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PPG Industries Corporate Sustainability Report 2008

PPG Industries Corporate Sustainability Report 2008

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  • 1. 2008 Corporate Sustainability Report
  • 2. Table of Contents A Message from the Chairman .................................. 4 Company Profile ........................................................ 5 Ethics and Compliance .............................................. 8 Corporate Governance ............................................ 10 Business Performance .............................................. 12 Energy and the Environment ..................................... 15 Employees and the Workplace ................................. 22 Community Involvement and Social Performance ..... 26 Awards and Recognition ........................................... 30 Scope of Report ....................................................... 31 2008 Corporate Sustainability Report | 2
  • 3. Conservation, Education and Wings of Wonder Each year, monarch butterflies make the journey from Canada Today, PPG’s participation in and the United States to Mexico, where they spend the winter the Wings of Wonder program months. This remarkable annual migration has presented serves as a link between PPG Industries and the communities in which it operates with students in both countries. a unique opportunity to help safeguard natural habitats and, Students communicate at the same time, provide young students with a hands-on regularly as they share their educational experience. observations and discoveries. PPG’s efforts have helped Since 1994, PPG has partnered with the Wildlife Habitat establish and maintain a valuable Council to promote environmental stewardship through outdoor classroom integrated into habitat conservation and development on company-owned the educational curriculum in properties. PPG and the council have created Certified Wildlife both communities. Habitats at five PPG facilities in the United States, Canada, and Mexico. Through the Wings of Wonder program of the WHC, PPG employees have devoted hundreds of volunteer hours to construct butterfly gardens and teach school children about butterfly ecology, migration, and the importance of pollination to agricultural development and conservation. PPG’s Monroeville, Pa., USA, Chemicals Center and its San Juan del Rio, Mexico, automotive coatings plant both involve local schools in the study of butterflies’ life cycles. Teachers from the Monroeville area have visited the monarch butterfly reserves in Mexico and explored the biodiversity of pollinators such as moths, bees, hummingbirds and even fruit bats. Educators have met with PPG employees in San Juan del Rio to share their experience in creating and preserving the butterflies’ habitat. The PPG volunteers have in turn helped local teachers create a meadow at the company’s facility to serve as an outdoor classroom and research venue. 2008 Corporate Sustainability Report | 3
  • 4. A Message from the Chairman For more than 125 years, PPG Industries has grown and thrived by making sound business decisions. With the intent of ensuring the company’s long-term viability and success, these decisions have also been made with the best interests of people, profitability and the planet in mind. Now, with the publication of PPG’s first corporate sustainability report, it is our intention to paint a clear picture of who we are, what we believe, and how we conduct our business. And while this is our first report, I think you’ll see that PPG is no stranger to the concepts of sustainable business practices. In fact, I would submit to you that sustainability has been an underlying principle for all of PPG’s actions since its founding in 1883. More importantly, I believe that this report will demonstrate just how strongly the company’s ethics and values influence the smart choices PPG makes every day. So, what is PPG’s approach to sustainability? For us, it has two elements. Sustainability is first and foremost about being a successful business. We do what we do in order to ensure the success and lasting presence of our company for the benefit of our customers, our suppliers, our shareholders, our employees and our neighbors. But, we also act in a way that not coincidentally helps to ensure the life and resilience of our economies, our environment and our society. We believe that these two views of sustainability – sustaining PPG and sustaining the world – are not mutually exclusive, but are very compatible. In this report, you’ll read about the steps we’ve taken to transform our company from a North American-centric commodity materials manufacturer to the leading global coatings and specialty products provider. This extends beyond just making products. You’ll see how PPG’s innovations are helping to address some of the world’s most pressing problems related to energy, the environment, security and other issues. You’ll read about our performance with regard to the environment and energy, some of the ambitious goals we’ve set, and our progress toward meeting them. Lastly, you’ll read about our commitment to society and the people who make it so diverse and vibrant. And, you’ll learn how PPG is giving back to our communities. It is our intent to issue this report every two years. And, it is my personal hope that this report serves not as a static document, but as an invitation to a dialogue: • A dialogue with customers about innovation and partnership, • A dialogue with employees and potential employees about the opportunities that exist in working at PPG, • A dialogue with shareholders about the continued strength of our business performance, • And a dialogue with residents of communities where we have operations about ways that PPG can continue to be an employer and neighbor of choice. Ultimately, if we are successful in establishing and maintaining these exchanges of ideas, it will be not only PPG, but all of us, that benefit. Sincerely, Charles E. Bunch Chairman of the Board and Chief Executive Officer 2008 Corporate Sustainability Report | 4
  • 5. 2008 Segment Net Sales Company Profile About Us PPG Industries, Inc., headquartered in Pittsburgh, Pa., USA, is a global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiber glass. Sales in 2008 were $15.8 billion. The company has more than 140 manufacturing facilities and equity affiliates and operates in more than 60 countries around the globe. At the end of 2008, PPG employed more than 42,800 people across the world. PPG employees and Performance Coatings (30%) retirees own about 8 percent of the firm’s outstanding Industrial Coatings (25%) stock. As owner-operators, PPG’s people share a deep sense of pride and a firm commitment to their company. Architectural Coatings EMEA (14%) PPG is a publicly owned company, with shares traded on Optical & Specialty Materials (7%) the New York Stock Exchange (symbol: PPG). Commodity Chemicals (12%) Glass (12%) NOTE: Glass figures include Automotive Glass & Services business through Sept. 30, 2008. PPG’s Reportable Segments PERFORMANCE COATINGS ARChITECTURAL COATINGS – EMEA AEROSPACE. Leading supplier of sealants, coatings, maintenance ARCHITECTURAL COATINGS – EMEA chemicals, transparencies and application systems, serving original (Europe, Middle East and Africa). Supplier of market- equipment manufacturers and maintenance providers for the leading paint brands such as Sigma Coatings, Seigneurie, commercial, military, regional jet and general aviation industries, Johnstone’s, Trilak, Primalex and Dekoral for the trade and and transparent armor for military land vehicles. retail markets. ARCHITECTURAL COATINGS – AMERICAS AND ASIA/PACIFIC. Produces paints, stains and specialty coatings for the commercial, OPTICAL AND SPECIALTY MATERIALS maintenance and residential markets under brands such as OPTICAL PRODUCTS. Produces optical monomers, including Pittsburgh, Olympic, Taubmans and Ivy. CR-39 and Trivex lens materials, photochromic dyes, Transitions photochromic ophthalmic plastic lenses, NXT high-performance AUTOMOTIVE REFINISH. Produces and markets a full line of sunlenses and polarized film. coatings products and related services for automotive and commercial SILICAS. Produces amorphous precipitated silicas for tire, transport/fleet repair and refurbishing, light industrial coatings and battery separator and other end-use applications and Teslin specialty coatings for signs. Also manages premier CertifiedFirst substrate used in applications such as radio frequency collision-shop alliance. identification (RFID) tags and labels, e-passports, driver’s PROTECTIVE AND MARINE COATINGS. Leading supplier of licenses and identification cards. corrosion-resistant, appearance-enhancing coatings for the marine, infrastructure, petrochemical, offshore and power industries. Produces COMMODITY ChEMICALS the Amercoat, Freitag, PPG High Performance Coatings and Sigma CHLOR-ALKALI AND DERIVATIVES. Producer of Coatings brands. chlorine, caustic soda and related chemicals for use in chemical manufacturing, pulp and paper production, water INDUSTRIAL COATINGS treatment, plastics production, agricultural products and AUTOMOTIVE COATINGS. Supplier of automotive coatings many other applications. and services to auto and truck manufacturers. Products include electrocoats, primer surfacers, base coats, clearcoats, bedliners, GLASS pretreatment chemicals, adhesives and sealants. FIBER GLASS. Manufacturer of fiber glass reinforcement INDUSTRIAL COATINGS. Produces coatings for appliances, materials for thermoset and thermoplastic composite applications, agricultural and construction equipment, consumer products, serving markets such as wind energy, energy infrastructure and electronics, automotive parts, residential and commercial construction, transportation. Produces fiber glass yarns for electronic printed wood flooring, kitchen cabinets and other finished products. circuit boards and other specialty applications. PACKAGING COATINGS. Supplier of coatings, inks, compounds, PERFORMANCE GLAZINGS. Produces glass that is fabricated pretreatment chemicals and lubricants for metal, glass and plastic into products primarily for commercial construction and residential containers for the beverage, food, general line and specialty markets, as well as solar photovoltaic panels and concentrated packaging industries. solar panels. 2008 Corporate Sustainability Report | 5
  • 6. Performance Coatings Industrial Coatings Our Vision Our Objectives • To continue to be the leading coatings and specialty Fundamental to our success is our ability to implement products company breakthrough initiatives to solve problems, achieve • To be true to our values and ethics operational excellence and maintain the lowest cost • To grow by being an integrated, market oriented enterprise position in the supply chain. • To achieve consistent sales and earnings growth • To provide superior shareholder returns • Be the top-ranked supplier to our customers • Grow our earnings per share by 10% per year Our Values • Achieve an average return on capital (ROC) of 15% Fundamental to who we are is an unwavering commitment • Attain 30% of sales from products that are 4 years old or less to high ethical standards and integrity. We implement • Increase output per employee by at least 5% per year our strategies across all levels of the organization in an uncompromising, ethical manner. Mark Smith, a welder • Dedication to the customer - We are in business to from PPG’s Lake serve customers. We focus on our markets and dedicate Charles, La., USA, ourselves to meeting the products and services needs chemical plant is of our customers. the company’s first • Respect for the dignity, rights and contributions of winner of the PPG employees - We operate safe, healthful and harassment- Environmental Health free workplaces that value diversity, promote teamwork and Safety (EHS) Gold and reward performance. We develop our people through Award. Smith was on continuous learning, creating an environment where the PPG team that opinions are expressed and respected. developed procedures • Recognition of the concerns and needs of society - for “hot tapping” PPG recognizes its responsibility to preserve and protect chlorine tank cars the global environment in which the company operates. involved in accidents, To this end, we run our businesses using sound so their contents can environment, health, safety and product stewardship be safely offloaded practices while providing product solutions that reduce before they vaporize energy consumption and minimize environmental into the air. impact. We communicate with the public, participate in governmental processes, and support local communities. • Value of supply chain relationships - We leverage supplier competencies and develop relationships that focus on mutual, continuous improvement and a shared responsibility to meet our customer requirements. • Responsibility to shareholders - We are a performance-focused company committed to the stewardship of the corporation and to delivering returns to PPG’s owners. 2008 Corporate Sustainability Report | 6
  • 7. Architectural Coatings – EMEA Optical and Specialty Materials Commodity Chemicals Glass Engaging Stakeholders As PPG strives to continually improve its sustainable practices, open communication and cooperation with its stakeholders is critical at all levels. While the company does not maintain a formal process for identifying stakeholders, PPG determines those entities involved and affected by its operations through the normal course of its business. PPG engages its stakeholders, which include customers, prospects, the communities and governments in which it operates, shareholders, financial analysts, and employees in a variety of ways. Individual business units coordinate engagement with their customers and prospects. PPG’s businesses provide extensive information about their products, including safe handling practices outlined in safety data sheets and labels. The company also provides training, where appropriate, and various systems to address questions and concerns. Business units also coordinate dialogue with citizens of communities where PPG has operations. The company communicates with relevant government officials through managers at each local facility in addition to other levels of the company including PPG’s leadership team and CEO. Shareholders, investors and financial analysts are engaged through PPG’s Proxy Statements, Annual Reports, other filings and news releases. Shareholders can communicate with the company’s directors and senior management about any issues regarding PPG and the conduct of its business at PPG’s annual meetings, or they may also send communications to the board Twice a year, PPG’s management holds a meeting and webcast or the independent directors individually or as a group. to keep employees informed about the company’s performance. To engage PPG employees, supervisors and managers encourage their teams to raise issues and ask questions. PPG’s CEO holds employee meetings and webcasts twice a year, and quarterly employee meetings are encouraged throughout the company. PPG also operates a Global Ethics Hotline by which employees can communicate concerns, ask questions, offer suggestions and share insights. As PPG works to continually improve its processes for engaging stakeholders, it is committed to exploring new ways of gathering input and facilitating an open dialogue on issues of interest. 2008 Corporate Sustainability Report | 7
  • 8. Ethics and Compliance Since its founding in 1883, one of PPG’s most valuable assets has been its reputation for being an honest, fair and capable company with which to do business. Over the course of its history, the company has demonstrated its ability to operate in a clear, open and accountable manner by establishing policies that ensure integrity and fair business practices. PPG’s Global Code of Ethics In 1989, PPG established the Global Ethics and Compliance Each new PPG employee, no matter where in the world he or Committee. Headed by the chairman and CEO, the committee she works, receives a copy of the PPG Global Code of Ethics. was formed to set and review ethics-related policies and Currently published in 19 different languages, and available practices within PPG. Soon after its formation, the committee both in printed form and on the Web, it provides an ethical issued the PPG Global Code of Ethics, A Guide to Corporate framework upon which to base everyday decisions. Its four Conduct, which sets forth the principles that apply to all PPG categories encompass the firm’s breadth of activities: people, everywhere and in every circumstance. • Relationships with customers, suppliers and competitors While the committee and the code have both evolved over time, • Protection of corporate assets and preparing the PPG Global Code of Ethics provides a clear unwavering set accurate financial statements of standards for business conduct, underpinned by the following • Responsibilities to the public, public officials commitments: and the environment • As a global organization, respect for local customs • To furnish goods and services that meet and laws our customers’ and society’s needs • To provide employees with a safe, healthy and fulfilling work environment • To afford our shareholders a superior return on investment • To contribute as a good corporate citizen to each nation and community in which we operate 2008 Corporate Sustainability Report | 8
  • 9. A Daily Focus on Ethics Ethics at PPG go well beyond the text of the code alone; they are a constant part of the conversation and culture within the company. To stay current, PPG invests considerable time and resources developing its own customized ethics training program. Every employee at manager level or above is required to complete ethics and compliance training, as is every employee involved in purchasing, law or finance. Training for current and potential corporate leaders often includes practice scenarios for tackling key ethical dilemmas. Each year, an estimated 14,500 PPG employees from around the world participate in the company’s online ethics training program. In addition, PPG encourages employees to ask legal or ethics- related questions, in any language, through its “Ask the Experts” feature on the company’s ethics intranet sites. PPG has committed to providing a response to these questions within two business days. The PPG Ethics Hotline provides an important, toll-free vehicle by which employees can report unethical, illegal, or questionable business activity. The hotline is managed by independent, third- party firms whose representatives are trained to listen carefully, ask questions, and document the situation accurately – while maintaining the employee’s anonymity. Each call is investigated and brought to appropriate resolution. In the 10 years since its institution, the Ethics Hotline has received more than 1,000 calls from employees. As a global company, PPG expects its employees to follow local Each year, an estimated laws while demonstrating the highest level of ethical compliance 14,500 PPG employees at all times. Ethics compliance is also an immediate focal point from around the world in integrating employees from newly acquired companies. For participate in the company’s example, upon the completion of PPG’s acquisition of SigmaKalon, online ethics training program. a worldwide coatings producer previously based in Uithoorn, Netherlands, with manufacturing operations in Europe and other countries around the world, all employees received information on the company’s Code of Ethics within days of joining PPG. Code of Ethics for Senior Financial Officers PPG puts a special emphasis on promoting transparency in its reporting and ethical conduct in financial management. The company requires the principal executive officer, principal financial officer, principal accounting officer or controller, and/or other officials performing similar functions in every location to adhere to a specific and additional Code of Ethics for Senior Financial Officers. This code emphasizes compliance with regulations of the U.S. Securities and Exchange Commission; federal, state and local government laws applicable to PPG; and the rules of other regulatory agencies. PPG prides itself on its leadership in the area of financial ethics, as evidenced when there were no substantial changes required to comply with the U.S. Sarbanes-Oxley Act of 2002, since the company already had similar financial reporting controls and procedures in place. 2008 Corporate Sustainability Report | 9
  • 10. Corporate Governance PPG Industries is governed by a 10-member Board of Directors, nine of whom are not employees of the company. Charles E. Bunch is both the chairman of the board of directors and chief executive officer of PPG. The company’s Corporate Governance Guidelines, which are published and available online, outline the structure of governance at the company. PPG’s Board of Directors maintains four standing committees, each comprised of independent, non-employee members of the board: • The Audit Committee ensures the integrity of the • The Officers-Directors Compensation Committee company’s financial statements and compliance with oversees compensation for executive officers and legal and regulatory requirements, and it manages directors, and sets objectives for incentive-based PPG’s internal and external auditors. compensation for executive officers. • The Nominating and Governance Committee • The Technology and Environment Committee oversees the composition of PPG’s Board of Directors assesses the company’s science and technology by regularly reviewing membership and nominating capabilities and reviews environment, health, safety, and prospective members. product stewardship policies, programs, and practices. Board of Directors Standing, from Hugh Grant Robert Ripp Charles E. Bunch Thomas J. Usher James G. Berges Martin H. Richenhagen Michele J. Hooper left to right: Chairman, Lightpath Technologies, Chairman and Chief Executive Non-executive Chairman of the Partner, Clayton, Dubilier & Rice, Chairman, President and Chief Managing Partner, Chairman, President and Chief Executive Officer, and former Chairman and CEO, Officer, PPG Industries Board, Marathon Oil Corporation and retired President, Emerson Executive Officer, AGCO Corporation The Directors’ Council Monsanto Company AMP Inc. Electric Co. Officers–Directors Compensation Audit Committee; Technology and Audit Committee; Nominating Nominating and Governance Audit Committee; Officers–Directors Committee; Technology and Audit Committee; Nominating Environment Committee and Governance Committee Committee; Technology and Compensation Committee Environment Committee and Governance Committee Environment Committee Seated, from Victoria F. Haynes Robert Mehrabian David R. Whitwam left to right: President and Chief Executive Chairman, President and CEO, Retired Chairman and CEO, Officer, RTI International Teledyne Technologies Incorporated Whirlpool Corporation Nominating and Governance Officers–Directors Compensation Nominating and Governance Committee; Technology and Committee; Technology and Committee; Officers-Directors Environment Committee Environment Committee Compensation Committee 2008 Corporate Sustainability Report | 10
  • 11. Operating Committee PPG’s senior management structure is separated into two functional groups: • PPG’s Executive Committee is comprised of Charles E. Bunch, chairman • PPG’s Operating Committee is comprised of the three of the board of directors and chief executive officer; James C. Diggs, senior members of the Executive Committee and 11 other vice president, general counsel and secretary; and William H. Hernandez, executive leaders representing corporate staff functions senior vice president, finance and chief financial officer. and various business segments across the company. J. Rich Alexander Victoria M. Holt David B. Navikas William H. Hernandez Charles W. Wise James C. Diggs William A. Wulfsohn Sr. Vice President, Sr. Vice President, Vice President Sr. Vice President, Finance, Vice President, Sr. Vice President, Sr. Vice President, Performance Coatings Glass and Fiber Glass and Controller and Chief Financial Officer Human Resources General Counsel and Secretary Industrial Coatings Charles E. Bunch Charles F. Kahle Richard C. Elias Kathleen A. McGuire Pierre-Marie De Leener Michael H. McGarry Aziz S. Giga Chairman and Chief Technology Officer, Sr. Vice President, Vice President, Sr. Vice President, Architectural Sr. Vice President, Vice President, Strategic Planning Chief Executive Officer and Vice President, Research Optical and Specialty Materials Purchasing and Distribution Coatings EMEA, and Commodity Chemicals and Treasurer & Development, Coatings President, PPG Europe 2008 Corporate Sustainability Report | 11
  • 12. A Stronger, More Focused Portfolio Business Performance 2008 TOTAL SALES 2008 TOTAL SALES 1997 12% Since 1883, when PPG was founded as the Pittsburgh Plate 8% 1997 13% Glass Co., the company has grown steadily. From what began 12% 42% 8% 8% as a company with one location, one product line and a few 13% 36% 72% hundred employees, PPG today is a global enterprise with 9% 42% 8% 36% 72% operations in every part of the world, producing thousands of 51% 9% 80% diverse products and employing thousands of people. Financial 51% discipline and flexibility have long been PPG hallmarks. The 80% Performance, Industrial & Architectural EMEA Coatings Glass fact that PPG has rewarded its shareholders with uninterrupted Optical & Specialty Materials Commodity Chemicals Performance, Industrial & Architectural EMEA Coatings Glass annual dividends since 1899 is testament to the company’s NOTE: 2008 figures exclude Automotive Glass & Services business. Optical & Specialty Materials Commodity Chemicals successful business performance. 2008 A Broader Geographic Footprint TOTAL SALES 2008 7% 1997 TOTAL SALES 9% 12% 3% 1997 7% 21% 9% 3% 12% 43% 67% 38% 21% 43% 67% 38% Since the late 1990s, PPG has embarked on a transformation from a North American-centric, chemical, coatings and glass United States Asia company to the leading global coatings and specialty products Europe, Middle East & Africa Other Americas company. Driven by organic growth, targeted acquisitions and United States Asia Europe, Middle East & Africa Other Americas divestitures, operational excellence, and a relentless pursuit of innovation, PPG has more recently accelerated this reshaping, NOTE: 2008 figures exclude Automotive Glass & Services business. which in turn has fueled its growth. Focusing on Coatings In 2008, PPG leveraged its global capabilities to generate In 1997, about 51 percent of PPG’s sales were attributable solid earnings despite rapidly rising energy and raw material to the coatings and optical and specialty materials segments costs and substantial demand declines brought on by the of the company. Today, those segments represent about global economic downturn in the latter part of the year. This 80 percent of the company’s portfolio. strong financial performance under intensely difficult market conditions demonstrates the strength of PPG’s business In recent years, this shift has been accelerated by a series of portfolio and the success of its strategic direction. acquisitions culminating in the 2008 acquisition of SigmaKalon, a worldwide coatings producer previously based in Uithoorn, Netherlands. This acquisition – PPG’s largest – extends the PPG’s Strategy company’s presence in various end-use markets, and sharply increases the proportion of sales coming from coatings. What’s Accelerate profitable growth more, the acquisition was complementary to PPG’s existing • Focus on coatings and specialty products coatings businesses in Europe. Put simply, SigmaKalon was strong • Drive innovation and new technologies where PPG was not, and vice versa. Together, these businesses • Expand presence in emerging regions and new markets provide PPG with a strong platform for future growth in coatings. • Strengthen our portfolio of businesses Another driver is the 2008 divestiture of a majority interest in Enhance operational excellence PPG’s predominantly North American automotive glass and • Strive for margin leadership services business to a new company. PPG holds a minority • Leverage global capabilities ownership in the new company, Pittsburgh Glass Works LLC. • Selectively invest for renewal In addition, several smaller strategic acquisitions have helped PPG become well-positioned to sustain its performance despite individual end-use market weaknesses. In 2008, PPG made various small yet strategic acquisitions, including Vanex, Inc., Former SigmaKalon headquarters Bonny Refinish Coatings, and BASF’s North American coil and extrusion coatings business. 2008 Corporate Sustainability Report | 12
  • 13. 2008 Financial Highlights Growing Globally NET SALES DIVIDENDS PER SHARE In 1997, two thirds of the company’s $7.4 billion in sales came (millions of dollars) (dollars) 04 9,417 04 1.79 from the United States; now the United States accounts for about 05 10,126 05 1.86 43 percent of PPG’s more than $15 billion in sales. 06 10,938 06 1.91 Over that same time, the emerging region of Asia has grown 07 12,220 07 2.04 from 3 percent of the company to about 12 percent. 08 15,849 08 2.09 In Europe, the company has dramatically increased its presence PPG Segment Income and market share by acquiring SigmaKalon, which brought to PPG strong architectural paint, protective and marine coatings ($ millions) 2008 2007 and industrial coatings businesses, as well as a solid presence Performance Coatings $ 582 $563 in Western Europe and growing positions in emerging regions Industrial Coatings 212 370 such as Eastern Europe, Asia and Africa. Architectural Coatings – EMEA 141 — Investing in Assets Optical and Specialty Materials 244 235 PPG continues to make investments that extend its product lines, Commodity Chemicals 340 243 expand capacity, maintain operations, enhance efficiency, reduce Glass 70 138 energy consumption, lower costs, and protect the environment. NOTE: Glass figures include Automotive Glass & Services business through 3Q 2008. In 2008, the company opened an architectural coatings facility in Reno, Nev., USA, and an automotive coatings facility in Wuhu, For more information on PPG’s financial performance, China. PPG also purchased land in Russia and announced plans refer to our Annual Reports available at www.ppg.com. to construct a new coatings facility in Suriname, a new fiber glass furnace at an affiliate operation in Kunshan, China, and a new optical line in Thailand. PPG is also refurbishing a glass furnace in Carlisle, Pa., USA, and it is investing in facility upgrades at several coatings facilities. Overall, PPG has a broad-based, geographically diverse business mix and an emphasis on operational excellence in order to increase productivity, reduce costs, improve margins, and generate cash – all of which should help make the company more resilient. As a major employer, PPG’s presence enhances the tax revenue of the nations PPG celebrated the opening of a new automotive coatings and communities where it plant in Wuhu, China, in August 2008. PPG CEO Chuck Bunch operates. In 2008, PPG paid is flanked by Yang Liangwen, director of the Wuhu Economic $300 million in taxes globally. & Development Administration Committee (left), and Yu Yong, director-general of the Commerce Bureau of Anhui Province, during the grand opening ceremonies. 2008 Corporate Sustainability Report | 13
  • 14. Continuing to Innovate PPG’s history of innovation includes coatings that protect cars from rust, chemicals that strengthen rubber and protect water supplies, paints that resist mildew and contain no volatile organic compounds (VOCs), optical products that lighten and darken automatically, military applications for transparent armor, and fiber glass for alternative energy applications. Today, the company continues to focus on making products that help solve some of the world’s most pressing problems. Some examples include: • Innovative Automotive Coatings – Preferred by car makers across Europe for reducing solvent vapors and providing a healthier work environment, PPG Waterborne Basecoat Systems are successfully expanding their distribution to North America and beyond. In addition, CeramiClear clearcoat by PPG was the first clearcoat to use nanoparticle technology to achieve a previously unattained level of scratch, mar and etch resistance. • Transitions Optical – A joint venture of PPG and Essilor International, Transitions Optical was the first to successfully commercialize a plastic photochromic lens in 1990. A R C T I C O C E A N A R C T I C O C E A N Transitions continues to improve what is the most advanced Alta Murmansk Vorkuta Dudinka Antipayuta Norilsk Igarka Volochanka Khatanga Ust-Olenek Belaja Gora Barrow GREENLAND photochromic technology available today across all major lens materials and designs. In 2008, the company launched Kiruna Batagay Fort Yukon Lulea Port Radium ICELAND Skelleftea RUSSIA Fairbanks Nome Baker Lake FINLAND Archangelsk R U S S I A Sangar Nuuk (Godthab) Reykjavik Ostersund FAROE ISLANDS Mirnyj Vaasa Rankin Inlet Torshavn Jakutsk NORWAY Syktyvkar Nizhnevartovsk Anchorage Helsinki Cordova Oslo SWEDEN Magadan Tallinn St. Petersburg Vologda Stockholm Kirov Fort Chipewyan Churchill Inukjuak ESTONIA Novgorod Juneau Perm Bodaybo Jaroslavl Gen VI, its newest-generation product, with even faster LATVIA Riga Rostov Sverdlovsk Fort McMurray Gorkiy Krasnojarsk Bratsk Bear Lake DENMARK Izevsk Thompson LITHUANIA Chelyabinsk Omsk Grande Prairie Sunderland Copenhagen Kaunas Moscow Kazan Ufa Novosibirsk Flin Flon Minsk Prince Rupert Dublin NETH. Gdansk Tol Yatti Prince Albert Orol Kuybyshev Rudnyy Unalaska IRELAND U. K. Warsaw Irkutsk CANADA Berlin BELARUS Petropavlovsk-Kamchatskij Red Deer Labrador City London Voronez Saratov Atbassar GERMANY POLAND Saskatoon Moosonee Cork Ulan Ude Kamloops Calgary Krakow Kiev BELGIUM Qaraghandy Brandon CZECH Aktyubinsk LUX. Lviv Volgograd Vancouver Swift Current Paris SLOVAKIA UKRAINE KAZAKHSTAN Khabarovsk Timmins Amos Hovd Ulaanbaatar Spokane Williston Nantes MOLDOVA Qiqihar Juzno Sachalinsk Grand Forks LEICHT. AUSTRIA HUNGARY Frunze RUSSIA Aralsk Balqash Seattle ROMANIA Altay Duluth FRANCE SWITZ. SLOVENIA Karamay MONGOLIA Harbin Butte Ottawa Montreal CROATIA Krasnodar Jixi ITALY Bucharest Portland BOSNIA Urumqi Jilin Minneapolis Bayonne ToulouseMONACO SAN Alma Ata Dalandzadagad Sapporo darkening and lightening capabilities. MONACO Constanta SERBIA MARINOMONTENEGRO Twin Falls Milwaukee Detroit BULGARIA UZBEKISTAN Fuxin Boston P A C I F I C ANDORRA Valladolid ANDORRA VATICAN GEORGIA Bishkek Korla Hami Benxi Scottsbluff Chicago Buffalo ATLANTIC Porto Madrid Barcelona Rome MACEDONIA KYRGYZSTAN Baotou PORTUGAL Naples Ankara ARMENIA Tashkent NORTH KOREA Omaha Philadelphia AZERBAIJAN Yumen Reno Provo New York SPAIN GREECE TURKMENISTAN Kashi Beijing Pyongyang Kansas City Baltimore Lisbon ALBANIA Izmir TURKEY Ashgabat TAJIKISTAN Qiemo Yinchuan Denver Sevilla Dalian Oakland U. S. A. St. Louis Washington D. C. O C E A N Adana Hotan SOUTH KOREA Sendai Ponta Delgada Tunis Athens Xining Taiyuan San Francisco OCEAN Taian Seoul Tokyo Las Vegas Norfolk Gibraltar Algiers MALTA Tehran Golmud Albuquerque Memphis Charlotte Nicosia SYRIA Kabul Lanzhou Kaifeng Qingdao TUNISIA CYPRUS Bakhtaran Xian Casablanca Rabat LEBANON Baghdad Los Angeles Atlanta Tripoli Esfahan CHINA Xuzhou JAPAN Dallas MOROCCO Islamabad Tucson Birmingham Ouargla ISRAEL AFGHANISTAN Mianyang Hefei San Diego IRAQ Basra IRAN Shanghai Chengdu New Orleans Jacksonville JORDAN Multan Huangshi Ningbo Houston CANARY ISLANDS LIBYA Cairo New Delhi Zigong Yueyang ALGERIA Shiraz KUWAIT NEPAL Kathmandu Shang Rao Sabhah BAHRAIN PAKISTAN Agra Tampa BHUTAN Guiyang Wenzhou EGYPT Jaipur Fuzhou WESTERN Reggane Ar Riyad QATAR Dukou Taipei THE BAHAMAS SAHARA Al Jawf Allahabad Dhaka Xiamen MEXICO Djanet Aswan U. A. E. Ahmadabad Nanning Shantou HAWAIIAN ISLANDS Havana SAUDI ARABIA Muscat Calcutta TAIWAN Surat MYANMAR Hanoi Hong Kong CAPE VERDE Makkah (Mecca) OMAN CUBA MAURITANIA Nagpur LAOS Mexico City DOM. REP. ISLANDS Araouane BANGLADESH Nouakchott Bilma Bombay Varanasi JAMAICA Praia NIGER Pune Rangoon Vientiane MARSHALL ISLANDS BELIZE HAITI ANGUILLA MALI Khartoum ERITREA YEMEN HONDURAS ANTIGUA & BARBUDA SENEGAL THAILAND ST. KITTS & NEVIS DOMINICA Dakar Asmara Sanaa Manila GUAM Niamey CHAD INDIA Bangkok VIETNAM ST LUCIA GAMBIA Bamako SUDAN Madras GUATEMALA ST VINCENT BARBADOS CAMBODIA PHILIPPINES EL SALVADOR NICARAGUA BURKINA Phnom Penh GUINEA BISSAU GUINEA NIGERIA N'Djmena DJIBOUTI GRENADA Conakry GHANA BENIN Abuja Ho Chi Minh City PANAMA TRINIDAD & TOBAGO SOMALIA Cochin SRI LANKA PALAU Caracas Freetown IVOR TOGO Waw Addis Abbaba COSTA RICA COAST Davao VENEZUELA Georgetown SIERRA LEONE Porto Novo CENTRAL AFRICAN ETHIOPIA CAMEROON REPUBLIC Colombo BRUNEI Bogota Paramaribo Monrovia Lome GUYANA • Teslin Synthetic Printing Sheet –Teslin provides Bangui FRENCH GUIANA Accra LIBERIA Abidjan Kuala Lumpur SURINAME Yaounde UGANDA MALAYSIA EQUATORIAL GUINEA MICRONESIA COLOMBIA SAO TOME & PRINCIPE DEM. REP. KENYA Mogadishu (Mugdisho) MALDIVES Kampala SINGAPORE ECUADOR Libreville CONGO OF THE CONGO Nairobi Quito INDIAN GABON RWANDA KIRIBATI NAURU Manaus Belem Brazzaville BURUNDI Fortaleza Talara Sao Goncalo Kinshasa Jakarta PAPUA Kananga TANZANIA SEYCHELLES I N D O N E S I A NEW GUINEA SOLOMON ISLANDS PERU OCEAN Dar es Salaam ATLANTIC Luanda TUVALU Trujillo Porto Velho Cachimbo TIMOR-LESTE Recife Likasi COMORAS Port Moresby Huambo SAMOA FRENCH POLYNESIA BRAZIL Barreiras ISLANDS Lima OCEAN Salvador ANGOLA ZAMBIA Lusaka Cuiaba Brasilia La Paz Cairns FIJI Goiania extraordinary durability, ease of printing and excellent Antananarivo Broome VANUATU BOLIVIA Harare MALAWI NAMIBIA Tennant Creek TONGA Sucre ZIMBABWE MOZAMBIQUE MAURITIUS Port Hedland Belo Horizonte BOTSWANA Mackay Windhoek MADAGASCAR Campinas Walvis Bay Learmonth Alice Springs NEW CALEDONIA PARAGUAY Gaborone Antofagasta Rio De Janeiro Pretoria Carnarvon Curitiba Sao Paulo Asuncion Luderitz Mbabane Maputo Tolanaro Brisbane CHILE Bloemfontein SWAZILAND Geraldton AUSTRALIA ARGENTINA Bourke Porto Alegre Kalgoorlie Cook SOUTH AFRICA LESOTHO Umtata Perth Rosario Sydney Santiago URUGUAY Cape Town Port Elizabeth Adelaide Buenos Aires Montevideo Canberra Concepcion aesthetics for menus, driver’s licenses and graphic labels. Melbourne Auckland Neuquen Valdivia Wellington NEW ZEALAND Dunedin Comodoro Rivadavia FALKLAND ISLANDS It is also a preferred material in technology-focused Port Stanley SOUTH GEORGIA ISLAND applications, such as e-Passports and radio frequency identification (RFID) cards and labels. • Fiber Glass and Coatings for Wind Turbine Blades – With the number of wind turbine installations around the world expected to grow, PPG continues to develop proprietary solutions in fiber glass and coatings that enable OEMs in Europe, Asia and North America to produce larger and more powerful turbines. • Electrochromic Airplane Windows – Passengers aboard the Boeing 787 Dreamliner will be able to darken or lighten their windows at the touch of a button with electrochromic window systems by PPG and Gentex Corporation. RESEARCH & DEVELOPMENT EXPENDITURES (millions of dollars) 06 330 07 363 08 468 2008 Corporate Sustainability Report | 14
  • 15. Energy and the Environment PPG is committed to operating in a manner that is protective of people and the environment. Through its business and manufacturing practices as well as its innovative products, the company is focused on stewardship and conservation, which not only helps protect the environment, but also gives PPG a competitive advantage in the marketplace. The solar canopy on the California Academy of Sciences, San Francisco, Calif., USA, features 700 solar panels made with Starphire glass by PPG, generating 213,000 kilowatt-hours of energy per year and providing 10 percent of the museum’s energy needs. Central to PPG’s focus on energy and the environment is PPG’s Environment, Health and Safety (EHS) Policy. The EHS Policy is implemented using PPG’s EHS Management System, the elements of which form the cornerstone for global operation of the company’s facilities. The system is implemented under the direction of PPG’s EHS Committee which consists of business, operations and EHS executives appointed by the Board of Directors. Reporting to the EHS Committee are three subcommittees: Elements of PPG’s EHS Management System 1. The EHS Requirements Sub-Committee develops 1. Management Leadership, Commitment and Accountability global EHS operating standards. 2. Risk Assessment and Management 3. Facilities Design and Construction 2. The Energy Security and Climate Change Steering 4. Information and Documentation Sub-Committee directs this companywide initiative. 5. Personnel and Training 6. Operations and Maintenance 3. The Nanotechnology EHS Steering Sub-Committee 7. Management of Change oversees the EHS aspects of this evolving technology. 8. Third-Party Services 9. Incident Investigation and Analysis In addition, PPG’s EHS Management system incorporates the 10. Community Awareness and Emergency Preparedness ISO 14001:2004 global standard as well as globally recognized 11. Product and Supply Chain Stewardship initiatives such as Coatings Care and Responsible Care. 12. Assessment and Improvement 2008 Corporate Sustainability Report | 15
  • 16. Developing Products That Address Energy and Environmental Needs PPG has introduced a number of innovations to meet the Developing Environmentally Responsible Coatings: PPG has increasing demand for energy-efficient, environmentally led the way in making environmentally responsible architectural responsible products. By continuing to increase the number coatings products, drastically reducing volatile organic compounds of “green” products and technologies it offers, PPG is not only (VOCs) and odor. In 1999, the company introduced Pure Performance practicing socially responsible business, it is leveraging a paint, the first paint to carry the U.S. Green Seal certification of long-term competitive advantage. In 2008, PPG’s sales from environmental responsibility. With the 2008 acquisition of SigmaKalon, “green” products – products that PPG believes have energy PPG has further expanded its reputation for low-VOC paints. The or environmental attributes – were approximately $3.8 billion, company recently launched its Sherwood line of low-VOC, water- up 24 percent in the past two years. based wood care products in the South African market, among the first such products available in the region. Reducing Aircrafts’ Carbon Footprint: PPG’s lightweight sealants and composite cockpit windshields significantly cut aircraft weight, thus reducing fuel usage. The company also offers environmentally responsible chrome-free and solvent-free sealants and coatings as well as electrochromic dimmable cabin windows that reduce interior cooling requirements and enhance passenger comfort. Helping Produce Energy-Efficient Vehicles: PPG provides lightweight fiber glass composite parts and silicas that reduce rolling resistance in tires, and in so doing, help save fuel. Water Wise Solutions from PPG helps car makers absorb heavy metals and other contaminants from wastewater streams at their facilities for reuse, thereby reducing total water purchase and discharge to save money and minimize the environmental impact. Facilitating Green Construction: PPG‘s solar control low-emissivity (low-E) glass, Solarban 70XL glass, enables architects to design buildings with windows that block approximately 70 percent of the sun’s solar heat energy while allowing 64 percent of available Environmentally responsible Pure Performance paints are easy to apply visible light to pass through the glass. This allows architects to and contain zero volatile organic compounds (VOCs). specify smaller cooling systems, reducing upfront building costs and reducing energy consumption. Advancing Energy Production: PPG has committed significant research and development funds to create more efficient and economical ways to generate power from renewable as well as traditional energy resources. PPG’s advanced coatings, glass and fiber glass are used to both manufacture and protect equipment in the wind, solar, oil and gas, coal and nuclear industries. Assessing Chemical Impacts: PPG is participating with the U.S. Environmental Protection Agency (EPA) and the Organisation for Economic Co-Operation and Development (OECD) to sponsor the assessment of potential health and environmental impacts of 25 products in the High Production Volume Initiative. The company has fulfilled its commitment for all but one category of chemicals and Solarphire HVM glass is being installed at the Kimberlina Solar Thermal expects to complete a revised submission for that category during Energy power plant in Bakersfield, Calif., USA. Adjustable rows of mirrors 2009. PPG is also preparing information for the U.S. EPA on two of aim the sun’s rays at pipes containing water. Steam from the pipes its products’ potential health effects, exposure and risk as part of drives turbines which, in turn, generate electricity at a power plant. the Voluntary Children’s Chemical Evaluation Program. 2008 Corporate Sustainability Report | 16
  • 17. SigmaGlide coating by PPG, a market-leading fouling release coating, prevents the buildup of barnacles, algae and other organisms on the hulls of tankers without the use of biocides that are toxic to marine life. Implementing Critical Manufacturing Improvements Continuous improvement at PPG also drives the re-engineering of manufacturing processes to minimize energy consumption, improve air and water quality, and reduce waste. Waste Management Programs: Across PPG, facilities employ a wide range of techniques to minimize and reuse waste. As an example, each PPG paint manufacturing plant has an active recycling process that might include the reuse of washwater and solvents from the production process, the re-work of obsolete inventory, and the recycling of raw material containers and packaging. Other packaging materials such as plastic and stretch wrap films, super-sacs, cardboard and pallets are recycled or recovered by suppliers, secondary Giuseppe Bianchi, colorist, develops a color formula users and scrap dealers, or through third-party contracts. at PPG’s coatings laboratory in Milan, Italy. A new generation of environmentally responsible waterborne Dispense Cell Technology: PPG uses this technology automotive basecoats was developed at Milan. The extensively at its coatings manufacturing plants around products, which replace solvent-based coatings, are the world to facilitate the production of smaller batches marketed in various countries under the Envirobase, of liquid coatings. The technology greatly reduces the need Aquabase Plus and Aquamax brands. for cleaning solvents and reduces hazardous waste and inventories by enabling more accurate order fulfillment. 2008 Corporate Sustainability Report | 17
  • 18. Reusable Shipping Containers: PPG ships liquid coatings in a variety of containers that are reconditioned for use by PPG, its suppliers and its customers. PPG ships many of its glass products on reusable steel racks, which has reduced the amount of disposable packaging that accompanies architectural glass products by 65 percent in one year. Mercury Emission Reduction: Through the U.S. EPA’s National Partnership for Environmental Priorities, PPG has committed to making voluntary reductions in mercury emissions. Since 2004, the company has reduced mercury emissions by more than 72 percent. At PPG’s largest chemicals facility in Lake Charles, La., a $100 million investment in state-of-the-art membrane cell technology eliminates mercury used in chlorine production while consuming about 25 percent less electricity. PPG GLOBAL SPILL 3.5 AND RELEASE RATE Spills and Releases: PPG’s measurement standard is Spills & Releases per 1,000 employees designed to capture more incidents than national reporting 3.0 obligations require worldwide. The current five-year target 2013 Goal Line is a 50 percent reduction in spills per 1,000 employees, 2.5 from 3.2 in 2008 to 1.6 for 2013. PPG has also focused 2.0 on investigating the causes of its spills to ensure proper corrective actions are in place. 1.5 1.0 Supplier Efficiency: A companywide initiative known as Supplier Added Value Effort ($AVE) evaluates supplier 0.5 partnerships based not just on cost savings but also on 0.0 energy efficiency, packaging optimization and recycling, 06 07 08 09 10 11 12 13 and the vendors’ own environmental, Responsible Care and sustainability policies. The $100 million membrane cell unit for the production of chlorine and caustic soda at PPG’s Lake Charles, La., USA, chemicals complex yields about the same capacity as the previous mercury cell technology, but uses 25 percent less electricity. Waste Water Treatment Unit at PPG 2008 Corporate Sustainability Report | 18 Industrial do Brasil – Tintas e Vernizes Ltda.
  • 19. PPG GLOBAL PPG GLOBAL Addressing Energy Security 10 ENERGY INTENSITY 8 GHG EMISSIONS and Climate Change (Million Btu per Short Ton Net Product) 7 (Million Metric Tons CO2 equivalent) 8 Beyond this wide range of initiatives focused on specific products 6 2011 Goal Line and manufacturing processes, PPG recognizes its responsibility 5 to address broader energy security and climate change issues. 6 In 2007, PPG formed a multidisciplinary Energy Security 4 and Climate Change Committee, led by senior business and 4 3 technology executives, to address these two critical issues. To this end, PPG is committed: 2 2 1 • To continue to conserve energy and increase its use 0 0 of renewable energy and raw materials 06 07 08 09 10 11 12 13 14 15 16 06 07 08 09 10 11 • To continue to implement greenhouse gas (GHG) emissions reduction programs throughout its global operations, while setting more challenging goals to further limit these emissions • To work with other interested parties to develop effective international policies regarding energy security and climate change • To advocate a market-based price of carbon and credits for benefits derived from energy-saving products and from renewable resources • To continue to develop and market leading-edge products that benefit the environment and conserve energy • A $242 million, 425-megawatt • In the United Kingdom and Ireland, cogeneration power plant at PPG’s PPG’s Architectural Coatings – EMEA PPG is applying the following measures to track its progress Lake Charles, La., USA, chemicals business operates its own fleet of in these areas: complex makes the plant twice as delivery vehicles. Since 2007, all fuel efficient as similar-sized facilities new vehicles are Euro V emission- Greenhouse Gas (GHG) Emissions Reduction: In 2002, operated by electric utilities. compliant, producing less CO2.. PPG committed under the Business Roundtable’s U.S. Climate RESOLVE (Responsible Environmental Steps, Opportunities to • PPG was one of the first companies • In 2008, PPG became the first Lead by Voluntary Efforts) initiative to reduce its GHG emission to install oxygen-fuel furnace architectural coatings supplier in the intensity (measured as metric tons of CO2 equivalents per million technology on float glass and United States to initiate a recovery dollars of revenue) from sources in the United States by 18 fiber glass production lines in program for five-gallon plastic pails percent by 2012 starting from the 2002 baseline. By the end of North America and Europe. Today, used for water-based products. 2006, PPG had reduced its emissions to 1,017 metric tons per this technology, which PPG now Empty and dry pails, including those million dollars of revenue – fulfilling its target six years early. licenses to glass manufacturers of competitors, are returned to around the world, reduces fuel PPG-owned stores, consolidated, In 2007, PPG set a demanding new corporate goal of a 10 percent consumption by 15 percent and and sent to distribution centers for absolute reduction in CO2 equivalents from 2006 to 2011. Through carbon dioxide emissions by 10 shredding and recycling. 2008, PPG has reduced its absolute GHG emissions by 1.4 percent percent. Emissions of nitrogen • An upgrade in 2008 of the industrial from the 2006 baseline. This progress has been made despite a oxides have been lowered by half wastewater treatment system at 45 percent growth in revenues and very dynamic business and at these facilities. the Gravatai, Brazil, facility has energy markets. To address these increased challenges the • A key element of PPG’s government resulted in a 25 percent reduction in company has formed a team of manufacturing leaders to place affairs efforts is advocacy for groundwater extraction. The improved further emphasis on reaching this objective. legislation that promotes wind, efficiency of the treatment system solar and green building, and has eliminated the use of biocides Reducing Energy Intensity: Also in 2007, PPG set a energy conservation. This includes required in the process. corporate target to reduce overall energy use intensity by educating and engaging employees 25 percent from 2006 to 2016. Energy intensity is the number • PPG converts hazardous waste to reach out to government officials of million Btu per short ton of product manufactured. PPG into a sludge-like fuel that powers on these issues. is currently on track to meet this intensity goal, and in fact, an energy recovery unit at PPG’s reduced its absolute global energy usage by 5 percent in 2008. facility in Circleville, Ohio, USA. 2008 Corporate Sustainability Report | 19
  • 20. Funding Innovative Conservation Reducing Environmental Impacts and Remediation Projects and Emissions Since 1994, PPG has partnered with the Wildlife Habitat PPG is committed to minimizing its impact on the environment. Council to promote environmental stewardship through habitat In 2006 PPG expanded its reporting of environmental measures conservation and development on company-owned properties. using the Global Reporting Initiative (GRI) Sustainability Reporting PPG and the council have created Certified Wildlife Habitats Guidelines. The Environmental Performance Indicators on the at five PPG facilities in the United States, Canada and Mexico. following page represent PPG’s global operations. By reducing emissions, the company can both help preserve the environment PPG is also working through remediation projects to protect and eliminate waste. In 2007, PPG: human health and the environment; comply with all applicable standards; resolve environmental liabilities; and return sites • Reduced nitrogen dioxide emissions by nearly 5 percent to productive and beneficial use. • Reduced particulate emissions by nearly 6 percent • Lowered volatile organic compound (VOC) emissions Barberton, Ohio, USA: When PPG’s Barberton plant was by more than 30 percent built in 1899, the impact of industrial wastes, including lime • Reduced the amount of hazardous waste disposed from making soda ash for the production of glass, was not of by 6 percent understood. Lime slurry was pumped into six man-made ponds • Did not increase its level of sulfur dioxide emissions spanning 600 acres, rendering them incapable of supporting • Experienced an increase in ozone-depleting air vegetation. Recently, PPG discovered a way to reclaim these emissions of approximately 12 percent lakes by mixing municipal sewage sludge with the lime to create an artificial soil transforming the barren lakes into a haven for native plants and wildlife. Through this award-winning technology, PPG has already returned about 300 acres to Engaging in Green Partnerships nature and expects to complete this project in 2015. PPG is actively engaged in advocacy for legislation that promotes wind and solar energy, green building initiatives, Jersey City, N.J., USA: PPG briefly operated, and then closed and energy conservation. PPG is also committed to working in the early 1960s, a chromium manufacturing plant located in with outside organizations to promote renewable energy, Jersey City. PPG has been diligently addressing legacy issues conservation and green building practices. The company’s created by chromium manufacturing and has successfully partners include: helped to return many properties to beneficial and productive reuse including areas such as Lafayette Village and the Liberty Alliance to Save Energy National Golf Course. PPG, the New Jersey Department of The Climate Registry Environmental Protection and the City of Jersey City have reached an agreement in principle on an innovative method to ENERGY STAR streamline the process for the complete and final remediation of PPG’s remaining chrome sites in the city. U.S. Green Building Council Bovisa, Italy: Successful cleanup and beneficial reuse of a U.S. EPA Climate Leaders century-old paint manufacturing facility near Milan, Italy, was accomplished through partnerships developed by PPG with both Politecnico di Milano, the largest technical university in Italy, and For the past two decades, an innovative remediation project at Mario Negri Istituto di Ricerche Farmacologiche. Today the site PPG’s Barberton, Ohio, facility has been transforming 600 acres of houses the Bovisa Campus of the university and a new research barren lime lakes into rolling hills and meadows that are now home facility for Mario Negri devoted to pharmacogenic research. to a wide array of plant and animal life. The return of vegetation has spawned an influx of wildlife. Deer, coyote, fox, turkey, hawks, Calcasieu River Estuary, La., USA: PPG is working cooperatively owls, waterfowl and numerous other animals now call with other companies and state and federal this former industrial site home. This page shows the agencies including the Louisiana Department land before reclamation; the photo at right and on the of Environmental Protection and the U. S. following page show the restored land. In addition to EPA Region 6 to investigate and remediate attracting and supporting abundant wildlife, the plants contaminated sediments in the Bayou d’Inde also absorb rainwater and greatly reduces chlorides area of the Calcasieu Estuary (photo at left). from the lime waste from entering groundwater or The agencies are currently reviewing remedial nearby surface water. approaches proposed by the companies. 2008 Corporate Sustainability Report | 20
  • 21. Global Environmental Performance 2006 – 2007 2006 – 2007 AIR EMISSIONS AIR EMISSIONS Nitrogen Oxides Particulate Matter 06 22,837 06 2,512 07 21,711 07 2,363 Metric tons Metric tons 2006 – 2007 2006 – 2007 AIR EMISSIONS AIR EMISSIONS Volatile Organic Compounds Sulfur Dioxide 06 3,557 06 11,382 07 1,746 07 11,248 Metric tons Metric tons 2006 – 2007 2000 – 2007 AIR EMISSIONS HAZARDOUS WASTE Ozone Depleting Chemicals 00 79 06 01 68 41 02 84 03 73 07 45 04 79 05 68 Metric tons 06 84 07 77 2000 – 2007 Thousand metric tons INDUSTRIAL WASTE 00 232 01 194 02 199 Performance data represent PPG’s global operations. 03 184 PPG continues to collect and expand its environmental 04 186 performance metrics. 2008 performance data is currently 05 165 being assembled and will be reported later this year on 06 209 the PPG Web site at www.ppg.com. 07 253 Thousand metric tons 2008 Corporate Sustainability Report | 21
  • 22. Employees and the Workplace PPG believes that organizations that embrace diversity are Promoting Safety and Health more innovative and productive. It is the spectrum of individuals PPG has seen dramatic safety improvements in recent years in a variety of disciplines that ultimately enables the company as a result of setting ambitious goals and implementing to maintain its competitive edge. These individuals work at stringent safety practices and procedures. Since 2000, PPG locations around the world – in manufacturing plants, research has reduced its injury and illness rate by 68 percent through and development facilities, distribution centers and stores, 2008, far exceeding internal improvement goals. And, based and corporate offices. on improvements from the 1999 baseline, PPG estimates that its risk reduction efforts have prevented over 1,500 injury and PPG understands that its success is directly linked to its people, illness cases globally. and so the company is committed to providing a safe, healthy and fulfilling workplace for employees, creating an environment for Unfortunately, the company experienced one fatality in 2008, continuous learning, and embracing diversity of ideas and people. when a 13-year veteran driver for PPG’s former automotive glass and services business was killed in a motor vehicle collision in Westmoreland County, Pa., USA. One Code, One Company The PPG Global Code of Ethics and the PPG Blueprint help 1.5 PPG GLOBAL INJURY focus employees on the company’s mission and provides AND ILLNESS RATE Injuries & Illnesses per 100 Employees them with a clear set of standards. As part of this overall 1.2 commitment, PPG maintains labor and employment policies and practices that ensure fair treatment of all employees. 0.9 PPG’s human resources function is designed to maintain a 2010 Goal Line consistent global approach to issues such as governance and 0.6 compliance, compensation and benefits harmonization, and talent development. At the regional and strategic business unit 0.3 level, leaders are responsible for aligning with global standards, while also being empowered to respond to the local culture, 0.0 community needs and competitive landscape. 99 00 01 02 03 04 05 06 07 08 09 10 2000 PPG TOTAL CORPORATE INJURIES Left: Workers at Sylmar, AND ILLNESSES PREVENTED (Base Year = 1999) Calif., USA, manually move 1500 8,000-pound racks into place. The new automated autoclave (below) eliminates 1000 the need for employees to Cumulative Injuries Prevented push the heavy racks. 500 0 99 00 01 02 03 04 05 06 07 08 Ergonomics Since the mid-1980s, PPG has employed ergonomics-based solutions to reduce the risk of injuries and illness to employees. PPG analyzes existing manufacturing systems and job tasks and implements appropriate design changes and other control measures to reduce the risk of future injuries and to enhance productivity and quality. Through the application of good ergonomic principles, PPG has reduced the number of ergonomically related injuries and illnesses by 78 percent from 0.47 cases per hundred workers in 2002 to only 0.10 cases in 2008. 2008 Corporate Sustainability Report | 22
  • 23. Exercise is part of the daily agenda for storeroom employees at PPG’s Tianjin, China, coatings plant. Promoting Occupational Health • For the last five years, Primalex coatings business has PPG has a long-standing emphasis on managing a comprehensive encouraged employee participation in a European cycling occupational health program. This includes identifying potential event across the Tatry Mountains from Nizna, Slovakia, occupational health hazards in our facilities; monitoring our to Krakow, Poland. The event attracts nearly a thousand workplace environments as part of our industrial hygiene process; registered bikers and several hundred others to enjoy an monitoring our employees’ health with appropriate medical invigorating ride and gorgeous natural scenery. examinations; and controlling exposures to recognized hazards • During 2007 and 2008, 57 PPG locations from around the through the use of engineering and protective equipment. world submitted 72 projects as part of the company’s annual Ergo Cup Competition. In addition to injury prevention, these Supporting Employee ergonomic projects will save PPG over $3 million annually in production efficiencies and labor costs. In 2008, the winner of and Family Wellness PPG’s 2007 competition from the aerospace transparencies In order to keep employees healthy, productive and engaged, the plant in Huntsville, Ala., USA, earned first-place honors at the company has set a goal of 80 percent employee participation in internationally recognized Ergo Cup competition. its voluntary, confidential online Health Risk Assessment over a • PPG’s Delaware, Ohio, USA, coatings plant earned the “Healthy three-year period. Through 2008, 30,321 employees – roughly Ohio-Healthy Work Site Silver Award” for its wellness programs, 88.9 percent of the total global workforce – have completed the including a “Rainforest Room” with flowers, vines and sounds assessment at least once. PPG continually works to increase of the forest to help employees relax as they complete their awareness among employees and their families of the value in health-risk assessments. healthy living through weight management, stress reduction and • To motivate employees to eat healthier lunches, the price of adopting a more active lifestyle. healthy foods in the cafeteria at PPG’s Uithoorn, Netherlands, site is being subsidized, while unhealthy items such as fried snacks have become more expensive. • PPG’s Suzhou, China, facility has established a Wellness Team to conduct a monthly “Health Day Activity.” Employees participate in activities such as badminton, swimming, walking and first-aid training. • On November 21, 2008, PPG’s Barberton, Ohio, USA, plant was recommended to receive the “STAR” status under the U.S. Occupational Safety and Health Administration’s (OSHA) Voluntary Protection Program (VPP). 2008 Corporate Sustainability Report | 23
  • 24. (From left) Tim Okel, researcher and team leader; Mark Geiger, senior research technician; and Holly Cundieff, global market manager, silica products, at PPG’s Monroeville, Pa., USA, chemicals center with ingredients used to make better performing tires that save fuel. Okel is holding a beaker of Agilon silica, and Cundieff is holding two polymers that enhance rolling resistance and tread wear. Creating a Fulfilling Workplace PPG is committed to being an employer of choice. PPG hires PPG also offers competitive salaries and comprehensive on the basis of individual qualifications and ability relative to benefits packages to attract and retain the talent necessary job requirements. In doing so, PPG gives equal employment to meet its business goals. opportunity to, and will not discriminate against, individuals on the basis of any status protected by applicable law. Numerous opportunities exist for employees to advance PPG WORK FORCE BY REGION As of 12/31/2008 their careers within PPG. Professional vacancies are posted electronically worldwide through an intranet available to all Total number of PPG employees: 42,821 employees, any of whom can express their interest provided they meet position- and location-specific requirements. Management Development Committees review talent by functional area, gathering and analyzing employee experience, skill and performance information to provide input for selection, promotion and development opportunities. Consistent with its commitment to the highest ethical standards, PPG believes in treating every employee with dignity and respect. PPG will not tolerate unlawful harassment of any kind. PPG encourages direct communication between United States/Canada (16,878) supervisors/managers and employees to promptly resolve workplace concerns. Should a dispute persist, Asia Pacific (7,268) the company has developed internal procedures Europe/Middle East/Africa (17,069) to help resolve problems. One example is its U.S. employee dispute resolution system known as the Latin America/Mexico (1,606) Resolve Process – a four-step process designed to help employees work through problems and disputes. 2008 Corporate Sustainability Report | 24
  • 25. Fostering Continuous Learning Valuing and Advancing Diversity PPG believes that continuous learning is crucial in helping employees PPG’s vision for diversity is to become a stronger, more effectively meet business goals and providing opportunities to competitive company by fostering a climate that recognizes fulfill their potential. Through the Performance and Learning the business value of an engaged workforce that reflects Process, employees and their supervisors work together to reach the diversity of our global workplace. This vision is more agreement on the employee’s business deliverables for the year than simply words on a page: PPG has developed metrics – setting goals and then identifying the knowledge and skills that enable it to build a global workforce with careful necessary to successfully meet them. The company provides attention to gender and diversity components, retention ongoing feedback and leadership coaching and support to of employees and talent management. employees as part of this commitment to continuous learning. To help achieve its diversity vision, the company has My Learning Connection is a personalized intranet site where instituted three major programs: employees can track their learning and development progress and stay informed of new opportunities. It includes classroom training • PPG’s Diversity Leadership Council champions, programs, self-paced online courses, and reading materials on directs and engages in initiatives that drive subjects ranging from business skills to IT professional certifications PPG’s commitment to diversity. to personal development programs. PPG also provides an Education • The Women’s Leadership Council seeks to Assistance program for those employees who enroll in college promote an organizational environment that courses or other higher education opportunities. attracts and retains women and helps them contribute to PPG’s business success. These and other continuous learning initiatives, including • The Minority Leadership Council focuses on mentoring, job shadowing and career development programs, recruitment and retention of minorities through are all designed with one core purpose: to help PPG employees career job fairs, networking events and mentor/ strengthen their performance and realize their full potential. protégé programs. Vivian Waters, engineering manager (right), and Clarnessa Bolden, hardcoat inspector, make a quality-control check on lenses at Transitions Optical’s Pinellas Park, Fla., USA, manufacturing plant. 2008 Corporate Sustainability Report | 25
  • 26. Community Involvement and Social Performance Through its corporate foundation and a wide range of local giving and volunteer programs, PPG seeks to reflect company interests and values by enhancing the quality of life globally in communities where its employees and their families live and work. Foundation for the Future Advancing Education Since 1951, the PPG Industries Foundation has been making on Crucial Global Issues a difference in the lives of others with grants, outreach PPG Aquarium and Polar programs, relief funds, charitable efforts, educational programs Express at Pittsburgh Zoo: and volunteerism. The foundation focuses on working with Through a 10-year grant, the organizations that develop educational opportunities accessible PPG Industries Foundation to all members of the community. and PPG Industries, Inc., are providing funding to help sustain PPG Industries Foundation the Pittsburgh Zoo and PPG Five Year Summary of Total Grants Paid Aquarium. Pennsylvania’s only public aquarium, it features 2008 - $5,242,000 state-of-the-art exhibits such 2007 - $4,699,000 as a crawl-through stingray 2006 - $5,284,000 tunnel, a two-story shark tank, 2005 - $5,228,000 and unique revolving tanks. 2004 - $5,466,000 The newly updated polar bear exhibit includes education about ocean-friendly fish consumption, PPG Industries and its foundation work within communities petrochemicals in the food web, through joint and separate efforts that promote education, and climate change. address the needs of its community stakeholders and empower employees to make a difference. “ ink Lady” Plane Lifts Breast Cancer Awareness P in Australia: PPG’s aerospace business created custom 2008 ACTUAL EXPENDITURES coatings for a pink plane flown across Australian skies to help 345 grants totaling $5,242,000 QantasLink promote breast cancer awareness. More than 44 gallons of primer and topcoat, including two shades of pink specially matched to signature colors of Australia’s National Breast Cancer Foundation, were provided by PPG Aerospace’s Tullamarine application support center. UK Schools Initiative: PPG’s Architectural Coatings – EMEA UK and Ireland region organizes initiatives that allow junior school students in Wales to visit their local PPG Decorating Centres to learn more about paint applications and color, and Education ($2,125,000) Human Services ($1,204,000) how coatings can affect the environment. In England, primary PELC ($157,000) school children have visited the Birstall, England, plant to learn Matching Gifts ($332,000) more about production processes. Civic & Culture ($996,000) Match ’n More ($1,000) GIVE ($427,000) “The trip by Hill Top Primary School pupils to PPG’s factory at Birstall was thoroughly enjoyed by everyone. The children found the production GIVE = Grant Incentives for Volunteerism by PPG processes fascinating and the environmental aspects of paint were Employees and Retirees (see page 29) of particular interest. Overall the trip provided an excellent and unique PELC = Public Education Leadership Community learning opportunity. All the children agreed it was one of the best (see page 28) school trips ever...” — Janice Thornton, Teacher at Hill Top Primary School, Leeds, England 2008 Corporate Sustainability Report | 26
  • 27. “ hat I Engineered on My Summer Vacation”: To help W expand diversity and open new opportunities in fields where women have traditionally been underrepresented, the PPG Industries Foundation supports Women in Engineering Programs across the United States. As an example, at the University of Akron, the Multiplying Your Options Engineering Summer Camp for Girls encourages young women entering Science education is a priority seventh or eighth grade to pursue their interest in science, for the PPG Industries Foundation. math, engineering, and technology. The Power of Scholarships: The PPG Industries Foundation has provided more than $1 million in scholarships for underrepresented minorities to study chemistry and chemical engineering in U.S. colleges. PPG’s Scholarship Plus Program, PPG partnered with Phipps Conservatory in conjunction with The American Chemical Society, provides and Botanical Gardens to bring the works of a four-year, $2,500 scholarship, as well as mentoring by PPG renowned glass artist Dale Chihuly to Pittsburgh. employees and an opportunity to interview for a summer internship at a PPG facility. In addition, the foundation offers an Employee-Child National Merit Scholarship Program that provides 40 scholarships annually to qualifying children of U.S. PPG employees with a stipend of $1,500 per year for up to four years or the awarding of their baccalaureate degree. Making Math and Science Education Fun: PPG is partnering with Pittsburgh’s Carnegie Science Center to develop four “Science-on-the-Road” education programs to be offered in a five-state region of the eastern U.S. The lessons, with intriguing names such as “The Great Color Caper,” “Fractured Physics” and “Ion Jones and the Lost Castle of Chemistry,” are presented in classrooms, school assemblies and after-school workshops. They feature PPG scientists demonstrating the company’s technologies and eye-catching vans that transport the lesson materials. “The Great Color Caper” also appears at the Discovery Place in Charlotte, N.C., USA, where PPG has several facilities. 2008 Corporate Sustainability Report | 27
  • 28. Giving Back to PPG Communities Warming a Child’s Winter in South China: When severe Protecting Children’s Health in Tianjin, China: Upon snowstorms hit South China in 2008, PPG launched the opening its new Tianjin manufacturing facility, PPG donated “Warm a Child’s Winter” clothing donation project. Within a about $40,000 of environmentally responsible paints to week, almost 1,000 pieces of clothing were collected at PPG refurbish the interior and exterior walls of the Tianjin Welfare facilities in Tianjin, Beijing, Shanghai, Suzhou, Guangzhou and Institute. There, foster children and children recovering from other locations in China. illnesses are now housed and educated in bright new, “green” quarters. PPG plans to extend this effort to children’s health PPG Fights Graffiti in Warsaw, Poland: PPG joined a institutions in other Chinese cities. campaign against graffiti in 2008 by donating products and lending expertise to clean up historic Warsaw buildings that Supporting Earthquake Recovery in China: When a massive had been defaced. In consultation with the Regional Office 7.8-magnitude earthquake struck the Sichuan, China, region in for Preservation of Historical Monuments, PPG donated more May 2008, PPG Industries took action. The company donated than 250 litres of silicone paints and joined an effort that RMB 500,000 through the Red Cross Society of China to help included more than 200 volunteers. purchase emergency equipment. PPG U.S. employees also made individual donations (which were matched by the PPG A Day for Young Caregivers: In August 2008, PPG associates Foundation) and PPG China established a team that fellow in the UK hosted an activity day for Northorpe Hall Child and employees and their families could call for emotional support Family Trust in Mirfield, West Yorkshire, a charity that provides and guidance in finding emergency services. support services for children who care for sick or disabled family members. The charity’s aim is to allow these young caregivers Public Education Leadership Community (PELC) Grants: time away from family chores, giving them some much needed Public Education Leadership Community (PELC) grants provide space and a break from caring. PPG sponsored an activity day at financial resources for U.S. employees to present to public Bradley Woods County Scout Camp, where the young caregivers schools where they are involved, that are located within their were entertained with air rifle target shooting, archery, a low- community, or that they are associated with outside their ropes assault course and roasting marshmallows on open fires. community. Employees may sponsor a request to the Foundation for a grant of up to $1,000 for a project that meets all of the following criteria: • Promotes systemic change • Cannot be paid for with tax dollars • Directly benefits and engages students • Demonstrates results that motivate students to learn • Has a total project budget of no more than $5,000 PPG employee Jeff Solomon offers “Street Law” lessons to Pittsburgh students. Partnering in Public Works in Texas: Houston Museum of Fine Art and Houston Parks and Each summer, the Houston Museum of Recreation Department collaborate to paint murals. Fine Art and Houston Parks and Recreation Department collaborate to paint murals in five parks throughout the city. The work brings together local students and builds a spirit of unity among diverse neighborhoods. PPG supports the program through a collaboration of its own: PPG’s Architectural Coatings business donates the paint for the project, while the PPG Industries Foundation donates funds for other materials. 2008 Corporate Sustainability Report | 28
  • 29. Community Volunteerism PPG Industries Foundation’s ongoing support of United Way agencies, food banks (as seen below), pantries and Meals-on-Wheels programs is making a difference. In 2008, the foundation provided more than $941,000 in direct grants and $10,700 through the Grant Incentives for Volunteerism by PPG Employees and Retirees (GIVE) program to 42 United Way agencies and 13 food-based organizations in PPG communities throughout the United States. PPG’s involvement extends beyond funding, with employees serving on organization boards, and employees and retirees serving as volunteers at these organizations within their communities. This in turn earns eligible organizations a $500 GIVE grant if the PPG volunteer applies for one. At the company’s coatings plant in Milan, Italy, the plant’s caterer supplies leftover meals from the cafeteria each day to an organization that distributes the food to soup kitchens around the city. Empowering Employee Giving Perfect Match: U.S. PPG employees and members of the Board of Directors are eligible to participate in the Foundation’s Matching Gifts program. Their personal contributions to a wide variety of eligible organizations are matched dollar-for-dollar by the Foundation, with an annual minimum contribution per donor of $25 up to a maximum of $10,000. Grant Incentives for Volunteerism by PPG Employees Above: Children at the Lidia Orphanage, located in Spinus, northern and Retirees (GIVE) Program: The GIVE Program recognizes Romania, where Gert Meijer (electrical supervisor at PPG’s fiber personal involvement in volunteerism by active PPG U.S. glass plant in Hoogezand, Netherlands) spends vacation time fixing employees and PPG retirees by providing grants to eligible a dilapidated electrical system and making other repairs institutions in the United States. Each PPG employee and retiree Below: Pittsburgh Zoo & PPG Aquarium docent and PPG employee may apply once a year for a grant of $500 to an organization Steve McQuown, development chemist, shares cool information where he or she has an ongoing volunteer relationship. If the about blue-tongued skink lizards. PPG participant is on the board of directors of the organization, the grant increases to $1,000. PPG Concern, Assistance and Relief for Employees (CARE) Fund: PPG views as a priority its involvement in helping meet the needs of employees worldwide whose lives have been disrupted by disasters. Through the CARE Fund, PPG and its employees have contributed $131,000 since 2006 to affected employees and their families. 2008 Corporate Sustainability Report | 29
  • 30. Awards and Recognition As a manufacturer of many leading energy-efficient products, PPG is committed to providing its customers with products that reduce environmental impact. PPG has been recognized by the Carbon Disclosure Project (CDP) as one of the leading S&P 500 companies and as the number one company in the chemicals and pharmaceuticals sector in CDP’s 2008 Leadership Index. This distinction recognizes PPG’s commitment to be a leader in both transparency and emissions management. Climate Leaders Automotive News PACE Award Climate Leaders is an industry-government partnership As the world’s leading manufacturer of transportation established by the U.S. Environmental Protection Agency (EPA) coatings, PPG was named a 2008 Automotive News that works with companies to develop comprehensive climate PACE Award winner for Green Logic paint detackifier. change strategies. In 2002, PPG committed to reducing its This marks the sixth time PPG has received the global greenhouse gas (GHG) intensity from sources in the U.S. award, which recognizes automotive suppliers for by 18 percent before 2012. The company was able to achieve superior innovation, technological advancement and this mark in 2006 – six years earlier than the projection date. business performance. As part of its commitment to sustainable practices, PPG again pledged in 2006 to reduce its total energy intensity by 25 percent by 2016, and its GHG emissions by 10 percent before 2011. R&D 100 R&D Magazine awarded PPG two 2008 R&D 100 The Association of Awards for its Green Logic paint detackifier and Zircobond pretreatment technology. The awards Postconsumer Plastic Recyclers recognize the 100 The Association of Postconsumer Plastic Recyclers recognized most technologically PPG for participating in a program to test new bottle compositions significant innovations with plastics recyclers. Bairocade coatings by PPG are applied each year. to the exterior of polyethylene terephthalate (PET) bottles, extending the shelf life and freshness of consumer food Zircobond pretreatment is products. PET treated with Bairocade coatings can be recycled being applied during the car into fiber, strapping, sheet and even food and beverage manufacturing process. containers because the coating is removed during the grind- and-wash phases typical of recycling plants. Carnegie Science Awards Drs. Paul Medwick, James Thiel and Andrew Wagner, senior research associates at PPG, were named winners in the Advanced Manufacturing category for the 2008 Carnegie Science Awards. The researchers were recognized for their leadership and research oversight in PPG’s development of Solarban 70XL solar control low-emissivity (low-e) glass. Carnegie Science Center established the Awards for Excellence program (Carnegie Science Awards) in 1997 to recognize and promote outstanding science and technology achievements Paul Medwick, James Thiel and Andrew Wagner, senior research in Western Pennsylvania. The Advanced Manufacturing associates at PPG’s Harmar, Pa., USA, glass technology center, award recognizes accomplishments in the use of automation, were named winners in the Advanced Manufacturing category innovative processes and technology to achieve extraordinary for the 2008 Carnegie Science Awards. levels of process control and product quality. British Coatings Federation PPG’s Birstall, England, architectural coatings facility was named a finalist for the 2008 Coatings Care Award administered by the British Coatings Federation. The site won the award in 2007. The annual award is presented to the BCF member site that best demonstrates its commitment to the Coatings Care program. 2008 Corporate Sustainability Report | 30
  • 31. Scope of Report This report describes the programs and performance of PPG Industries and its business units and subsidiaries as they relate to the company’s sustainability practices. PPG’s goal for this inaugural report is to provide an accurate account of economic, social and environmental performance in the areas that are most relevant to its business and stakeholders. Financial information is reported in U.S. dollars. Environmental, health and safety data reports activity of corporate, manufacturing and research and development facilities. PPG self-declares this report meets Global Reporting Initiative (GRI) G3 Application Level C requirements. The information in this report can also be accessed online at www.ppg.com/2009CSR. The company encourages stakeholder feedback to assess the usefulness of this report and to provide suggestions regarding the content of future reports. To provide feedback or request additional information, contact PPG Industries at One PPG Place, Pittsburgh, PA, 15272, Attention: Corporate Communications. Index (According to GRI G3 Indicators) Content governanCe, Commitments, and engagement 1.1 Statement from the most senior decision-maker ..................... page 4 4.1 Governance structure ....................................................... page 10 organizational Profile 4.2 Chair of the highest governance body ................................ page 10 2.1 Name of the organization .................................................... page 5 4.3 Independent/non-executive board members ........................ page 10 2.2 Primary brands, products, and/or services .............................. page 5 4.4 Mechanisms for shareholders/employees feedback ................. page 7 2.3 Operational structure........................................................... page 5 4.6 Processes to avoid conflicts of interest .......................... pages 9, 24 2.4 Location of organization’s headquarters ................................. page 5 4.8 Internally developed statements and principles .......... pages 4, 6, 8, 9 2.5 Countries of operation..........................................................page 5 4.14 List of stakeholder groups .................................................. page 7 http://www.ppg.com/ourCompany/ 4.15 Basis for identification and selection of stakeholders ............... page 7 2.6 Nature of ownership and legal form ...................................... page 5 eConomiC 2.7 Markets served ................................................................. page 5 EC1 Economic value .............................................pages 12,13, 26 and 2.8 Scale of the reporting organization ........................................ page 5 http://www.ppg.com/2008ar10KPdf 2.9 Significant changes ......................................................... page 12 environmental 2.10 Awards received in the reporting period ............................... page 30 EN5 Energy saved due to efficiency improvements ...................... page 19 rePort Parameters EN6 Initiatives to provide energy-efficient products .............. pages 16, 19 3.1 Reporting period ............................................................... page 4 EN7 Initiatives to reduce indirect energy consumption .................. page 19 3.2 Date of most recent previous report ...............This is PPG’s first report EN13 Habitats protected or restored ............................................ page 20 3.3 Reporting cycle (annual, biennial, etc.) ................................... page 4 EN18 Initiatives to reduce greenhouse gas emissions .................... page 19 3.4 Contact point .................................................................. page 31 EN19 Emissions of ozone-depleting substances .............................page 21 3.5 Process for defining report content ...... Iterative process involving many EN20 NOx, SOx, and other significant air emissions .......................page 21 corporate sectors and regions EN22 Total weight of waste by type and disposal method................ page 21 3.6 Boundary of the report ..................................................... page 31 EN23 Total number and volume of significant spills ........................ page 18 3.7 Specific limitations ........................................................... page 31 EN26 Mitigation initiatives........................................................... page 20 3.8 Basis for reporting on entities ............................................ page 31 soCial: labor 3.10 Explanation of the effect of any re-statements... Not relevant, first report LA11 Programs for skills management ....................................... page 25 3.11 Significant changes from previous report ......... Not relevant, first report 3.12 GRI Table .......................................................................This page 2008 Corporate Sustainability Report | 31
  • 32. PPG Industries One PPG Place Pittsburgh, PA 15272 www.ppg.com This corporate sustainability report is printed on The following are trademarks of PPG Industries, Inc., and its related companies used in this report: Agilon, Amercoat, Aquabase, Aquamax, Bairocade, CeramiClear, CertifiedFirst, CR-39, Dekoral, Envirobase, Freitag, Green Logic, Ivy, Johnstone’s, NXT, Olympic, paper that is FSC-certified, contains 30% post- Pittsburgh, PPG High Performance Coatings, PPG logo, Primalex, Pure Performance, Seigneurie, Sherwood, Sigma Coatings, consumer recovered fiber and is manufactured SigmaGlide, Solarban, Solarphire, Starphire, Taubmans, Teslin, Trilak, Trivex, Zircobond. with electricity in the form of renewable energy. Transitions is a trademark of Transitions Optical, Inc. Other company, product and service names used in this report may be trademarks or service marks of other parties. Copyright © 2009 PPG Industries, Inc., all rights reserved.
  • 33. 2009 Corporate Sustainability Report Update
  • 34. A Message From the Chairman I am pleased to present the 2009 update to PPG’s Corporate Sustainability Report. Last year, we published our first sustainability report, covering activities in 2008. At that time, we announced our intention to produce a full report every two years, issuing an update in intervening years to summarize new data and developments. This is the first of these updates, reflecting new activities and information for 2009. As an update to our inaugural Corporate Sustainability Report, it is designed to be read in conjunction with the original report. While 2009 clearly posed challenges for our businesses in terms of difficult economic conditions, I believe that PPG’s performance was admirable under the circumstances. Of equal As I said in my first letter, over the course of our more than importance, however, the economy did not detract from or 125-year history, PPG has grown and thrived by making sound deter our efforts toward driving the concepts of sustainability business decisions, and we are no stranger to the concepts throughout everything we do at PPG. of sustainable business practices. Moreover, we hope that the issuance of these reports and updates encourages our In this update, you’ll read about how our business portfolio stakeholders to engage in a dialogue with our company continues to evolve; how we managed through the recent that results in improved performance and greater mutual recession; new environmentally-beneficial products we understanding. introduced in 2009; our progress toward our environmental, health and safety goals; new philanthropic initiatives; awards and recognition we’ve received, and more. Charles E. Bunch Chairman and Chief Executive Officer Table of Contents Corporate Governance A Message From the Chairman ................................. 2 Effective Oct. 15, 2009, Robert J. Dellinger succeeded William H. Corporate Governance .............................................. 2 Hernandez as PPG’s senior vice Company Profile ........................................................ 3 president, finance, and chief financial officer (CFO), in conjunction with Business Performance ................................................ 4 Hernandez’s planned retirement from the company. Dellinger currently serves Products and Innovation ............................................ 5 as a member of PPG’s Executive Energy and the Environment ....................................... 6 Committee. Dellinger joined PPG in September 2009 as senior vice Employees and the Workplace ................................... 8 president, finance, and CFO designate. Community Involvement and Social Performance ....... 9 Dellinger began his career with General Electric Co., and Awards and Recognition ........................................... 11 during his 19-year tenure there progressed through various positions in financial management. In 2002, Dellinger left GE to become executive vice president and CFO for Sprint Corp., and in 2005, he became executive vice president and CFO for Delphi Corp. A native of Cleveland, Ohio, USA, Dellinger earned a bachelor’s degree in economics from Ohio Wesleyan University. Other changes to PPG’s Operating Committee during 2009 included the retirement of Kathleen A. McGuire as vice president, purchasing and distribution. 2009 CSR Update | 2
  • 35. Company Profile PPG Industries’ vision is to continue to be the world’s leading coatings and specialty products company. Founded in 1883, the company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, Pa., USA, PPG operates in more than 60 countries around the globe. PERFORMANCE COATINGS ARChITECTURAL COATINGS – EMEA AEROSPACE. Leading supplier of transparencies, sealants, coatings ARCHITECTURAL COATINGS – EMEA (Europe, Middle East and and surface solutions, packaging, and chemical management services, Africa). Supplier of market-leading paint brands for the trade and retail serving original equipment manufacturers and maintenance providers markets such as Sigma Coatings®, Histor®, Seigneurie®, Ripolin®, for the commercial, military, regional jet and general aviation industries. Johnstone’s®, Leyland®, Dekoral®, Trilak®, Primalex®, Prominent Also supplies transparent armor for military markets. Paints® and Freitag®. ARCHITECTURAL COATINGS AMERICAS AND ASIA/PACIFIC. Produces paints, stains and specialty coatings for the commercial, OPTICAL AND SPECIALTY MATERIALS maintenance and residential markets under brands such as Pittsburgh®, OPTICAL PRODUCTS. Produces optical monomers, including CR-39® PPG, Renner®, Lucite®, Olympic®, Taubmans® and Ivy®. and Trivex® lens materials, photochromic dyes and Transitions® photochromic ophthalmic plastic lenses. AUTOMOTIVE REFINISH. Produces and markets a full line of coatings products and related services for automotive and SILICAS. Produces amorphous precipitated silicas for tire, battery commercial transport/fleet repair and refurbishing, light industrial separator and other end-use applications and Teslin® synthetic printing coatings and specialty coatings for signs. sheet used in applications such as radio frequency identification (RFID) tags and labels, e-passports, driver’s licenses and identification cards. PROTECTIVE AND MARINE COATINGS. Leading supplier of corrosion-resistant, appearance-enhancing coatings for the marine, infrastructure, petrochemical, offshore and power industries. COMMODITY ChEMICALS Produces the Amercoat®, Freitag®, PPG High Performance Coatings CHLOR-ALKALI AND DERIVATIVES. Producer of chlorine, caustic soda and Sigma Coatings® brands. and related chemicals for use in chemical manufacturing, pulp and paper production, water treatment, plastics production, agricultural products, and many other applications. INDUSTRIAL COATINGS AUTOMOTIVE COATINGS. Leading supplier of automotive coatings and services to auto and truck manufacturers. Products include GLASS electrocoats, primer surfacers, base coats, clearcoats, bedliner, FIBER GLASS. Manufacturer of fiber glass reinforcement materials pretreatment chemicals, adhesives and sealants. for thermoset and thermoplastic composite applications, serving markets such as wind energy, energy infrastructure and transportation. INDUSTRIAL COATINGS. Produces coatings for appliances, Produces fiber glass yarns for electronic printed circuit boards and agricultural and construction equipment, consumer products, other specialty applications. electronics, automotive parts, residential and commercial construction, wood flooring, joinery (windows and doors) and other PERFORMANCE GLAZINGS. Produces glass that is fabricated into finished products. products primarily for commercial construction and residential markets, as well as the solar energy, appliance, mirror and transportation PACKAGING COATINGS. Supplier of coatings, inks, compounds, industries. pretreatment chemicals and lubricants for metal, glass and plastic containers for the beverage, food, general line and specialty packaging industries. Performance Coatings (34%) Industrial Coatings (25%) 2009 Architectural Coatings – EMEA (16%) Segment Optical and Specialty Materials (8%) Net Sales Commodity Chemicals (10%) Glass (7%) Performance Coatings (34%) 2009 CSR Update | 3 Industrial Coatings (25%)
  • 36. Business Performance In the last several years, PPG has accelerated its transformation A Stronger, More Focused Portfolio from a North American-centric, chemical, coatings and glass 2009 company to the leading global coatings and specialty products TOTAL SALES company. In 2009, the coatings and optical and specialty 1997 10% 2008 TOTAL SALES 7% materials segments of the company grew to represent 83 percent 13% 8% of the company’s portfolio, versus 51 percent in 1997. In addition, 1997 12% 42% in 2009, the United States accounted for about 42 percent of 36% 13% 8% 75% PPG’s more than $12 billion in sales and the Asia/Pacific region 9% 42% 8% grew to comprise 15 percent of the company’s sales. 36% 51% 72% 9% 83% 51% PPG clearly benefitted from this portfolio shift during the recent Performance, Industrial & Architectural EMEA Coatings 80% Glass economic downturn. The company’s coatings and optical and Optical & Specialty Materials Commodity Chemicals specialty materials businesses saw continuously improving Performance, Industrial & Architectural EMEA Coatings Glass positive momentum throughout the year, and by the end of Optical & Specialty Materials Commodity Chemicals 2009 2009 were delivering higher year-over-year earnings. A Broader Geographic Footprint TOTAL SALES 1997 2009 7% TOTAL SALES 9% In addition, PPG’s performance was aided by several steps 3% 15% 1997 7% taken to reduce costs in quick response to deteriorating 21% 9% 42% economic circumstances. Two restructuring initiatives – one 3% 15% 67% 36% announced in September 2008 and one in March 2009 – are 21% 42% together expected to result in approximately $250 million in 67% annual cost savings upon completion. These initiatives included 36% the closure of several PPG manufacturing and distribution United States Asia facilities and the elimination of approximately 3,800 positions. Europe, Middle East & Africa Other Americas Also, the company implemented interim cost-saving measures, United States Asia such as reduced travel, temporary reductions in certain Europe, Middle East & Africa Other Americas compensation and benefits costs, and lower capital spending. As a result of these and other actions, PPG delivered near- record cash flow from operations in 2009 of more than $1.3 billion and ended the year with a strong cash position of just As a major employer, PPG’s presence enhances the tax more than $1 billion. More importantly, by implementing these revenue of the nations and communities where it operates. In steps, PPG is now a leaner, more efficient company that is not 2009, PPG paid about $200 million in taxes globally. only better able to weather difficult circumstances, but is also positioned to succeed in more favorable conditions. Financial Highlights PPG Segment Income/(Loss) NET SALES DIVIDENDS PER SHARE (millions of dollars) (dollars) ($ millions) 2009 2008 05 10,126 05 1.86 Performance Coatings $ 551 $ 582 06 10,938 06 1.91 Industrial Coatings 159 212 07 12,220 07 2.04 Architectural Coatings – EMEA 128 141 08 15,849 08 2.09 Optical and 09 12,239 09 2.13 235 244 Specialty Materials Commodity Chemicals 152 340 For more information on PPG’s 2009 financial results, see the company’s Glass (39) 70 2009 Annual Report and Form 10-K available at www.ppg.com. Note: 2008 Glass figure includes Auto Glass & Services business through 3Q 2008 2009 CSR Update | 4
  • 37. Products and Innovation In 2009, 26.4 percent of PPG’s sales were from “green” products – products that PPG believes have positive energy or environmental attributes. This is up more than 2 percentage points from the previous year when it was 24 percent. This occurred despite the fact that overall sales decreased more than 22 percent from 2008 to 2009. Also in the year, PPG introduced 65 new products expected to generate global sales of more than $3.6 billion in their first 60 months. Of these new products, 38 were expressly formulated to promote environmental sustainability by reducing energy consumption, volatile organic compound (VOC) emissions and water use. These “green” products alone are anticipated to generate just under $3 billion in sales before 2015. Transportation RESEARCH & DEVELOPMENT Last year, PPG launched an array of products to reduce the EXPENDITURES (millions of dollars) energy requirements of the world’s boats, cars and airplanes. 363 In the marine shipping industry, the company launched 07 Sigma Syladvance™ 800 coatings, a self-polishing paint that 08 468 smoothes the hulls of container vessels as they sail, cutting drag and dramatically reducing fuel consumption, on average 09 403 saving 3.75 tons of fuel per ship, per day. In the automobile industry, PPG debuted Agilon™ 400 performance silica for tires and two high-performance waterborne coatings called Envirobase® waterborne basecoat and Selemix® Clean Energy Aqua coatings that diminish emissions. The PPG’s long history with fiber glass and thin-film coatings for tire additive, made from precipitated silica, glass makes it a prominent player in wind and solar energy reduces rolling resistance by 30 percent development. In 2009, PPG launched a thin-film coating system and improves a vehicle’s fuel efficiency by for wind turbine blades designed to reduce blade weight and 6 percent. Applied across the U.S. passenger drag, and to extend service life by resisting windborne rain and tire market, this increase in fuel efficiency could particle erosion. save up to 8 billion gallons of fuel. In the solar arena, PPG launched three high-transmissive In the aerospace market, PPG introduced two glass products Solarphire® glass products, including two with proprietary anti- that save energy by cooling airplane interiors and making aircraft reflective and sodium-barrier coatings to enhance the efficiency lighter and more fuel efficient. They include Alteos™, interactive of solar energy collection. window systems, the industry’s first commercial electrochromic cabin windows, and, new cockpit windshields that reflect infrared energy. This cabin window technology eliminates heavy plastic Construction and metal sunshades, while a proprietary acrylic coating reduces In 2009, PPG continued to build on the strength of its global the weight of the airplane windshields. leadership in low-emissivity (low-e) glass technology, launching Sungate® 400 glass, a passive, low-e product that helps homes These glass advances joined a new generation of aerospace and buildings in northern climate zones collect more solar heat sealants and coatings systems that also reduce aircraft weight. and reduce fuel consumption for winter heating. Two new PPG sealants, one for cockpit windshields and another for fuel tanks and rivets and joints in the fuselage, Advances in zero- and low-VOC technology prompted the reduce sealant weight by up to 20 percent. That slashes fuel release of three architectural coatings, including a zero-VOC consumption by more than 100,000 gallons per year in a typical paint and a waterborne alkyd and a high-solids alkyd wood commercial jet. stain. The conversion of solvent-based chemistry to water- based chemistry has been a significant research initiative A new system of colorful aerospace coatings further across PPG’s coatings businesses around the globe. cuts the load of commercial airliners, reducing airplane weight by In addition, an innovative new package design developed in up to 200 pounds. Europe can reduce the introduction of colorant (shipped to paint dispensers) into the waste system by 70 percent. This is achieved using a unique resealable pouch, which boasts a lower carbon footprint than even current recyclable cans and bottles. 2009 CSR Update | 5
  • 38. Energy and the Environment PPG GLOBAL Improving Manufacturing Efficiency PPG GLOBAL ENERGY INTENSITY 10 10 ENERGY short ton net product) (million BTU per INTENSITY (million BTU per short ton net product) Chlor-Alkali Energy Savings: In 2009, PPG’s chlor-alkali 8 and derivatives business initiated a program to improve overall 8 2016 Goal Line energy intensity. Energy and insulation assessments were 6 2016 Goal Line performed on all of the business’s plants, and more than 350 6 ideas for energy improvement were generated. More than 4 50 of these ideas can be implemented for near-zero cost. In 4 addition, major energy improvement projects were initiated at 2 the powerhouses of the business’s two largest facilities, Lake 2 Charles, La., USA, and Natrium, W.Va., USA. 0 0 06 07 08 09 10 11 12 13 14 15 16 06 07 08 09 10 11 12 13 14 15 16 Wastewater Treatment: During 2009, PPG designed and installed a wastewater treatment plant at its facility in Santiago, Chile, the design of which was based on a similar facility in Energy Intensity and Greenhouse Gases (GHG): PPG Gravatai, Brazil. At PPG’s fiber glass joint venture in Zibo, China, continued to work on reducing its energy use and GHG the plant launched a project to reuse treated wastewater as emissions toward achieving goals set in 2007. However, in cooling water. 2009, PPG did not reach the energy intensity goal it set for the year. Energy intensity is the number of million BTUs per short Spills and Releases: PPG’s measurement standard for ton of product manufactured. In the year, PPG’s actual of 8.86 spills and releases is designed to go beyond what worldwide million BTUs per net ton of product produced was higher than reporting obligations require. The current five-year target is a its goal of 8.61 million BTUs per net ton of product produced. 10 percent reduction from the previous year in spills per 1,000 Yet, it should be noted that absolute global energy used by PPG employees, from 3.2 in 2008 to 1.9 by 2013. In 2009, PPG’s has decreased by 18 percent since 2006. On a more positive spill and release rate of 2.6 was below the target goal. The note for 2009, PPG generated 5.56 million metric tons of CO2 lower rate reflects PPG’s focus on investigating the causes of versus its 2009 goal of 5.96 million metric tons. This represents its spills to ensure proper corrective actions are in place to a 12.3 percent decrease from 2006. Some of this reduction is prevent recurrence. due to reduced production. PPG GLOBAL SPILL PPG GLOBAL SPILL PPG GLOBAL 3.5 AND RELEASE RATE AND RELEASE RATE GHG EMISSIONS 3.5 (spills & (spills & releases per 1,000 employees) releases per 1,000 employees) 8 (million metric tons CO2 equivalent) 3.0 3.0 7 2011 Goal Line 6 2.5 2.5 2013 Goal Line 2013 Goal Line 5 2.0 2.0 4 1.5 1.5 3 1.0 1.0 2 0.5 0.5 1 0.0 0.0 0 06 07 06 08 07 09 08 10 09 11 10 12 11 13 12 13 06 07 08 09 10 11 PPG Joins DOE “Save Energy Now” LEADEr Program PPG has joined the U.S. Department of Energy’s “Save Energy Now” LEADER Program, reinforcing the company’s voluntary efforts to significantly reduce its industrial energy intensity. The company signed a pledge to reduce its industrial energy intensity by 25 percent over the next decade. Charter members of the program agreed to establish energy use and energy intensity baselines and to develop an energy-management plan. 2009 CSR Update | 6
  • 39. 2006 – 2008 2006 – 2008 2006 – 2008 2006 – 2008 AIR 2006 – 2008 EMISSIONS AIR 2006 – 2008 EMISSIONS AIR 2006 –Oxides 2008 EMISSIONS AIR 2006 – 2008 EMISSIONS Nitrogen AIR 2006 – 2008 EMISSIONS AIR 2006 – 2008 EMISSIONS Volatile Organic Compounds Reducing Environmental Impacts AIR 2006 –Oxides EMISSIONS AIR 2006 – 2008 EMISSIONS Nitrogen 2008 Nitrogen Oxides Volatile Organic Compounds Volatile Organic Compounds and Emissions: In 2008, PPG continued 06 AIR EMISSIONS Nitrogen Oxides Oxides AIR EMISSIONS Nitrogen21,572 06 AIR EMISSIONS Volatile Organic Compounds AIR EMISSIONS Volatile Organic Compounds 3,173 to make progress in reducing emissions 06 06 21,572 Nitrogen21,572 Oxides 06 06 3,173 Volatile Organic Compounds 06 Nitrogen21,572 Oxides 06 3,173 Volatile Organic Compounds 06 21,572 06 3,173 3,173 based on the environmental measures 07 20,660 07 2,672 06 07 06 07 21,572 20,660 21,572 20,660 06 07 06 3,173 07 2,672 3,173 2,672 of the Global Reporting Initiative (GRI) 07 07 20,660 20,660 07 07 2,672 08 17,672 08 2,672 2,646 Sustainability Reporting Guidelines. In 07 08 07 08 20,660 17,672 20,660 17,672 07 08 07 2,672 2,646 Metric tons 17,672 08 2,646 2,672 Metric tons 08 08 17,672 08 08 2,646 2,646 2008, PPG: Metric tons Metric tons Metric tons Metric tons 08 08 17,672 Metric tons 17,672 Metric tons 08 08 2,646 Metric tons 2,646 Metric tons Metric tons 2006 – 2008 Metric tons 2006 – 2008 Metric tons Metric tons • Reduced nitrogen ioxides emissions 2006 – 2008 2006 – 2008 AIR 2006 – 2008 AIR 2006 – 2008 EMISSIONS by more than 14 percent and EMISSIONS AIR 2006 – 2008 EMISSIONS AIR 2006 – 2008 EMISSIONS AIR 2006 – 2008 EMISSIONS AIR 2006 –Matter EMISSIONS Particulate 2008 Sulfur Dioxide AIR 2006 –Matter sulfur dioxide emissions by more AIR 2006 – 2008 EMISSIONS Sulfur Dioxide Sulfur Dioxide Particulate 2008 EMISSIONS Particulate Matter than 19 percent (due in large part 06 AIR EMISSIONS Sulfur Dioxide Dioxide AIR EMISSIONS Sulfur 11,606 06 AIR EMISSIONS Particulate Matter AIR EMISSIONS Particulate Matter 2,176 06 06 Sulfur 11,606 Dioxide 06 06 2,176 Particulate Matter 2,176 to reductions in production at the 06 06 Sulfur 11,606 Dioxide 11,606 06 06 Particulate Matter 2,176 2,176 07 11,606 07 1,911 company’s Carlisle, Pa.,USA, and 06 10,593 06 07 2,176 1,911 07 06 07 11,606 10,593 11,606 10,593 06 07 1,911 2,176 07 07 10,593 07 07 1,911 1,911 Wichita Falls, Texas, USA, glass 08 10,593 8,529 08 2,024 07 08 10,593 07 08 07 08 1,911 2,024 1,911 2,024 plants, and its Natrium, W.Va.,USA, 07 08 8,529 10,593 8,529 2,024 Metric tons 08 08 Metric tons 8,529 08 08 2,024 8,529 Metric tons Metric tons Metric tons chemicals facility, as well as the 08 Metric tons 8,529 08 08 2,024 2,024 Metric tons 08 Metric tons 8,529 Metric tons Metric tons divestiture of the automotive glass Metric tons Metric tons 2000 – 2008 Metric tons Metric tons and services business) 2000 – 2008 2000 – 2008 2006 – 2008 HAZARDOUS WASTE 2006 – 2008 2000 – 2008 HAZARDOUS WASTE AIR 2006 – 2008 EMISSIONS 00 00 HAZARDOUS WASTE 2000 – 2008 2000 – 2008 HAZARDOUS WASTE79 AIR 2006 – 2008 AIR EMISSIONS EMISSIONS Ozone Depleting Chemicals • Reduced the amount of hazardous 00 00 00 00 01 HAZARDOUS WASTE 79 79 68 AIR 2006 – 2008 2006 – 2008 EMISSIONS Ozone Depleting Chemicals Ozone Depleting Chemicals and industrial waste disposed of 01 00 00 00 01 00 01 01 02 01 HAZARDOUS WASTE79 79 68 68 84 06 AIR EMISSIONS Ozone Depleting Chemicals AIR EMISSIONS 50 Ozone Depleting Chemicals 01 02 00 01 68 79 68 06 06 50 50 by 3.7 percent and 4.1 percent, 01 02 00 00 01 02 00 03 02 84 79 84 73 06 Ozone Depleting Chemicals Ozone Depleting Chemicals 50 02 02 03 01 02 03 84 68 84 73 06 50 02 01 01 03 02 04 01 68 73 79 07 47 50 respectively 03 03 03 02 03 04 04 73 84 73 79 06 07 06 07 47 50 47 02 04 03 02 05 84 79 68 03 02 04 04 04 03 04 79 73 79 07 07 47 47 05 05 03 05 68 73 68 08 50 06 04 03 04 79 07 47 • Did not increase its level of volatile 03 05 05 04 05 05 06 04 06 06 68 79 68 79 08 07 08 50 47 50 07 05 04 81 08 50 Metric tons 05 06 04 06 05 06 07 79 68 79 81 08 50 organic compound (VOC) emissions 06 05 07 08 07 68 81 78 Metric tons Metric tons 06 05 07 06 06 05 07 08 81 79 81 08 08 50 50 Metric tons 07 06 08 07 Thousand metric 78 79 78 tons Metric tons 08 07 06 07 08 07 06 78 Thousand metric tons tons 81 78 Metric tons 07 Thousand metric 81 Metric tons • Experienced an increase of about 08 07 08 07 Thousand metric tons Thousand metric tons 78 78 6 percent in particulate matter Thousand metric tons 2006 – 2008 Thousand metric tons 2000 – 2008 2006 – 2008 2006 – 2008 emissions (due primarily to the 2000 – 2008 WATER CONSUMED 2006 – 2008 2000 – 2008 INDUSTRIAL WASTE WATER CONSUMED WATER CONSUMED acquisition of SigmaKalon) 2000 – 2008 INDUSTRIAL WASTE 06 2006157,299 2006 – 2008 – 2008 WATER CONSUMED INDUSTRIAL WASTE 2000 – 2008 06 06 157,299 WATER CONSUMED 157,299 00 00 00 2000 – 2008 232 INDUSTRIAL WASTE 232 232 06 06 WATER CONSUMED 157,299 157,299 • Experienced an increase in 01 00 00 01 INDUSTRIAL WASTE 194 INDUSTRIAL WASTE 232 232 194 07 06 07 113,884 157,299 113,884 01 02 194 199 194 06 07 157,299 113,884 01 00 01 232 194 07 113,884 ozone-depleting air emissions of 02 00 02 03 199 232 199 184 07 113,884 111,243 02 01 199 194 08 02 03 01 03 04 199 184 194 184 186 07 08 07 08 113,884 111,243 113,884 111,243 approximately 6 percent 03 02 03 04 184 199 184 186 08 111,243 Million gallons 111,243 02 04 05 199 186 165 08 Million gallons 04 03 04 05 186 184 186 165 08 Million gallons 111,243 03 05 06 184 165 211 08 111,243 Million gallons Million gallons 05 04 05 06 165 186 165 211 04 06 07 186 211 239 Million gallons 06 05 06 07 211 165 211 239 Million gallons In addition, PPG has added metrics for 05 07 08 165 239 229 07 06 07 08 06 08 Thousand metric 239 211 239 229 211 229 tons 2006 – 2008 water consumption and discharges to 08 07 229 Thousand metric tons tons 2006 – 2008 2006 – 2008 08 07 Thousand metric 239 229 239 WATER DISCHARGED 2006 – 2008 its reporting protocol. In 2008, PPG 08 08 Thousand metric tons Thousand metric tons 229 WATER DISCHARGED WATER DISCHARGED 229 Thousand metric tons 06 2006120,490 2006 – 2008 – 2008 WATER DISCHARGED decreased water consumption by more Thousand metric tons 06 06 120,490 120,490 06 06 WATER DISCHARGED WATER DISCHARGED 120,490 120,490 than 2 percent versus 2007 and by 07 116,546 06 07 06 120,490 116,546 120,490 116,546 more than 29 percent versus 2006. In 07 07 116,546 Performance data represent PPG’s 07 116,546 terms of water discharges, PPG reduced 08 96,732 07 08 07 08 116,546 96,732 116,546 96,732 discharges in 2008 by 17 percent versus global operations. PPG continues to 08 Million gallons 96,732 08 96,732 Million gallons collect and expand its environmental Million gallons 2007 and by 19 percent versus 2006. 08 08 96,732 Million gallons 96,732 Million gallons performance metrics. 2009 performance Million gallons Million gallons data is currently being assembled and will be reported later this year on the PPG Web site at www.ppg.com. 2009 CSR Update | 7
  • 40. Employees and the Workplace Promoting Safety and health Supporting Employee Wellness PPG has continued to drive improvements in its safety and PPG supports the efforts of its employees and their families health performance by using Sigma Logic® methodology to to improve their health, and the first step is getting good establish aggressive goals and implement stringent daily information. The company encourages employees to participate processes. From 1999 to 2009, PPG has reduced its injury in voluntary, confidential online health risk assessments. By and illness rate by 72 percent. PPG estimates that, based on 2009, 30,321 employees – roughly 76 percent of the total improvements from the 1999 baseline, its risk-reduction efforts global workforce – had completed the assessment at least once. have prevented more than 2,000 PPG injury and illness cases. In light of the recent success, PPG has established new goals 1.5 PPG GLOBAL INJURY for the 2009-2013 period that expand on its previous plan. AND ILLNESS RATE (injuries & illnesses per 100 employees) 1.2 Unfortunately, the company experienced one fatality in 2009. A technical services employee in the company’s protective and marine coatings business died when a scaffold upon which he 0.9 2010 Goal Line was standing in a shipyard in India collapsed into the water. 0.6 Ergonomics 2013 Goal Line 0.3 Through the application of good ergonomic principles, PPG has reduced the number of ergonomically-related injuries and 0.0 illnesses by 78 percent from 0.47 cases per 100 workers in 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 2002 to only 0.12 cases in 2009. PPG TOTAL CORPORATE INJURIES The aerospace business’s adhesives and sealants team in AND ILLNESSES PREVENTED Australia won PPG’s 2009 Ergo Cup by developing a custom 2000 (base year = 1999) air-driven, foot-pedal-operated sealant gun that fills premixed sealant in caps that are used as fasteners and rivets in aircraft fuel tanks and inside aircraft wings and spars. Prior to the 1500 development of this gun, caps were filled manually by an operator squeezing a handheld sealant gun for five continuous minutes per tray. The new tool has the additional benefit of 1000 increased speed of filling, from 90 trays to 300 trays per day. Cumulative Injuries Prevented The team represented PPG at the National Ergo Cup competition held at the Applied Ergonomics Conference in San Antonio, Texas, 500 USA, in March 2010. PPG WOrK FOrCE BY rEGION 0 99 00 01 02 03 04 05 06 07 08 09 2009 Average Engaging Employees for Safety At PPG’s Kunshan, China, coatings facility, the plant requests that each staff member conduct work-safety observations and submit them once a month to plant management. The plant then reviews all observations and implements corrective actions. A similar program is being implemented at PPG’s United States, Canada (15,122) Europe, Middle East, Africa (16,430) Villawood plant in Sydney, Australia, where the plant is Latin America, Mexico (1,414) Asia/Pacific (6,930) focusing on a safety-culture engagement strategy that includes Total: 39,896 recognition, surveys and coordinated training sessions. 2009 CSR Update | 8
  • 41. Community Involvement and Social Performance Foundation for the Future Since 1951, the PPG Industries Foundation has been making Captain Green’s Time Machine: The Carnegie Science a difference in the lives of others with grants supporting Center’s “Science on the Road” program added the fourth in outreach programs, relief funds, charitable efforts, educational a series of educational programs supported through the PPG programs and volunteerism. The foundation focuses on working Industries Foundation. Called Captain Green’s Time Machine, with organizations that develop educational opportunities the van, which runs on biodiesel fuel, visits elementary and accessible to all members of the community. middle schools in Pennsylvania, Ohio, West Virginia, Maryland and New York, USA, teaching students about energy and the Through its corporate foundation and a wide range of local giving environment. The program curriculum was developed jointly by and volunteer programs, PPG seeks to reflect company interests scientists at the science center and at PPG. PPG’s total grant and values by enhancing the quality of life in global communities of $583,000 for the “Science on the Road” series has helped where its employees and their families live and work. to fund the hiring of additional staff, and to develop multimedia programs that, according to the center, have reached PPG Industries Foundation approximately 225,000 students. Five-Year Summary of Total Grants Paid 2009 $4,500,000 2008 $5,242,000 2007 $4,699,000 2006 $5,284,000 2005 $5,228,000 2009 Actual Expenditures (thousands of dollars) New Adventures in Technology: The PPG Industries Foundation pledged $75,000 to Catalyst Connection to support 275 grants totaling development of a new program in the Greater Detroit, Mich., $4,500,000 USA, area. PPG Adventures in Technology engages high school students in a 10-week hands-on project to design and build a product or re-engineer an existing product, process or system. By teaming with local companies, students learn about the career opportunities available in manufacturing, engineering, Education ($1,730) GIVE ($420) information technology, life sciences, finance and marketing. Matching Gifts ($335) Human Services ($1,109) Help for Haiti: The PPG Industries Foundation has matched Civic & Culture ($744) PELC ($162) PPG employee contributions to the American Red Cross for many disasters, including the Indonesian tsunami in 2004, the GIVE = Grant Incentives for Volunteerism by PPG Employees and Retirees Sichuan, China, earthquake in 2008, and the Haitian earthquake PELC = Public Education Leadership Community Grants in 2010. Through February 2010, PPG employees raised a total of $31,076 through 374 donations for Haiti relief and development. Several PPG facilities also collected toiletry items to be sent to Haiti through the Brother’s Brother Foundation. 2009 CSR Update | 9
  • 42. PPG Care Libraries Flood-Relief Efforts in Eastern Europe: After many homes in Zitong, China: In and buildings were damaged by rains and flooding in the Czech September 2009, PPG Republic and Slovakia during fall 2009, PPG’s architectural Industries helped rebuild coatings – EMEA business donated more than 22,000 liters of 50 libraries in schools Primalex® paint to assist in local villages’ flood-relief efforts. in earthquake-stricken PPG provided the paint to local crisis-response centers, which Zitong County, Sichuan distributed it to needy homeowners across the region. PPG’s Province. The libraries architectural coatings business there made similar product include more than 150,000 donations following devastating floods in 2002. books donated by the foundation and PPG Industries. They also include more than 700 books and furniture and paint donated Employees Help Rebuild by PPG employees. The total donation is worth about RMB Italian School: PPG employees 4 million. in Italy donated 20,230 euros to help rebuild a school in “ZebraFest”: PPG’s architectural coatings L’Aquila, Abruzzo, Italy. On April – EMEA business provided paint to support 6, 2009, Italy encountered its a pedestrian safety initiative in Budapest, worst seismic disaster in more Hungary, called “ZebraFest.” The initiative than 30 years, which caused is aimed at stemming a growing number extensive damage to a school for more than 400 students. of traffic accidents at pedestrian crossings. Donations came from PPG employees at Caivano, Casaletto, PPG sponsored the program, which placed Felizzano, Milan, Parma and Quattordio, Italy. life-sized, colorfully-painted replica zebras at busy pedestrian crossings near schools and Milford, Ohio, Employees Participate hospitals in the Hegyvidék district of Budapest. in Day of Caring Project: A team of 18 In addition, Unitop® coatings, part of PPG's employees from PPG’s Milford, Ohio, USA, Trilak® coatings line, were used in packaging coatings plant devoted their painting the pedestrian crossings. recent “Day of Caring” volunteer efforts to help an 82-year-old woman with some long overdue interior painting and cleaning a yard overflowing with leaves and debris. The Milford employees converged on the woman’s property equipped with paint brushes, PPG Porter® PPG’s European Headquarters “Community Day”: paint, ladders and yard tools. The Day of Caring project was part Local residents and employees at of the Milford plant’s 2009 United Way campaign. PPG’s European headquarters in Rolle, Switzerland, held the site’s first Milan, Italy, Plant Helps Feed the Needy: In 2009, “PPG Community Day” by spotlighting more than 3,500 meals were donated by PPG’s Milan the company’s support of numerous automotive refinish coatings plant to organizations that help local charities. In addition to PPG’s feed disadvantaged people. Leftover food from the Milan 45-member staff, more than 150 local plant’s cafeteria is sent at the end of each day to Siticibo, residents, business and community an organization that distributes surplus food from school leaders, and children turned out for and business cafeterias to soup kitchens in Milan. PPG Community Day. Some of the non-profit partners highlighted were Foundation Cube de Verre, which helps and supports autistic children; Sésame, a youth center that provides occupational, cultural and sports-related activities to children and teenagers; Ecole de Musique de Rolle et Environs, which is managed by volunteers and teaches music to about 140 students; and Foundation Ida, which is devoted to helping children suffering from cancer and providing activities for hospitalized children. 2009 CSR Update | 10
  • 43. Awards and Recognition China Enterprise News and the Employer Department of China Enterprise Confederation recognized PPG in their 2008 Excellent Cases of Multinational Corporations Fulfilling Social Responsibility report as one of the top 20 companies for efforts in recognizing the concerns and needs of society. The Michigan Department of Environmental Quality’s Green Chemistry Roundtable recognized PPG with a Michigan Green Chemistry Governor’s Award for Green Logic® paint detackifier. The liquid, chitosan-containing paint denaturant technology provides a more environmentally- responsible alternative to traditional melamine-formaldehyde Solarphire® PV (photovoltaic) and Solarphire AR or acrylic acid-based chemistries. (anti-reflective) glasses by PPG Industries were recognized as “Solar Products of the Year” by PPG Industries was again recognized as a leader for its carbon readers of USGlass magazine. Above, Senior disclosure transparency and emissions management by the Carbon Research Engineer Michael Buchanan conducts Disclosure Project (CDP). PPG ranked second in the materials accelerated weather testing of Solarphire glass. sector, and third among materials companies for the CDP’s pilot “performance-based” metrics, which measure a company’s plans and actions to reduce greenhouse gas emissions. PPG its prestigious “Five Star Technology” certification for R&D Magazine awarded PPG an R&D Envirobase® High-Performance automotive refinish coatings. 100 Award for its Duranar® powder The certification recognized the environmentally-responsible coatings. Duranar powder coatings are waterborne coating not only for meeting regulations regarding economically produced in small batches volatile organic compounds (VOC), but also for helping to of custom colors tailored precisely to improve the efficiency and productivity of auto body repair individual customers’ specifications. shops in Latin America. The new process can also make aluminum coatings “greener” by significantly reducing the material waste and amount of TOURAINE PROPRE (Clean Touraine), a French professional energy used in their manufacture. organization focused on the minimization and recycling of waste, has recognized PPG for its innovative CONTRAT VERT (Green CESVI Brazil, the leading automotive safety and refinish Contract) that helps professional painters recycle their paint coatings research organization in Latin America, gave waste by recovering it in service centers. PPG received a $741,000 grant from the U.S. Department of Energy to support the development of materials and automation processes for wind turbine blade manufacturing. In partnership with MAG Industrial Automation Systems, PPG aims to optimize materials technologies and develop fiber glass placement techniques to improve wind blade reliability while reducing the cost of wind blade production. Left, wind blades in storage are awaiting shipment to their respective wind farms. Blades made with PPG fiber glass can be more than 200 feet long. 2009 CSR Update | 11
  • 44. PPG Industries One PPG Place Pittsburgh, PA 15272, USA (412) 434-3131 www.ppg.com This corporate sustainability report is printed on paper that is FSC-certified, contains 30 percent post-consumer recovered fiber and is manufactured with electricity in the form of renewable energy. The following trademarks of PPG Industries and its related companies are used in this report: Agilon, Alteos, Amercoat, Aquabase, Aquamax, Bairocade, CeramiClear, CertifiedFirst, CR- 39, Dekoral, Envirobase, Freitag, Green Logic, Ivy, Johnstone’s, NXT, Olympic, Pittsburgh, PPG High Performance Coatings, PPG logo, PPG Porter Paints, Primalex, Pure Performance, Seigneurie, Selemic, Sherwood, Sigma Coatings, Sigma Logic, Sigma Syladvance, SigmaGlide, Solarban, Solarphire, Starphire, Sungate,Taubmans, Teslin, Trilak, Trivex, Unitop and Zircobond. Transitions is a trademark of Transitions Optical, Inc. Other company, product and service names used in this report may be trademarks or service marks of other parties. Copyright © 2010 PPG Industries, Inc., all rights reserved. CSR-CORP-0410-ENG-10K