Accenture Chemicals Global Consumer Sustainability Survey 2019

2. SURVEY METHODOLOGY 2Copyright © 2019 Accenture. All rights reserved. Accenture conducted a global quantitative online survey of 6,000 consumers. The purpose of the survey was to identify consumer purchasing and consumption habits regarding different types of packaging and products, as well as consumer views related to recycling and reuse of materials. Respondents were ages 18 to 70 and covered a broad range of employment, education and income levels. They also had primary or shared responsibility for making purchase decisions in their household for everyday products and services. The survey was conducted in April 2019 in the following 11 countries: Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the United Kingdom and the United States. Decision makers for household purchases 6,000 respondents, ages 18-70 Conducted April 2019 11 countries across Asia, Europe and North America

3. Consumers care about the environment, and their demand for sustainable products is a driving force behind the shift to a circular economy. 3Copyright © 2019 Accenture. All rights reserved. of consumers buy more environmentally-friendly products today than five years ago 72% plan to buy more environmentally- friendly products over the next five years 81% Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019

4. Most know that sending waste to landfills is harmful to the environment, and they believe in the importance of reuse and recycling. 4Copyright © 2019 Accenture. All rights reserved. Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019 believe it is important for companies to design products that are meant to be reused or recycled 83% of consumers rate sending waste to landfills as the disposal method that is most harmful to the environment 84%

5. 35% 30% 9% 8% 8% 4% 2% 2% 2% 2% 89% 84% 62% 61% 49% 37% 31% 29% 25% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quality Price Brand Preference Health & safety certifications Environmental impact Package functionality Package material Recyclability/reuse potential Shelf appeal Most important Within top 5 Copyright © 2019 Accenture. All rights reserved. 5 Whilequalityandpricereignsupreme,consumers doconsidersustainability-relatedfactorswhen makingpurchases. When you purchase a product, what do you take into consideration before making your decision? Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019

6. Copyright © 2019 Accenture. All rights reserved. 6 Insomecases,consumershavestoppedbuying productsduetoenvironmentalconcerns. Have you stopped buying products in any of the industries listed due to environmental concerns? Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019 23% 16% 11% 8% 8% 8% 7% 5% 58% 0% 10% 20% 30% 40% 50% 60% 70% Food & beverage packaging Personal care products Children's toys Clothing Electronics Construction materials Automotive Furnishings No, I have not stopped buying products in any of these industries 42%

7. Copyright © 2019 Accenture. All rights reserved. 7 Moreover,whenpurchasingplasticproducts,most (87%)consumerspreferaneco-friendlyoption. When purchasing products made from plastic, which of the below do you prefer most? Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019 48% 48% 29% 24% 24% 12% 1% 0% 10% 20% 30% 40% 50% 60% 100% recyclable plastics Biodegradable plastics Plant-based plastics Compostable plastics Plastics made from recycled materials Unsure / I have no preference None of the above 87%

8. Someconsumersareevenwillingtopaymorefor sustainableproducts. of consumers are willing to pay more for a product that was designed to be reused or recycled are willing to pay more for a product that was made from recycled materials 50% 36% Almost 30% of consumers indicated that they are not willing to pay more; however, they would choose an environmentally-friendly product over others, all else being equal. Copyright © 2019 Accenture. All rights reserved. 8Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019

9. of consumers would be willing to store and take back for refill packaging containers used in their home 95% Inadditiontotheirpurchasingdecisions,consumers aretakingotheractionstosupportsustainability. have participated in a product takeback program, with 74% indicating that participation would be most encouraged by convenient returns or incentives 43% Copyright © 2019 Accenture. All rights reserved. 9Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019

10. 10 WHATDOES THISMEANFOR THECHEMICAL INDUSTRY?

11. of consumers perceive plastics to be the least environmentally-friendly packaging material believe that the chemical industry is least concerned about the impact it has on the environment compared with eight other sectors listed in the survey 77% 49% have low confidence in chemical manufacturers’ communications concerning the environmental impact of their products and/or services— the lowest of all organizations included in the survey 72% Copyright © 2019 Accenture. All rights reserved. 11Source: Accenture Chemicals Global Consumer Sustainability Survey, 2019 Thethreatofdisruptionfromthecirculareconomyis real,exacerbatedbynegativeconsumersentiment.

12. However, this disruption also brings opportunity, providing an exciting path for innovation and growth. Chemical companies are well equipped to develop materials and methods that enable and speed the adoption of circular business models. Copyright © 2019 Accenture. All rights reserved. 12

13. As such, with products that constitute the basic building blocks of most consumer goods, chemical companies are uniquely positioned to lead the way as the world shifts to a circular economy. Copyright © 2019 Accenture. All rights reserved. 13 The time to act is now—or risk getting left behind.

14. Copyright © 2019 Accenture. All rights reserved. 14 The shift in consumer behavior reinforces the need for companies to increase their commitments to responsible business practices and embrace the circular economy. Jessica Long Managing Director, North America Sustainability & Trust Lead, Accenture Strategy

15. Copyright © 2019 Accenture. All rights reserved. 15 LEARN MORE READ OUR NEWS RELEASE More than Half of Consumers Would Pay More for Sustainable Products Designed to Be Reused or Recycled, Accenture Survey Finds Our full report will be published soon. Stay tuned!

16. Copyright © 2019 Accenture. All rights reserved. 16 CONNECT WITHUS Jessica Long Managing Director, North America Sustainability & Trust Lead, Accenture Strategy jessica.l.long@accenture.com Accenture Chemicals Accenture Strategy @AccentureChems @AccentureStrat www.accenture.com/chemicals www.accenture.com/strategy