Leadership within our company and in our markets is defined by how we respond to external forces and our customers and communities needs. Our responsiveness is rooted in preparedness and thoughtfulness, which provides the ability to adjust to new realities and new requirements.
The Corporate Risk and Sustainability Committee of our Board of Directors oversees the company’s sustainability efforts. In 2021, we expanded our corporate sustainability team to include additional key personnel with operations experience, and we integrated sustainability leadership from the companies we acquired with their counterparts in our Strategic Business Units to collaborate with the sustainability team. The sustainability team reports to the Vice President of Corporate Development and Sustainability, who in turn reports to our Executive Vice President and Chief Financial Officer, and the team also works closely with the Strategic Business Unit leaders in advancing the company’s sustainability efforts and progress.
Policies, Ethics and Compliance
Business Ethics and Global Code of Conduct
Our Global Code of Conduct applies to all employees, directors and officers, and governs individual behavior and ethical practices for company actions. The Global Code of Conduct covers Health, Safety and Environment; Our People, which includes a range of concerns, such as non-discrimination, data privacy and conflicts of interest; Quality and Continuous Improvement; Competitiveness; and Citizenship, which includes several areas, including fair dealing and human rights.
Environmental Management System
Fundamental to our operations and our focus on continuous improvement is our environmental management system. ISO 14001 certified environmental management systems are in place across our compounding facilities.
Responsible Sourcing and Supply Chain Management
Suppliers Code of Conduct
Our Suppliers Code of Conduct applies to all of our suppliers and their manufacturing facilities, including any subcontracting and packaging facilities. It explicitly sets forth our expectation of compliance with applicable laws and regulations including, but not limited to, those related to labor, immigration, health and safety, and the environment; and expectations around conducting business in an ethical and safe manner. Conflicts of interest, corruption, unfair wages and any form of forced labor or human trafficking are expressly prohibited.
Human Rights and Vendor Screening
In 2021, we added more supplier screenings, such as the United Nations Human Development Index (HDI). The majority of our suppliers are in what are deemed low-risk countries in terms of the dimensions of human development (life expectancy, education, and per capita income). Screenings such as this help us ensure our suppliers act responsibly on a local level. By emphasizing local sourcing for procurement, we also have meaningful opportunities to identify and recruit suppliers who are minority, women and veteran-owned business enterprises.
GHG Emissions and Climate Impacts
Climate change is a serious global issue. It tests our resilience, and it tests our collective commitment to support the future health of the world. As a major manufacturer, we recognize the role we can play in reducing our own environmental footprint and encouraging others to do so, whether they are our suppliers, customers or end-use consumers. When we undertake major plant improvements, key criteria are efficiency, cost, safety and sustainability. In 2022, we announced our target to reduce Scope 1 and Scope 2 CO2 equivalent emissions per ton of production by 20% by 2030 from our 2016 baseline.
To learn more about our carbon footprint, please visit our operations page or ESG report.
Responsible Logistics
Our environmental footprint extends beyond the perimeters of our plants. In this regard, we recognize the importance of smart logistics and transportation and have been working for years to reduce their climate impact. Currently, all Westlake U.S. chemical locations have on-site rail access with most of our product by tonnage moved by rail rather than truck. Westlake owns approximately 14,200 railcars in the U.S. to safely ship product with lower emissions.
Cyber Security
Keeping our operations secure from cyber threats protects the health and safety of our workers and our neighbors, and helps us to avoid disruptions of our business processes. It is critical to keep our chemical plants running properly without interference so that we only scale back those operations in a controlled, orderly fashion. Our employees are trained on how to identify and report attempted cyber incursions through quarterly global training. In addition, as we add more digital enhancements to our operations, such as machine learning for certain processes, we are addressing cybersecurity concerns as well.
In our current report, you'll find more detailed information about our governance, our efforts to make Westlake resilience towards any external forces, and the progress we've made over the past year.