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1 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
The Huber Principles inspire us to be a good
corporate citizen and steward of the environment.
Although sustainability has been embedded in our
company culture for a very long time, in 2017 we
reinforced this commitment through Huber’s first
comprehensive Sustainability Strategy.
Our Triple Bottom Line (TBL) philosophy
contemplates People, Planet & Profit impacts in all
critical Huber business decisions. This approach has
enabled Huber to achieve top-decile performance in
employee safety and put the Company on a path to
reach stretch targets for reducing its environmental
footprint, while also attaining positive outcomes for
employee engagement and community service.
Despite COVID-19 disruptions, Huber has maintained
its TBL focus and is making steady progress with our
five-year plans to lower Huber’s water, energy, carbon
and waste intensity.
Although we are pleased with our progress to
date, our goal is to keep Huber at the forefront of
emerging trends. The broader business world has
begun to embrace similar strategies using a different
lexicon: Environmental, Social & Governance (ESG)
performance. Indeed, ESG embodies many of the
same core concepts as Huber’s TBL approach.
With this in mind, Huber undertook an ESG Materiality
Assessment—a study to identify key aspects of
sustainability that are most relevant for how Huber
will conduct its business in the future. This study
involved obtaining critical input from customers,
trade associations, leading ESG-rated companies and
other stakeholders such as the Board, members of the
Huber family, and our own leaders and employees.
In June 2021, Huber received independent accolades
for its ESG performance through the 2020 IMD-Pictet
Sustainability in Family Business Award, a prestigious
honor acknowledging global family-owned
enterprises that excel in their corporate sustainability
practices. In addition, this April, Deloitte (a renowned
global professional services firm) named Huber to
its list of the Best Managed US Companies for the
second year in a row.
We Care About What You Care About
A MESSAGE FROM MIKE MARBERRY, PRESIDENT & CEO OF J.M. HUBER CORPORATION
“Our employees, customers, supply
chain partners and family owners
understand the importance of creating
a better planet for future generations.”
With increased focus on sustainability comes
an expectation of greater transparency. As a
privately held company, Huber is not bound by the
same disclosure standards as public enterprises.
Nevertheless, we’re proud of our sustainability story
and have broadened the focus of this report to better
share that story with the outside world.
The Huber Principles provide a solid foundation
to pursue our ESG priorities. As such, this 10th
edition of the Living by the Huber Principles
Annual Report includes more alignment with the
Global Reporting Initiative’s (GRI) standards on
economic, environmental and social performance,
as well as purposeful alignment with the United
Nations Sustainable Development Goals (UNSDGs).
Subsequent editions of this report will strengthen
these connections.
Our employees, customers, supply chain partners
and family owners understand the importance of
creating a better planet for future generations. Our
ESG materiality assessment has created a strong
connection between Huber and its key stakeholder
groups regarding our future sustainability priorities. In
the following pages, you’ll learn more about Huber’s
progress to date in pursuing our ESG goals, and how
we’re now laying a foundation for the next generation
of Huber’s sustainability journey.
TABLE
OF
CONTENTS
2 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
MESSAGE FROM MIKE MARBERRY.....1
ABOUT HUBER.....................................3
• Businesses
• Governance
• Financial Performance
• Responding to COVID-19
• Sustainability Journey
HUBER PRINCIPLES............................14
• Environmental, Health & Safety (EH&S)
Sustainability
• Respect for People
• Excellence
• Ethical Behavior
ESG PRIORITIES..................................29
• Diversity, Equity & Inclusion
• Innovation
• Product Commercialization with
Societal Benefit
• Circularity
• Climate and Water Strategy
HUBER HELPS....................................42
RECOGNITION...................................44
• Sustainability in Family Business Award
• Best Managed Companies Award
• Mike Huber Awards
• Outstanding EHS&S Awards
APPENDIX.........................................50
• Reporting Platforms
• ESG-Related Metrics
• Huber Locations
3 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
About HuberIMPROVING TODAY FOR A BETTER TOMORROW
J.M. Huber Corporation is a global organization focused on specialty materials that enhance the
performance of thousands of everyday products. Founded by Joseph Maria Huber in 1883, Huber has grown
from a single dry color plant in Brooklyn, New York, into a diversified manufacturer with operations on five
continents. Huber remains family-owned and, with $2.4 billion in revenue in 2020, continues as one of the
largest privately held companies in the United States.
THE HUBER PRINCIPLES
While the Company has evolved to meet the needs of its
customers, the Huber Principles are the foundation for how
employees conduct business.
The Huber family, now in their sixth generation in the US,
embraces their responsibility to continue the profitable growth
and success of the Company in accordance with these Principles.
As the bedrock of our culture, the Huber Principles inspire
employees to support our customers, help one another and
ensure that the enterprise remains a positive force in the world
for generations to come. Our motivation is improving today for a
better tomorrow.
EH&S SUSTAINABILITYWorld-class safety and
environmental performance.
EXCELLENCECompetitive advantage
through customer intimacy and operational excellence.
RESPECT FOR PEOPLE
Great place to work for honesty, respect, teamwork
and recognition.
ETHICALBEHAVIOR
A company identity that we are all proud of.
In a year marked by disruption, isolation
and transition, Huber responded with
optimization, collaboration and innovation.
By focusing on the Huber Principles, we
were able to navigate through turbulence
brought on by the COVID-19 pandemic,
which caused a collapse in the global
economy as well as magnified sociopolitical
unrest in the US.
Proudly, Huber protected jobs and even
onboarded 350 new employees in 2020.
More than 4,000 employees in over 20
countries are drawn together by Huber’s
unique culture, working to manufacture
products used by millions of people and
committing to be a good neighbor in the
nearly 50 communities where we operate.
Principles in Action
As part of our commitment to community engagement, Huber
Helps gave more than $1.8 million to charitable causes around the
world in 2020—fulfilling our pledge to donate 1% of our
operating net income annually toward doing good.
Our vision for Diversity, Equity & Inclusion is to foster an
inclusive workplace that respects differences and promotes
equitable access to opportunity, where every employee around the world feels like they belong and
are valued.
This enterprise-wide program articulates the standards for
employee behavior and helps Huber people identify risk areas
they may come across in their jobs.
HUBER’S INITIATIVES AND PROGRAMS
As we continue to transform and improve products used around the world, the Huber Principles define our
culture and align with the core values of the Huber family, ensuring that everything we do is for the benefit of
our colleagues, customers and the communities in which we conduct business. We maintain the high standards
we have set for ourselves and our Company through the following initiatives and programs:
4 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
®
®
The Huber Engineered Materials plant in Quincy, Illinois, conducts a monthly contest to see which proposed safety
slogans will be featured on a banner that is hung by the highway in front of this Ground Calcium Carbonate site for everyone to
see. The team designed a banner to thank essential workers for supporting the community during the pandemic.
5 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
INDUSTRY IMPACT
All of Huber’s portfolio businesses
hold leadership positions in rapidly
growing markets and partner with
our customers to deliver the right
products and services to suit their
needs. Here are some of the many
areas that Huber businesses serve:
Huber’s Portfolio of BusinessesSERVING CUSTOMERS ACROSS A VARIETY OF INDUSTRIES
The J.M. Huber Corporation operates as a Portfolio Management Company (PMC). This structure gives our
diverse businesses the autonomy to manage their operations to serve their customers while offering the benefits
of being part of a large, global and multigenerational family company. Huber develops and manufactures
innovative products and services across a broad range of industries served by its portfolio businesses: CP Kelco,
Huber Engineered Materials (HEM), Huber Engineered Woods LLC (HEW) and Huber Resources Corp (HRC).
J.M. HUBER CORPORATION
CP KELCOHUBER
ENGINEERED MATERIALS
HUBER ENGINEERED
WOODS
HUBER RESOURCES
CORP
• Agricultural fertilizers and adjuvants
• Beverages
• Building products
• Cosmetics
• Flame retardants
• Food
• Forest certification
• Household products
• Industrial applications
• Land management
• Mining
• Oil field drilling
• Oral care
• Paints and coatings
• Paper
• Personal care
• Pharmaceuticals
• Wire and cable
With its unique portfolio of nature-powered ingredients, CP Kelco collaborates with customers globally to formulate innovative food, beverage, personal care, home care and industrial products that meet evolving market needs and consumer preferences. Founded in 1929, CP Kelco was acquired by Huber in 2004.
High-quality, specialty additives designed to enhance the performance, appeal and processing of a broad range of products used in industrial, agricultural and consumer applications. HEM traces its origins back to 1946.
Founded in 1983, HEW is an innovative developer of high-performance building envelope solutions for residential and commercial construction—including AdvanTech® subflooring and subfloor adhesive and ZIP System® roof and wall sheathing and tape—that provide US residential and commercial builders with improved performance, easy installation and greater strength.
Timber management business using sustainable forestry practices to ensure the responsible stewardship of timberlands it manages for third-party landowners in the US. Huber’s history with timberland management goes back to 1941, when the Company acquired its first tract of land in Maine.
CP Kelco’s goal is to be a role model for Environmental,
Social & Governance performance within Huber. Our capital
projects support Huber’s water and energy intensity reduction
goals. Our “Unlocking Nature-Powered Success” brand
essence builds off of ESG concepts such as product circularity,
affordability, sustainability and innovation. Our partnerships
with customers help them satisfy such consumer demands as
natural sourcing and clean label ingredients.
Didier Viala
President, CP Kelco
Protecting our people, reducing our environmental footprint
and growing our unique culture—one of our core competitive
advantages—demonstrates how HEW lives by the Huber
Principles. HEW has performed at a very high level,
operationally and commercially, and we’re ramping up our
focus on innovation to bring new products to the marketplace
that both solve problems for builders and offer ESG benefits.
Brian Carlson
President, Huber Engineered Woods
HEM is one of the most complex and dynamic businesses within
Huber. Our role is to incubate and grow a portfolio of small to mid-
sized companies and deliver stable, reliable performance to the Huber
enterprise. Additionally, HEM provides the overall governance to
consistently apply the Huber Principles across a variety of different
business units, which provides a strong foundation for such ESG
initiatives as Diversity, Equity & Inclusion, sustainability and innovation.
Dan Krawczyk
President, Huber Engineered Materials
6 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
7 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Guided by our Principles and supported by a
standing Environment, Health, Safety & Sustainability
(EHS&S) Committee of the Huber Corporate Board of
Directors, Huber continues to take significant steps
on its journey to become an even more sustainable
enterprise.
Huber’s commitment to responsible stewardship
reaches back to the 1950s, long before sustainability
was a concern for many companies. Our early efforts
included erecting levies around settling ponds and
installing filters and dust collectors in our plants. The
now-divested Kaolin business implemented land
reclamation projects that turned abandoned mines
into fields and woodlands. Meanwhile, the Timber
business—the forerunner of today’s Huber Resources
Corp—was a pioneer in selective timber harvesting,
as opposed to clear cutting, which enabled forests
to regenerate faster and to optimize wildlife habitat
management.
Our current five-year Sustainability Strategy, unveiled
in 2017, set aggressive targets for reductions in
emissions and energy and water use intensity. It
also called for world-class safety performance,
strengthening employee engagement through
such initiatives as I Belong at Huber and supporting
additional corporate philanthropy and community
engagement through Huber Helps, among other
goals.
In recognition of Huber’s sustainability efforts to date,
the CDP, a gold standard of third-party environmental
performance ratings, gave Huber a “B” score for
2020, which signifies that the organization is taking
coordinated and appropriate action on climate issues.
Huber’s score exceeds the average performance
of the chemical industry (“C”) and North American
businesses as a whole (“D”).
As we begin the process of envisioning our next five-
year strategy, we are adopting a lexicon increasingly
used by the broader business world when discussing
sustainability: Environmental, Social & Governance.
Although the terminology is different, ESG shares
many of the core concepts as our approach to
sustainability.
Our Sustainability JourneyTHE WAY FORWARD
7 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Huber was a pioneer in selective timber harvesting, which enabled forests to regenerate faster, as seen below in West Virginia in 1966.
Huber’s commitment to responsible environmental stewardship reaches back to the 1950s, long before
sustainability was a concern for many companies.
8 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
ASSESSING ESG PRIORITIES
In the third quarter of 2020, Huber embarked on a materiality assessment of its ESG priorities. This undertaking
looks at the landscape of corporate responsibility, including focus areas from DE&I to climate change impacts,
to human rights and labor practices. With help from outside ESG consultants, almost 80 interviews were
conducted with stakeholders (Huber directors, Huber business leaders, Huber family members, customers,
industry and sustainability leaders) to identify the most material ESG priorities for our Company. The results
of this materiality assessment pointed us to focus on five strategic priorities (see below) and will guide the
development of our next generation Sustainability Strategy.
SUSTAINABILITY OBJECTIVES
• Increase alternative energy to >30% of our energy use portfolio by 2022
• Reduce energy use intensity by a minimum of 10% by 2022
• Sustain a top decile ranking for safety culture
• Attain a goal of Zero High Energy Occupational and Process Safety Incidents
• Achieve 90% landfill diversion rate at 90% of plant sites by 2022
• Reduce water use intensity by a minimum of 10% by 2022
Huber’s Sustainability Strategy
aligns with a global set of
sustainability objectives, the
United Nations Sustainable
Development Goals, known
as the UNSDGs. This globally
recognized common set
of goals is used by leading
sustainable companies
worldwide to substantiate
and communicate how
their initiatives are part of a
global effort on these critical
objectives.
Our strategy directly aligns with
four of these goals through our
own sustainability objectives.
We also positively impact an
additional seven UNSDGs
through our business practices,
policies and procedures.
INNOVATION CIRCULARITY PRODUCT COMMERCIALIZATION
WITH SOCIETAL BENEFITS
CLIMATE AND WATER STRATEGY
DE&I
Positively Impacts
Direct Alignment
9 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
GovernanceADHERING TO BEST PRACTICES
Although Huber is privately owned, the Company
adheres to many of the best practices of publicly
traded enterprises, including maintaining robust
governance structures. Under the Portfolio
Management Company organizational model,
Huber’s three largest businesses—CP Kelco, Huber
Engineered Materials and Huber Engineered
Woods—each have their own dedicated Management
Board, whose members have significant experience
in the relevant industries they serve. This ensures
that Huber leaders within each portfolio business are
supported by a Board with both the expertise and
governance rigor to help drive the business forward.
Operational matters are left to the Management
Boards, with appropriate oversight from the
Huber Corporate Board. In addition to increased
autonomy, the PMC structure also encourages
greater accountability for each business to achieve
outstanding performance. This frees up Huber’s
Corporate Board to focus on overall portfolio strategy
and critical resource allocation decisions.
These boards include outside (independent)
directors, Huber management and members of the
Huber family. To cultivate future family leaders, the
Corporate Board also includes non-voting Director
positions, with new family members attending all
meetings and being treated as full board members
with the duty to contribute, but without the right to
vote.
The Huber Corporate Board of Directors’ first
Environmental Committee was established in 2005. It
was succeeded by the current Environmental, Health,
Safety & Sustainability (EHS&S) Committee in 2009,
one of the Huber Board’s four standing committees,
along with Audit & Finance, Corporate Governance &
Nominating, and Management & Compensation. This
history and emphasis on EHS&S make us a leader on
the topic of governance.
The EHS&S Committee helps chart the Company’s
sustainability journey in the spirit of the Huber
Principles. This ensures that the Company reaches
its goals in ways that have a positive impact on our
stakeholders. The Huber family is passionate about
the importance of sustainability. It is a core topic at
the Annual Shareholder Meeting. This gathering offers
an opportunity for generations to come together
and discuss Huber’s performance, strategies and
products with senior management, Board members
and employees. Similarly, the Huber Family Education
Weekend creates a forum for teaching younger
shareholders about running a multigenerational
family-owned business, with a particular focus on
sustainability.
In fact, the EHS&S Board Committee chairperson is a
fifth-generation Huber family member, which enables
shareholders to actively and frequently provide
guidance and direction to the Company’s strategic
sustainability efforts, particularly those related to
climate and water strategy.
The EHS&S Board Committee Chairperson works
closely with the Executive Vice President of EHS&S
to provide oversight, approval and guidance on
the execution of the Huber Sustainability Strategy
and reports progress back to the Huber Board of
Directors, elevating related opportunities and risks as
necessary.
As a part of Huber’s Enterprise Risk Management
framework, operational management teams conduct
regular business management risk assessments using
an internal, cross-functional risk matrix. New risks are
10 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
identified continuously, whenever new information
becomes available through change management,
incident investigations, events that have occurred at
Huber sites, and process hazard reviews. All risks are
aggregated at the corporate level and prioritized. Risk
mitigation plans are developed based on potential
impact or severity, likelihood and whether it is a
near-term or long-term possibility. For instance,
risks related to the environment are aggregated
at a corporate level and prioritized by the EHS&S
function and the Huber Environmental Management
Committee, which meets quarterly.
Business decisions throughout the organization are
made based on a risk’s acceptability. Prioritized risks
are managed strategically through business process
adaptations (commercial and operational) and capital
funding deployment for mitigation efforts. Climate
related risk is generally mitigated by allocating capital
funding to increase process efficiencies and to add
renewable sources of energy.
Another vital role for the EHS&S Committee is to
aid the Board in capital allocation decisions by
providing a view on the relative Triple Bottom Line
benefits among competing projects. New investments
can include capital improvements supporting the
continued organic growth of our current businesses,
projects to improve a site’s resource efficiency
and/or operational performance, as well as Mergers
& Acquisitions (M&A) opportunities. Organic growth
typically involves expansion of existing businesses.
These projects reflect comprehensive evaluations
of capital investments and assessments of the TBL
attributes of these projects—improved employee
safety, increased community engagement, reduced
environmental footprint and desirable returns on
investment.
For M&A opportunities, the EHS&S Committee
provides a venue for consultation with the Board
about the risks and opportunities associated with
target businesses and assets. For example, one of
the key considerations for our management and the
Board for any prospective new asset is whether it is
compatible with Huber’s high EHS&S standards.
Likewise, the Huber family understands the role
sustainability plays in the Company’s performance and
resiliency. The shareholders have bold environmental
and social expectations, which serve as drivers for
future generations of profitable, sustainable growth.
The Huber Family Expectations project is an example
of a family governance best practice designed to
seek alignment among the family as owners, the
Board and management on key subjects including
sustainability/ESG expectations to drive long-term
multigenerational business performance.
Unable to meet in person for the annual team picture, each Director on the Huber Board submitted a photo from home. For Huber’s full slate of leadership, visit our website.
11 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Huber’s 2020 Financial Performance STRONGEST RESULTS IN OUR HISTORY
“Huber ended 2020 with the strongest financial results in our 137-year history—despite the challenges
brought on by the global COVID-19 pandemic. Our long-held strategy of operating a portfolio of diversified specialty businesses allows us to balance risk over many different end markets, product lines
and geographies, which paid off in 2020. Throughout the crisis, the Huber Principles guided our actions,
which enabled us to keep our people safe and sustain operations over the course of the year.”
Jeff Prosinski Executive Vice President &
Chief Financial Officer
Revenue is the total amount of money brought in by a company’s operations. The majority of our product lines, food and beverage ingredients, household applications, crop yield aids and minerals performed well, benefiting from relatively stable demand. New home construction in the US catalyzed by efforts to control the pandemic through social distancing, remote work and staying at home meant that our products serving builders—such as oriented strand board (OSB)—had very strong results. Huber saw challenges in areas with exposure to energy and automotive.
$2.43B
TOTAL REVENUE
7.8% VS. 2019
Return on Invested Capital (ROIC) is an expression of business profitability performance. The goal is to deliver ROIC results that exceed Huber’s investment hurdle rate, which is the minimum rate of return on a project required to make the investment worthwhile (currently about 7.2% on an after-tax basis). 6.3% over the
hurdle rate
ROIC
13.5%
Capital Expenditures (CapEx) is an expression of our commitment to reinvest in the business. Our capital spending for value-sustaining activities (repair and maintenance) has been averaging about $65 million annually. The balance of our funding each year has been for multi-year value-added initiatives designed to increase productivity and production capacity, lower our cost position, and enhance occupational and process safety, improve our environmental footprint and strengthen Huber’s competitive capabilities. In aggregate, Huber’s 2020 deployment for internal plant capital projects was the second-largest annual program in our history.
CAPEX
$188M
12 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
New product sales are another expression of innovation. The improvement from 10.8% to 13.5% of total revenue in 2020 reflect the success of Huber’s increased emphasis on delivering innovative solutions to meet the needs of our customers—and their end customers.
NEW PRODUCT DEVELOPMENT
$290M13.5% of total revenue
Capital deployment decision-making represents one of the most important responsibilities for Management and the Board. Incorporating Triple Bottom Line (People, Planet & Profit) thinking into project design is an expression of our commitment to integrating sustainability considerations in capital deployment and good governance. Consistent with one of the metrics in Huber’s Sustainability Strategy, Huber’s Finance and Sustainability teams developed an innovative process to quantitatively assess the sustainability attributes of our major capital projects using the TBL framework.
Because of Huber’s strong performance in 2020, we were able to invest a record amount of capital into our business. Huber held true to our TBL investment philosophy of enhancing our People, Planet & Profit metrics, as 78% of our major 2020 project investments are expected to improve employee safety, the environment and our financial results.
TBL CAPITAL PROJECTS
78%of major capital
project spend had TBL characteristics
To have a positive community impact, the Huber Helps corporate community engagement/philanthropy program is overseeing aggregate donations that amount to about 1% of our adjusted Corporate net income annually.
COMMUNITY ENGAGEMENT/PHILANTHROPY
1%of adjusted net income
donated through Huber Helps
The plowback ratio is an expression of reinvestment, as well as good governance. The plowback ratio is how much of our earnings are reinvested back into the business for future growth. Huber’s ratio remains robust for new growth and innovation.
PLOWBACK RATIO
48%
Investing in Research & Development (R&D) is an expression of our commitment to innovation. In 2020, Huber increased its focus on R&D to provide our customers with innovative applications. While we maintained the 1% dollar level of R&D spend from 2019, the spend relative to revenue actually decreased by 3.6% due to substantially increased OSB sales for home building in 2020.
R&D INVESTMENT
$30.6M1% of revenue
13 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Bringing together proficiencies from all
functions, portfolio businesses and major
regions, a global Incident Response Team (IRT)
for COVID-19 was activated on January 22,
2020. At locations around the world, Huber’s
products and services are listed as part of the
US Department of Homeland Security Critical
Infrastructure & Security Agency (DHS CISA)
“Critical Manufacturing” or country-equivalent
status, which enabled us to continue operations
throughout the pandemic.
The widespread and rapidly evolving nature of
the COVID-19 pandemic necessitated a robust
and flexible response strategy to ensure employee
safety while maintaining business continuity.
Since the beginning of the outbreak, the Huber
Management Council (HMC, Huber’s executive
team) entrusted the IRT with the authority to apply
science-based approaches in formulating protocol
recommendations.
The IRT coordinated activities related to the
pandemic on a local, global and enterprise-wide
level. The team met weekly to discuss evolving
research from expert sources, external benchmarking
exercises and changing governmental guidance from
a global perspective. Based on these discussions,
the IRT advised the HMC of necessary adjustments
to Company protocols and programs. After each
meeting, the IRT sent an overview to local site leaders
to alert them of relevant changes and updates to the
response program. These practices continued into
2021.
Following the guidance of the IRT and with the
support of the HMC, the Human Resources (HR) team
developed several protection measures for employees
who contracted COVID-19 to provide pay, benefits
and job security worldwide. These actions went above
and beyond the requirements implemented by local
country governments. An immediate contingency
plan was established to provide financial security for
30 days in the event of impact to jobs; fortunately, no
such action was necessary.
The Company’s strengthened commitment to
sustainability also came into play. Huber’s rigorous
safety standards helped keep employees safe during
the pandemic, and the Huber Helps community
engagement program made special donations to
charities near Huber offices and plant sites to help
mitigate the social and economic impacts of the
pandemic.
As we designed new protocols and communication
strategies, we sought feedback from employees
at multiple manufacturing and administrative
locations to identify strengths and opportunities
for improvement. Through this process, we learned
what was important to our employees in times of
crisis: consistent communication from leadership,
feeling safe through robust protection protocols,
access to mental health resources, respecting and
accommodating employee needs associated with
child and elder care, being properly equipped to
carry out responsibilities and Huber’s demonstrated
commitment to its Principles.
Responding to COVID-19GLOBAL COLLABORATION TO ENSURE SAFETY & BUSINESS CONTINUITY
As COVID-19 began to spread, the Enterprise IT Conferencing & Collaboration Team, comprised of members from Corporate, CP
Kelco, HEM and HEW, began implementing upgrades worldwide to accommodate an increased portion of Huber’s workforce performing
their duties remotely.
14 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
EMPLOYEE HEALTH, SAFETY AND WELLBEING
Huber’s foremost responsibility in its Sustainability
Strategy is to its people, which includes providing a
safe work environment and continually looking for
ways to reduce potential incidents through improved
processes and behaviors.
We have evolved from a focus on lagging metrics
such as total injury rate to a more transformative,
predictive, risk-based and behavior-based approach
to reduce and eliminate the potential for high-energy
safety exposures; these are situations that have
the potential to cause serious injuries or fatalities,
regardless of the actual outcome.
Huber’s pandemic safety protocols helped avoid any
significant spread of COVID-19 at its locations in 2020.
Remarkably, Huber’s occupational safety performance
was the best on record. We did have one high-energy
injury in the final days of last year; fortunately the
injury was not life-threatening. Eliminating workplace
hazards and exposures that can lead to injuries
remains the primary goal of safety efforts across the
Company.
Huber also had one Process Safety Management
incident in March. Due to our multi-layered
protection approach, there were no injuries and no
environmental impact or property damage as a result.
Technical training sessions for our EHS&S personnel
and plant managers, originally planned for
Copenhagen, Denmark, and San Diego, California,
were converted to a virtual format. About 100
employees from leadership, Operations and EHS&S
participated. These sessions began in May and
continued through the rest of the year. Topics
included lockout/tagout, mobile equipment and
pedestrian safety, the impacts of CapEx projects
on our environmental objectives, predictive metrics
(using leading indicators to improve performance) and
systems overviews.
Environmental, Health & Safety (EH&S) Sustainability
WORLD-CLASS SAFETY AND ENVIRONMENTAL PERFORMANCE
“Our drive to improve today for a better tomorrow goes beyond our products. Huber’s approach to sustainability
encompasses the health, safety and wellbeing of our employees, support for philanthropic causes and
responsible stewardship of the environment, all while adding value for our stakeholders. This balanced
approach gives Huber the opportunity to make every aspect of our business—from our people to our products, customers, partners and communities—more sustainable,
ready today for the challenges of tomorrow.”Don Young
Executive Vice President EHS&S
15 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
There were six reportable releases in 2020 across the three portfolio businesses, and there were two permit exceedances, none of which resulted in environmental impacts or fines.
Huber’s internal Zero Waste-to-Landfill criteria requires diverting at least 90% of a manufacturing facility’s waste from landfills. We continue to focus on new ways to eliminate or repurpose our waste streams.
ENERGY
3.7%
WATER
11.8%
CO2 EMISSIONS
10.7%
In total, about 30% of Huber’s 2020 energy usage was derived from renewable sources. Huber’s renewable energy sources include solar, hydro (water), geothermal and wood waste from our OSB mills.
NOVs(Notice of Violations)
0in 2020
manufacturing facilities
ZERO WASTE-TO-L ANDFILL
11 of 21
*We’ve excluded results from the HEM Fire Retardant Additives strategic business unit because the pandemic’s adverse impact on the demand from the automotive industry and other customers resulted in substantially reduced production at some of our larger manufacturing sites, which in turn led to reductions in operational efficiency and higher energy and water use intensity. This performance is expected to recover as the markets we serve rebound and significant new projects come online in 2021.
RENEWABLEENERGY
30%
PERFORMANCE ON PLANET OBJECTIVES
In spite of COVID-19 impacts, Huber maintained its commitment to reducing the Company’s environmental
footprint through operational excellence. The baseline for Huber’s Sustainability Strategy is the company’s 2017
energy and water intensity and CO2 emissions intensity, with the goal of reducing each by 10% by 2022.
With respect to our environmental footprint performance, our sustained (rolling 12-month) usage intensity
relative to our 2017 baseline for three key areas was*:
16 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
HEW mailed care packages to our field sales force with forehead thermometers, hand sanitizer and disposable face masks.
Refers to health and safety in the workplace with a focus on primary risk prevention. It also includes the mental and physical condition of employees with respect to their health, happiness, comfort and morale. Includes occupational health and safety, work-life balance, workplace hazards and risks, etc.
Employee health,
safety and wellbeing
TRACKING AND IMPROVING
Standardizing our approach to maintaining
compliance, managing risk and adapting to change
helps drive consistent results at Huber locations
around the world. Our approach is based on a “plan-
do-check-act” cycle of continuous improvement.
Huber first developed its Global Environmental,
Health & Safety Management System in 2005 and
in 2018 completed a major
upgrade on what is now
the Huber Sustainability
Management System
(HSMS).
As part of this system,
Huber locations conduct
site-level assessments to
identify process safety and
EHS&S risks associated
with products, materials,
chemicals, equipment,
occupational safety
exposures, environmental
aspects, operational and
business processes and more. The process is ongoing,
with updates made based on site performance,
changes and corporate lessons learned.
Additionally, all Huber sites are audited on a recurring,
risk-based schedule and action plans are created
to address audit findings to ensure continuous
improvement. The pandemic didn’t slow down our
commitment—we quickly pivoted to virtual site audits
and were able to successfully complete virtual audits
at Grossenbrode, Germany, and Lille Skensved,
Denmark, with the same level of rigor.
The HSMS is based on and designed to be consistent
with relevant international standards, such as
ISO14001 and Responsible Care 14001; these global
environmental management guidelines are designed
to help organizations improve their resiliency with
respect to compliance, risk and change management.
In addition to their HSMS conformance, three
Huber sites—CP Kelco plants in Lille Skensved and
Grossenbrode, and the Huber Engineered Materials
Martinswerk facility in
Bergheim, Germany—have
pursued and achieved
ISO14001 Certifications.
Our employees are
empowered to improve
performance, whether
suggesting a change
based on their day-to-
day work, continuous
improvement initiatives
at the sites, through
organized Energy Treasure
Hunts focused on energy
intensity improvement, or
by using Huber’s EHS&S Data Management platform
(Enablon®) to record, track and analyze performance
and share best practices.
To identify and prioritize site risks, Huber developed
an internal risk matrix as a core component of the
HSMS. The risk matrix serves as a key component of
the system to drive decisions and allocate resources.
The HSMS and the risk matrix represent the natural
evolution of Huber’s risk management program and
offer us a clearer blueprint for the journey toward
world-class performance.
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FINDING, RETAINING AND NURTURING TALENT
An exceptional retention rate and successfully recruiting
hundreds of new employees are just two among many strong
indicators that Huber is providing a nurturing culture where
people want to join the Company and remain part of our
organization. This remained true even during the COVID-19
pandemic.
Huber’s Human Resources and management teams adjusted
to the realities of pandemic life by adapting processes
to ensure a smooth experience for all new employees—
approximately 50% of whom were onboarded virtually in
2020. Collaboration between HR teams within different parts
of the organization helped identify similarities and differences
in recruiting practices, providing opportunities to further
harmonize such procedures to better support our Diversity,
Equity & Inclusion (DE&I) initiative, I Belong at Huber.
PERFORMANCE AND CAREER DEVELOPMENT
Our Talent Management Strategy includes mentoring, training
and other talent programs. Employees receive regular
performance and career development reviews through PATH,
our Performance at Huber program based on the Global
People Solutions (GPS) human capital management system.
Employees’ performance and career interests are reviewed
through a mid-year Checkpoint and then end-of-year Annual
Performance Reviews. In this two-way process, employees
share their self-assessment and managers provide feedback.
Our approach helps us understand the strengths of our talent
Respect for PeopleGREAT PLACE TO WORK FOR HONESTY, RESPECT,
TEAMWORK AND RECOGNITION
“The Principle of Respect for People stems from recognizing and appreciating the differences in each
other’s roles and responsibilities at Huber to fully demonstrate a
collaborative mindset and working toward the collective performance of
the Company.
Respect for People encourages us to sustain a great culture, care for the needs of our employees and provide meaningful work and development
opportunities. This Principle ensures we adhere to the highest standards
for human rights and fair labor practices, aggressively recruit and develop the best talent possible and offer world-class benefits.”
Lily Prost Executive Vice President &
Chief HR Officer
TENURE/
TURNOVER
METRICS
4,094 38.7%11.2Total number of
Huber employees
(workforce on December 31,
2020)
Percentage of employees who have been with Huber for less than 5 years
Average years of service
3.6%Voluntary annual
employee turnover rate at Huber, excluding
retirement
(based on the 2019 Mercer Workforce Turnover Survey, average global
voluntary turnover is 10.1%)
350New employees
hired in 2020
18 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
pool and identify gaps, as well as create development
and succession plans to prepare people to take on
roles at all levels of the Company.
LEARNING AND DEVELOPMENT
Annual opportunities exist for compliance
reaffirmations and as needed for skills development.
In addition, employees have access to tuition
reimbursement for education outside the Company.
Many employees have development plans within
PATH that articulate their commitment to skills training
and prepare them for potential promotions.
The Company’s emphasis on learning and
development was also undeterred by the pandemic. A
cross-functional team worked to design an enterprise-
wide training platform through GPS. Preparations
last year enabled the 2021 rollout of a user-friendly
online platform for employees to access required and
supplemental career and skills-related training, and a
consistent approach for administration and updates.
Huber’s initial proof-of-concept phase included
training in DE&I topics like unconscious bias and
inclusive leadership, as well as risk management,
compliance and Environment, Health, Safety &
Sustainability. We plan to expand this tool across
multiple functions.
Here are examples of development opportunities
designed to address the needs of specific types of
employees:
• CP Kelco welcomed another group of engineers
who completed its two-year Global Graduate
rotational program, which gives recent graduates
opportunities to acquire a wide range of hands-
on, practical experience as well as project
management skills—all while working with teams
in a variety of disciplines.
• The portfolio businesses sponsored initiatives to
cultivate future leaders, such as the Leadership
Accelerator Program that HEM developed in
partnership with the University of Georgia’s
Executive MBA faculty and the ongoing leadership
training that HEW offers through the University of
North Carolina at Chapel Hill.
• The EHS&S function had to pivot from the in-
person training of plant managers and EHS&S
professionals to 10 virtual sessions, including
technical and leadership skill development, due to
the COVID-19 pandemic.
HUMAN RIGHTS AND LABOR PRACTICES
Supporting the protection of internationally recognized human rights goes
beyond our policies and a commitment to fair employment practices. It is
about sustaining a culture where employees treat one another with respect
and dignity. Our policies and practices cover such topics as:
We respect the right of our employees to form or join a union. We have Union representation at facilities in the United States and Brazil and have several facilities in Europe that are represented by works councils.
We do not employ children or anyone who has not yet reached legal age, even on a temporary basis or through a third party. Third-party confirmation of this occurred through social responsibility auditing actions in our operations in 2020. Likewise, we only engage with suppliers who share our values on child labor, and the organization is in the process of strengthening our mechanisms to evaluate labor risks within our supply chain.
Emphasizing the benefits of a respectful work environment and recognizing the corrosive effect discrimination and harassment can have on the workplace. Huber provides ongoing training on harassment in the workplace. Prevention is the best tool to eliminate harassment in the workplace, and employees are encouraged to take appropriate action to do so. We strive to create an environment in which employees feel empowered to raise concerns and are confident that the matters will be addressed. The Company had four allegations of Discrimination or Harassment that were investigated and found to be unsubstantiated.
Human rights
and labor
practices
Refers to the fundamental rights and freedoms inherent to all human beings that ensure they are able to live with dignity, freedom, equality, justice and peace, and the measures necessary to uphold these rights. Also refers to the legal rights and fundamental standards that regulate labor relations between the company and employees, including stipulations of employment, working conditions, the right to collective bargaining, etc.
UNIONIZATION
HARASSMENT
CHILD LABOR
EMPLOYEE FEEDBACK
Employees provided organizational and portfolio business feedback
through the Employee Engagement Survey, conducted by an external
provider in 2019. Leaders developed action plans in 2020 to address
areas for improvement, which are reviewed at the portfolio business
president level. Town halls, pulse surveys and focus groups are
other forms of continuing the engagement and feedback process to
provide the company insights into how employees perceive their work
environment.
Refers to the practices, initiatives and processes aimed at recruiting, engaging, managing, developing and retaining the right employees and talent to build a skilled workforce and boost business growth. This includes training and development, employee benefits, corporate culture, etc.
Finding,
retaining and
nurturing talent
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20 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
TAKING CARE OF OUR EMPLOYEES
Huber endeavors to provide a total rewards
program that not only takes care of the needs
of employees, but also reflects the Company’s
family friendly philosophy while being
competitive within the marketplace. Huber’s
Global Benefits Philosophy Statement outlines
our goals in this area:
• Deliver benefit programs that reflect the Huber Principles and our company culture of rewarding employees.
• Strive to provide a total rewards package which is at or above market in countries where we do business and have a sizable presence.
• Invest in employee wellbeing by delivering core and differentiated benefits programs that achieve sustained value for the organization.
• Offer highly competitive benefits programs as another way to recognize that retaining and respecting our employees is key to the Company’s long-term success.
90%HEALTHCARE
of eligible US employees are enrolled in Huber’s medical
and prescription drug insurance.
To ensure we remain competitive in attracting and retaining talent with offerings aligned with the market,
Huber regularly benchmarks its benefits against other similarly sized manufacturing companies. Here are a few
program highlights:
97%RETIREMENT
of eligible US employees (both active and inactive) participate in Huber’s best-in-class 401(k)
retirement savings plan
Huber’s best-in-class 401(k) retirement savings plan in 2019 was raised from a 100% to a 125% match on the first 5% invested by employees. With participants investing an average of 8% of their pay, the overall plan average for income replacement upon retirement is 59%, which is slightly more than double the benchmark of Voya Financial, the 401(k) service provider.
We offer inclusive benefits, providing coverage to same- and different-sex spousal medical and soft benefits, such as equal health benefits for transgender individuals for medically necessary care without exclusion, as well as fertility benefits regardless of gender.
We added coverage for hearing aids, pet insurance, as well as identity theft protection and legal services. Huber has also
expanded its telemedicine services to not only include general medical conditions, but also dermatology treatments and access
to therapists and psychiatrists. These services are available seven days a week via phone call, video, web or mobile app.
ENRICHED BENEFITSAdditional voluntary coverages are available for critical illness,
accident, hospital indemnity and expanded paid parental leave.
MENTAL HEALTH AND WELL-BEING
The benefits team identified a Global Employee Assistance Program provider and plans to extend mental health and wellness
services beyond the US to all employees and their families.
21 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
CAPITAL DEPLOYMENT
A key measure of our performance is
the degree to which we incorporate
Triple Bottom Line thinking in funding
major capital expenditure (CapEx)
projects. Proposed and approved
capital investments—and their
associated sustainability outcomes—
are integrated into the Huber five-year
Plans of Record that guide strategic
business decisions.
Huber’s newly updated capital
project investment review process
includes formal expectations to
quantify sustainability outcomes. All
capital investment proposals of more
than $300,000 USD must include
a sustainability analysis to capture
People, Planet & Profit considerations.
Even during the pandemic, Huber
maintained this focus on investing
in our resiliency. For the year, 78%
of capital investments above the
$300,000 threshold went toward
projects that had significant TBL
attributes.
For instance, Huber Engineered
Materials announced the construction
of a new power plant at the Fire
Retardant Additives (FRA) Martinswerk
facility in Bergheim, Germany. The
plan is to replace the current lignite
power plant with a leased natural
gas fired co-generation power
plant to produce 100% of the
required steam (thermal energy)
and electricity demand for the
production site.
Also at HEM, the first facility-sized
solar array in Huber is now nearing
completion at the FRA site in
Marblehead, Illinois. The project
will provide approximately 65% of
the facility’s daily power needs,
moving the organization forward
in our plan to provide direct
alternative power resourcing to
Huber facilities around the world.
Within CP Kelco, three projects are
underway to improve operational
flexibility and efficiency at the site
in Okmulgee, Oklahoma. These
efforts included a new recovery
line and distillation column, the
installation of a new packaging
line and a new system designed to
scrub the exhaust from the dryers.
The total cost of these projects is
ExcellenceCOMPETITIVE ADVANTAGE THROUGH CUSTOMER INTIMACY
AND OPERATIONAL EXCELLENCE
“The Principle of Excellence helps guide Huber’s approach to
sustainability, influencing everything from targeted
deployment of capital to customer-centric innovation. Whether it’s investing in our future to build our
competitive advantages or delivering safe, quality products that meet the needs of our customers, this Principle helps the Company chart its way
forward in an increasingly uncertain world.”
Vivek Dhir Executive Vice President Corporate Strategy
& Business Development
22 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
$75 million, one of the largest capital investments in
CP Kelco’s history.
OPERATIONAL EXCELLENCE
Operational excellence was a key contributor to
Huber’s overall outstanding profitability in 2020 and
is a cornerstone to sustainability by enabling us to
do more with less. In many areas, Huber’s operating
plants set new production records and delivered
strong productivity results.
Huber Engineered Materials’ multi-year continuous
improvement efforts in its Ground Calcium
Carbonate (GCC) strategic business unit (SBU) drove
productivity enhancements, enabling increased
volume and earnings growth across the whole
system.
Although the pandemic presented operational
challenges, Huber Engineered Woods achieved
the highest annual production and Operational
Equipment Effectiveness (OEE) in its history, with
three of its five mills setting production records.
SALES AND MARKETING
Huber’s sales and marketing teams quickly pivoted
to digital platforms in order to service customers in
a time of social distancing and travel restrictions.
HEW’s salesforce had to learn to conduct business
virtually and sustain relationships without the benefit
of in-person meetings. The marketing team had to
transition live events to online platforms. HEW also
launched a new website with interactive calls-to-
action, enabling better tracking of how customers are
navigating the site.
As tradeshows and other in-person events faced
cancellation, CP Kelco adapted its marketing
approach to reach customers, distributors and other
prospects in the industry digitally. The CP Kelco
Virtual Experience, introduced in September, allows
users to enter a virtual lobby and test kitchen that
highlight the company’s insights, ingredient offerings
and innovative prototype formulations.
Miller Chemical & Fertilizer, part of the Specialty
Agriculture Solutions (SAS) SBU of Huber Engineered
Materials, faced a similar situation, with its remote
sales team unable to travel. To help compensate, the
business launched social media channels with the
goal of engaging with customers and making its well-
regarded brands more visible.
HEM’s Lead Mill Operator takes bags of samples to the quality lab in
Marble Hill, Georgia.
23 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
COMPETITIVE ADVANTAGE
Over the course of the year, HEW launched several
new size and packaging options for its accessory
products, including AdvanTech™ Subfloor Adhesive
and ZIP System™ Stretch Tape. The development of
accessories is helping HEW move toward a “system
sell” approach. To make it easier and safer for forklifts
to move pallets of these accessories, the HEW team
developed a smaller pallet, leading to a smaller
footprint in warehouse storage and a reduction in
material waste, earning the initiative the Company’s
2019 Bronze Mike Huber Award.
The pandemic accelerated several consumer trends
that will benefit CP Kelco in the long run, including
a growing preference for plant-based products and
cleaner (i.e. simpler, more recognizable) ingredient
labels, as well as a desire to obtain nutrition from
food instead of supplements. To better capitalize on
these trends, the business has focused resources on
five high-impact, high-growth programs: Ambient
Drinking Yogurt, Fermentation Derived Cellulose,
Citrus Fiber, Prebiotics and Alternative Proteins.
CP Kelco began the fourth year of production for
its patent-protected citrus peel drying process at
the peel facility in Matão, Brazil, with improvements
in product quality and cost reduction during the
2020 peel season. Using a proprietary technology to
process citrus peel, this plant supplies raw materials
for CP Kelco’s pectin manufacturing facilities in
Europe. The Matão site also includes a batch plant
for CP Kelco’s new NUTRAVA™ Citrus Fiber, a new
product line that provides structure and stability
in food applications, and is a clean label-friendly
alternative to traditional starches and gums.
Part of HEM’s role within the Huber portfolio is to
build a diverse collection of small to medium-sized
specialty chemical and mineral businesses that have
clear competitive advantages and future growth
opportunities. Under HEM’s ownership since April
2019, the Miller business, through focused investment
in brand building and commercial excellence,
achieved strong growth primarily in international
markets and for biostimulants, which are generally
a more environmentally conscious alternative. Miller
is continuing to position the organization through
innovation and commercial activities to benefit from
stricter environmental regulations and increased
consumer awareness about food quality and
sustainable agriculture.
Over the course of 2020, HEW launched several new size and packaging options for its accessories, including this suite of options for ZIP System™ products.
Product safety
and quality
Refers to the initiatives, procedures and staff training to ensure product quality and the safety of customers and end consumers, including considerations regarding product ingredients and their potential near- and longer-term effects on customer health. This includes quality procedures, customer health and safety, product certifications, as well as product and service information transparency.
24 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
PRODUCT SAFETY AND QUALITY
As a global operation with manufacturing facilities
and a customer base that spans the globe, CP Kelco
has a global Quality Management System (QMS)
that is compliant with the internationally recognized
standard for quality management, ISO 9001, as well as
the Global Food Safety Initiative (GFSI) acknowledged
Food Safety System Certification (FSSC) 22000.
The business’s Quality and Food Safety Policy is
communicated via global training, made visible
throughout the organization, and adopted and
implemented by each of CP Kelco’s manufacturing
sites. CP Kelco marked World Quality Day in
November with a week-long series of celebrations
primarily focused on training and communication
around Quality.
In recognition of its positive reputation in the
marketplace, HEW’s AdvanTech® oriented strand
board has won Builder magazine’s annual quality
award every year since 2002. Additionally, Do it Best
Corp. named HEW a 2020 Vendor of the Year in the
Structural Panel division. Similarly, HEW’s ZIP System®
exterior wall sheathing received Builder magazine’s
annual quality award for the fifth time.
The FRA strategic business unit of HEM produces
halogen-free flame retardants, which are used in a
number of applications, including safer thermosets,
lower rolling resistance in tires—resulting in improved
fuel economy, as well as better battery stability and
safety for electric vehicles.
CHEMICALS AND SUBSTANCES OF CONCERN
As part of the Huber Sustainability Management
System, procedures from the American Institute of
Chemical Engineers Center for Chemical Process
Safety Guidelines have been incorporated for
sites with process safety risks. We address our raw
materials and other chemical use within our risk
management practice and are compliant with all
international regulations for product registration
and product safety (e.g. Registration, Evaluation,
Authorization and Restriction of Chemicals, known as
REACH, in the European Union).
Employees in Matão, Brazil, participate in Quality Week 2020, CP Kelco’s expansion of World Quality Day.
Chemicals and
substances
of concern
Refers to substances and materials used in the company’s operations or present in its products that pose a threat to human health or the environment. This includes hazardous materials, chemicals safety, controversial ingredients, etc.
25 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
ETHICS, ANTI-CORRUPTION AND COMPLIANCE
Huber’s Code of Conduct outlines the expectations
we have of our employees in their day-to-day work.
Huber began reimagining our long-standing Principles
in Action guide using the Code of Conduct as an
organizing framework. Originally launched in 1999,
this guide articulates the standards for employee
behavior and helps Huber people identify risk areas
they may come across in their jobs.
Huber’s monitoring
processes are overseen by
the Ethics & Compliance
Council and Principles &
Policy Committee, with
support from Human
Resources and Legal.
We take employee
ethics concerns seriously
and employ a strict
whistleblower procedure.
Once reported, Huber
follows a diligent process
to promptly review and
investigate any issues. As
part of our effort to make
information more accessible
and engaging, Huber’s
Ethics & Compliance
Council created a “Share
your Concerns” guide to
provide clear direction for
how to surface any potential
matter that may arise.
The majority of matters are raised and addressed
through HR and management channels during the
normal course of business. Huber’s Ethics Line is
another way to report issues and is available 24 hours
a day online or by phone. There were 13 Ethics Line
reports during 2020, with none being substantiated
after thorough investigation.
Ethical BehaviorA COMPANY IDENTITY THAT WE ARE ALL PROUD OF
“Ethical Behavior is a cornerstone Principle for J.M. Huber
Corporation. Our culture is open and supportive, where
employees are encouraged to seek guidance on ethical dilemmas, communicate concerns and to
feel comfortable reporting when they believe there has been a violation of a law, company
policy, our Code of Conduct or a Huber Principle.”
“Each member of the
Huber team is responsible for demonstrating integrity, honesty and professionalism, and promoting a positive and productive work environment
where everyone feels safe, respected and empowered.”
Carol Messer Executive Vice President &
General Counsel
John Taylor Chief Ethics & Compliance Officer
The mascot for the Principles in Action program has a name with Old Greek and Latin origins, Pia’s meaning focuses on being virtuous and honorable. In many cultures around the world, owls symbolize wisdom, good judgment and knowledge. Taken together, our mascot stands for:
Principles
In
Action
Open, honest communication
Wisdom and guidance
Living by the Huber Principles
COMPLIANCE TRAINING
Huber employees received Compliance training as part of our established three-
year rotation schedule. New administrative employees receive this training within
90 days of joining the Company.
These numbers reflect the Company’s goals to provide on-time performance and
training. Operational employees are provided with a variety of training suited for
their roles in a plant environment.
European Union (EU) General Data
Protection Regulation (GDPR)
Global Anti-bribery
Global Business Ethics
Global Antitrust
Global Conflicts of Interest
Harassment Prevention
1,974 1,834 1,502Huber trained:
employees employees employees2018 2019 2020
TOPICS
INCLUDE:
Ethics and
anti-corruption
Refers to upholding the guidelines or codes that dictate fair, ethical and moral conduct. This includes business ethics, fraud, bribery, etc.
26 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
One of the tools we use to measure how
well we are adhering to our values is the
Ethics Questionnaire, delivered annually. The
questionnaire covers the year’s activities and
provides another opportunity for employees to
raise any issues regarding compliance. The 2020
results were free of any material concerns and
consistent with a robust ethics program.
We also made progress in deploying our
Corporate Security Program, including
enhancements to remote systems management,
global duty of care, site security and executive
protection elements.
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FINANCIAL STRATEGY AND RISK MANAGEMENT
Although family-owned, Huber endeavors to operate
with transparency, as if it were a public company,
including having a robust governance structure with
professional management and independent boards,
and publishing an annual report and proxy statement
for shareholders.
Huber employs holistic financial reporting, and each
portfolio business is regularly audited. The Company
maintains several robust processes to plan for and
protect its financial stability, including budget
forecasting, a formal risk appetite statement, a
process for protecting its intellectual property “crown
jewels,” and pipelines for Mergers & Acquisitions,
productivity and commercial activity.
Huber engages in detailed peer benchmarking by
portfolio business as well as the whole corporation.
In addition to financial ratings from Moody’s and S&P,
these agencies have acknowledged our commitment
to Environmental, Social & Governance. Huber also
carefully evaluates risk when it comes to new product
development and M&A activity—the Company has at
times abandoned an acquisition opportunity because
the business in question was deemed too risky from a
safety or compliance perspective, or its culture did not
align with the Huber Principles.
Huber designed its Incident Response Program to
prioritize employee safety and business continuity.
Huber’s Incident Response Team (IRT) framework and
Emergency Response platforms also enabled us to
quickly create a sophisticated and robust COVID-19-
specific response governance structure. More broadly,
we have conducted critical shareholder and Board
meetings virtually to sustain our fiduciary obligations
and to ensure regular communications.
Building on this experience, we expanded the
Incident Response program for Huber to deepen our
evaluation of physical and transitional climate risk,
with further program enhancement planned for 2021.
MARKET ACCESS, TRADE COMPLIANCE AND DISTRIBUTION
Huber is a global business, selling products into more
than 110 countries. The Trade Development program,
originally designed for CP Kelco and HEM, expanded
to support HEW’s emerging global supply chain.
Throughout 2020, Huber completed Compliance
Strategy assessments for Trade Development
and Anti-Bribery. Further development of Trade
Development/Compliance, as well as Data Privacy
with a Europe, Middle East & Africa (EMEA) support
focus is underway.
DATA PRIVACY AND CYBERSECURITY
Huber developed a Cyber Awareness policy in
response to a rise in threats against information
technologies. When new threats emerge, we
make efforts to enhance our training programs.
Development began for an enhanced Huber
Huber shares its key financial performance metrics with employees, explaining the drivers for our success as well as the challenges we
must face and overcome together.
Market access, trade
compliance and distribution Refers to upholding the guidelines or codes that dictate fair, ethical and moral conduct. This includes free trade, economic sanctions, logistics and distribution planning.
28 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Fraud Awareness program, with a focus on social
engineering, technology and banking exposure
management. Beginning in the second quarter of
2020 and recurring on a quarterly basis, Huber’s
IT Management Council uses phishing prevention
exercises to ensure that our global workforce
remains vigilant against these ongoing threats and is
empowered to make good security decisions.
All employees with computer systems receive annual
cyber awareness training and use authorization in
order to retain their access to the system. Office
employees received cybersecurity training, including
risks related to Business Email Compromise, Data
Leakage and Ransomware due to their heightened
exposure to cyber risk in an administrative
environment. For plant employees, the training covers
Physical Security, Social Engineering and Responsible
Use of the Internet.
The Company also launched several employee
communications to warn against social engineering
scams, such as pandemic-related phishing campaigns
from criminals posing as representatives from the
World Health Organization or US Centers for Disease
Control and Prevention.
GEOPOLITICAL AND SOCIETAL EVENTS
Risk management also involves preparing for and
monitoring external events that have the potential
to affect Huber’s employees, locations, operations,
customers or supply chain. Huber’s Incident Response
Program has a variety of threat monitoring and crisis
management elements in place, which includes having
established relationships with third parties in order to
draw on their expertise for guidance and support if
needed.
INTELLECTUAL PROPERTY
In an increasingly competitive business environment,
Huber must protect and expand its competitive
position for each major product line within the Huber
portfolio, with a particular focus on the specific
“crown jewels” that comprise
the heart of Huber’s sustainable
competitive advantage over the
long run. Investing in innovation
is not enough; we also take
steps to protect and leverage
our innovations and intellectual
property.
Huber’s Information Protection
Policy sets guidelines for
classifying and securing
proprietary information,
including confidential
information and trade secrets.
This includes the sharing of
information with business
partners and customers,
cybersecurity protocols and
physical security requirements
for Huber’s plants and offices.
Unauthorized disclosure or use
of proprietary information can
lead to serious or complete loss
of value.
Employees should also respect
the intellectual property rights
of others. Inappropriate use
of others’ intellectual property
and proprietary information
may expose Huber and the
employee to criminal civil fines
and penalties. Employees are
instructed to seek advice from
Huber’s Legal department
before soliciting, accepting or
using proprietary information
from individuals outside the
Company, or letting them
use or have access to Huber
proprietary information.
Geopolitical and
societal events
Refers to economic, political and societal pressures that may pose risks to the company if not handled appropriately by national or subnational governments or agencies. It also encompasses the relationship between the company and governments/officials and the practices adopted to influence public policy. This includes public policy practices, armed conflict, social movements, civil unrest, etc.
Refers to protecting company, supplier and customer information systems from security breaches and other technology failures. This includes cyber threats, privacy breaches, IT disruption, etc.
Data privacy and
cybersecurity
29 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Long before Diversity, Equity & Inclusion (DE&I)
became a priority for many companies, Respect for
People, one of the Huber Principles, inspired us to
create a culture that valued different ideas, opinions
and backgrounds. We came to call this way of working
“I Belong at Huber” in 2018. This initiative formalized
our commitment to maintaining an inclusive work
environment and raising awareness about unconscious
bias and its impact on the organization.
Further efforts took place in 2020 to continue evolving
and progressing Huber’s DE&I strategy to more
comprehensively reflect our priorities for the next few
years. Our vision is to foster an inclusive workplace
that respects differences and promotes equitable
access to opportunity, where every employee around
the world feels like they belong and are valued. The
Company believes that more diversity leads to more
creative and broader solutions, better meets the
needs of our global customers and drives a higher
performing organization to deliver increasing value
back to shareholders.
Diversity, Equity & Inclusion
RESPECT FOR PEOPLE
30 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
PRACTICES SUPPORTING A CULTURE OF ACCEPTANCE
The scope of activities achieved to date includes:
HUBER’S DE&I THREE PILLARS
The personal commitment of Huber
President & CEO Mike Marberry,
which includes being a signatory
to the world’s largest CEO-driven
business initiative, “The CEO
Action for Diversity & Inclusion.”
Amidst several racially based
tragedies that took place in the US,
Marberry publicly condemned the
injustice and violence.
The Huber Board reviews the
internal talent pool and executive
development program annually,
with a special emphasis on female
and minority talent. DE&I is also an
agenda item at the Annual Meeting
of Shareholders.
DE&I progress is a standard agenda
item for Huber Management
Council meetings. Each portfolio
business also has DE&I metrics
as part of their Key Performance
Indicators. The Huber Corporate
Board and portfolio business
Management Boards each have
a Director who serves as the
champion for DE&I in working with
Huber management.
TALENT
Huber recognizes our talented
workforce is the Company’s
biggest competitive advantage.
We want to enable the diversity
of our employees and harness
the power that comes from their
unique differences and collective
strengths. To do that, Huber must
invest in building a diverse pool of
talent as we hire new people as well
as developing the employees we
have.
CULTURE
We want to create an environment
where employees are encouraged
to bring forward innovative
solutions. To accomplish that, we
need to ensure that all people
are seen, all voices are heard,
and every employee assumes the
responsibility to be an ally and an
advocate to one another, especially
to those who need more support.
COMMUNITY
We want to lead the industry in
how we contribute to communities
and leave a lasting impact on our
customers, suppliers and society.
This is the legacy Huber will
provide for future generations.
31 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
To create cohorts of community and belonging, we
are working to expand the number of Employee
Resource Groups (ERGs), which are voluntary,
employee-led groups designed to connect employees
who share a purpose, interest or background and
provide a safe space that encourage employees to
present their authentic selves at work. ERGs create
a more inclusive workplace and promote cultural
competency through engaging events, collaborative
projects, and learning and developmental
opportunities. All employees are invited to participate
as active members or allies.
At Huber, ERGs are guided by their Huber
Management Council Sponsors. Embedding
executive leadership involvement within the ERG
framework ensures the groups’ goals are closely
aligned with Huber’s DE&I strategy. Participants
have opportunities for exposure to senior leadership,
networking cross-functionally and across the different
business at Huber, knowledge sharing with peers,
professional development activities and opportunities
to lead through influence.
Aspire Women’s ERG was founded as the Company’s first ERG in 2015 by Huber Engineered Woods employees in Charlotte, North Carolina, as a networking group that has also done philanthropic work over the years.
Young Professionals at Huber formed in 2019 to attract and engage Millennial-aged Corporate, Huber Engineered Materials and CP Kelco employees in Atlanta, Georgia.
Women’s Inspiration Network (WIN) launched in 2020 to serve as a safe and open environment for women to network, support in professional development, raise awareness on relevant issues and serve as a sounding board for women at our Atlanta and Edison offices. The WIN group held several virtual sessions related to career development topics, such as leveraging Emotional Intelligence for Career Success and included over 70 participants.
Black Employees Supporting Talent (BEST) launched in early 2021 to provide a safe and open space for Black employees to network, collaborate on community development focused projects, and provide additional professional development resources and opportunities.
FOUR ERGS ARE CURRENTLY ACTIVE AT HUBER:
32 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Additional ERGs will be launched
by the end of 2021. Huber is also
planning to place more focus
on Equity. Incorporating Equity
demonstrates our commitment
to the fair treatment, access,
opportunity and advancement
of all people, while striving to
identify and eliminate barriers
that have prevented the full
participation of some groups.
This comprehensive approach
reflects our priority to foster
a work environment that truly
represents I Belong at Huber.
A DE&I Steering Committee
comprised of members from
the Huber Management Council
is working to develop the next
phase of the I Belong at Huber
journey. This group has been
asked by the Corporate Board
and the Huber family to be
bold and aspirational, to ensure
Huber’s DE&I commitment is a
legacy we can all be proud of.
©2021 J.M. Huber Corporation. All Rights Reserved.
Diversity, Equity & InclusionEXPLAINED
©2021 J.M. Huber Corporation. All Rights Reserved.
DIVERSITYThere are many unique types of trees found all over the world.
EQUITYHowever, trees need different settings to grow. Some trees need special
nutrients, some require a particular type of soil, and some need more sun than others. Similarly with our employees, we need to provide different employees with
the right support to be successful.
Our strength lies in fostering an environment where every tree can thrive and grow and feel like it belongs in our forest. This requires a long-term
commitment.
INCLUSION
This poster is among the tools Huber uses to explain Diversity, Equity &
Inclusion to employees.
Refers to the processes, practices and mechanisms in place to support the active integration and fair treatment of all employees, with a focus on gender, age, cultural background, skills, race, religion and sexual orientation. It considers equal opportunity provisions aimed at promoting the professional development of all employees and supporting a culture of acceptance. This includes nondiscrimination, equal opportunities, pay equity, etc.
Diversity, equity
and inclusion
33 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
At Huber, employees in every function seek to
innovate. We do not limit our efforts to technologies
and solutions from a product portfolio perspective.
We ask ourselves questions like: What’s the best
way for us to find and nurture talent? How can we
maintain and improve a safe workspace? Who has the
expertise to enable us to respond quickly, effectively
and empathetically to a crisis, such as the COVID-19
pandemic? What intellectual property rights will best
protect our innovations?
Innovation is a fundamental focus at Huber. Coupled
with customer centricity, innovation drives our
competitive advantages and enables us to stay
ahead of market shifts. The Board of each portfolio
business has designated an Innovation Lead Director
to work with the management team more closely
on innovation pipeline projects and new product
commercialization issues.
In many cases, Huber protects an innovation as a
trade secret, with an Information Protection Policy
that guides employees on proper procedure. When
appropriate, Huber protects innovation by filing
patents based on many factors that are discussed
during the patent evaluation process with experts
from Huber’s technology, marketing and legal
functions. This process continues during the 20-year
life of a patent to ensure that Huber is effectively
deploying its capital.
At the end of 2020, Huber had approximately 900
global patent assets, either pending or granted. The
Company actively manages its patent portfolio with
the number changing daily as records are created,
expired or closed.
Innovation
CP Kelco team members run tests during application product development for NUTRAVA™ Citrus Fiber.
Innovation is a fundamental focus at Huber.
EXCELLENCE
PRODUCT COMMERCIALIZATION
WITH SOCIETAL BENEFITS
34 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
HEW has been and is actively asserting its highly valuable patents related to ZIP System® building materials to maintain its competitive position.
EXACOR™ magnesium oxide (MgO) panels HEW acquired assets from Extreme Green Building Products, LLC (Extreme Green) in March 2020, obtaining technology related to magnesium oxide sheathing products. The acquisition, the first of its kind in HEW’s history, broadened its product offerings to meet growing customer demand for fire-resistant panels. HEW rebranded the product as EXACOR™ MgO panels, integrated the technology and trained sales staff in time for an official launch at the 2021 International Builders’ Show.
AdvanTech X-Factor™ subflooring HEW developed AdvanTech X-Factor™ panels, which feature a built-in protective top layer for its subflooring that enhances moisture protection and jobsite durability, with a full commercial launch in early 2021.
CP Kelco introduced NUTRAVA™ Citrus Fiber, which is protected by multiple patent families from raw material to final product compositions and production processes.
HEM’s Fire Retardant Additives SBU continues
advancing the development of new products such as next generation MARTINAL® LEO
fine precipitated hydrates, SAFIRE® 400 flame retardant
and KEMGARD® S smoke suppressant additives, thereby
strengthening its core offerings and enabling our customers
to use FRA’s products in new applications. In addition
to advancing its existing patent portfolio, HEM plans to file patents on improving
performance properties and production methods. Sales of new products accounted for 13.5%
of Huber’s revenue—$290 million—an improvement from 10.8% in 2019. This reflects the Company’s increased emphasis on delivering innovative solutions to our customers’ needs.
INNOVATION13.5%
1,500 active marksHuber also actively captures and
manages the goodwill from its businesses and their innovations by monitoring
and protecting its approximately 1,500 active marks around the world. Examples
of marks filed in 2020 for HEW’s new products include:
35 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
ENGAGING STAKEHOLDERS
Over the last year, Huber has increased its emphasis on
delivering innovative solutions to meet our customers’
needs. As part of developing its innovation strategy, HEM
partnered with external consultants to gather Voice of
Customer feedback on their sustainability expectations. This
information will be used in evaluating new product pipelines
for opportunities to accelerate the development of our
most promising ideas. Additionally, HEM’s FRA business
restructured its organization in 2020, which included a
newly created head of Innovation role to further drive a
cultural shift within the business.
CP Kelco redesigned its Growth Through Innovation
(GTI) program, which solicits ideas across the entire
business. Employees submitted over 70 ideas using the
new streamlined GTI process, including expanding the
fermentation derived cellulose and new citrus fiber product
lines, improving peel operations and developing ideas to
help combat the COVID-19 pandemic.
In addition, CP Kelco’s new facility in Atlanta, Georgia, joins Innovation Centers in San Diego, California,
Lille Skensved, Denmark, and Limeira, Brazil, each with its own area of expertise but working together as an
international team.
In 2020, CP Kelco and HEM embarked upon the implementation of a shared Innovation Management solution
using Accolade® software. The cross-business team’s project dashboards help prioritize innovation projects,
balancing sustainability risks and opportunities along with feasibility, meeting customer needs and profitability.
The software, currently in pilot stages, is set to launch in 2021.
Ed the Idea, CP Kelco’s innovation mascot.
Refers to the development and use of emerging technologies, products, solutions, and applications that transform business operations and the way people live. This includes business model innovation, product market penetration and adoption, intellectual property protection, etc.
HAVE AN IDEA YOU’D LIKE TO SHARE?
BE A CP KELCO
“IDEA ORIGINATOR.”
Innovation
EXCELLENCE
Many of our products have a positive impact on the
environment, society and the communities in which we operate.
Huber’s businesses create products used in a broad
range of applications, including personal care, food
and beverage, agricultural nutrients and adjuvants,
building materials, flame retardants and smoke
suppressants, as well as sustainable forestry services.
Many of our products have a positive impact on the
environment, society and the communities in which
we operate.
Huber Engineered Woods and its innovative line of
products helps the construction industry build for
comfort and protection against hurricanes, blizzards
and other hazardous weather events. ZIP System®
sheathing and tape provide strength, stiffness and
water resistance, meeting the Insurance Institute for
Business and Home Safety’s FORTIFIED Home™
standards. These guidelines help homeowners
strengthen their houses against severe weather.
The ZIP System™ panels also provide a continuous,
rigid air barrier that decreases air leakage for greater
energy efficiency. In addition, HEW’s Exacor™
magnesium oxide (MgO) panels are fire resistant.
The Fire Retardant Additives SBU of Huber
Engineered Materials produces halogen-free flame
retardants and smoke suppressants. HEM’s alumina
trihydrate (ATH), magnesium hydroxide (MDH) and
KEMGARD® products are used in wire and cable,
silicone rubber, foam insulation, commercial flooring,
PVC pipe, electric vehicle batteries and more. Our
solutions from FRA help deliver better battery
stability, performance, reliability and safety, as well
as enhanced flame retardancy and improved vehicle
lightweighting, which gives cars and trucks better fuel
efficiency and handling.
Product Commercialization with Societal Benefit
36 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
RESPECT FOR PEOPLE
EH&S SUSTAINABILITY
37 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Another of HEM’s SBUs, Ground Calcium Carbonates, produces a
variety of solutions, including food fortification and pharmaceutical
applications. Sharing a site and resources with the GCC facility in
Quincy, Illinois, our Health & Nutrition plant produces HuberCal®
granulated calcium carbonate from naturally occurring sources
such as limestone. It is used in the food, dietary supplement and
pharmaceutical industries.
Miller, part of HEM’s Specialty Agriculture Solutions business,
specializes in fertilizers and adjuvants that make the land more
productive by enabling crop protection materials to adhere better
to plants, reducing the need for reapplication and overfertilization.
This, in turn, lowers the release of active ingredients into the water
table. Miller’s nutritional products replace key depleting nutrients
in the soil while their soluble fertilizers maximize efficacy in water-
conscious drip irrigation systems.
CP Kelco’s nature-based hydrocolloids and fibers are used in
everything from food and beverages, to personal care and
oral care applications, household cleaners and detergents,
pharmaceuticals, paper, construction, paints and coatings. These
ingredients are seeing an increased adoption in alternative
proteins, which are sourced either from plants or fermentation
and provide an alternative to meat, dairy and other animal-based
proteins.
We continue to watch for emerging consumer trends as well as
societal needs when developing plans for our strategic growth,
whether by monitoring for new market opportunities or enabling
and enhancing technologies.
Refers to the development and commercialization of Huber’s product portfolio and growth of associated markets to the benefit of the environment, society and communities. This includes building resiliency and fire safety, alternative proteins and healthy diets, health care products, enabling new technologies such as the electric vehicle industry, etc.
Product
commercialization
with societal benefit
38 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
To create a more sustainable business—and
world—Huber strives to responsibly use resources
across the product lifecycle, from raw material
sourcing to a product’s end of life, with an emphasis
on the use of ethical and sustainable practices.
This starts with ensuring the integrity of our
supply chain. In 2020, Huber’s global Sustainable
Procurement Team made progress toward our 2022
objective to assess the sustainability of our Top Tier
suppliers, defined as suppliers with whom we exceed
a specific spend threshold or are considered critical/
high risk. Huber leverages multiple tools, including
the Supplier Ethical Data Exchange (Sedex) platform
to review Top Tier supplier risk assessments and
responsible sourcing audits. When Top Tier suppliers
are not Sedex members, or have no available data,
Huber has developed a supplementary Huber
Social Responsibility & Sustainability Questionnaire,
which is currently being piloted with a subset of our
suppliers. These data points are used to evaluate
our supply chain risks and opportunities and deepen
engagement with valued supply chain partners.
During the new product development process, Huber
integrates an assessment
of sustainability
characteristics, with the
objective of reducing the
impacts of the product in
all life cycle stages and
thereby adding value for
our customers through
more sustainable product
offerings. CP Kelco, for
example, leveraged life
cycle assessment (LCA)
tools to quantify the
environmental impact
of transitioning from
Circularity
Circularity
Refers to the usage of resources across the product lifecycle from raw material sourcing to production processes to product end-of-life as well as the ethical and sustainable practices across the value chain. This includes supply chain risks and risk management, product lifecycle assessments, recycled and recyclable materials, zero waste operations, sustainable forestry, etc.
EH&S SUSTAINABILITY
The HEW team applied “cradle-to-grave” life cycle assessment to its ZIP System® specialty products.
39 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
fiber drums to paper bags for its gellan products—
significantly reducing the packaging carbon footprint.
In 2020, CP Kelco launched LCAs on its Citrus Fiber,
Fermentation Derived Cellulose and Pectin products.
This activity isn’t new to the Company; in 2014,
HEW became the first Huber business to use LCA.
The HEW team applied “cradle-to-grave LCA” to its
AdvanTech®, ZIP System® and Tru-spec® specialty
products. Based on a wide range of data, the team
was able to make recommendations to further reduce
HEW’s environmental footprint. This HEW study was
refreshed in 2019 and new environmental product
declarations were published—supporting builders
as they endeavor to build LEED Certified structures.
(LEED, Leadership in Energy and Environmental
Design, is a certification program used worldwide that
provides a framework for healthy, highly efficient and
cost-saving “green” buildings.)
The HEW sites also use their main raw material—
wood—as a renewable source of energy to power
their plants. About two-thirds of the energy required
to run our manufacturing locations in HEW comes
from bark and other wood-derived fuels from
the processing of trees into our high-performing
engineered wood products.
Many sites made good progress on diverting waste
from landfills, establishing new recycling programs
and finding alternative uses for some of their
byproduct streams. CP Kelco’s plant in San Diego,
California, for example, developed an innovative
solution to redirect about 70% of its organic
byproducts from a landfill to a local plant nursery for
fertilizer—achieving an approximately 85% overall
landfill diversion rate by the end of the year. By
diverting at least 90% of manufacturing waste from
landfills, three additional Huber locations qualified as
Zero Waste-to-Landfill sites. This brings our total to 11
of 21 manufacturing facilities and represents all three
portfolio businesses.
Sustainable manufacturing requires lifecycle thinking.
At CP Kelco’s Brazilian facilities, we upcycle citrus peel
from the juicing industry to produce Pectin and Citrus
Fiber. Our Innovation Team designed our patented
peel washing process that drastically reduces the
need for fresh water compared to traditional peel
washing processes and results in higher pectin-yield.
Process water from our Pectin extraction process is
recycled as fertigation (fertilized irrigation) for local
eucalyptus tree groves, providing nutrients to support
the growth of biomass that fuels our operations. The
remaining byproducts from the spent citrus peel are
processed into animal feed. In 2020, we fed roughly
30,000 local farm animals with our Braspolpa® feed
products. The team also distills its byproduct into
Ferpec® organic fertilizer for use by nearby citrus
orchards.
Citrus peel and pulp are byproducts of the juice industry.
The team at CP Kelco upcycles
these “leftovers” to create our product—
pectin—as well as a other beneficial
byproducts. Here’s an overview of
how Limeira and Matão, Brazil,
produce pectin more sustainably.
40 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Huber’s Sustainability Strategy includes specific, quantifiable objectives to address
climate and water risks. We approach this by minimizing waste in all forms, whether that
is energy, water or byproduct streams. This reduces adverse impacts and promotes a
culture of adaptation and business resiliency.
The following three steps outline our resource efficiency hierarchy:
Climate and Water Strategy
Refers to physical risks (e.g., extreme weather patterns and changing global temperature) and transition risks (e.g., policy changes that influence energy and fuel sourcing) and opportunities presented by climate change and the transition to a low-carbon economy (e.g., electric vehicles), as well as adaptation and resilience measure adopted. This includes greenhouse gas (GHG) emissions, energy use, renewable energy as well as water-related topics such as water stress, sea-level rise, etc.
Climate and
Water Strategy
New product development teams start with sustainability in mind, beginning at
the onset of each new product’s ideation and continuing through its development
and ultimate launch. Innovating products that use less energy and water is an
important first step before we progress to manufacturing solutions.
Next, through Triple Bottom Line projects, we design new processes in a way that
engineers manufacturing efficiencies into our plants.
Finally, where existing processes must be maintained for some time, we commit to
continuous improvement to incrementally improve our efficiency.
1 |
2 |
3 |
EH&S SUSTAINABILITY
Making use of space available on the roof, HEW completed the installation of a solar array in Commerce, Georgia. The system has reliably met our design criteria, supplying 20% of the energy used at the Innovation Center since the panels became operational in July 2019.
41 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
One of our most important obligations to all our
stakeholders is the responsible and sustainable
reinvestment of our profit into business resiliency. As
a key objective of Huber’s 2018-2022 Sustainability
Strategy, we’ve committed to have more than 50% of
capital spending on projects that significantly impact
the Triple Bottom Line—People, Planet & Profit.
To ensure that climate- and water-related risks and
opportunities are prioritized during the design and
approval of all new capital expenditure (CapEx)
projects, the organization rewrote our investment
manual to include TBL impact analyses into the
development of all projects. In 2020, 78% of our
CapEx spend for major projects included significant
positive impacts to People, Planet & Profit.
This mindset embeds our TBL approach into how
Huber invests in and designs our manufacturing
processes to maximize the efficiency of all inputs
including energy, water and raw materials—all while
making our processes safer and more reliable for our
employees to operate.
The Company understands that climate change
impacts occur within and beyond our manufacturing
operations. Because of this, Huber seeks to minimize
climate- and water-related risks and impacts and
realize climate- and water-related opportunities by
partnering with suppliers and customers who share
our sustainability values.
As the current Sustainability Strategy continues until
2022, we’re already at work to develop the next
generation of climate and water strategic objectives.
With the materiality assessment of Huber’s ESG
priorities, we’re confident that our stakeholders, both
internal and external, will support our continuing
commitment to meaningful, impactful climate and
water actions that fulfill Huber’s purpose of improving
today for a better tomorrow.
Our Huber Engineered Woods business derives over 60%
of its manufacturing energy demands from the bark,
sander by-products, and other wood-derived streams. HEW
also installed LED lighting and variable frequency drives (which make electric motors more efficient by adjusting
their speed to match output requirements) at several of its
plants to reduce energy usage.
As a testament to our long-term sustainability planning, in 2020,
Huber’s Board of Directors approved an investment of approximately $92 million
in a new power plant at the Huber Engineered Materials
Martinswerk plant, our largest manufacturing site in Bergheim,
Germany. The project will change the plant’s power
source from coal to natural gas, which will reduce its carbon emissions by approximately 40%—and the entire Huber
enterprise’s emissions by 8%—by 2023.
At CP Kelco, we initiated some of our largest-ever
plant expansions and reconfigurations at our sites
in Okmulgee, Oklahoma, and Wulian, China. These
investments, coupled with ongoing continuous
improvement projects, will significantly lower the energy
consumed to make our biogum products.
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Huber Helps has made a consequential difference
to communities around the world in four key areas
of focus: affordable housing, humanitarian relief,
environmental protection and education and
wellness. As part of our commitment to community
engagement, we have pledged to donate 1% of our
operating net income annually toward helping people
and the planet. We do this in a variety of ways.
The Impact Your Community Funding program
aims to contribute to projects that can benefit a
community for multiple years or generations. The
goal is to support initiatives that offer Huber the
opportunity to leave a lasting legacy in a way that
smaller contributions may not, particularly when the
need exceeds a local site’s community engagement
budget.
Huber’s strategic partnership with Habitat for
Humanity International is the signature initiative
to support affordable housing within the Huber
Helps program. The partnership includes an annual
$250,000 cash donation, as well as a pledge to
provide $250,000 worth of Huber Engineered Woods
products every two years.
HEW also donates materials to the R.I.S.E. (Restoring
Independence and Supporting Empowerment)
program. Created by actor Gary Sinise as part of
the Gary Sinise Foundation, R.I.S.E. builds 100%
mortgage-free specially adapted smart homes for
America’s most severely wounded military veterans
and first responders and their families.
The Huber Family Nickel-A-Share Program allows
Huber shareholders to designate one or more
charitable organizations to receive a donation from
the Company. The amount of the donation is based
on the number of shares owned.
In total, Huber Helps donated over $1.8 million to
charitable causes around the world in 2020. This
includes cash donated by J.M. Huber Corporation and
its portfolio businesses, participation in Company-
sponsored US matching gifts programs and product
donations made to a variety of organizations by
Huber Engineered Woods. It also includes more
than $100,000 that was directed towards charities
supporting the needs of community members
impacted by the COVID-19 pandemic.
Community Impact & Philanthropy
During the COVID-19 pandemic, employees in Qingdao, China, supported the reopening efforts of Zhiyuan, one of the area’s largest public schools. The HEM team purchased sporting goods and disinfecting gel, a $1,000 donation they facilitated through the Qingdao
Huangdao Red Cross.
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Refers to the business practices and projects carried out to ensure
the economic and physical well-being and positive development of communities with which a company interacts. Our Company pursues these goals through the Huber
Helps initiative.
Community Impact
& Philanthropy
2020 GIVING HIGHLIGHTS
$122,000COVID-19 RESPONSE
Huber Helps directed $122,000 to communities
around the world to address COVID-19-related needs such
as health care equipment.
Employees at each Huber location globally were invited to select local organizations to receive donations ranging from $1,000-$5,000. Huber family members contributed $48,000 to the US-based charities that were selected. Additionally, Huber recommended four of these organizations to CoBank, Huber’s US-Farm Credit partner organization, to receive $7,500 as part of its “Sharing Success Program.”
$500,000HABITAT FOR HUMANITY
Huber entered the third year of its strategic partnership
with Habitat for Humanity International.
The agreement includes an annual $250,000 cash donation by Huber and a pledge to provide $250,000 worth of Huber Engineered Woods products every two years.
The third Huber House was built in Livingston, New Jersey, near Huber’s Edison headquarters.
$392,000IMPACT YOUR COMMUNITY FUNDING
This program supports community initiatives that are larger and more long-term in scope than those that can be supported through local plant site community engagement
budgets.
During the fourth quarter, Huber Helps received 20 requests for funding from employees around the world and distributed a total of $392,000 to:
• Conewago Valley Foundation for Education (Hanover, Pennsylvania) Construction of a greenhouse for use by the local school district in an Agricultural Education Program
• Grace Discovery Center (Bauxite, Arkansas) Creation of a natural play area for by use children from local communities and schools
• Boys & Girls Clubs of Red River Valley of Oklahoma (Broken Bow, Oklahoma) Construction of a new facility with appliances, games, furnishings and Wi-Fi access for underprivileged children
• Musicians for Education (San Diego, California) One year of funding for the Street of Dreams project, an arts education and college bridge program for local teen mothers at risk
• Shanghai Young Bakers (Shanghai, China) One year of funding for the 2021 educational program that provides one-year, high-quality training course in baking and pastry preparation to marginalized youths
• Boys & Girls Clubs of the Danville Area (Crystal Hill, Virginia) Renovation of the Teen Center and provide technology upgrades to support Internet use in building
Two additional projects were funded by CP Kelco and Huber Engineered Woods, totaling $35,000:
• Okmulgee Robotics Competition (Okmulgee, Oklahoma) Renewal of the competitive high school robotics competition program in support of the Okmulgee School System STEM program
• Cossatot Fire Department (Broken Bow, Oklahoma) Upgrade the facilities and equipment of the local fire department
44 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Huber Wins IMD-Pictet Sustainability in
Family Business AwardThe International Institute for Management
Development (IMD), a prestigious Swiss business
school and the Pictet Group, a global wealth
management company, awarded Huber the 2020
IMD-Pictet Sustainability in Family Business Award on
June 24, 2021.
This accolade acknowledges family-owned enterprises
that stand out for their efforts, performance and
progress in the area of sustainability. More than 60
international family businesses from four continents
were considered for this significant global award.
In selecting Huber as the winner, the jury of
independent experts was impressed by how we have
deeply embedded sustainability into our business
strategy, including Triple Bottom Line considerations
related to things like new product development, large
capital projects, Diversity, Equity & Inclusion and
community engagement. The jury also appreciated
how Huber celebrates its sustainability performance
as part of the Mike Huber and Outstanding EHS&S
Awards. Finally, the jury acknowledged Huber’s
successful integrated global response to the
COVID-19 crisis.
Respecting the environment, treating employees well
and being a good neighbor in the communities where
Huber operates have all been part of the Company’s
DNA since its founding in 1883. Our Sustainability
Strategy both reflects and strengthens these goals.
This is not the first time Huber has received
recognition for its resilience, sustainability and
legacy. Northwestern University’s Kellogg Center
for Family Enterprises awarded Huber the Kellogg
Family Enterprise Leadership Award in 2018, which
recognizes effective communications between family
members and the Company, as well as the family’s
guidance and mentoring of younger generations.
Previously, Huber received IMD’s Global Family
Business Award for 2013, one of the most prestigious
honors for a family business.
“The Huber family feels a deep sense of responsibility to be a positive force in the world,
caring for our people and our planet; mindful that our responsibility is not just to our stakeholders
today but those who come after us.”
Molly Heaney 5th Generation Huber Family Member, Huber Corporate Board
Director and Chair of the EHS&S Board Committee
EH&S SUSTAINABILITY
Deloitte, a renowned global professional services
firm, named J.M. Huber Corporation to its list of Best
Managed US Companies for two consecutive years
since the program’s establishment in the US in 2019.
This award—which recognizes excellence among
private companies based on their superior strategy,
execution, culture and financial results—was an
acknowledgement of Huber’s exceptional company
culture, high-performing teams and rigorous
management processes. These attributes reflect
Huber’s efforts to measure our sustainability and
societal impact through Environmental, Social &
Governance factors—an approach that proved
especially critical in countering serious threats in the
last year, most notably the COVID-19 pandemic.
Created to shine a light on the power of private
companies and honor the top performers, the
Deloitte Best Managed Company program evaluates
organizations against four key criteria in management
skills and practices: our management processes
with respect to strategic planning, operational
execution, risk mitigation and financial management.
It also centered on Huber’s culture and values, with
special emphasis on things like our Triple Bottom
Line sustainability philosophy, the Diversity, Equity &
Inclusion initiative I Belong at Huber and the Huber
Helps community engagement program.
The judges were impressed by Huber’s heightened
focus on innovation, strong talent development
programs and the high level of morale and
engagement among our employees. Huber’s
Portfolio Management Company structure and robust
corporate governance process were also important
factors in Deloitte’s selection of Huber as one of the
US Best Managed Companies.
The Best Managed Company program was initiated
by Deloitte in 1993 in Canada. Private companies
have now been recognized by Deloitte in more than
20 countries, including Germany, China and Denmark.
To be considered for the US award, eligible private
companies must have at least $250 million in annual
revenue. In total, over 500 private US companies
entered the Deloitte evaluation process, but the
panel of judges selected only 27 as winners of a
Best Managed Company award. Other well-known
honoree companies include Discount Tire, Sun-Maid
Growers of California, Nova Chemicals, Inc. and
Topgolf Entertainment Group. Huber was one of just
five winners from the industrial manufacturing sector.
As part of the recognition, Huber was featured along
with the other award winners in a half-page section of
The Wall Street Journal.
This accolade was made possible by the Company’s
strong management teams and dedicated employees
throughout the corporation living by the Huber
Principles and balancing People, Planet & Profit
considerations in critical business decisions.
Despite the uncertainty of the COVID-19 pandemic,
major challenges and immense pressure, Huber
continued to lead with purpose and make significant
contributions to our industries, communities,
workforces and the economy.
Best Managed Companies Award
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EXCELLENCE
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Mike Huber Awards 2020
As Huber’s highest form of employee recognition, the Mike Huber Awards honor
teams that demonstrate exemplary performance with respect to the Huber
Principles. The program observed its 10th anniversary during an unprecedented
year. As such, the Huber Management Council strongly encouraged project
submissions that reflected efforts to protect employee safety and/or maintain
business continuity amid the COVID-19 pandemic.
The 2020 program received 59 entries that showed how Huber people around the
world collaborate to make a significant, positive difference. One team was honored with a
gold-level award and three others tied for silver.
GOLD: Huber COVID-19 Incident Response Team Huber Corporate, CP Kelco, Huber Engineered Materials and Huber Engineered Woods
The cross-functional and global Huber Incident
Response Team for COVID-19 formed on January 22,
2020, and was guided by all four Huber Principles.
Taking a data-driven approach, the IRT collaborated
with leaders and locations to develop pandemic safety
protocols that kept manufacturing plants operational
and helped Huber avoid any significant spread of
COVID-19 at its locations.
Because of the swift implementation of enabling
technologies, about 1,000 employees were able to
productively work remotely and stay engaged with
each other, the Huber locations they support and
customers throughout the pandemic. The team led
the development of labor and pay practices to protect
employees financially, also providing flexibility to allow
employees to take care of their families. Frequent
communications demonstrated caring by keeping
employees well informed about safety protocols and
the Company’s response.
Representatives from the Gold-winning team were
invited to give a presentation on their efforts during
the Annual Shareholder meeting, demonstrating this
incident response program’s significance to the Huber
family members as well as the J.M. Huber Corporation
Board of Directors.
The global Huber IRT used various tools to keep employees safe, from a daily health screening to posters to sharing best practices.
47 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
SILVER: Virtual Experience: Leveraging Digital Marketing Capabilities to Reach Customers During COVID-19 CP Kelco
Given limitations on travel,
cancellations of tradeshows and
large-scale meetings, CP Kelco’s
global Marketing Communications
team quickly shifted promotional
efforts away from in-person
platforms. The team leveraged new in-house
technologies, social channels and a Virtual Experience
platform to reach existing customers and distributor
partners, increase awareness with targeted potential
customers and to keep these audiences engaged—
without putting employees or others risk.
This project demonstrated the Principles of
Excellence and Respect for People. Being agile
enabled CP Kelco to maintain consistent connectivity
with customers to provide up-to-date product
innovations, encourage open lines of communication,
provide updates on our response to COVID-19 and
maintain productive interactions despite not being
able to do so face-to-face.
SILVER: Early COVID-19 Actions Deliver Excellent Results Huber Engineered Materials
The early, quick and well-
coordinated effort of IT, Human
Resources, EHS&S and Operations
enabled HEM to maintain global
operations. Guided by all four
Huber Principles, these teams
collaborated to provide necessary support to enable
all HEM employees to work safely and flexibly.
Within two weeks, the IT team moved all HEM
functional activities to remote access. Leaders
used Zoom to increase communications with each
other and employees. The HR team developed pay
practices to isolate suspected illness from the general
site population and alleviate the stress of lost pay
within the employee ranks.
Despite declining end markets, HEM did not furlough
or lay off employees—production slowdowns were
instead used for training and continuous improvement
efforts. In addition to enhanced employee safety
protocols, the EHS&S and Operations teams
established procedures to manage hundreds of daily
shipments and third parties who were required to be
on site.
SILVER: The year of COVID-19: Charlotte Office and Innovation Center Huber Engineered Woods
The HEW leadership team worked
with the HMC, Huber IRT and HEW
site level IRTs, HR, EHS&S Team and
with various members from other
Huber portfolio businesses. In line
with all the Huber Principles, HEW
developed and implemented action plans to protect
employee wellbeing and maintain business continuity.
Increased communications and enhanced safety
protocols were implemented throughout the
organization. HEW and Huber Corporate distributed
pulse surveys to the operating sites and the Charlotte
office to assess employees’ comfort with Huber’s
pandemic protocols. HEW enabled flexibility by
accommodating individual circumstances related to
recognized health risk factors as well as childcare
considerations.
During this period, the Charlotte office also
completed a major remodeling effort that
dramatically improved the work environment.
EH&S SUSTAINABILITY
As one way to foster a strong Environment, Health, Safety & Sustainability (EHS&S) culture, Huber organizes
an internal award program for Outstanding EHS&S Performance. Each year, the top manufacturing sites are
recognized for demonstrating a strong commitment to achieving superior EHS&S results through continuous
learning and improvement.
HONOREES FOR THE 2020 PROGRAM:
Outstanding EHS&S Performance
CRYSTAL HILL, VIRGINIA
Approximately 160 employees at this Huber
Engineered Woods mill manufacture
AdvanTech® subflooring and ZIP System® roof and wall sheathing for residential buildings. They demonstrated EHS&S leadership
by incorporating TBL considerations in the development of both
small and large plant projects.
WULIAN, CHINA
Our largest Asian facility manufactures
key fermentation-derived ingredients for the global food,
beverage and energy industries. CP Kelco’s nearly 240 employees had a year of notable safety performance,
especially considering the presence of over
300 contractors during a large and complex expansion project.
QUINCY, ILLINOIS
About 180 employees at HEM’s facility in Quincy mine
and refine calcium carbonate for use in paints and coatings, carpet, adhesives,
nutritional applications and numerous
other consumer products. Quincy made remarkable
improvements in its safety performance and
culture in 2019 and built upon that
foundation in 2020.
MARBLEHEAD, ILLINOIS
One of the smallest sites in Huber
Engineered Materials, the approximately
30 employees at the Marblehead facility produce alumina
trihydrate for flame retardants and smoke
suppressants for use in plastic and rubber products. Demonstrating
significant EHS&S leadership, the plant began construction of Huber’s first-ever industrial scale solar
energy project.
LIMEIRA, BRAZIL
With more than 210 employees, CP Kelco’s
largest foodgums facility in South
America manufactures pectin, which is
derived from citrus fruit peel and used as a gelling agent,
viscosity builder and stabilizer in a variety
of food and beverage products. Limeira has a strong safety
culture, evidenced by the fact that the plant recorded zero process
safety management incidents, extending this performance for
nearly 10 years.
48 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
Provided support to their local communities through the
Huber Helps initiative. These efforts included
support for COVID-19
relief, as well as education and wellness
programs.
Maintained occupational safety, with zero high-energy incidents, as well as no process safety incidents.
Engaged employees to find site-specific ways to improve working conditions,
reduce energy and water use intensity compared to their 2017 baselines, and to produce less waste. At the end of 2020, 11 of Huber’s 21 sites (including four of those named “Outstanding”) achieved
waste diversion rates between 90-100%, which qualified them as Zero Waste-to-
Landfill facilities.
Based on their results and accomplishments, these sites clearly exemplify what it means to
achieve world-class EHS&S results. While each of the facilities achieved unique, site-specific
objectives, a few commonalities emerged:
By applying best practices in critical areas such as reducing Huber’s environmental footprint, reducing safety
risks, instilling a positive employee safety culture and establishing a Triple Bottom Line approach for capital
expenditures, these sites serve as models for world-class EHS&S performance to employees at Huber’s 21
production facilities around the world.
49 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
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Reporting Platforms Overview
Huber utilizes the Supplier Ethical Data Exchange (Sedex) platform as a supplier to provide transparency to customers regarding our responsible, social and environmental manufacturing practices through self-assessments and SMETA (Sedex Mender Ethical Trade Audit) results. CP Kelco currently has six manufacturing sites registered with Sedex and Huber Engineered Materials has one. We currently use this platform to provide transparency to 39 Huber customers. Our buyers also use Sedex as a tool to gain insight into the responsible, social and environmental manufacturing practices of our own supply chain. Huber is currently connected to 65 active supply chain partners (91 manufacturing facilities) in the platform.
Using international sustainability standards covering 200+ industries and 160+ countries, the EcoVadis platform assesses an organization’s Environmental, Labor & Human Rights, Ethics and Sustainable Procurement practices. Huber is an active supplier on the platform. In February 2020, Huber received a Bronze rating from EcoVadis. Huber is continuing to look for ways to strengthen our supply chain sustainability and resiliency by using the EcoVadis platform.
For 10 years, Huber has reported to the CDP, a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. In 2020, Huber was recognized as Management Level and achieved a “B” score for our Climate Change disclosure. Huber’s score exceeds the average performance of the chemical industry (“C”) and North American businesses as a whole (“D”). Huber received an “A” in Risk Management Processes, Emissions Reduction Initiatives and Governance.
These high scores from one of the gold standards of third-party environmental performance ratings signify that Huber is taking coordinated and appropriate action on climate issues.
At Huber, we believe that transparency builds trust and accountability, which contribute to driving real
improvement and change. Huber is committed to continuous improvement across all sustainability issues. By
being transparent about our sustainability efforts, we demonstrate that the organization takes appropriate
actions when assessing and responding to near- and long-term climate-related risks, showing our commitment
and resiliency to all of our stakeholders.
51 | 2020 LIVING BY THE HUBER PRINCIPLES ANNUAL REPORT © 2021 J.M. HUBER CORPORATION
DIVERSITY, EQUITY &
INCLUSION
Workers from diverse groups employed in relation
to the whole organization*:
42.9%
Workers from diverse groups in top
executive positions*: (excluding boards of directors)
Directors from diverse groups* on the Huber Board
and Management Boards: (voting Directors only)
30.5% 35.3%
Women employed in relation to the whole
organization:
20.4%
Women in top executive positions:
(excluding boards of directors)
Women on the Huber Board of Directors and Management Boards:
(voting Directors only)
23.6% 14.7%
ESG-Related Metrics
CLIMATE & WATER
2020 total Energy consumption
5,368,743 megawatt-hours
2020 total Water consumption
10,465,595 cubic meters
(2,765 million gallons)
2020 Scope 1 emissions (direct greenhouse gas emissions from our
manufacturing processes)
745,879 metric tons
2020 Scope 2 emissions (indirect greenhouse gas emissions associated with purchased energy)
410,663 metric tons
Huber is committed to transparency in reporting. These metrics are related to our
2020 production processes, including our demographic representation within various
levels of the Company, energy and water usage, and waste disposition.
*We focus on diversity as a whole, not only US minority status, as race/ethnic information is not necessarily recorded internationally. These metrics consider diversity as US minorities plus women worldwide (minority women are only counted once).
2020 AT A GLANCE
CIRCULARITY
NON-HAZARDOUS WASTE
HAZARDOUS WASTE
64% Byproduct/reuse 345,669 Metric tons
23% Waste-to-energy 126,480 Metric tons
1,202 Metric tons
9% Landfilled 47,323 Metric tons
4% Recycled 19,687 Metric tons
CLIMATE AND WATER STRATEGY CIRCULARITY
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J.M. Huber Corporation Atlanta, Georgia, US — Corporate Office
Edison, New Jersey, US — Global Headquarters
Dublin, Ireland — JMH Finance Corporation
CP KelcoAtlanta, Georgia, US — Global Headquarters, Global Innovation Center, Regional Application Lab
AMERICAS
Buenos Aires, Argentina — Office
Houston, Texas, US — Kelco Oil Field Group, Global Oilfield Application Lab
Limeira, São Paulo, Brazil — Manufacturing (Pectin), Customer Service, Regional Application Lab, Global Innovation Center
Matão, São Paulo, Brazil — Manufacturing (Citrus Fiber), Citrus Peel Processing (Pectin, Citrus Fiber)
Mexico City, Mexico — Office
Okmulgee, Oklahoma, US — Manufacturing (Xanthan Gum, Gellan Gum)
San Diego, California, US — Manufacturing (Xanthan Gum, Gellan Gum, Fermentation Derived Cellulose), Global Innovation Center (Process R&D)
EUROPE, MIDDLE EAST AND AFRICA
Aberdeen, Scotland, UK — Kelco Oil Field Group
Dubai, United Arab Emirates — Sales, Customer Support, Regional Application Lab
Genk, Belgium — Sales
Grossenbrode, Germany — Manufacturing (Pectin), Customer Support
Leatherhead, Surrey, UK — Customer Support, Sales
Lille Skensved, Denmark — Manufacturing (Pectin, Carrageenan, Refined LBG), Customer Service, Global Innovation Center, Regional Application Lab
Moscow, Russia — Sales
Nijmegen, The Netherlands — Office
Paris, Levallois-Perret, France — EMEA Region Headquarters, Customer Support
Poznan, Poland — Sales
Zanzibar, Tanzania — Seaweed Procurement
ASIA PACIFIC
Mumbai, India — Sales, Customer Service Technology/Regional Application Lab
Seoul, Korea — Sales
Shanghai, China — Asia Pacific Region Headquarters, Customer Service Technology/Regional Application Lab
Singapore — Sales, Customer Service, Regional Applications Lab
Tokyo, Japan — Sales, Customer Service
Wulian, Shandong, China — Manufacturing (Xanthan Gum, Diutan Gum, Gellan Gum)
Huber Engineered MaterialsAtlanta, Georgia, US — Global Headquarters
AMERICAS
Bauxite, Arkansas, US — Manufacturing (Huber Specialty Hydrates)
Fairmount, Georgia, US — Manufacturing and Technical Center (Fire Retardant Additives, FRA)
Hanover, Pennsylvania, US — Manufacturing, Sales (Specialty Agricultural Solutions, SAS)
Kennesaw, Georgia, US — Manufacturing (FRA)
La Mirada, California — Manufacturing (Ground Calcium Carbonate, GCC)
Marble Falls, Texas, US — Manufacturing (GCC)
Marble Hill, Georgia, US — Manufacturing (GCC)
Marblehead, Illinois, US — Manufacturing (FRA)
Quincy, Illinois, US — Manufacturing (GCC)
EUROPE
Bergheim, Germany — Manufacturing (FRA)
ASIA PACIFIC
Qingdao, Shandong, China — Office (FRA)
Shanghai, China — Office
Huber Engineered WoodsCharlotte, North Carolina, US — Headquarters
Broken Bow, Oklahoma, US — Manufacturing
Commerce, Georgia, US — Manufacturing, Innovation Center
Crystal Hill, Virginia, US — Manufacturing
Easton, Maine, US — Manufacturing
Spring City, Tennessee, US — Manufacturing
Huber Resources CorpOld Town, Maine, US — Headquarters
Huber Operations Around the World