESHAPING PLASTICS 2 0 2 2 E S G R E P O R T <1 END>
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<START 2> Table of Contents 3. OVERVIEW 3. CEO Message 4. Introducing our New Corporate Strategy 6. 2022 ESG Highlights 7. About NOVA Chemicals 9. About This Report 11. Our ESG Priorities 12. Contributions to Society 13. How We Create Value 14. ENVIRONMENT 15. Plastic Circular Economy 22. Climate Care 28. Air Emissions 30. Waste 32. Water 34. SOCIAL 35. Inclusion and Diversity 39. Talent Management 41. Employee Health and Wellness 43. Employee and Contractor Safety 47. Process Safety 50. Product Safety 53. Transportation Safety 56. Community and Indigenous Relations 59. GOVERNANCE 60. Corporate Governance 61. Risk Management 62. ESG Governance 63. ESG Integration and Principles 67. Ethics 70. Responsible Supply Chain 73. Cybersecurity 75. Public Policy 76. PERFORMANCE TABLE 80. APPENDIX 80. Material Topic Boundaries 81. Engagement with Interested Parties 82. GRI® Index 86. SASB® Index 87. SDG Index 88. TCFD Index 92. Forward Looking Information 93. Advisory 93. Trademarks 94. Contact 2 2 <2 END>
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<START 3> Dear Stakeholders, The theme of our 2022 Environmental, Social and Governance (ESG) Report is “Reshaping Plastics.” Plastics remain an integral part of our daily lives with multitudes of benefits to humanity across various applications that enable availability of safe, fresh food, healthcare supplies and product packaging. We have a collective responsibility however to ensure that plastics production, use and waste management is done following the best practices that safeguard our communities and planet. "Reshaping Plastics" is our North Star and is the foundation to our NOVA 2030 strategy and our driving purpose to “reshape plastics for a better, more sustainable world by delivering innovative solutions that help make everyday life healthier and safer and acting as a catalyst for a low carbon, zero-plastic-waste future.” In this report, we will introduce our sector- leading ambitions to drive the circular economy for plastics, to be in the forefront of decarbonization and to become a Top 30 company in Canada. We will also highlight our focus on important environmental, social and governance topics which are most relevant to our company and its stakeholders, including the Plastic Circular Economy, Climate Solutions, Inclusion & Diversity and Ethics. We will also share our ambitions, progress, and challenges. During this period, our sector has seen tough economic challenges. Yet, we have continued to keep our attention on how best to create additional value for the company and its stakeholders starting first with our employees who are continually building new skills and new ways of working to help us achieve and sustain a leadership position in the industry. We demonstrated our commitment to strong safety performance with a best-ever overall combined recordable injury rate of 0.23 and an injury-free run rate of over 1.3 million work hours at our flagship project in Sarnia, Ontario to build our second world-class Advanced SCLAIRTECHTM
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o strong safety performance with a best-ever overall combined recordable injury rate of 0.23 and an injury-free run rate of over 1.3 million work hours at our flagship project in Sarnia, Ontario to build our second world-class Advanced SCLAIRTECHTM technology facility. Through the launch of our innovative SYNDIGOTM rPE resins and ASTUTETM plastomer resins, we are promoting the increased use of rPE and developing essential building blocks that are used to promote recyclability and circularity. We also received recognition including a second EcoVadis Silver Rating, a CN Safe Handling Award for transportation safety practices, a Chemical Transportation Safety Pinnacle Award for our zero non-accident release (NARs) performance and the Closed Loop Circular Plastics Fund, which we support, received the American Chemistry Council’s Sustainability Leadership Award for external collaborator for its role in advancing plastic circularity. Finally, we joined the United Nations Global Compact® initiative (UNGC) confirming our support to its Ten Principles in the areas of Human Rights, Labor, Environment and Anti-Corruption. In closing, I am thankful for the opportunity to collaborate with the company’s 2,500 employees and to welcome Roger Kearns as the company’s new President and CEO. Most importantly, I look forward to advancing our journey of “Reshaping Plastics” for a better, more sustainable world. CEO Message ROGER KEARNS NOVA Chemicals President and CEO Roger Kearns became NOVA Chemicals’ President and Chief Executive Officer, effective June 12, 2023, succeeding Mr. Danny Dweik. “NOVA Chemicals has repeatedly proven its ability to deliver innovative solutions to complex challenges, and I am thrilled to lead the company towards a more sustainable future. Our talented team, focused on the vision to be the leading sustainable polyethylene producer in North America, will unlock new possibilities, fuel growth, and create value for our customers, employees, and
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ompany towards a more sustainable future. Our talented team, focused on the vision to be the leading sustainable polyethylene producer in North America, will unlock new possibilities, fuel growth, and create value for our customers, employees, and communities. Together we will impact the future of our industry and make a positive impact in the world.” DANNY DWEIK Interim President and CEO 3 <3 END>
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<START 4> of our polyethylene sales by volume to come from recycled content Lead the development of and transition to a circular economy of plastics, with Be at the forefront in our industry for decarbonization by reducing Scope 1 and 2 CO2e emissions under operational control by from 2020 levels Be recognized as a company in Canada by value, in accordance with our vision of being the leading sustainable polyethylene producer in North America 30 % 30 % TOP 30 1 2 3 INTRODUCING NOVA 2030 With our renewed purpose of reshaping plastics for a better, more sustainable world, and our vision to be the leading sustainable polyethylene producer in North America, we have launched NOVA 2030: our roadmap to sustainability leadership. NOVA 2030 is our strategy to become a catalyst for a low-carbon, zero-plastic-waste future, and to achieve three aspirations by 2030: OUR ROADMAP TO SUSTAINABILITY LEADERSHIP 4 <4 END>
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<START 5> To contribute to reduced waste and emissions and promote a circular economy, NOVA Chemicals recently launched SYNDIGO recycled polyethylene (rPE), a new portfolio of resins made from 100% post-consumer recycled content. Among our innovative new product offerings are ASTUTE plastomer resins that expand our portfolio and enable customers to design high performance and fully recyclable packaging. NOVA Chemicals has also announced a virtual power purchase agreement to purchase 20 megawatts (MW) of renewable wind power that will be produced in central Alberta marking the first of many opportunities to increase low carbon, renewable energy in our power portfolio. Through our continued efforts to pursue new technologies to abate and eliminate emissions from our production processes, we developed our Low Emissions Ethylene Process (LEEPTM) technology. Innovations, such as LEEP technology, demonstrate our commitment and ability to create solutions to reduce our emissions and reach our aspirations. NOVA Chemicals is a market leader in Canada and is recognized as a distinguished polyethylene producer and innovator. Our market leadership is demonstrated by NOVA Chemicals’ #1 or #2 market position in the majority of our target markets. Our competitive positioning is driven by our reputation as a sought- after partner in innovation and product development, our best-in-class technical development, and commitment to providing a unique and exceptional customer experience. To lead the development of a transition to circular plastics and achieve our recycled content aspiration, we plan to focus on mechanical and advanced recycling improvements. We aspire to build a state-of-the-art mechanical recycling business by 2030 and are exploring new advanced recycling technologies to create high-quality, high-performance, recycled and recyclable, low carbon plastics for premium applications. Our 2030 aspirations are a part of our larger ambitions to achieve net-zero
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2030 and are exploring new advanced recycling technologies to create high-quality, high-performance, recycled and recyclable, low carbon plastics for premium applications. Our 2030 aspirations are a part of our larger ambitions to achieve net-zero Scope 1 and 2 emissions by 2050.  NOVA Chemicals’ roadmap for decarbonizing our asset base includes improving energy efficiencies, electrifying and acquiring renewable power. We are exploring clean hydrogen as a low carbon fuel source, Carbon Capture, Utilization, and Storage (CCUS) and innovative, new technologies. Refer to the Climate Care section of this report for more details on our path to decarbonization. We anticipate investing between USD $2-4 billion by 2030 to achieve our aspirations and expand our sustainable product offerings, decarbonize assets, and advance recycling infrastructure and technologies. Our new strategy builds upon NOVA Chemicals’ long-standing commitment to developing sustainable solutions for our customers that enable the circular economy and contribute to a better, more sustainable world. With increasing regulations around plastic packaging and stronger sustainability ambitions from converters and brand owners, there is a growing demand for sustainable, high performance plastic materials. At NOVA Chemicals, we have the engineering expertise and innovation skills to bring high quality and innovative mechanical recycling solutions to market. KEY ACTIONS TAKEN The world is changing… We are excited to lead that change. With our renewed purpose of reshaping plastics for a better, more sustainable world, we have envisioned a pathway to become a catalyst for a low carbon, zero-plastic-waste future and to reach net-zero by 2050. Our long history of taking meaningful action to adapt to changing conditions has set a STRONG FOUNDATION for our ambitions. 5 <5 END>
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<START 6> REINFORCING OUR COMMITMENT TO ESG We joined the United Nations Global Compact (UNGC) confirming our support to its Ten Principles in the areas of Human Rights, Labor, Environment and Anti-Corruption supported by our annual disclosure using its Communication on Progress. CONTINUING OUR STRONG SAFETY PERFORMANCE With a 0.23 combined recordable injury rate, we achieved our best-ever performance, demonstrating our commitment to safety and continual improvement. We achieved a combined lost time injury rate of zero, a 100% reduction over five years. We are proud of this step toward our goal of ZERO workplace injuries, illnesses and incidents. This year the project to build our second world-class Advanced SCLAIRTECH technology facility also achieved its best ever safety performance including a recordable injury free run of over 1.3 million exposure hours. DEVELOPING OUR PORTFOLIO OF INNOVATIVE SOLUTIONS We continued to progress the market adoption of NOVA's rPE products. Through the launch of our innovative SYNDIGO rPE resins and ASTUTE plastomer resins, we are promoting the increased use of rPE and developing essential building blocks that can be used in a variety of all-polyethylene packaging to promote recyclability and circularity. INCREASING ADOPTION OF RECYCLED POLYETHYLENE Our collaboration with Merlin Plastics generated initial production of high performing, high density rPE planned for commercial use in food packaging applications in 2023. AWARDS & RECOGNITION • We received EcoVadis Silver rating in 2022 for the second year in a row. • NOVA Chemicals was awarded with a CN Safe Handling Award 2022 for our transportation safety practices. • We received a Chemical Transportation Safety Pinnacle Award 2022 for our zero non-accident releases (NARs) performance. • American Chemistry Council (ACC) Sustainability Leadership Award for External Collaborator awarded to Closed Loop Partners for its collaboration with NOVA
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tation Safety Pinnacle Award 2022 for our zero non-accident releases (NARs) performance. • American Chemistry Council (ACC) Sustainability Leadership Award for External Collaborator awarded to Closed Loop Partners for its collaboration with NOVA Chemicals, LyondellBasell and Dow to establish the Closed Loop Circular Plastics Fund. 2022 ESG Highlights LAUNCHING OUR OWN EMPLOYEE DIVERSITY CENSUS Our diversity census, launched in 2022, allows us to gain deeper insights on our diverse workforce and better address their needs. 6 <6 END>
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<START 7> About NOVA Chemicals NOVA Chemicals develops and manufactures ethylene and polyethylene for plastic products and packaging that are essential to making everyday life healthier and safer. Our company is headquartered in Calgary, Alberta, Canada, and has manufacturing operations in Alberta and Ontario, Canada and Louisiana, United States. We are also supported by our operating and sales centers in Canada, the United States, Switzerland and Singapore. NOVA Chemicals is wholly owned by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates and our workforce is made up of almost 2,500 employees. Our customers use our polyethylene resins to make plastic products that contribute to keeping people healthy and safe. Plastic is and will continue to be a valuable material that improves modern life. We share in the collective responsibility to ensure that plastic production, use, re-use and waste management follow best practices. Our products are used in a variety of ways such as food and beverage packaging, e-commerce, and recreational equipment. Our business activities and strategy cover the entire life cycle of plastics including how we manufacture, use, and recycle plastic. Through our commitment to sustainability and Responsible Care® principles, our employees consistently work to ensure health, safety, security, and environmental stewardship throughout every facet of our operations. OUR PURPOSE Reshaping plastics for a better, more sustainable world. OUR VALUES Be Responsible Be Passionate Innovate Collaborate 7 <7 END>
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<START 8> NOVA CHEMICALS’ CURRENT LOCATIONS 2022 Company Changes and Major Project Updates • In 2022, we established NOVA 2030: Our Roadmap to Sustainability Leadership which we announced early in 2023. As part of NOVA 2030, we announced sector-leading aspirations to drive the circular economy for plastics and stay at the forefront of decarbonization. We are focused on accelerating action towards achieving our vision of being the leading sustainable polyethylene producer in North America. • We announced several updates to our Leadership and Board of Directors in 2022. To see the most current members of the Leadership Team and the Board of Directors, visit our website. For additional information on our Board, see the Corporate Governance Section here. • We reached mechanical completion of our Corunna Cracker Expansion Project and new Advanced SCLAIRTECH technology facility in Sarnia-Lambton, Ontario and achieved our best ever Total Recordable Case Rate (TRCR) performance while completing these projects. LOUISIANA, USA Geismar Manufacturing Site INTERNATIONAL Fribourg-European Operating Center INTERNATIONAL Singapore Sales Office PENNSYLVANIA, USA U.S. Commercial Center, Pittsburgh ALBERTA, CANADA • Joffre Manufacturing Site • Red Deer Executive Place Office • Pipeline Office, Sherwood Park • NOVA Chemicals Head Office, Calgary • Centre for Performance Applications, Calgary • Centre for Applied Research, Calgary ONTARIO, CANADA • Corunna Manufacturing Site • St. Clair River Manufacturing Site • Moore Manufacturing Site • Manufacturing East Corporate Centre, Sarnia 8 <8 END>
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<START 9> About This Report We have reported our non-financial performance since the publication of our first sustainability report in 2014. This Environment, Social, and Governance (ESG) report is our ninth annual report. NOVA Chemicals publishes its ESG and financial reports on an annual basis covering January 1, 2022 to December 31, 2022. This ESG report helps us demonstrate how the company creates value for its customers, suppliers and other stakeholders; how we work to help solve global challenges; and how we care for people and the environment. We align our reporting to the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board® (SASB) Standards for the Chemicals industry, the Task Force on Climate- Related Financial Disclosures (TCFD) Recommendations, and the United Nations Sustainable Development Goals (UN SDGs). NOVA Chemicals is also a voluntary participant in the United Nations Global Compact (UNGC), which is the world’s largest voluntary, business- led sustainability initiative covering human rights, labor, environment, and anti-corruption. By aligning with these frameworks and standards, we enhance our comparability with peers and are able to better articulate the impact and value of our ESG activities. OUR FOUNDATION IS RESPONSIBLE CARE NOVA Chemicals’ Responsible Care program and codes of practice are based on the Chemistry Industry Association of Canada’s (CIAC) Responsible Care Ethic and Principles for Sustainability, which guide how we manage issues relating to health and safety, environment, and social responsibility. The Responsible Care initiative is recognized by the United Nations and has been adopted by the global chemical industry. The Responsible Care program is core to our sustainability and ESG efforts. These include broader sustainability topics that are crucial to meeting the expectations of our stakeholders, maintaining our leadership position in our industry, and delivering on our growth strategy. 9 <9 END>
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<START 10> Scope of This Report • Unless otherwise noted, this report covers performance for the calendar year 2022, with historical data dating back to 2018. • We report environmental data based on our operating control (i.e., we report 100% of the environmental impacts of our operated facilities regardless of ownership percentage, including operated ethylene and polyethylene assets and associated site-based infrastructure, and owned pipelines and office buildings). Using this principle, we do not report our portion of environmental impacts for non-operated joint ventures. In some instances, estimates are made based on best-available information and records at the time of writing. • Data is based on permanent employees. When noted, safety data includes contractors. • Techniques for data measurements and calculations, if not industry standard, are stated with the data. • Unless noted, financial data is in U.S. dollars and environmental data is in metric units. • Senior management and relevant staff have reviewed key information and believe it is an accurate representation of our performance. • The Board of Directors has reviewed and approved this report. • The NOVA Chemicals’ Corunna, Moore, St. Clair River and Joffre Sites Scope 1 emissions data and information were third-party verified by Dillon Consulting Limited (Dillon). In its opinions dated June 2, 2023, and June 15, 2023, Dillon concluded with reasonable assurance that the Scope 1 emissions data and information were fairly stated. Third-party limited assurance of Scope 3 methodology, aligned to the GHG Protocol Corporate Value Chain (Scope 3) Reporting Standard, and 2022 emissions data was conducted by SCS Global Services. • This report covers performance for NOVA Chemicals and its subsidiaries covered in our consolidated financial statements. The terms NOVA Chemicals, our, we, the company, and the corporation refer to NOVA Chemicals Corporation and its subsidiaries as a whole.
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ort covers performance for NOVA Chemicals and its subsidiaries covered in our consolidated financial statements. The terms NOVA Chemicals, our, we, the company, and the corporation refer to NOVA Chemicals Corporation and its subsidiaries as a whole. • To reflect the October 2020 divestiture of our expandable polystyrene (EPS) business unit, data from the EPS business is excluded starting from 2020 in this report. Reporting Framework Alignment We cross-reference our disclosures with the following frameworks and standards: GRI Page 82 SASB Page 86 UN SDGs Page 87 TCFD Page 88 10 <10 END>
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<START 11> These topics are of global concern and interest to our stakeholders. Priority topics are core to our business strategy and business performance, and are supported by our strategic ambitions. We provide the most extensive disclosure on these topics.  PRIORITY T O P I C S These topics reflect the ESG expectations of our stakeholders and are important to our business. We provide supporting disclosure on these topics and strive for continuous improvement.  FOUNDATIONAL T O P I C S These topics are of interest to our stakeholders and our business. We report on our activities with supporting disclosures.  REPORTING T O P I C S Defining Our ESG Priorities We conduct a biennial materiality assessment to identify and prioritize ESG topics that are most material to our business. Our most recent assessment took place in November 2022 and included interviews with our primary external stakeholder groups. Our approach to assessing materiality is based on industry standard practice and considers both stakeholder concerns and business impact. Our resulting ESG Reporting Framework guides our disclosure and is categorized into the three areas listed to the right. Plastic circular economy Climate care Inclusion and diversity Ethics Water Air emissions Process safety Employee and contractor safety Responsible supply chain Talent management Waste Human rights Community and Indigenous relations Product safety Transportation safety Health and wellness Corporate governance Public policy 11 <11 END>
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<START 12> Contributions to Society We believe that sustainability and Responsible Care standards must be at the core of everything we do. Working on the ESG aspects of our business supports our purpose of reshaping plastics for a better, more sustainable world, and also contributes to solutions for specific global challenges, as embedded in the UN SDGs. OUR E S G ACT I V IT I E S RELEVAN T E SG TOP ICS ESG TAG OUR ESG ACTIVITIES CONTRIBUTE TO THE FOLLOWING SDGS: Our ambition to drive the transition of the plastic circular economy with 30% OF OUR POLYETHYLENE sales by volume coming from RECYCLED CONTENT BY 2030 will enhance the infrastructure and innovation needed for a circular economy to support more sustainable consumption and production patterns and help to PROTECT MARINE AND TERRESTRIAL ECOSYSTEMS. Plastic Circular Economy Our ambitions to reduce Scope 1 and 2 CO2e emissions under operational control by 30% by 2030 from 2020 levels and to NET ZERO BY 2050 support global decarbonization efforts to COMBAT CLIMATE CHANGE AND PROMOTE A MORE SUSTAINABLE INDUSTRY. Climate Care FOSTERING INCLUSION AND DIVERSITY supports equality in the workplace and provides productive and value-added work for all. Inclusion and Diversity CONDUCTING OUR BUSINESS WITH HONESTY AND INTEGRITY, as well as maintaining improved communication on ethics-related policies and training, supports our company and supply chain. Ethics WORKING TOWARDS IMPROVED ESG PERFORMANCE helps us: • Minimize our environmental impacts by reducing waste, using energy and water efficiently, and promoting sustainable economic growth • Keep our people, communities, and customers safe • Support healthy lives and promote well-being • Support the maintenance of effective, accountable, and inclusive institutions through our ethics programs in our company and supply chain. Air Emissions Water Waste Employee and Contractor Safety Process Safety Product Safety Transportation Safety Ethics Responsible Supply Chain Governance Social Environment 12
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e institutions through our ethics programs in our company and supply chain. Air Emissions Water Waste Employee and Contractor Safety Process Safety Product Safety Transportation Safety Ethics Responsible Supply Chain Governance Social Environment 12 <12 END>
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<START 13> Input Output Business Activities ENVIRONMENTAL • 100 million GJ energy • 33 million GJ natural gas, natural gas liquids, and other hydrocarbons • 36 million cubic meters (m3) of water • ~2,500 employees • >2,000 suppliers • ~400 customers ECONOMIC • $830 million in capital expenditures • 2 innovation centers • 5 manufacturing sites • 5 commercial and sales centers • 8,400 leased/owned railcars • 580 kilometers (km) of pipelines ENVIRONMENTAL • Reached three partnerships to develop rPE supply • Partnering at a global level to close gaps that lead to plastic waste • 4.6 million tonnes of CO2e Scope 1 & 2 emissions • 13.2 million tonnes of CO2e Scope 3 emissions • 129 kilotonnes of waste generated in manufacturing with a 17% recycling rate • $453 million paid in salaries and benefits • Providing competitive and meaningful Total Rewards opportunities for employment • Supporting employee well-being • $1.6 million invested in communities and 412 employees volunteered almost 2,600 hours in communities where we work and live • Maintaining safe operations • Enabling safer and better plastic resins ECONOMIC • $4.5 billion in revenue • 3.8 million tonnes ethylene annual nameplate capacity • 2.2 million tonnes polyethylene annual nameplate capacity • rPE and ready-to-recycle resins • Completed capital project with supplier to increase high-quality Post-Consumer Resin (PCR) supply How We Create Value BY DELIVERING INNOVATIVE SOLUTIONS TO MAKE EVERYDAY LIFE HEALTHIER AND SAFER BY BEING A CATALYST FOR A LOW-CARBON, ZERO-PLASTIC-WASTE FUTURE BY UNLOCKING THE FULL POTENTIAL OF OUR PEOPLE AND PARTNERSHIPS 13 <13 END>
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<START 14> I N T H I S S E C T I O N Plastic Circular Economy 15 Climate Care 22 Air Emissions 28 Waste 30 Water 32 We are dedicated to fostering innovation to advance the plastic circular economy, while also prioritizing decarbonization efforts throughout our organization. We strive to promote sustainable practices, and take proactive, responsible measures to manage our operational impacts to air, water, land, and biodiversity. 14 <14 END>
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<START 15> We work collaboratively with partners across the value chain to develop products that will build a circular economy for plastics through design, use, and recycling. To accompany our new NOVA 2030 strategy and set new industry standards for driving the transition to a circular economy of plastics, we established a bold ambition during the year. HOW NOVA CHEMICALS PROVIDES PLASTIC CIRCULAR ECONOMY SOLUTIONS We intend to lead the development of a transition to circular plastics and shape and sustain a low carbon, zero-plastic waste future. We intend to achieve this, in large part, through the development of our plastic circular economy solutions in three key areas: • Mechanical Recycling: As a key player in the recycled polyethylene (rPE) market, we provide our customers with rPE through our agreements and partnerships with recyclers. This allows us to help customers achieve their recycled content goals. We are also committed to working with our recycler partners to enable higher quality rPE. Through our role in the plastics value chain, we contribute to the development of markets for high-quality rPE while supporting value chain sustainability goals. Our strategy around the circular economy is driven by our ambition to enable the acceleration of recycled content and to help our customers achieve their sustainability goals. • Advanced Recycling: The NOVA 2030 strategy is also focused on developing advanced recycling technologies. For example, we have collaborated with Enerkem to introduce a chemical recycling pilot project to convert used, non-recyclable and non-compostable plastics into feedstocks for virgin-grade plastics. We are also continuing to explore other proven advanced recycling technologies. • Designing for Better Recyclability: By designing products for better recyclability, we are also able to drive the circular economy. We focus on high performance resins that enable replacement of non-recyclable packaging. Designing these high-
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ies. • Designing for Better Recyclability: By designing products for better recyclability, we are also able to drive the circular economy. We focus on high performance resins that enable replacement of non-recyclable packaging. Designing these high- performance resins enables packaging optimization and transition from multi-material to mono-material packaging, incorporating rPE to enhance recyclability. Our collaborative partnerships across the plastics value chain further foster the development of closed loop packaging solutions, contributing to the advancement of the plastic circular economy. OUR AMBITION To achieve 30% of our polyethylene sales by volume from recycled content by 2030. Plastic Circular Economy At NOVA Chemicals, we are guided by our purpose to reshape plastics for a better, more sustainable world, and we believe that enabling a circular economy with products that can be recycled, reused and re-imagined will drive that change and support creating a world free from plastic waste. WHY IS IT IMPORTANT FOR US TO CONTRIBUTE TO A PLASTIC CIRCULAR ECONOMY? A plastic circular economy transforms the lifecycle of plastic, helping to eliminate plastic waste and minimize new resource use. By adapting to the changing regulatory landscape and meeting new market demands, we can also capitalize on opportunities in plastic circularity which will help enhance the enterprise value of our company. 15 15 <15 END>
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<START 16> SYNDIGO rPE resins are designed to support our commitment to reduce plastic waste from packaging, to help our customers' decarbonization aspirations, and to set new industry standards for advancing the transition to a plastic circular economy. SYNDIGO resins offer highly versatile design flexibility that can be used in a variety of applications including NOVA Chemicals' first Federal Drug Administration (FDA) compliant rPE produced in Canada. The brand currently includes four commercially available products: EX-PCR-WR3: a mechanically recycled resin sourced from agricultural film. It is ideal for e-commerce mailers, can liners, carry-out bags, protective packaging, and collation shrink applications. rPE-0860-FC: an FDA-compliant mechanically recycled resin sourced from High Density Polyethylene (HDPE) milk jugs. It is ideal for various types of flexible and rigid food packaging. Management Approach: How We Lead Development of a Plastic Circular Economy Our role in the plastics value chain allows us to create innovative products and solutions in collaboration with our customers, brand owners, original equipment manufacturers (OEMs) and other partners to enable plastic packaging circularity and to increase the market for rPE and contribute to eliminating plastic waste. OUR PLASTIC CIRCULAR ECONOMY SOLUTIONS Our innovative products increase the use of high-performance recycled content in packaging solutions and support our vision to become the preferred supplier of low-emissions, circular plastics solutions in high-quality applications. We launched two innovative product brands, ASTUTE plastomer resins and SYNDIGO rPE, in 2022 and 2023 respectively that have advanced our efforts in providing industry-leading solutions for the plastic circular economy. These new products represent significant milestones in NOVA Chemicals' new strategy and serve as critical proof points for how we will achieve our circular packaging and recycled content ambition.
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-leading solutions for the plastic circular economy. These new products represent significant milestones in NOVA Chemicals' new strategy and serve as critical proof points for how we will achieve our circular packaging and recycled content ambition. In 2023, NOVA Chemicals formed NOVA Circular Solutions, a new line of business for our emerging mechanical and advanced recycling efforts with expertise in the areas of plastics development, recycling technology, additive science, packaging design, and regulatory compliance. NOVA Circular Solutions also serves as the home of our newest portfolio of SYNDIGO rPE resins. EX-PCR-NC4: a mechanically recycled resin sourced from back-of-store distribution center stretch film and front-of-store consumer drop off. This product is ideal for heavy-duty sacks, e-commerce mailers, stretch wrap, collation shrink, protective packaging, and industrial films. rPE-0860: an ideal option for converters and brand owners who are transitioning towards more sustainable products and packaging. 16 <16 END>
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<START 17> We launched the ASTUTE brand of high-performance, all-PE plastomer resins in October 2022. The ASTUTE brand includes ASTUTE QPsK905 resin and ASTUTE QHsK908 resin. These plastomer resins are an essential step forward in designing packaging for recyclability. We leverage our proprietary Advanced SCLAIRTECH technology to produce these polyethylene-based plastomer resins. ASTUTE resins enable down-gauging and light- weighting of packaging while also providing strong processability and plastomer properties. End use applications for ASTUTE plastomer resins include food packaging, heavy duty sacks and e-commerce, and support users in achieving their packaging sustainability goals. In addition to our new SYNDIGO and ASTUTE brands, we are continuing to develop our SURPASS® and SCLAIR® brands with innovative products such as our SURPASS HPs267-AB barrier resin that extends shelf life and SURPASS TX150 BOPE-HD (biaxially oriented high-density polyethylene) resin that enables mono-material packaging and replaces BOPET and BOPP materials. ASTUTE Plastomer Resins In a plastic circular economy, materials are recycled so they can be used again and again. To enable a circular economy we focus on increasing plastic recyclability, increasing use of rPE and preventing plastic from becoming waste. We implement various solutions to impact these aims. I N C R E A S E U S E O F P O S T - C O N S U M E R P L A S T I C S P R E V E N T P L A S T I C F R O M B E C O M I N G W A S T E I N C R E A S E R E C Y C L A B I L I T Y 1. Design for recyclability resins 2. Recycled polyethylene (rPE) resins 3. Applications that incorporate rPE 4. Recyclable packaging design 5. Advanced recycling 6. Collaboration for a world free of plastic waste 17 <17 END>
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<START 18> Design for Recyclability Resins OUR PRODUCT PORTFOLIO includes SURPASS TX150-A resin for BOPE, HPs267-AB for material replacement and downgauging, the ASTUTE resins to make mono-material flexible packaging, and our Ready-to-Recycle resins that withstand multiple recycling processes. 1 4 6 2 Recycled Polyethylene (rPE) Resins WE HELP ADDRESS OUR CUSTOMERS’ CHALLENGES by offering SYNDIGO rPE. These resins are designed to support recycled content and decarbonization goals of converters and brands in flexible and rigid structures and include an FDA-compliant grade. Through three strategic long-term supply agreements, we also help companies meet their goals to increase the amount of post-consumer material used in various types of plastic products and packaging. 3 Applications that Incorporate rPE EXPERTS AT OUR CENTRE FOR PERFORMANCE APPLICATIONS PROMOTE CIRCULARITY by designing products that incorporate rPE. In one example, our team developed a series of customizable film structure designs formulated with rPE. The film structures, which incorporate recycled low-density and linear low-density polyethylene (rLDPE/LLDPE), can be tailored to meet the needs of customers who want to incorporate recycled content into products such as protective packaging for e-commerce. Recyclable Packaging Design WE CAN INCREASE OUR IMPACT ON THE PLASTIC CIRCULAR ECONOMY BY DESIGNING FOR CIRCULARITY up front. We collaborate with customers to develop recyclable packaging made using all polyethylene. For example, our BOPE-HD resin technology enables fully recyclable packaging for an expanded range of products without sacrificing performance. It is ideal for use in food packaging, heavy duty sacks, e-commerce, and other demanding applications. Developments like BOPE-HD are critical to achieving plastic industry commitments. We are working with a leading biaxially oriented tenter frame line manufacturer, to accelerate the development and commercialization of this technology and
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pplications. Developments like BOPE-HD are critical to achieving plastic industry commitments. We are working with a leading biaxially oriented tenter frame line manufacturer, to accelerate the development and commercialization of this technology and are collaborating with various biaxially oriented film producers to expand the availability of BOPE-HD film and enable the transition to fully recyclable mono-material packaging. 5 Advanced Recycling ADVANCED RECYCLING ADDRESSES THE HARD-TO- RECYCLE SEGMENTS OF PLASTIC WASTE through technologies such as gasification or pyrolysis, converting plastic waste to feedstocks for new plastic production. Through advanced recycling, used, non-recyclable and non-compostable plastics can be converted to feedstocks for virgin-grade plastics. We are developing advanced recycling through a joint development project at pilot stage with Enerkem and exploring other proven technologies. Collaboration for a World Free of Plastic Waste WE ARE COMMITTED TO WORKING WITH OTHERS IN THE GLOBAL COMMUNITY to proactively prevent plastic pollution and its impacts on people, economies, biodiversity, and natural resources while building a circular economy. We participate in global projects that contribute to innovation, infrastructure, education, and cleanup efforts. See the next page for details on our collaborative work and partnerships. 18 <18 END>
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<START 19> Collaborating to Prevent Plastic Waste NOVA Chemicals is an inaugural Knowledge Partner of the Canada Plastics Pact (CPP). The CPP is a multi-stakeholder, industry-led collaborative group that consists of members across the plastics value chain. Partners of the CPP share a vision of creating a circular economy in Canada and keeping plastic waste out of the environment. Knowledge Partners are organizations that provide professional, technical, and commercial systems knowledge that is crucial to advancing action on the CPP's Roadmap and achieving the CPP’s targets. NOVA Chemicals is a founding member of the Alliance to End Plastic Waste (AEPW) and we continue to work with its members to help end plastic waste in the environment. The AEPW consists of over 90 member companies and partners, and funds major projects across the globe that support communities and build sustainable waste management systems that fit their needs. In 2022, the AEPW is on track to divert 30,000 tonnes and recycle 21,000 tonnes of plastic waste through a portfolio of 35 major projects. The AEPW also launched Bersih Indonesia, its first flagship project to develop waste management systems to serve 2.6 million people in Malang, East Java. Alliance to End Plastic Waste Closed Loop Circular Plastics Fund Great Lakes Plastic Cleanup NOVA Chemicals advanced our engagement and continued our lead corporate sponsorship with the Great Lakes Plastic Cleanup (GLPC), an initiative of Pollution Probe and the Council of the Great Lakes Region. The largest initiative of its kind, GLPC uses more than 100 devices and five technologies across the binational Great Lakes to deploy innovative capture and cleanup technologies for removing plastics while collecting critical data to inform solutions to plastic pollution and to encourage stewardship in local communities. The initiative grew significantly this year and now boasts more than 90 collaborators, adding several new participating sites in Canada and expanding into
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data to inform solutions to plastic pollution and to encourage stewardship in local communities. The initiative grew significantly this year and now boasts more than 90 collaborators, adding several new participating sites in Canada and expanding into the U.S. where new plastic capture technologies are being piloted. Canada Plastics Pact™ Network We are a founding member of the Closed Loop Circular Plastics Fund (CPF) which was established in 2021 to deploy catalytic financing into sustainable technologies, organizations and projects that advance the recovery and recycling of plastics in the U.S. and Canada. The fund has a goal to deploy a $100 million (USD) investment and aims to recycle over 500 million pounds of plastic over the fund’s lifespan. In just its first year, the CPF made significant investments in a range of solutions, including cutting-edge sortation technology and recycling infrastructure for plastics. The CPF was awarded the “External Collaborator” award at the American Chemistry Council's (ACC's) Sustainability Leadership Awards in 2022. The award recognized the CPF's collaboration with NOVA Chemicals and other investors to fund the acceleration of investment in technologies, companies and infrastructure projects to source, process and return post- consumer and post-industrial polyethylene and polypropylene into manufacturing supply chains in the U.S. and Canada. 19 <19 END>
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<START 20> SUPPORT FOR POLICY SOLUTIONS NOVA Chemicals is a member of the ACC and CIAC. In addition to our 2030 ambitions, we continue to support the North American plastics industry’s goals. rPE SUPPLY We provide customers with multiple grades of rPE from mechanical recycling sources. COLLABORATION We invest in projects with global reach that prevent plastic from becoming waste. These projects contribute to innovation, infrastructure, education, and cleanup efforts. INVESTMENT We have collaborated with Enerkem to build a pilot scale reactor system to transform hard-to-recycle municipal waste, including plastics, into the basic building blocks of plastics. READY-TO-RECYCLE RESINS Ready to Recycle Resins: We offer seven resins that retain or improve their key physical performance when re-purposed multiple times through mechanical recycling. Retailer End Consumer Product & Packaging Manufacturing Oil & Gas Production NOVA Chemicals’ role to support the Plastic Circular Economy We are developing our knowledge and expertise and producing innovative products and solutions that contribute to maximizing the reuse and recycling of plastics. We aspire to be the most sustainable polyethylene producer by differentiating our business and developing innovative solutions for the Circular Economy. Polymerization rPE INCORPORATION Experts at our Centre for Performance Applications promote circularity by designing film structures and rigid products that incorporate rPE. DESIGN FOR RECYCLABILITY We help customers replace non-recyclable multi material packaging with recyclable packaging made with polyethylene. Collecting & Sorting Advanced Recycling Monomer Production Mechanical Recycling 20 <20 END>
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<START 21> 2022 Activities RECYCLED POLYETHYLENE BUSINESS To enable the NOVA 2030 strategy and our ambition to achieve 30% of our polyethylene sales from recycled content, we created NOVA Circular Solutions to focus on lower emission, recycled solutions to support the growing demand for recycled plastics. Advancements in Mechanical Recycling, Advanced Recycling and Designing for Better Recyclability will each play a key role. Driving growth of mechanically recycled plastic solutions, collaborations and investments across the value chain will ultimately enable us to achieve our ambitions. A new senior- level leader, the Director of Mechanical Recycling, was appointed to build our mechanical recycling business working along with our technical and commercial marketing experts. Together, they will help drive growth of NOVA Chemicals' business and achieve our circular economy sales ambition. ADVANCING OUR TECHNOLOGIES In December 2022, we reached mechanical completion of our second Advanced SCLAIRTECH technology facility and Corunna Cracker Expansion Project. The facility will have a production capacity of approximately one billion pounds of polyethylene per year, and the Cracker Expansion will provide ethylene feedstock to the new facility, expanding the existing cracker’s current capacity by more than 50%. DRIVING QUALITY FOR USE IN HIGH PERFORMING AND DEMANDING APPLICATIONS In 2022 we continued to work with our suppliers to enhance the performance of our rPE to be used in the products and applications that will assist brands and retailers in meeting their sustainability goals. We also saw the beginning of supply of high performing high density rPE from our long-term collaboration with Merlin Plastics Supply Inc. Merlin completed a capital project, partially financed by NOVA, to supply rPE for use in food packaging applications. Sales of this product will begin in 2023. EXPANSION OF HDPE RESINS We introduced our new specialized High Density Polyethylene (HDPE)
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lin completed a capital project, partially financed by NOVA, to supply rPE for use in food packaging applications. Sales of this product will begin in 2023. EXPANSION OF HDPE RESINS We introduced our new specialized High Density Polyethylene (HDPE) resin technology for machine direction oriented (MDO) and biaxially oriented (BO) processes. Our innovative technology, SURPASS HPs153-A resin produces 100% high-density MDO films. These films can replace mixed material, non- recyclable films to produce fully recyclable all polyethylene laminates with high performance characteristics such as high stiffness to maintain alignment for printing and converting, excellent heat resistance to minimize shrinkage during packaging conversion, and exceptional clarity. MADE-IN-ALBERTA CHEMICAL RECYCLING TECHNOLOGY We collaborated with Enerkem in 2020 to explore turning non-recyclable and non- compostable municipal waste into ethylene. In 2022, the project received CDN$4.5 million in funding from Alberta Innovates, to advance this technology to a pilot stage in Edmonton, Alberta. This funding allowed us to expedite the construction of a pilot- scale reactor system that converts syngas produced from used, non-recyclable and non-compostable plastics to feedstocks for virgin-grade plastics. This project demonstrates that collaboration across the value chain is key to producing solutions for the plastic circular economy. 21 <21 END>
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<START 22> Climate Care NOVA Chemicals is striving towards our 2030 and 2050 decarbonization ambitions through our actionable roadmap for emissions reductions. Today, we are at the investigation and development stages. We manage the key climate related physical and transition risks and opportunities of our business. As a leader in the North American polyethylene industry, we will continue to drive decarbonization through our sector-leading ESG ambitions established along with our new NOVA 2030 Strategy. Our Roadmap to Net-Zero In line with our 2030 Strategy and our Roadmap to Sustainability Leadership, we are developing a technical solutions- focused roadmap for decarbonizing our asset base. NOVA Chemicals’ roadmap for decarbonization includes improving energy efficiencies, electrifying and acquiring renewable power. We are exploring clean hydrogen as a low carbon fuel source, Carbon Capture, Utilization, and Storage (CCUS) and innovative, new technologies to minimize emissions from our production processes, such as our proprietary LEEP technology that is in development. The decarbonization strategy contributes to global ambitions to reach net-zero by 2050. To begin our decarbonization journey, we set our initial aspiration at achieving a 30% reduction in CO2e emissions under operational control by 2030 from a 2020 baseline. Our 2030 ambitions are shorter-term objectives that will help us achieve our ultimate aspiration of net-zero Scope 1 and 2 CO2e emissions by 2050. We also have an ambition for 30% of our polyethylene sales by volume to come from recycled content by 2030. Much of this will be achieved through our approach to mechanically recycled resin, a low- carbon solution that is typically 20% of the Scope 1 and 2 emissions of NOVA Chemicals’ average virgin resin production. Our focus to improve the circularity of polyethylene will achieve lower life cycle GHG emissions in the use of the polyethylene products we sell and we will reduce the emissions of our recycled
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ns of NOVA Chemicals’ average virgin resin production. Our focus to improve the circularity of polyethylene will achieve lower life cycle GHG emissions in the use of the polyethylene products we sell and we will reduce the emissions of our recycled content business in accordance with our 2030 and 2050 GHG reduction ambitions. To achieve these aspirations, NOVA Chemicals anticipates investing between USD $2-4 billion by 2030. With this investment, we expect to expand our product offerings, decarbonize assets, and build a state-of-the-art mechanical recycling business. OUR AMBITION • To reduce Scope 1 and 2 CO2e emissions under operational control by 30% by 2030 from 2020 levels • Achieve net-zero Scope 1 and 2 emissions by 2050 WHY IS IT IMPORTANT FOR US TO REDUCE OUR GHG EMISSIONS? By reducing GHG emissions from our operations, we can mitigate our contributions to climate change, realize energy efficiency savings, reduce our compliance costs, and offer lower carbon products to the market. 22 <22 END>
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<START 23> DECARBONIZATION Our Roadmap to 2030 and Beyond Refer to Actioning our Decarbonization Roadmap to learn more. Note: This chart is illustrative of NOVA’s decarbonization projects in investigation. NOVA has made no and does not make any commitment as to these projects by way of this chart. 2020 TOTAL EMISSIONS* 2050 Change in Emissions * Emissions include scope 1 and 2 within operational control. ** In 2023, NOVA Chemicals will complete commissioning of the construction started in 2017 on its second Advanced SCLAIRTECH technology facility and Corunna Cracker Expansion Project in the Sarnia-Lambton region, together adding approximately 1 billion pounds of polyethylene capacity per year, and ~150 permanent full-time jobs in the region. Efficiency Improvements Planned Growth Emissions** SYNDIGO Recycled Product Growth Electrification and Renewable Power Clean Hydrogen, CCUS, LEEP, Other Technologies NET ZERO AMBITION 2030 30 % REDUCTION ASPIRATION 23 <23 END>
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<START 24> Climate-related Risks and Opportunities NOVA Chemicals strives to enhance our resilience to risks associated with climate change. In 2022, we initiated a climate- related risks and opportunities assessment in line with the recommendations of the TCFD. We identified and prioritized risks and opportunities through a series of interviews with our internal stakeholders as well as a review of our risk registers and recent and historic events, impacts, and exposures. This section provides insights into the material climate-related risks, categorized as either transition1 or physical2 climate risks, that may impact our business. (For detailed information please see Tables 1, 2, and 3 in the TCFD Index). In addition to risks, climate-related opportunities could come in the form of a change to market and consumer preferences that benefit the company, an expected increase in the availability of renewables, new markets or new operational locations, an expected increase in demand for certain products, or a competitive advantage. Increasing stringency of emissions- related regulations in Canada and the U.S. emerged as a significant policy and legal risk for NOVA Chemicals. Regulations like the Alberta Technology Innovation and Emissions Reduction Regulation and Ontario Emissions Performance Standards are expected to be introduced in several jurisdictions across North America. Other mechanisms such as carbon pricing, cap-and-trade system, or carbon border adjustments are also being considered by governments. Our decarbonization roadmap as well as associated technology improvements such as LEEP technology will play a significant role in mitigating these policy and legal risks. We are also cognizant of increasing policy-driven limitations on plastic usage and/or single-use plastics. Alongside emerging policies, we are observing a shift in consumer preferences due to increasing awareness of climate change and plastic waste. Consumers are trending toward
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sing policy-driven limitations on plastic usage and/or single-use plastics. Alongside emerging policies, we are observing a shift in consumer preferences due to increasing awareness of climate change and plastic waste. Consumers are trending toward choosing brands that have environmentally sustainable practices, which may lead to a change towards low-emissions products and reduced demand for fossil fuel- based plastic products3. This may have implications on our brand image as well as sales and revenue. NOVA Chemicals considers this as an opportunity to enhance the sustainability of our products. Our NOVA 2030 strategy and planned expansion of our rPE and sustainably-linked product line will help us in navigating this trend in consumer preferences and transition to a low-emissions and circular economy. On the physical risk side, we see significant variation in the type of risks associated with our owned facilities due to regional variations in weather patterns, water demand, and impacts of climate change. Our assets have varying exposure to water stress and windstorms. We rely significantly on the availability of water for cooling and steam production. Water shortage and stress, especially in the Joffre region in Alberta, may cause operating outages and slowdowns, and associated financial losses. On the other hand, windstorms near our Geismar, Louisiana, facility could cause wind damage, storm surges, floods, power outages, and petrochemical plant damage with flaring, and pollution to the air. These physical risks not only have the potential to disrupt our operations, but also our supply chain. NOVA Chemicals manages these hazard exposures through the implementation of mitigation strategies such as Emergency Response Plans and water collection and treatment facilities at our manufacturing sites. Climate Scenario Analysis We conduct climate scenario analyses to identify and evaluate the impact of potential climate-related risks and opportunities
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Emergency Response Plans and water collection and treatment facilities at our manufacturing sites. Climate Scenario Analysis We conduct climate scenario analyses to identify and evaluate the impact of potential climate-related risks and opportunities across our business to inform our climate- related decision-making and better prepare the company for possible outcomes in the medium (2030) and long term (2050). Our scenario analysis incorporates a range of business considerations based on third- party scenarios. The transition risks are evaluated by quantifying the inherent and residual financial impact and qualitatively exploring the magnitude of impact using scenario narratives and data from S&P IHS Markit and from Chemical Market Analytics by OPIS, a Dow Jones Company. For the physical risk scenario analysis, we utilize global climate models from the Intergovernmental Panel on Climate Change (IPCC) to quantitatively project the inherent magnitude of the potential impact and supplemented the analysis with qualitative research insights. Please review the TCFD Index for additional information. 1 Transition risks are climate-related risks arising out of governmental, market, or other actions associated with the transition to a low-carbon economy. These may include events such as change in consumer preferences, the implementation of climate-related regulations, the deployment of clean energy technologies, or an increase in legal liabilities for high-carbon emitting entities. 2 Physical risks are those climate-related risks that arise from the physical impacts of climate change. As in the TCFD framework, NOVA Chemicals considers these risks to be either chronic, such as long-term variability in weather patterns, or acute, such as individual extreme weather events such as windstorms. 3 Sources include NOVA Chemicals’ consumer trends research, and the McKinsey & Co. article, Do consumers care about sustainability & ESG claims? 24 <24 END>
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<START 25> Management Approach: Actioning Our Decarbonization Roadmap The decarbonization strategy is supported by a roadmap of GHG opportunities identified at all of NOVA Chemicals' operating locations. Efficiency improvements: We look for opportunities to make equipment upgrades and process improvements that increase efficiency and lead to lower GHG emissions. Renewable power and electrification: We are actively seeking opportunities to enhance our already efficient approaches to power generation for our sites by adding renewable power sources, either through direct purchases or other agreements. Each region has its own opportunities for Scope 2 emissions reduction based on the current grids, regulations, infrastructure, and access to carbon sequestration, among other factors. Clean hydrogen and CCUS: Our existing facilities were designed to use fossil fuels to provide most of the energy required to manufacture our products. Unlike fossil fuels, hydrogen combustion does not generate CO2 emissions, and so it can be used as a low carbon emissions fuel to replace natural gas. Clean hydrogen refers to the production of hydrogen with lower carbon intensity than the steam methane reforming process. Production of hydrogen as a by-product of the ethane cracking process, reformer production abated with carbon capture and storage (commonly referred to as blue hydrogen), and the electrolysis of water using low carbon power (commonly referred to as green hydrogen) are some examples of clean hydrogen. We are evaluating the use of clean hydrogen as a way to decarbonize our ethylene cracking process. Carbon capture and storage is another important technology that can be retrofit to existing facilities to abate GHG emissions. Emerging technologies: A key area of focus for our forward-looking decarbonization strategy is the pursuit of emerging technologies, such as our proprietary LEEP technology under development. We continue to engage with industry and academia to evaluate new
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technologies: A key area of focus for our forward-looking decarbonization strategy is the pursuit of emerging technologies, such as our proprietary LEEP technology under development. We continue to engage with industry and academia to evaluate new and innovative technologies that have the potential to further enhance and enable our decarbonization plans. Alongside exploring new technologies, we focus on optimizing the efficiency of our current assets in the following ways: • Cogeneration: In Alberta and Ontario, we currently obtain electricity produced from cogeneration facilities that use natural gas to generate electricity and steam, resulting in lower GHG emissions intensity compared to stand-alone electricity and steam production. Cogeneration also provides a reliable electricity supply that is important for maintaining the stable operation of our production facilities. We are also looking for technologies that will meet our long- term electricity and steam needs. • Fugitive emissions program: While our fugitive emissions of methane are a small portion (less than 1%) of our total GHG emissions, we focus on reducing the release of methane and other hydrocarbons. At all our facilities, we have leak detection and repair (LDAR) programs to control all hydrocarbon leaks, including methane. 25 <25 END>
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<START 26> 2022 GHG Emissions Scope 1, 2 & 3; (MT CO2e) Upstream Activities Downstream Activities Reporting Company How We Generate GHG Emissions The vast majority of our GHG emissions (~99%) are CO2 from combustion, with the remainder composed of methane and nitrous oxide. Our operations generate GHG emissions in the following ways: SCOPE 1: 94% of our Scope 1 GHG emissions are a result of the ethylene manufacturing process. Ethylene is the foundation of our main product, polyethylene, and is one of the most important raw materials in the petrochemical industry. SCOPE 2: For our manufacturing processes, the majority of electricity we use comes from natural gas-fired cogeneration, which produces both power and steam for our operations. We also require electricity to power our manufacturing and research facilities and offices. SCOPE 3: Our most material Scope 3 emissions result from our feedstock, downstream processing, and end-of-life treatment of goods produced with our products. While our Scope 3 emissions methodology follows the GHG Protocol Corporate Value Chain (Scope 3) Reporting Standard, estimating Scope 3 emissions can be challenging and we will continue to refine our methodology as the industry evolves its understanding of appropriate accounting methodologies and sources of data improve in accuracy and availability. Scope 3 Emissions Raw materials purchased Capital goods Fuel & energy related services Upstream transportation & distribution Downstream transportation Processing of sold products Use of sold products End of life of sold products Waste generated in operations Fuel and energy related activities Franchises Use of sold products Purchased goods and services Capital goods Transportation and distribution Transportation and distribution Business travel Leased assets Leased assets Company vehicles Company facilities Employee commuting Scope 3 Indirect Scope 3 Indirect Scope 1 Direct Scope 2 Indirect Purchased electricity, steam,
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distribution Transportation and distribution Business travel Leased assets Leased assets Company vehicles Company facilities Employee commuting Scope 3 Indirect Scope 3 Indirect Scope 1 Direct Scope 2 Indirect Purchased electricity, steam, heating & cooling for own use Investments Processing of sold products End-of-life treatment of sold products CO2 CH4 SF6 N2O HFCs PFCs UPSTREAM DOWNSTREAM Scope 3 Scope 1 Scope 2 26 <26 END>
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<START 27> 2022 Activities DEVELOPING OUR CLIMATE CARE STRATEGY AND DECARBONIZATION ROADMAP In 2022, we continued development of our roadmap to drive decarbonization which we announced in early 2023. As a next step towards progress, NOVA Chemicals recently entered into a long-term Virtual Power Purchase Agreement (VPPA) with Shell Energy North America (Canada), Inc. to purchase 20 MW of renewable power and associated emissions offsets beginning in spring 2023. Through this agreement, we have started purchasing the power now being produced by BluEarth Renewables Inc. at its Hand Hills Wind Project. BluEarth’s Hand Hills Wind Project will feature 29 turbines across 12,000 acres, and will generate 145 MW of energy. This agreement with Shell Energy is a pivotal step in our decarbonization roadmap and signifies our commitment to achieve our emissions reduction ambitions. For more information on our VPPA, please see our press release. DEVELOPED OUR CARBON NEUTRAL POUCH NOVA Chemicals created a carbon neutral pouch to demonstrate carbon neutrality in an all-polyethylene, recyclate-containing package. The carbon footprint was first reduced through smart product design and incorporation of recycled high-density polyethylene. The remaining carbon footprint was then offset via investment in a verified emission reduction project. COLLABORATION TO REDUCE EMISSIONS AND IMPROVE PERFORMANCE Our frontline employees continue to engage in optimization and problem solving, collaboratively developing solutions that have significant sustainability and performance benefits. OUR PERFORMANCE GHG Emissions (Operation Control) Our total absolute Scope 1 and 2 GHG emissions have decreased by 8% over the last five years as a result of reduced production. Due to lower production, our emissions intensity has increased by 5% during the same time period. In general, as NOVA Chemicals increases production, there is a corresponding increase in GHG emissions. Our assets are
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as a result of reduced production. Due to lower production, our emissions intensity has increased by 5% during the same time period. In general, as NOVA Chemicals increases production, there is a corresponding increase in GHG emissions. Our assets are most efficient when running at full capacity, and high emitting years often demonstrate efficient performance in terms of GHG emission intensity. In 2022, we experienced challenging market conditions and planned activities which resulted in lower absolute emissions but higher intensity than in previous years. While our absolute emissions are expected to increase with the start up of our new Advanced SCLAIRTECH technology facility in 2023, our decarbonization roadmap will guide us to our 2030 ambition. 27 <27 END>
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<START 28> Management Approach: How We Manage Air Emissions We measure air quality through the concentration of air pollutants such as oxides of nitrogen (NOx), sulfur dioxide (SO2), volatile organic compounds (VOCs), hazardous air pollutants (HAPs), and particulate matter (PM). Air emissions are regional issues, and we manage them at the facility level. All monitoring, repair, and reporting activities are conducted in accordance with the applicable regulatory requirements. Our strategies for optimizing our operational performance include: REDUCING FLARING We implement process optimization and advanced process control strategies to reduce flaring, lessen VOCs and, other air emissions. To upgrade our manufacturing technology, conduct repairs, and perform maintenance, we occasionally shut down production which necessitates hydrocarbon flaring. We work to minimize flaring in the safe shutdown and subsequent startup of production processes. ACTIVITIES FOR REDUCING AIR EMISSIONS Our facilities use a combination of approaches to reduce air emissions including: • Using cleaner alternatives for facility feedstock and fuel supplies • Implementing low-NOx burners to reduce NOx at the combustion stage • Incorporating selective catalytic reduction technology, which reduces the levels of NOx from exhaust gas by having it react with a catalyst • Using thermal oxidizers that use high temperature to reduce HAPs and VOCs • Continued focus on LDAR programs at manufacturing facilities to identify and record fugitive emissions ADAPTING TO REGULATIONS We operate in accordance with air emissions regulations in the regions where we operate. The Multi-Sector Air Pollutants Regulations (MSAPR) apply to our Canadian facilities and require investments to reduce the rate of NOx emissions from some of our boilers and heaters in Ontario. Air Emissions Preserving regional air quality is essential to being a good neighbor and protecting the quality of the environment and the health of our employees
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ents to reduce the rate of NOx emissions from some of our boilers and heaters in Ontario. Air Emissions Preserving regional air quality is essential to being a good neighbor and protecting the quality of the environment and the health of our employees and community members. WHY IS IT IMPORTANT FOR US TO MANAGE OUR AIR EMISSIONS? Regional air quality is critical for maintaining a healthy environment for both our employees and community members in the places we operate. It is also a key concern for regulators, and air emissions are being increasingly regulated. 28 <28 END>
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<START 29> 2022 Activities ENVIRONMENTAL PROGRAM MANUAL To support our efforts to align with RC14001® certification, a management system standard that combines elements of Responsible Care and ISO® 14001, we began developing the corporate Environment Program Manual. This manual describes the various methods, procedures, and programs we use to meet regulatory and Responsible Care requirements while minimizing environmental impact and exposure at NOVA Chemicals' facilities. The manual includes information around setting reduction goals and objectives, prioritizing work using a risk-based approach, implementing science-based solutions and best practices, and adopting continual improvement methods. We expect to complete the manual in early 2023. CONTINUOUS IMPROVEMENT AT JOFFRE, ALBERTA Our polyethylene facility in Joffre was upgraded in 2021 to reduce flaring and associated emissions using an innovative approach. In 2022, we performed an operating trial of the upgrades; however this trial did not perform as expected. We continue to pursue this project as a source of air and GHG emissions reduction opportunity. NOx REDUCTION PROJECT AT SARNIA, ONTARIO As part of our multi-year project for NOx emissions reduction, additional NOx emissions testing was performed to support the final equipment classification under the MSAPR (see page 28) for several boilers and heaters at our Ontario facilities. We have also refined the scope of work and timelines for various projects to reduce NOx emissions in accordance with the MSAPR requirements. OUR PERFORMANCE Air Emissions Air Emissions Intensity Our annual air emissions variations are primarily due to facility operating rates, annual source emission test results, refinements in the estimation methodology and changes in fuel composition to support plant start ups. 29 <29 END>
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<START 30> How We Manage Operational Waste A variety of waste streams are produced from our manufacturing processes. The scrap polyethylene we produce is fully recyclable and is used by other companies as a raw material to create final plastic products. The majority of our waste consists of unusable by-products from manufacturing such as waste residues and sludges, filtration media, spent catalysts, used oils, and other types of waste. Some of our wastes also contain chemical compounds that must be separated or treated before they can be safely disposed. WASTE HIERARCHY Our waste management hierarchy tool (based on work by the U.S. Environmental Protection Agency) ranks our options for waste management. The goal of using this tool is to direct more waste streams and increased volumes of waste toward the management options at the top of the waste hierarchy (prevent, reuse, recycle) and avoid disposal, wherever possible. WASTE PRIORITIZATION Our reduction strategies prioritize waste streams based on associated risks and opportunities. For example, we consider volume when prioritizing waste, but also include factors such as hazardous versus non-hazardous characteristics, transportation distance from our site to final disposal, the current disposal method, and the potential for reuse, recycling, or energy recovery. WASTE PREVENTION We explore different ways to recycle the scrap polyethylene we produce to avoid disposal. More than 99% of our scrap polyethylene is sent to recyclers for reprocessing. Waste We work to achieve our vision of developing solutions that enable a circular economy through waste prioritization, management, prevention, and reuse efforts. Aligned with this vision, we continue to champion zero pellet loss at our sites and in our supply chain. OUR AMBITION We aim to maintain our annual performance of zero plastic pellet loss to the environment from our facilities. What does our ambition mean? Zero plastic pellet loss means that no resin pellets are spilled
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ur sites and in our supply chain. OUR AMBITION We aim to maintain our annual performance of zero plastic pellet loss to the environment from our facilities. What does our ambition mean? Zero plastic pellet loss means that no resin pellets are spilled to the environment during NOVA Chemicals' manufacturing processes. This ambition aligns with our view that plastic does not belong in the environment and our vision to advance the plastic circular economy. For the last three years, we have experienced zero plastic pellet loss from our site boundaries in accordance with Operation Clean Sweep® (OCS) and we continue to operate in a manner that maintains that performance. WHY IS IT IMPORTANT FOR US TO MANAGE OUR WASTE? Reducing our waste helps to make our facilities more efficient and reduces the impacts of our operations on the environment and the costs and risks associated with waste handling, transportation, and disposal. 30 <30 END>
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<START 31> WASTE (TONNES) 2022 Non-hazardous waste 32,760 Non-hazardous waste reused 21,510 Hazardous waste 95,840 Hazardous waste recycled 29 Spent lime/phosphate is a by-product of our water treatment process at the Joffre facility and represents our largest non-hazardous waste stream. This waste is reused in local soil enhancement programs. The increase in 2022 is due to planned maintenance activities at the Joffre facility. Removing carbon dioxide from our primary feedstock results in a caustic waste by-product that is stored in local wells. This is our largest hazardous waste stream, which like all hazardous waste is managed according to regulatory and Responsible Care guidelines. WASTE REUSE We are always seeking new opportunities to create value-added uses for our waste streams. For example, spent alumina from our St. Clair site is used as an additive for cement. CHAMPIONING ZERO PELLET LOSS We continue to support Operation Clean Sweep, a campaign to prevent plastic pellets, powder, and flake loss at plastic- handling facilities. The OCS program aligns with our vision that plastics do not belong in the environment, and we believe that achieving that vision starts with our actions. Preventing pellet loss at our sites and in our supply chain is a top priority. As part of OCS, we conduct quarterly assessments at each of our sites to ensure that we have the appropriate tools available for clean up and 2022 marked the first full year of completed quarterly assessments. 2022 Activities OCS ACCOMPLISHMENTS As part of our commitment to OCS, we focused our efforts across four different implementation areas including audits and assessments, facility upgrades, continuous improvement, and awareness and accountability. Notable efforts we made in 2022 included completing the Opportunity List Assessment and Ranking for one of our Joffre polyethylene plants, installing cleanup tools and equipment at our Joffre facility, incorporating OCS into specific operating
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lity. Notable efforts we made in 2022 included completing the Opportunity List Assessment and Ranking for one of our Joffre polyethylene plants, installing cleanup tools and equipment at our Joffre facility, incorporating OCS into specific operating procedures, and provided input to the CIAC on auditing mechanisms and best practices to support improvements across the industry. To continue our commitment, we have also developed our 2023 goals across the four implementation categories for our sites, Innovation Centers, and Corporate operations. OCS CLEAN-UP CONTESTS In June 2022, the Operations teams at the Moore and St. Clair River sites turned our commitment to OCS into action by participating in our OCS Clean-Up Contest. During our planned outages at the sites, teams took part in a historical resin clean- up. Removing historical resin waste helps us to meet our OCS goals, discover sources of waste, and identify problem areas. 2022 IMPACT ACTIVITY 5,900 tonnes of scrap PE recycled 11,640 tonnes spent lime/ phosphate by- product diverted from landfill 40 tonnes of PE diverted from landfills 1,170 tonnes of spent alumina diverted from landfill All scrap polyethylene is sent to a processor of post-industrial plastics for use in manufacturing, either directly or following processing, into recycled pellets. At some of our sites, we generate waste (composed of lumps and strands) during production changeovers. A plastics company safely processes the lumps and strands from our St. Clair River and Moore sites and recycles them. We use alumina (aluminum oxide) in our operations. Although we reuse the alumina, it loses its properties over time. Since 2018, we have sent spent alumina to an industrial company to be used in making cement. Alumina has rapid hardening properties and enhances cement for marine construction, sewer infrastructure, and structural concrete applications. Some of our sites generate spent lime/phosphate by-product which is a recyclable waste stream. Our
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cement. Alumina has rapid hardening properties and enhances cement for marine construction, sewer infrastructure, and structural concrete applications. Some of our sites generate spent lime/phosphate by-product which is a recyclable waste stream. Our Joffre, Alberta, site makes this material available for use as a soil enhancement by landowners in the local area. This application of the spent lime/phosphate material enhances the soil properties of locally acidic soils and keeps this by-product out of area landfills. A CIRCULAR APPROACH TO OPERATIONAL WASTE We continue to implement waste reduction programs at many of our sites and were able to divert more than 18,000 tonnes through the following programs: 31 <31 END>
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<START 32> Management approach: How We Manage Water Use and Quality Water is essential in our manufacturing processes, especially in cooling and generating steam. We withdraw the water we require for our industrial processes from the St. Clair, Red Deer, and Mississippi rivers. A multi-disciplinary team of water-related experts guides our corporate approach to water management. The team is composed of environmental and technical specialists representing all manufacturing facilities as well as corporate innovation and environmental affairs personnel. The team is accountable for identifying and mitigating water-related risks; advocating for water conservation, recycling, or reuse; reducing water-related environmental impacts; and supporting water optimization projects across the company. Our water management strategies include: WATER REUSE Our Joffre site has four stormwater retention ponds that allow us to store and use surface runoff from captured precipitation. We treat the water from these retention ponds through softening and clarification before it is reused in our operations. Water reuse accounts for around 5% of our annual site water use. MINIMIZING WATER USE Our internal project design and review processes evaluate how water is used at NOVA Chemicals facilities. Given that a significant amount of our water use is related to cooling, our efforts to improve energy efficiency (by reducing the heat load on our facilities) also contributes to improving water efficiency. WATER TESTING AND TREATMENT Almost all of the water we use is returned to the environment through evaporation from cooling towers and water retention ponds. Any water that is returned to surface water bodies goes through a rigorous testing and treatment process aligned with regulatory requirements and environmental standards. UNDERSTANDING WATER AVAILABILITY Availability of water fluctuates across the different regions in which our manufacturing facilities operate, which
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gorous testing and treatment process aligned with regulatory requirements and environmental standards. UNDERSTANDING WATER AVAILABILITY Availability of water fluctuates across the different regions in which our manufacturing facilities operate, which poses challenges in determining water use priorities and conservation. We are focused on evaluating all of our water-related risks and advancing our water use initiatives. See TCFD Index for water risk analysis. Water Water is a valuable resource and a critical part of our manufacturing processes. We test and treat all water returned to the environment, reuse water wherever possible, and are continually working to minimize the impact of our operations in water-scarce regions. OUR AMBITION Develop a strategic water roadmap by 2025 that will identify actions that can help us reduce water use or improve our water efficiency in our operations. What does our ambition mean? We are focused on gathering and reviewing our water data to better understand our water risks (scarcity) and opportunities (equipment or process efficiencies). We plan to identify operational and facility actions that can help us reduce water use or improve water efficiency in our operations. 32 <32 END>
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<START 33> 2022 Activities We made progress on several major initiatives in 2022, including: ENHANCED WATER RISK ASSESSMENT In 2022, we completed a Water Body Risk Assessment to progress our understanding of water risks. The review used water risk indicators based on the World Resources Institute Aqueduct 3.0 database for each operating facility (Joffre AB, Sarnia ON, and Geismar LA) to assess baseline, 2030, and 2040 risks. Each of our manufacturing facilities face regional water risks which range from high water stress, seasonal variability, eutrophication, and floods. Following this assessment, we are progressing additional activities to update and review our portfolio of water reduction opportunities. We are also focused on enhancing water data visibility via internal scorecards and reporting systems. REVIEW OF EMERGING REGULATIONS NOVA Chemicals is in the process of reviewing emerging policies and regulations as well as disclosure standards and guidelines. The key objective of this exercise is to map water-related risks and opportunities, understand how and when they might emerge, and create appropriate strategies to mitigate the risks and capitalize on opportunities. In addition to issues such as water stress and quality, we are focusing on emerging regulations in North America and Europe to assess the implications on our operations. MODERNIZED WASTEWATER TREATMENT PLANT The Corunna Wastewater Treatment Plant (WWTP) Upgrade Project was completed in 2022 to replace the end-of-life primary oil and water separators in the chemical and oily water sewers. The project consisted of several infrastructure changes including the addition of a Vapour Recovery Unit to treat air emissions such as hydrogen sulfide and hydrocarbons with residual emissions. Through the project we also converted a tank to serve as extra water storage in the event of storm surges, plant incidents and off-spec effluent water. We expect to see several operational benefits from
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ide and hydrocarbons with residual emissions. Through the project we also converted a tank to serve as extra water storage in the event of storm surges, plant incidents and off-spec effluent water. We expect to see several operational benefits from these upgrades including a reduction in air emissions from the wastewater treatment plant, improved water treatment reliability, and additional water storage. With the new upgrades, the Corunna WWTP is also better equipped to receive wastewater effluent from the Rokeby site, where our new Advanced SCLAIRTECH technology polyethylene plant is located. WHY IS IT IMPORTANT FOR US TO MANAGE OUR WATER USE? Water is an important shared resource for NOVA Chemicals and the communities we serve. By minimizing our water consumption and preserving water quality, we are contributing to the long-term sustainability of this shared resource. WATER (THOUSAND M3) 2022 Water withdrawn 36,300 Water discharged 21,240 Most of the water we withdraw is used for cooling and generating steam. A significant amount is returned to the watershed through evaporation from our cooling towers and water retention ponds. 33 <33 END>
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<START 34> At NOVA Chemicals, we are working toward a more inclusive working environment, and we continue to advance the development and well-being of our people. We have a responsibility to ensure the safety of our employees, contractors and visitors, customers who handle and use our products, and communities near our operations and transportation routes. Through the execution of our growth plans and our community investment efforts, we seek to create a positive impact in the communities where we live and work. I N T H I S S E C T I O N Inclusion and Diversity 35 Talent Management 39 Employee Health and Wellness 41 Transportation Safety 53 Employee and Contractor Safety 43 Community and Indigenous Relations 56 Process Safety 47 Product Safety 50 34 <34 END>
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<START 35> A workforce that fosters diversity and builds engagement and a sense of belonging helps to attract and retain top talent and improve overall business performance. We recognize that there are many aspects of diversity and we are beginning our initiatives with age, gender, race, sexual orientation, and disability status, as those populations represent the groups that are traditionally underrepresented in our company and industry. Inclusion and Diversity We aim to be an agile, high-performing team and create an environment where employees feel they belong, are engaged, and represent the communities where we live and work. This means that we strive to improve our recruiting and engagement practices to support an inclusive culture where everyone feels they can be their authentic self. OUR AMBITION By the end of 2030 we aspire to achieve a: 10 % increase in diversity across all levels of the organization from our 2020 baseline 30 % representation of women across all levels of the organization 5 % increase in representation of people of color in leadership from our 2020 baseline 10 % increase in women in leadership from our 2020 baseline In 2022: 25 % OF NOVA CHEMICALS’ WORKFORCE WERE WOMEN We initiated an internal diversity survey in order to track our diversity within our organization and enable future reporting. The diversity survey measures the following: • LGBTQ2+ • Gender (Identify As) • Disability • Race/Ethnicity 24 % OF MANAGEMENT WERE WOMEN 35 35 <35 END>
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<START 36> Management Approach: How We Foster Inclusion and Diversity At NOVA Chemicals we are dedicated to creating an inclusive and equitable culture and achieving diverse representation in our workforce. Our I&D Strategy establishes clear aspirations and expectations for creating an inclusive and diverse workplace. Five strategic pillars guide our activities: 1. BUILD AN INCLUSIVE CULTURE We promote a caring and inclusive environment where leaders foster openness and belonging so that every employee can bring their full selves to work. 2. ATTRACT AND RETAIN DIVERSE TALENT We work to develop a robust talent pipeline and inclusive hiring and promotion practices to ensure that NOVA Chemicals is a highly sought after place of employment. This would also aim to ensure employees feel valued at work, and are treated fairly in compensation and career progression. In 2020, we established a baseline for various aspects of diversity (e.g., gender, disability status) that we use to measure our progress. We are continuing to monitor the diversity of our workforce through our diversity census. 3. DIFFERENTIATE THE EMPLOYEE EXPERIENCE We develop and implement policies, programs, and flexible benefits that serve the unique needs of diverse groups. For example, we continue to promote employee involvement in informal development networks such as The NOVA Network (an internal volunteer network that provides development opportunities) and the Ellevate Network® (an external, global networking and development community program for professional women). 4. MAINTAIN ROBUST INCLUSION AND DIVERSITY COLLABORATION We established formal I&D roles, responsibilities, and accountability structures and will regularly measure our progress. Key features of our structure include: a. Our Inclusion and Diversity Council which consists of 12 employee volunteers who provide insights to executive and human resource leadership to help build diversity and a sense of belonging for all
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progress. Key features of our structure include: a. Our Inclusion and Diversity Council which consists of 12 employee volunteers who provide insights to executive and human resource leadership to help build diversity and a sense of belonging for all employees. See page 38 for details. b. The Business Conduct Policy (our Code of Conduct) outlines our responsibilities and expectations for workplace behavior around I&D. c. Questions or concerns can be raised through NOVA Chemicals’ EthicsPoint®, our 24-hour confidential and anonymous (or otherwise) telephone and online reporting system. 5. ENGAGE WITH THE COMMUNITY AND EXTERNAL PARTNERS We aim to work with our partners to establish ourselves as a recognized leader for change across our supply chain and in the broader community. OUR PERFORMANCE Women at Various Levels In the last year, we saw an increase in women at the management level, although the percent women in our total workforce has remained the same. We have laid the groundwork for change with our I&D Strategy and will work to improve these trends as we put greater focus on building a Diversity Recruitment Strategy while continuing to mature our culture of inclusion. 36 <36 END>
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<START 37> 2022 Activities EMPLOYEE RESOURCE GROUPS To build our inclusive culture, the I&D Council is involved with our Employee Resource Groups (ERGs). ERGs play an important role in supporting our employees with any challenges they may encounter and making them feel safe, appreciated, and respected as we continue to grow. During the year, our main priority was to grow Women in NOVA (WIN) ERG and continue providing support, networking, and education opportunities to this group. In 2022, the WIN ERG took part in social events which included Breast Cancer awareness and a speed networking event. The ERG's upcoming tasks will include creating the group's charter, scheduling engagement events, and providing networking opportunities. I&D TRAINING OPPORTUNITIES AND RESOURCES In 2022, we established three I&D trainings and workshops: Belonging, Decide, and Include, to support our employees and leaders in developing new skills, overcome biases, and build stronger connections. We also developed a dedicated I&D microsite and I&D calendar to provide additional information to our employees. Employees can access digital resources from internal and external sources to support personal learning and embed I&D into everyday meetings and conversations. Throughout the year, inclusion moments were created as education around the eight heritage months that could be utilized for discussions at team meetings and individual learning. EMPLOYEE DIVERSITY CENSUS To better understand our employee population and the diversity at NOVA Chemicals, a Diversity Census was launched in 2022. We recognize that our organization includes people from different backgrounds and we strive to create a more inclusive environment by deepening our knowledge of our diverse workforce. The census consists of questions around gender, race, disabilities, and sexual orientation. The data we gather from responses will be used to design and implement programs that will better meet the needs of all employees at
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of our diverse workforce. The census consists of questions around gender, race, disabilities, and sexual orientation. The data we gather from responses will be used to design and implement programs that will better meet the needs of all employees at NOVA Chemicals. This Census is evergreen and can be updated at any time by employees to ensure we have the most up to date information. INCLUSION AND DIVERSITY BENEFIT ENHANCEMENTS Our benefits coverage is reviewed annually to promote inclusivity by ensuring that we are addressing the diverse needs of our employees and remain competitive. Through our 2022 review, we found various opportunities and improved our benefits for 2023 by adding paid parental leave, unpaid job protected leave, additional holidays, and including pregnancy loss in our Bereavement Leave policy. PRESIDENT'S IMMIGRATION TASK FORCE In early 2022, the Mayor of Sarnia and Warden of Lambton County created the President’s Immigration Task Force to advance sustainable growth and diversity for the Sarnia-Lambton community and economy by attracting and integrating immigrants into the area and working population. The committee consists of local leaders from various sectors including government, industry, business, trades, healthcare, and education. NOVA Chemicals is a founding member of the group and participates by providing input, making connections with local organizations, and representing the hiring needs of our business, which is the largest employer in the county. PILLAR 2022 ACCOMPLISHMENTS 1 Build an inclusive culture • Recognized eight heritage months and four days with Inclusion Moments, knowledge sharing, and employee perspectives • Developed I&D training and workshops for leaders and all employees 2 Attract and retain diverse talent • Collaborated with Diversity focused search firms in 2022 to support our attraction efforts 3 Differentiate the employee experience • Assessed benefits coverage and enhanced offerings
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or leaders and all employees 2 Attract and retain diverse talent • Collaborated with Diversity focused search firms in 2022 to support our attraction efforts 3 Differentiate the employee experience • Assessed benefits coverage and enhanced offerings to be more inclusive of our workforce • Introduced 2 floating holidays in Alberta in lieu of receiving Family Day and Remembrance Day to allow all non-shift employees in Canada flexibility to choose a day off of personal importance 4 Develop robust I&D Information Gathering Processes • Updated the structure of our I&D council to improve collaboration • Launched our first Employee Diversity Census 5 Engage with the community and external partners • Participated in the President’s Immigration Taskforce to promote diversity in the Sarnia-Lambton community SUMMARY OF OUR 2022 PROGRESS IN EACH OF THE PILLARS OF OUR I&D STRATEGY: 37 <37 END>
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<START 38> Our Inclusion and Diversity Council In 2021, we launched our I&D program with a three-year plan to enhance our culture, become more inclusive, and increase our diversity. Our I&D Council, which supports management in implementation of this strategy, evolved in 2022 to align champions with key priorities in the strategy. The Council aligned its efforts to NOVA Chemicals' I&D strategy, creating a roadmap of priorities, outlining business processes, and developing I&D metrics and an initial KPI strategy. These five sub-groups assist management in developing and implementing I&D programs and monitoring progress: • Employee Resource Groups (ERG) sub-committee — focuses on developing current ERGs and creating new groups for the future; • Supply Chain/Community Investment sub-committee — provide input for incorporating I&D elements into business process for NOVA Chemicals' supply chain and expand upon our current efforts, with an additional focus on I&D- related causes; • Engaging Leaders sub-committee — this group helps in promoting the importance of leader support to the I&D initiative; • Connection Opportunities sub-committee — focuses on enabling networking opportunities and platforms for employees to gather and connect; and • Dashboard/Data Development sub-committee — looks to promote use of metrics, reports and dashboards to help the company track its I&D success to its targets. WHY IS IT IMPORTANT FOR US TO FOSTER INCLUSION AND DIVERSITY? We believe that promoting an inclusive and diverse workplace can improve our company's overall performance. Building a workforce with a diverse range of backgrounds, thoughts, and experiences to guide decision-making will support NOVA Chemicals in being recognized as a top employer, help attract and retain top talent, and is ultimately the right thing to do. 38 <38 END>
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<START 39> To realize our goals, we are prioritizing the health of our culture and the development of our workforce to enhance our performance. This includes measuring the health of our organization and continuing to provide opportunities for personal and professional growth and training, so that our employees have a high degree of trust, feel engaged in work that is meaningful to them and become better equipped to support our strategic priorities. Management Approach: How We Create a Learning and Engaging Culture ORGANIZATIONAL HEALTH Our commitment to organizational health — how well we align ourselves around vision and strategy, execute our work and respond to changes internally and externally — is grounded in the principle that a high-performing company is a healthy company. We are focused on improving our organizational health by investing time, resources and funding to support our people and improve their work experience. These efforts enable the progress towards five organizational health aspirations that will help us improve performance and achieve our strategic ambitions. Talent Management We want to build a culture where our employees excel, bring their best selves, and feel valued. NOVA 2030 relies on the engagement of our employees and leaders, who play a critical role in achieving our objectives. THEME HEALTH ASPIRATIONS 1 Strategic Clarity & Engagement We have a strategy with a compelling vision that is believed by all, and we are all clear on our contribution to making it happen. 2 Trust & Connection We foster a positive employee experience where people feel proud, trusted, inspired, connected and energized. 3 Execution Excellence Our processes, policies, and management systems enable agile, effective completion of work, and performance is made visible. 4 Ownership & Innovation Innovating is core to NOVA Chemicals. We all own and encourage ideas to improve performance. We support and celebrate our learnings from our failures and successes. 5 Talent Development
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f work, and performance is made visible. 4 Ownership & Innovation Innovating is core to NOVA Chemicals. We all own and encourage ideas to improve performance. We support and celebrate our learnings from our failures and successes. 5 Talent Development We develop a winning team through challenging experiences and providing support to enable people to thrive. Our Aspirations: 39 <39 END>
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<START 40> 2022 Activities IMPROVING ORGANIZATIONAL HEALTH To understand our current state, we conducted our first annual employee survey to measure the health of our organization. We had an 81% participation rate and gathered over 4,500 comments from our employees. The survey results provided an understanding of our areas of strength and opportunities for improvement and led to the creation of organizational health aspirations. Each aspiration is sponsored by a member of the Executive Committee with senior leaders providing guidance. To achieve these aspirations, we introduced our first set of enterprise-level initiatives that will deliver improvements to all employees and local-level initiatives to directly impact work within the regions and functions. Execution of the initiatives is owned by employees. COMMITMENT TO OUR LEARNING CULTURE At NOVA Chemicals we are dedicated to creating a thriving learning culture that focuses on continuously improving employee development to be more efficient, aligned with best practices and supportive of employee needs, approaches and schedules. In 2022 we made a renewed commitment to this culture by launching the Discovery Lab, our new architecture for employee training at NOVA Chemicals, which will encompass our current initiatives, new program offerings, and developments for the future. To support our employee development culture, we implemented our learning and development standards to help employees better understand what successful learning encompasses. Employees are also able to access and track their learnings through our newly developed learning management system. ENHANCED LEARNING AND DEVELOPMENT PROGRAMS In 2022, we formalized our leadership development framework by identifying the capabilities we want to enhance and developing and launching various leadership programs. During the year, we launched the Igniting Your Influence program which is designed for first level leaders to develop
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development framework by identifying the capabilities we want to enhance and developing and launching various leadership programs. During the year, we launched the Igniting Your Influence program which is designed for first level leaders to develop their core leadership capabilities such as communication, delegation, driving change, executing strategy, and coaching. The program consists of on-demand learning components that are available 24/7 and live collaborative learning sessions. We also developed our Forging the Future program for mid- and senior- level leaders which focuses on skills including translating strategy into results, determining strategic priorities, driving transformation through culture, strategic influence, and leading networks. This program will be launched with our leaders in 2023. As part of our commitment to developing our employees at all levels, we designed our Execution Essentials program in 2022 to empower all employees, from senior leaders to frontline workers, and help build the critical and foundational skills that are required to effectively execute work day-to- day. Execution Excellence is now available to senior leadership and will be extended to all employees in 2023. EVERYDAY LEARNING Our aim is to create an environment that prioritizes learning to encourage everyday innovation. Employees receive up to 70% of training and development on the job, 20% comes from coaching from leaders and/or networking, and 10% is gained through formal learning programs (virtual or classroom). All people leaders at NOVA Chemicals can participate in our Applied Leadership Network, a program that enables peer-to-peer learning through meetings that occur six times every year. FORMAL LEADERSHIP DEVELOPMENT NOVA Chemicals’ Leadership Development programs and supporting framework place leaders into groups based on their leader level and development needs. These groups range from emerging leaders to senior people leaders. Our culture of development
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PMENT NOVA Chemicals’ Leadership Development programs and supporting framework place leaders into groups based on their leader level and development needs. These groups range from emerging leaders to senior people leaders. Our culture of development enables skill enhancement through a variety of means including experience, coaching, and formal training. One of our foundational programs, CONNECT The Neuroscience of Quality Conversations®, focuses on having effective conversations between leaders and employees, which is a key component to enhance individual performance and development. Virtual training sessions are led by the NeuroLeadership Institute. Our Emerging Leader program prepares individuals for future leadership roles, and our Accelerate Your Impact program prepares select candidates for senior leader roles. In 2022, we built on our leadership development framework and launched various new leadership development programs that are centered on developing the skills that we require at NOVA Chemicals to execute our strategy. Technical Skills by Function Leader & Employee Core Capability Company-Wide Compliance/Regulatory/ HR Values, Practices & Habits New Opportunities: Respectful Workplace & Violence Prevention + MORE New Opportunities: Igniting Your Influence, Accelerating Your Impact, Forging the Future, A2E Essentials, Belonging, Ally, Voice, On-demand Leader Materials + MORE New Opportunities: Digital Factory, Agile 101, Pricing Fx, Supply Chain & Procurement Tech Skills, Sales Tech Skills, Tech Conferences + MORE Note: Discovery Lab is an internal Human Resources program of NOVA Chemicals which supports employee training. 40 <40 END>
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<START 41> Management Approach: How We Promote Health and Well-Being OCCUPATIONAL HEALTH AND PROGRAMS We implement standardized occupational health and programs across all NOVA Chemicals facilities that are compliant with applicable regulations and our standards. Occupational health is embedded throughout our business and supports safe, reliable, and competitive operations by maintaining a high-performance culture. This is enabled by our robust occupational health practices that minimize risks to workers and to the business. Our core programs support employee health and wellness and ensure workers are protected across the areas of mental, biological/ chemical, and physical health such as ergonomics, fitness to work, travel health, and hearing conservation programs. INDUSTRIAL HYGIENE Our Industrial Hygiene program is integrated with the Occupational Safety, Occupational Health, and Contractor Safety Leadership programs. The Industrial Hygiene program aims to recognize, manage, and control industrial hygiene and safety risks and reduce incidents, injury, illnesses, and occupational disease to help provide a safe and healthy work environment. The program's strategic goal is to protect workers from exposure to chemical, physical, and biological hazards and utilizes risk management systems and tools to prevent occupational illness/disease and injury, to help us achieve our ambition of Goal ZERO. EMPLOYEE WELL-BEING PROGRAM NOVA Chemicals’ Total Well-Being program supports employee physical, mental, financial, and social well-being and demonstrates our commitment to improving the well-being and working experience for all employees, both at work and at home. Through this program we provide employees with various resources including an Employee and Family assistance program and multi-media educational information from trusted partners. The well-being programs include a digital platform that promotes well-being by allowing employees to set personal goals
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ous resources including an Employee and Family assistance program and multi-media educational information from trusted partners. The well-being programs include a digital platform that promotes well-being by allowing employees to set personal goals and track progress, which we refreshed in 2022 to support more personalization options. Employees who participate in the digital platform are eligible to receive health and wellness related incentives. In 2022, we renewed our commitment to total well- being and mental health in the workplace. This included assessing our strategy, communicating our re-commitment to employees, and updating our platform with Lifeworks to include additional tools and resources for mental health. As we look ahead to 2023, we plan to increase our efforts around our mental health pillar by increasing employee education in this critical health element. Through improved learning opportunities and support for employees and leaders, we aim to support an environment where everyone understands and supports the importance of mental well-being and health. Employee Health and Wellness At NOVA Chemicals, we recognize the strong connection between the health and well-being of people and their work environments, safety, and productivity. 41 <41 END>
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<START 42> 2022 Activities SAFE RETURN TO WORK Throughout the COVID-19 pandemic we have taken a risk based approach, enabling our Pandemic Advisory Team (PAT) to focus on the key areas of exposure to mitigate impacts to our operations. We continue to take action to protect our employees' health and safety, and PAT continued to support our ongoing initiatives to ensure a safe return to work and protect the health and safety of all employees and contractors working at our facilities and living in our communities. In 2022, PAT transitioned to focusing on infection prevention and control processes to support resilience and business continuity if we face another similar situation in the future. This work allowed us to successfully transition to a full on-site environment for employees. To support our employees we delivered education and awareness campaigns on the benefits of COVID-19 vaccinations and infection prevention tips. FATIGUE RISK MANAGEMENT In March 2022, we began developing and implementing a procedure for Fatigue Risk Management (FRM) to integrate workplace recognition of fatigue into NOVA Chemicals' processes. We desire to better understand the role of fatigue which may result in incidents and accidents. We formed a FRM Strategy Team to create a project charter and milestones to support successful implementation. This initiative was first rolled out to our Pipeline group in Ontario to ensure that designed tools, processes, and training are comprehensive. REFRESHED WORKPLACE RESPECT AND VIOLENCE PROGRAM Building a culture of respect in the workplace is crucial for ensuring the well- being of our employees and developing trust throughout the workforce. Our refreshed Workplace Respect and Violence Program supports this culture and places a greater emphasis on respect and encouraging employees to speak up about violations. 42 <42 END>
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<START 43> Occupational Safety is a core value that guides everything we do, and we are dedicated to fostering an established safety culture with clear accountabilities and expectations for employees and contractors. Our business success depends on protecting the safety of our employees, contractors, and the communities in which we operate. The Responsible Care management system is geared to support safe, consistent application of Responsible Care standards and practices while clearly defining expectations and accountabilities for performance for all activities and work at our facilities. NOVA's Approach: How We Manage Employee and Contractor Safety NOVA Chemicals' safety culture works to ensure that all employees and contractors feel empowered and responsible for maintaining the safety of their colleagues. We are in the process of transitioning our safety management system to RC14001, an internationally recognized risk-based approach. The RC14001 Management System sets the expectations and identifies the processes and controls required to mitigate and manage risk. We recognize that contractor safety is essential for sustained Responsible Care performance as our contractor workers are exposed to some of our highest risk work. We are implementing our new Contractor Safety Management Program which focuses on prequalification, selection, and onboarding criteria to establish clear expectations for safety performance management and assurance. NOVA Chemicals is implementing these improvements in 2022 and 2023 across all facilities. This includes employing tools to enable the program and performance metrics to measure and assess its effectiveness. Visible and felt leadership presence at the work fronts and alignment on safety culture with our contracting partners is supported by regional Contractor Safety Management Committees who oversee our contractor safety program implementation and maintenance. The contractor safety program revisions include updates to
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nt on safety culture with our contracting partners is supported by regional Contractor Safety Management Committees who oversee our contractor safety program implementation and maintenance. The contractor safety program revisions include updates to prequalification scoring, bid evaluation scoring, strengthens contractor safety performance requirements and refocuses field supervision on task risk management. This program will undergo an assurance check by a qualified third party to verify effectiveness starting Q4 2023. Employee and Contractor Safety We are committed to Goal ZERO (zero injuries or incidents) and believe that all work-related illnesses and injuries can be prevented. Our vision is to achieve Goal ZERO by ensuring safety is embedded in all processes and programs at NOVA Chemicals. 43 <43 END>
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<START 44> Each new year we recommit to a focused mindset around managing process and personnel when we engage all employees in our Am I Ready campaign. The theme for the Am I Ready campaign in 2022 was “Goal ZERO is Achievable When We Work Together.” The campaign is a call to action for all employees to commit to and focus on Responsible Care and safety behaviors. The campaign reviews the past years Responsible Care performance to highlight Goal ZERO trends across our corporation and learn from successful work and unplanned incidents. It also focuses on actions each employee should concentrate on to commit to their part in maintaining a safe work environment for all in the coming year. Key topics for 2022 were behavioral-based safety and safety interactions, working from heights, and stored energy awareness. ENCOURAGING SAFE BEHAVIORS • Safety interactions: We observe safe and at-risk behaviors and use our findings to address safety concerns by engaging our employees and contractors in constructive and respectful dialogues. These safety interactions support a Responsible Care mindset and play a key role in achieving Goal ZERO. In 2022, our employees recorded more than 55,600 safety interactions in the workplace or while working from home. Our dedicated safety team regularly analyzes the content of all recorded safety interactions to gain insights, share lessons learned, and better understand trends so we can adjust our programs as necessary. • Safety awareness: We regularly hold Toolbox Talks, which are informal, job- specific safety meetings to promote safety awareness within the company. We also host an annual Safety Day event at all NOVA Chemicals locations to help employees and service providers learn about safety incident prevention and emerging safety best practices. • Hazard recognition: Hazard identification and correction is an essential part of a safe workplace. We provide hazard recognition training and learning opportunities to help employees better
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y incident prevention and emerging safety best practices. • Hazard recognition: Hazard identification and correction is an essential part of a safe workplace. We provide hazard recognition training and learning opportunities to help employees better identify and address workplace hazards, including safety tools and processes such as our Am I Ready philosophy, which challenges employees to consider whether they have the right training, competency, equipment, and mindset to undertake the required work. • Sharing of learnings: We conduct a Significant Incident Review process after each incident. This process includes an analysis and a leadership quality review. After the analysis and review, information about the incident is shared across the company via our Responsible Care Risk Alerts and Responsible Care Risk Bulletins. The Responsible Care Risk Alerts also contain a “call to action” that initiates immediate mitigation activities, which is useful to promote safety awareness and prevent similar incidents from happening in the future. • NOVA’s Nature Awards: These annual awards recognize individuals and projects within the company that exemplify the values, practices, and habits (including safety) that will allow us to achieve our strategic ambitions. WHY IS IT IMPORTANT TO ENSURE EMPLOYEE AND CONTRACTOR SAFETY? Our employees and contractors are vital contributors to the success of our company. It is imperative that we create and uphold an environment that is free of illness, injury, or harm so that everyone stays safe every day. 44 <44 END>
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<START 45> 2022 Activities IMPLEMENTED CONTRACTOR SAFETY MANAGEMENT PROGRAM In 2022, we rolled out a new, risk-based contractor safety management program. The program is aligned with the RC14001 system and focuses on establishing risk management processes, clarifying roles and responsibilities, and standardizing performance management (learn more about RC14001 certification requirements on page 43). REVISED SAFETY ALERT PROCESSES We are seeing improvements in NOVA Chemicals' process safety events following the new alert process that was introduced in 2021. The new process, the Responsible Care Risk Alerts and Bulletins, are issued based on severity or potential severity and use a corporately developed template that improves the quality and consistency of the reports. In 2022, we issued alerts for significantly lower-severity events compared to the previous year. ENHANCED VISIBILITY OF SAFETY PERFORMANCE AT FACILITY LEVEL As part of our efforts to continue increasing visibility of our safety performance, we introduced a number of additional metrics for process and occupational safety in 2022. These metrics are reviewed monthly by NOVA Chemicals' leadership team and are housed in our data visualization dashboard. The dashboard allows employees to view corporate and facility-based safety performance data and variables in near-real time, which helps employees and leaders identify gaps, enable mutual learning, and connect individual decisions to facility and company performance outcomes. EXPANDED ASSURANCE PROGRAM As part of our ongoing alignment with the RC14001 certification system, we have modified our assurance program to a risk-based approach. The approach now includes defining Major Unwanted Events and identifying critical controls. These changes support the identification, prioritization, and mitigation of safety risk gaps, and make our internal assurance function a catalyst in achieving Goal ZERO. The changes also provide independent
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Events and identifying critical controls. These changes support the identification, prioritization, and mitigation of safety risk gaps, and make our internal assurance function a catalyst in achieving Goal ZERO. The changes also provide independent confirmation of program efficacy to senior leadership and the Board while demonstrating due diligence to external stakeholders. OUR PERFORMANCE Recordable Injury Rates Lost Time Injury Rates In 2022, our combined recordable injury rate was 0.23. This represents our best-ever performance and a 44% reduction in overall TRIR compared to 2018. NOVA is on a journey to top quartile safety performance and is developing systems and a safety culture to achieve this goal. Our year on year safety performance improvements are trending positively to support these objectives as we work closely with all NOVA employees and our service providers to advance our strong NOVA safety culture. Our 2022 safety performance improvement indicates we are on course to achieve top quartile performance on our ambition for Goal ZERO. In the last five years, we have reduced our combined lost time injury rates and achieved ZERO lost time injuries in 2022. We are proud of this accomplishment and aspire to sustain our Goal ZERO commitment through continuous improvement. 45 <45 END>
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<START 46> OUR PERFORMANCE Vehicle Incidents Near Hits Safety Interactions Our driving-related incidents (do not include rail or powered mobile equipment) have increased by 33% since 2018, but have decreased 4% since 2021. Employees must complete virtual safe driving training, with refresher training available. The majority of incidents were related to minor vehicle damage while the vehicles were stationary or making minor contact with stationary equipment. The data shows that the performance trend is incidental to the implementation of a park to pull away policy where initially we had more minor backing related vehicle incidents. This shift initially resulted in higher frequency, but lower severity incidents involved with in many cases reversing vehicles into parking spots. The data in 2022 is now showing progressive improvement as this new policy is embedded and although the vehicle incident trend is now improving again, vehicle safety and driver awareness and training are areas of focus to improve performance in this area. A near hit is an unplanned event that did not result in injury, illness, damage, loss, or violation of a procedure, process, regulation, or law, but had the potential to do so. We encourage near hit reporting because it is a proactive leading indicator that enables us to identify and address a hazardous situation before an incident occurs. The increase in near hits follows awareness outreach to carriers, site coordinators, and team leaders that has led to renewed recognition for reporting transportation incidents and near hits. Safety interactions are peer interactions about safe or at-risk behaviors. We encourage employees to speak up when they see positive or at-risk behaviors, as part of a Responsible Care mindset. Although the reduction in total number of employees as of 2020 resulted in a corresponding reduction in the total number of Safety Interactions, participation rates met or exceeded our internal targets. Our trends show approximately
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ble Care mindset. Although the reduction in total number of employees as of 2020 resulted in a corresponding reduction in the total number of Safety Interactions, participation rates met or exceeded our internal targets. Our trends show approximately 75% of the interactions are based on safe behaviors and are predominantly related to work planning and preparedness, slip, trips and fall prevention and health and wellness. 46 <46 END>
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<START 47> Management Approach: How We Manage Process Safety Our approach to preventing process safety incidents that could harm people, property, or the environment includes: “LAYERS OF PROTECTION” MANAGEMENT We follow a layered management model to prevent process safety incidents through multiple lines of defense. The "Layers of Protection" management model includes three key layers: engineering, operating, and maintenance. Our facilities are designed with inherent safety features and protective technologies, and we apply safety management systems and processes (e.g., hazard assessment and analysis, asset integrity management, change management) while operating all facilities. The layers of protection are also extended to include employee safety awareness and our organizational safety culture. PROCESS HAZARD ASSESSMENT As part of our ongoing five-year Process Hazard and Risk Assessment Program, we actively monitor and manage risks associated with our facilities and related operations. We assess the risk, frequency, and severity of risk scenarios by using industry-leading methodologies consistent with those published by the Center for Chemical Process Safety. NOVA Chemicals is also piloting a new hazard analysis tool that aimed at continuing to reduce and prevent incidents. See 2022 Activities here for more details. THOUGHTFUL COMPLIANCE Thoughtful Compliance at NOVA Chemicals describes a mindset in which employees and contractors remain open to vulnerability and are willing to question whether things are in line with expectations. Thoughtful Compliance ensures we are consistently and successfully managing the risks associated with our operations, including proper management of hazards and compliance with the programs and practices designed to keep us safe. By recognizing when things are not as they should be, we can take action to rectify them and prevent them from happening in the future. To promote a Thoughtful Compliance mindset, we engage in a
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the programs and practices designed to keep us safe. By recognizing when things are not as they should be, we can take action to rectify them and prevent them from happening in the future. To promote a Thoughtful Compliance mindset, we engage in a number of activities focused on improving our safety culture. See Encouraging Safe Behaviors for details. Process Safety NOVA Chemicals is committed to upholding process safety measures, including prevention and risk-reduction efforts, to help ensure the safety of people, the environment, and property. WHY IS IT IMPORTANT FOR US TO MANAGE PROCESS SAFETY? As a petrochemical company, we manage many materials, including some which are hazardous. Focusing on process safety is critical to preventing incidents such as explosions, fires, or toxic releases that can result from the accidental release of these materials. 47 <47 END>
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<START 48> 2022 Activities The following activities enabled us to advance our commitments to both Responsible Care and Process Safety: STREAMLINED OUR APPROACH TO RISK ASSESSMENT We consolidated our risk assessment models into a single risk matrix. This streamlined approach allows for better comparison and prioritization of risks across the company as it measures all risks against one set of criteria. Existing applications such as our process hazard review and Responsible Care risk registers, as well as any future applications such as incident classification, will also adopt this new approach. IMPROVED INCIDENT MANAGEMENT In 2022, we designed and configured a new cloud-based platform for risk assessment and incident management. The platform will include our newly-developed classification scheme for actual severity and potential risk of events, aligned with the consolidated risk matrix. The new system has an event management module which allows management, tracking, and response to incidents and events that may impact the safety of our operations and regulatory compliance. It also provides a centralized platform to track, investigate, and report incidents in real-time. Utilizing this module will help support the overall safety and health of the organization by reducing the risk of future events. PILOTED A HAZARD ANALYSIS TOOL NOVA Chemicals recognizes that proactive identification and control of hazards through formal Job Hazard Analysis and in-field assessments is critical to the reduction and prevention of incidents. In 2022, we initiated a pilot program for a new Job Hazard Analysis procedure for high risk jobs. The goal of this program is to assert greater clarity and consistency with the management of risks related to facility operations. In 2023, we will kick off a new initiative to revamp our Field Level Hazard Assessment tool with a group of facility stakeholders, and aim to achieve full implementation in 2024. COLLABORATED WITH INDUSTRY LEADERS
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ks related to facility operations. In 2023, we will kick off a new initiative to revamp our Field Level Hazard Assessment tool with a group of facility stakeholders, and aim to achieve full implementation in 2024. COLLABORATED WITH INDUSTRY LEADERS In 2022, NOVA Chemicals chaired an industry initiative through the Center for Chemical Process Safety (CCPS) to develop a white paper on effectively using process safety metrics to improve process safety performance. This initiative represents the next step in best practices for applying and gathering Process Safety metrics to promote change. The paper addressed the linkage between leading and lagging indicators, as well as examining the role of culture and leadership engagement in using metrics to drive change. By chairing this initiative, we continue to support process safety within the processing industries and collaborate with like-minded peer organizations to advance process safety both inside the company and in the broader community. OUR PERFORMANCE Process Safety Incidents Process Safety Total Incident Rate (PSTIR) is calculated using the American Petroleum Institute (API) RP 754 from 2021. This rate is based only on Tier 1 incidents, which aligns with SASB recommendations. Process Safety Incident Severity Rate (PSISR) is calculated using the American Petroleum Institute (API) RP 754 from 2021. This aligns with SASB recommendations. To manage process safety performance, we use layers of protection management, risk assessments, and a culture of thoughtful compliance. 2022 represents the first year since API RP 754 was introduced in 2010 that NOVA Chemicals has not experienced a Tier 1 Process Safety event or a Tier 2 Process Fire. Note: API 754 (industry guidance) provides classification thresholds based on the nature of the material, release size/rate, and resulting consequences. Typically, Tier 1 events resulted in adverse consequences (most often equipment damage) while Tier 2 events had
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4 (industry guidance) provides classification thresholds based on the nature of the material, release size/rate, and resulting consequences. Typically, Tier 1 events resulted in adverse consequences (most often equipment damage) while Tier 2 events had the potential to result in adverse consequences. 48 <48 END>
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<START 49> NOVA Process Safety Performance Records It has been over three years since the Geismar site experienced a Tier 1 or Tier 2 Loss of Containment (LOC) event. April 13, 2020, was the last Tier 2 LOC event at Geismar involving hydrocarbons. Further, since 2021 the Geismar site has not experienced a NOVA Tier 3 Flammable LOC event. Driving this performance has been a continued and sustained focus at the Geismar site looking at bolted joint integrity in combination with enhanced leak detection practices. Some examples are: 1. Bolted Joint Integrity is a quality metric (Bolted Closure Failure Rate) with their nested maintenance workforce and is reviewed in quarterly Supplier Relationship Meetings. Additionally, higher risk hydrocarbon systems (e.g., large high pressure ethylene systems or hydrogen systems) are leak tested using helium prior to reinstatement/ commissioning following major maintenance activities. 2. Recent maintenance work on the Ethylene Binary Refrigeration compressor systems was leak tested with helium prior to turning over to Operations for reinstatement. This process identified no potential issues, which further reinforced the quality control work being done relative to the site’s Bolted Joint Integrity program. 3. We use an optical gas imaging camera (FLIR — Forward Looking InfraRed) designed to detect hydrocarbons, methane, and other VOC emissions during recommissioning hydrocarbons systems following leak checks to ensure any loss of containment is identified and managed. 4. The site also has a regulatory LDAR program, which requires all components (valves) in VOC service to be monitored each quarter. Geismar has over 12,000 components in its LDAR program, which are monitored for leaks. Through these programs and ongoing commitment to minimizing potential leaks, the site has demonstrated and sustained outstanding Process Safety performance. CASE STUDY OUR PERFORMANCE Process Safety Events
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LDAR program, which are monitored for leaks. Through these programs and ongoing commitment to minimizing potential leaks, the site has demonstrated and sustained outstanding Process Safety performance. CASE STUDY OUR PERFORMANCE Process Safety Events Improvements in compliance, assurance, and performance are typically seen incrementally and over a number of years as we refine our engineering, operations, and maintenance standards and expectations based on learnings from our operational experiences and evolving industry best practices. Flammable loss of containment events (FLOCs) are incidents that typically involve an unplanned release of flammable materials exceeding 10% of the Tier 2 threshold in the American Petroleum Institute (API) RP 754 from 2021. Process fires are any unplanned fire involving process materials. 49 <49 END>
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<START 50> Product Safety Proper management of the health, safety, and regulatory impacts of our products is critical at every stage of the product life cycle — from design and manufacturing, through sales and use, to reuse, recycling, and disposal. OUR AMBITION By 2025, we aim to implement a Sustainable Chemistry program that works toward more sustainable products and product solutions with improved safety and environmental profiles. What does our ambition mean? A Sustainable Chemistry program includes developing and implementing tools to evaluate the sustainability of our products and product solutions, as well as KPIs to track our progress to improve products' safety and environmental profiles. The Sustainable Chemistry program supports and guides our actions from early Research and Development through to procurement of the ingredients in our products. Our new Sustainable Chemistry Program will leverage the American Chemical Society's 12 Principles of Green Chemistry, the American Chemistry Council's Sustainability Principles, and industry benchmarking as a basis for development. By using these well-established ideals, we are creating a Sustainable Chemistry Program that will propel us towards more sustainable products and product solutions in the future. Our work toward our ambition is ongoing as we develop additional milestones and deliverables to hold ourselves accountable. We are always working to improve our understanding of product risk while further engaging our suppliers and customers and ensuring regulatory compliance. Management Approach: How We Manage Product Safety Our product safety program is designed to outline and communicate the safety impacts of our products, address product regulations, and manage risks. This program includes: UNDERSTANDING PRODUCT RISK We regularly test our products to ensure safety and suitability for various customer applications. Identification of any potential hazards of our products during their lifecycle are handled through our Product
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am includes: UNDERSTANDING PRODUCT RISK We regularly test our products to ensure safety and suitability for various customer applications. Identification of any potential hazards of our products during their lifecycle are handled through our Product Risk Characterization and Management program. This program prioritizes our products by risk and takes immediate action to mitigate unreasonable risk. It also includes our updated prioritization methodology which determines high priority products for further risk assessments. Read more about the updated approaches to risk on page 52. 50 <50 END>
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<START 51> WORKING WITH SUPPLIERS Selecting best-in-class suppliers is a priority for NOVA Chemicals. We engage external partners through our Responsible Care Outreach program to promote Responsible Care values such as safety and environmental stewardship. To ensure our partners are meeting our rigorous technical property criteria, we audit all supplied products. Suppliers of ingredients that remain in our products as sold are required to provide us with detailed regulatory and hazard information on their components so we can understand and manage potential impacts. PROVIDING SAFETY INFORMATION TO CUSTOMERS AND THE PUBLIC We provide customers and the public with safety information in the following ways: • We create, maintain, and distribute Safety Data Sheets (SDS) and labels to communicate the hazards of NOVA Chemicals’ commercial and non- commercial products, including safe handling methods by employees and customers • We create risk profiles and background information documents (product backgrounders) for our customers to help promote safe handling and Responsible Care values • We provide product information on our website and work actively with trade associations (e.g., as a member of CIAC and ACC) to conduct public education and outreach • We have a robust process to review and manage any allegations that our products or processes may adversely affect people or the environment MAINTAINING REGULATORY COMPLIANCE NOVA Chemicals is focused on continual compliance with regulations governing the manufacture, sale, and use of our products. To achieve this, we subscribe to comprehensive regulatory databases and actively engage with trade associations to stay informed about industry best practices and upcoming regulatory changes. When required, we consult with industry experts for assistance in monitoring the expanding realm of global chemical and product regulations. In addition, we use tracking systems to avoid the accidental distribution of
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d upcoming regulatory changes. When required, we consult with industry experts for assistance in monitoring the expanding realm of global chemical and product regulations. In addition, we use tracking systems to avoid the accidental distribution of products that do not meet regulatory requirements. As of 2022, NOVA Chemicals' Product Safety team has automated the Raw Materials regulatory compliance questionnaire and data collection process to improve efficiency, ensure consistency and up-to-date information, and reduce potential for transcription errors. 51 <51 END>
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<START 52> 2022 Activities ENHANCED RISK ASSESSMENT METHODOLOGY In 2022, NOVA Chemicals instituted a new prioritization methodology to determine high priority products for further risk assessments. The methodology is based upon the International Council of Chemical Associations (ICCA) Guidance on Chemical Risk Assessments. All commercial products which met internal criteria were evaluated using the new methodology and no products were identified as high priority. IMPROVED MONITORING OF THIRD-PARTY RISK EXPOSURE NOVA Chemicals' Product Safety team has implemented a process, supported by a software solution, for continuous monitoring of third-party companies with whom we do business. This monitoring enables the company to continuously evaluate the risk of the relationship to NOVA Chemicals by identifying any questionable actions or events in which the third-party has been involved and has been publicly reported. The software also allows for a streamlined approach to distributing questionnaires to external companies and provides a method for storage and evaluation of questionnaire responses. CONTINUED EXPANDING SDS AUTOMATIC DISTRIBUTION To ensure timely access to the most accurate product safety information, we continually work to expand automatic distribution of SDSs to all countries in which we sell our products. In 2022, we expanded the SAP® software automatic SDS distribution functionality to Indonesia, Malaysia, and Vietnam. These customers now automatically receive an SDS when they purchase a product for the first time, and upon subsequent purchases if it has been more than a year since they last received the SDS or if the SDS has since been updated. When required, an SDS is sent to customers at other times or frequency levels. CHEMICALS OF CONCERN As a company working in a constantly evolving field, our top priority is to ensure that all decisions regarding product safety and use are based on the latest scientific evidence. To achieve this, we diligently
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frequency levels. CHEMICALS OF CONCERN As a company working in a constantly evolving field, our top priority is to ensure that all decisions regarding product safety and use are based on the latest scientific evidence. To achieve this, we diligently monitor a range of information sources, including regulatory agencies' product reviews and studies related to toxicology, environmental impact, chemical hazard classification, and substances of very high concern bulletins. Additionally, we regularly review relevant government chemical risk assessment reports that apply to our operations and products. We are committed to gaining a better understanding of the potential impacts of our products and work to phase out any chemicals of concern. As such, we continue to participate in the consortium that is working with the U.S. Environmental Protection Agency on its risk evaluation of 1,3-butadiene. WHY IS IT IMPORTANT FOR US TO MANAGE PRODUCT SAFETY? It is our responsibility to help protect public health and the environment and to promote the safe handling and use of our products. 52 <52 END>
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<START 53> Management Approach: How We Manage Transportation Safety We use various methods of transportation such as pipelines, rail, trucks, and marine vessels to transport raw materials and feedstocks, intermediate chemicals, and finished products to customers. We rely heavily on external parties to transport our products, and focus many of our activities on ensuring we work with safe carriers. This work includes: ACTIVITIES FOR ALL MODES OF TRANSPORT Transportation security: Facility Security Management Programs are in place at all our operating facilities and are supported by our Corporate Transportation Security Plan for rail, road, and marine transport. These programs and plans include measures to prevent dangerous goods and our polyethylene products from being stolen or otherwise unlawfully interfered with during handling, offering for transport, transporting, or importing. We are members of the U.S. Customs and Border Protection’s CTPAT® program (Customs Trade Partnership Against Terrorism) and the Canadian Border Services Agency’s Partners in Protection program and adhere to the minimum security criteria for importers for cross-border trade in both countries. Incident reporting: We measure and monitor transportation incidents at or between all our facilities and transportation incidents involving our products at vendor and customer facilities. Our supplier outreach program engages our suppliers and carriers to ensure they accurately report incidents and implement corrective actions. Transportation Safety We prioritize the safe transportation of raw materials and feedstocks, intermediate chemicals, and finished products to their destinations and aim to avoid releases of these products to the environment. We implement comprehensive planning, screening, assessment, and audit plans that are aligned with industry regulations and best practices to ensure safe transportation. OUR AMBITION Sustain our performance of zero non-accident releases (NARs) during rail
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implement comprehensive planning, screening, assessment, and audit plans that are aligned with industry regulations and best practices to ensure safe transportation. OUR AMBITION Sustain our performance of zero non-accident releases (NARs) during rail transport through 2025. What does our ambition mean? A NAR is the unintentional release of a hazardous material, including loading and unloading while in railroad possession that is not caused by a rail-related accident. Avoiding these releases is important to us because it aligns with our aspiration of zero NARs. In 2022, we achieved our 9th year in a row of zero NARs, which represents an award-winning performance that we are striving to maintain. NARs can be prevented with proper unloading and loading procedures as well as railcar maintenance and inspection. 53 <53 END>
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<START 54> Transportation emergency management: Several of the materials we transport are subject to an Emergency Response Assistance Plan, a Canadian regulatory requirement for certain dangerous goods. Our Transport Canada approved Emergency Response Assistance Plan (ERAP) incorporates industry standards and best practices, and is actively updated to include any new chemicals we transport. Our NOVA Chemicals Logistics Emergency Response Team (NOVAlert) of technical advisors is supported by emergency response service providers stationed along major transportation corridors that we use for product and raw material transportation in Canada. We also participate in TRANSCAER® (Transportation Community Awareness and Emergency Response), a program to ensure communities are provided with important information about products being moved through their area and to communicate measures we take to ensure safe transportation. Pellet loss prevention: We align with the principles of Operation Clean Sweep, a campaign to prevent plastic pellet loss at facilities and during transportation. We also encourage our customers and transportation partners to commit to OCS pellet stewardship practices to keep plastic pellets out of the environment. ACTIVITIES FOR SPECIFIC MODES OF TRANSPORT Screening and onboarding of trucking carriers: We prioritize working with carriers who are committed to Responsible Care principles. We review carriers through self assessments (e.g., handling, routing, security, and other safety aspects) and use third-party screening by industry-leading vendors. When onboarding new carriers, we discuss and mutually agree on expectations. Evaluation of carriers: We assess all our carriers, with the exclusion of one-time shipments. As part of our Responsible Care Outreach Program, we evaluate all carriers to assign a level of risk (Low/Medium/ High) which determines how often they are reviewed. Using the RiskRate® Due Diligence Management System, carriers are monitored
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ipments. As part of our Responsible Care Outreach Program, we evaluate all carriers to assign a level of risk (Low/Medium/ High) which determines how often they are reviewed. Using the RiskRate® Due Diligence Management System, carriers are monitored 24/7 and relationship owners are notified automatically of any matters of concern supported by other business processes used to monitor and manage risk. Railcar securing and maintenance: To prevent NARs, we implement strict processes to secure our railcars (e.g., RideTight® fluidsealing management program) and employ a tank car maintenance program that goes beyond regulatory requirements. All rail tank car and rail hopper car loading and unloading personnel have access to a railcar inspection training program to ensure proper implementation of these processes. Pipeline integrity: We operate approximately 580 kilometers of pipelines and are committed to maintaining a rigorous pipeline integrity program. Our program includes right of-way inspections, flyovers, in-line inspections, and integrity or verification digs. ZERO NARS We achieved zero NARs during rail transportation in 2022. In 2022, we received a CN Safe Handling Award and a Chemical Transportation Safety Pinnacle Award for our zero NARs performance in 2021. See “What does our ambition mean?” on page 53. 54 <54 END>
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<START 55> 2022 Activities PRGM 1300 TRANSPORTATION SAFETY AND LOGISTICS To align with regulations and industry best practices for transportation safety, we have comprehensive planning, screening, assessment, and audit plans. In 2022, we developed PRGM 1300 Transportation Safety and Logistics to ensure that our products, raw materials, waste, etc., are handled and transported in a way that is safe, secure, environmentally responsible, and aligned with Sustainability and Responsible Care practices and transportation regulations and standards. The program outlines roles and responsibilities, key requirements for various transportation activities, and expectations for compliance, audits, and continual improvement. CP 902 RESPONSIBLE CARE OUTREACH Our commitment to implementing Responsible Care principles guides our operations, and in 2022, we introduced the CP 902 Responsible Care Outreach program. The program is designed for engagement with suppliers and customers to help them understand our commitment to Responsible Care and our expectations of them. The tool is also used by the NOVA Chemicals team to assess the value chain based on performance criteria and review the process to receive product safety information from customers and clients. HOPPER CAR UNLOADING CHECKLIST In 2022, we enhanced our focus on OCS procedures and are committed to working with our customers to be a trusted advisor. We refreshed our hopper car unloading checklist that outlines important actions and procedures to encourage behavior changes that will help keep pellets in hopper cars and out of the environment. IMPLEMENTED WORKPLACE SECURITY AWARENESS TRAINING A key part of our Security Management Program, Security Vulnerability Assessments (SVAs) help us identify opportunities to improve our overall security as well as our transportation safety. For example, following an SVA recommendation, we developed workplace security awareness training to enhance workers’ familiarity with
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sments (SVAs) help us identify opportunities to improve our overall security as well as our transportation safety. For example, following an SVA recommendation, we developed workplace security awareness training to enhance workers’ familiarity with security issues and make them more aware of their roles and responsibilities regarding security matters. In January 2022, we completed the roll-out of this training at all NOVA Chemicals sites. All employees and contingent workers receive this training. SECURITY PROGRAM AUDITS We participated in two major audits by external parties on our supply chain security at our Joffre site. The Canada Border Services Agency Partners In Protection verification audit resulted in no actions required. Transport Canada conducted the Rail Security Audit, and in reporting no areas of non-compliance, also noted with favor the operation and resourcing of the security program. WHY IS IT IMPORTANT FOR US TO MANAGE TRANSPORTATION SAFETY? By incorporating best practices to ensure safe transportation, we can help prevent product spills and incidents that could negatively impact the safety of people and the integrity of our environment. OUR PERFORMANCE Transportation Safety Incidents Transportation incidents exclude vehicle incidents that do not involve products. The significant increase in total incidents in 2021 was due to increased recognition and reporting of minor transportation incidents and near hits by our carriers and our employees. Note that Total Incidents includes near hits. 55 <55 END>
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<START 56> Communications • Create opportunities for stakeholder feedback • Continue to consult with directly and potentially impacted stakeholders Employment • Create opportunities to connect the construction workforce with local businesses • Promote local employment and business development opportunities Environment • Meet our permitting and regulatory requirements • Participate in tree planting and biodiversity protection initiatives • Work with our contractors to minimize material waste and oversupply Traffic • Implement a traffic management plan • Proactively anticipate traffic impacts, particularly during peak times and movements of heavy equipment • Promote safe driving behaviors Noise • Schedule work primarily during daytime hours Management Approach: How We Manage Community Relations and Investment BEING ACCOUNTABLE We have a responsibility to be accountable to communities that we impact. The CIAC’s Responsible Care Accountability Code guides our operations and provides expectations for proactive community awareness and communication including engagement with Indigenous communities. BUILDING AND SUSTAINING STRONG COMMUNITIES We are committed to investing in organizations that work toward improving the quality of life in the communities around us. The various organizations that we work with are dedicated to removing barriers for our communities’ most vulnerable populations. The initiatives we support are focused on three core areas that relate to our business strategy: Science and Education, Health and Community Service, and the Arts. BEING A GOOD NEIGHBOR Our Good Neighbor Program details specific commitments and actions related to our construction activities. Community and Indigenous Relations We aim to be a good neighbor in our communities and a sought-after local employer. To achieve this, we collaborate with our communities and invest in projects that address their specific needs and concerns. Along with regularly
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Enhancing Retrieval for ESGLLM via ESG-CID -- A Disclosure Content Index Finetuning Dataset for Mapping GRI and ESRS

Usage

from datasets import load_dataset

# document chunks: train/dev/test_gri/test_esrs
documents = load_dataset("esgllm/esg_cid_retrieval", "documents")

# queries (disclosure text):  train/dev/test_gri/test_esrs
queries = load_dataset("esgllm/esg_cid_retrieval", "queries")

# training triplets: train/dev
triplets = load_dataset("esgllm/esg_cid_retrieval", "triplets")

# evaluation qrels: test_gri/test_esrs
qrels = load_dataset("esgllm/esg_cid_retrieval", "qrels")

Citation

If you find this dataset useful in your research, please consider citing the following paper:

@misc{ahmed2025enhancingretrievalesgllmesgcid,
      title={Enhancing Retrieval for ESGLLM via ESG-CID -- A Disclosure Content Index Finetuning Dataset for Mapping GRI and ESRS}, 
      author={Shafiuddin Rehan Ahmed and Ankit Parag Shah and Quan Hung Tran and Vivek Khetan and Sukryool Kang and Ankit Mehta and Yujia Bao and Wei Wei},
      year={2025},
      eprint={2503.10674},
      archivePrefix={arXiv},
      primaryClass={cs.CL},
      url={https://arxiv.org/abs/2503.10674}, 
}

License

Copyright © 2024 Accenture. CC BY-NC-ND: https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

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